Document:

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                                  EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

      Quotesmith.com, Inc., a Delaware corporation (the "Company") and Phillip
A. Perillo ("Executive") enter into this Employment Agreement as of December 19,
2002 (the "Agreement"), effective as of January 1, 2003 (the "Effective Date").
It cancels and replaces the previous employment agreement dated May 22, 2002.

      WHEREAS, both the Executive and the Company are willing to enter into this
Agreement upon the terms and conditions herein set forth;

      NOW THEREFORE, in consideration of the mutual covenants and agreements set
forth in this Agreement, and for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company and Executive
hereby covenant and agree as follows:

                               TERM OF EMPLOYMENT.

      The Company shall employ Executive, and Executive shall be employed by the
Company for the period that begins effective as of January 1, 2003 and ends on
December 31, 2003 or such earlier date as Executive's employment terminates
under Section 4 of this Agreement (the "Employment Term").

      After expiration of the initial term, as set forth herein, the Employment
Term shall be renewed each January 1 for successive one-year terms unless the
Company or Executive delivers written notice to the other party at least sixty
(60) days preceding the expiration of the initial term or any one-year extension
date of the intention not to extend the term of this Agreement.

                             PERFORMANCE OF DUTIES.

      Executive shall have the title of Senior Vice President, Chief Financial
Officer. Executive will report to the Company's President and Chief Executive
Officer, or such other officer as the Board of Directors may direct. Executive
will have such powers and perform such duties as are normally incident to the
position of Vice President as provided in the Company's by-laws and in
accordance with applicable law, and as may be reasonably assigned by the
Company's President and Chief Executive Officer. Executive will discharge his
duties subject to and in observance of such rules, regulations, policies,
directions and restrictions as may be established from time to time by the
Company.

      Throughout the Employment Term, Executive shall devote his entire full
business time, attention, knowledge and skills, faithfully, diligently and to
the best of his ability, to the active performance of his duties and
responsibilities hereunder, and do such traveling as may reasonably be required
in connection with the performance of such duties and responsibilities.

                                  COMPENSATION.

BASE SALARY. For services rendered by Executive to the Company during the
Employment Term the Company will pay Executive an annual base salary payable in
monthly or more frequent installments, in accordance with the usual payroll
practice of the Company in an amount equal to $175,000 (the "Base Salary"), less
income tax withholdings and other normal employee deductions. The Base Salary
shall not be decreased during the Employment Term but may, at the sole
discretion of the Company, from time to time be increased by an amount which the
Company deems appropriate.

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BONUS. At the reasonable determination and sole discretion of the Board, the
Executive shall be eligible to receive periodic performance-based bonuses based
upon the factors reasonably chosen by the Board, including, without limitation,
the profitability of the Company and performance of, or contribution by,
Executive with respect thereto. Such bonus(es) shall be payable within thirty
(30) days after the end of the fiscal year in which it is earned.

STOCK OPTIONS. Executive shall be granted options to purchase 25,000 shares of
Quotesmith.com, Inc. common stock. Such options will vest and become exercisable
on May 22, 2005, and will be priced consistent with the terms of the Stock
Option Plan. VACATION. Executive will be entitled to take, at such times as are
mutually convenient to Executive and the Company, a total of three (3) weeks of
paid vacation annually in accordance with the Company's policy.

FRINGE BENEFITS. The Company shall make available to Executive, throughout the
Employment Term, such benefits and perquisites as are generally provided by the
Company to its executive employees. Executive shall be eligible to participate
in and receive coverage and benefits under all group insurance, stock ownership
and other employee benefit plans, programs and arrangements of the Company which
are hereafter adopted by the Company for the benefit of its senior executive
employees, subject to and on a basis consistent with the terms, conditions and
overall administration of such plans, programs and arrangements, except that the
Company will pay 90% of the premium cost of insuring the Executive and his
dependents in the Company's health insurance plan.

BUSINESS EXPENSES. The Company shall reimburse Executive for the reasonable and
necessary business expenses incurred by Executive in connection with the
performance of his employment duties during the Employment Term. Such expenses
shall include, but are not limited to, all expenses of travel and living
expenses while away from home on business or at the request of and in the
service of the Company, provided that such expenses are incurred and accounted
for in accordance with the policies and procedures established by the Company.
Reimbursement shall be made upon the presentation by Executive to the Company of
reasonably detailed statements of such expenses.

                                  TERMINATION.

WITH OR WITHOUT CAUSE FOR ANY REASON OR NO REASON. This Employment Agreement may
be terminated at any time at the option of the Company or the Executive with or
without cause for any reason or no reason. As used in this Agreement, the term
"Cause" means: (i) executive's conviction of, or plea of nolo contendere to, a
felony; (ii) Executive's breach of any duty of loyalty to the Company,
misappropriation of the Company's funds, or dishonest, fraudulent, illegal or
unethical business conduct; (iii) Executive's failure to satisfactorily perform
his duties under this Agreement, which failure continues after notice from the
Company and a cure period of 30 days; (iv) Executive's breach of any obligations
provided in this Agreement; (v) Executive's illegal use of controlled
substances, (vi) any material breach of this Agreement by the Executive (other
than one identified above) which shall continue after notice from the Company
and a reasonable cure period. Termination for Cause shall be effective
immediately for those events described in subparagraphs (i), (ii), (iv), and
(v). Termination for Cause shall be effective immediately upon the giving of
notice by the Company to Executive of the continuance of Executive's failure to
perform or comply with respect to the items described in subparagraph (iii)
above or the continuance of a breach described in subparagraph (vi) above. In
the event that the Executive is purportedly terminated for cause and a court,
arbitrator, or other tribunal having jurisdiction determines that Cause was not
present, then such purported termination for Cause shall be deemed a termination
without Cause pursuant to this section.

DEATH. This Employment Agreement shall terminate automatically effective upon
the death of Executive.

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DISABILITY. This Employment Agreement shall terminate automatically effective
upon Notice of Termination to Executive (or such later date as may be specified
in such notice) following a determination by the Board of Directors that the
Executive is unable to perform, onsite, the essential functions of his
employment position due to a disability of Executive that cannot be reasonably
accommodated by the Company.

TERMINATION BY EXECUTIVE. Executive may terminate the Employment Term upon
written Notice of Termination to the Company delivered in person to the Company
president at least 60 days before the effective date of such termination. In the
event of termination by Executive, Executive agrees to notify company president
personally and confidentially prior to providing such notification to any other
Company employee or person outside of the Executive's immediate family and legal
adviser.

NOTICE OF TERMINATION. Any termination of the Employment Term by the Company or
by Executive (other than termination upon Executive's death) shall be
communicated by written Notice of Termination to the other party hereto with no
less than 60 days' prior notice. For purposes of this Agreement, a "Notice of
Termination" shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Employment Term under the section so indicated.

TERMINATION DISPUTES. If, within 7 days after any Notice of Termination is
given, the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the termination, the Date of Termination shall
be the date on which the dispute is finally determined, either by mutual written
agreement of the parties, by a binding and final arbitration award or by a final
judgment, order or decree of a court of competent jurisdiction (the time for
appeal therefrom having expired and no appeal having been perfected).

NO FURTHER LIABILITY UPON TERMINATION WITH OR WITHOUT CAUSE FOR ANY REASON OR NO
REASON. If the Employment Agreement is terminated by the Company or the
Executive for any reason or no reason, the Company shall have no further
liability, financial or otherwise, under this Agreement except to pay Executive
(i) the value of any accrued salary or other compensation due to Executive as of
the effective date of such termination, and (ii) any benefit payable under the
employee benefit plans, programs and arrangements of the Company in which
Executive is a participant on the date of delivery of the Notice of Termination.

COMPENSATION UPON DEATH. If the Employment Term is terminated by the death of
the Executive, the Company shall have no further liability under this Agreement
except to pay Executive (i) the value of any accrued salary, or other
compensation due to Executive as of the date of the Executive's death, and (ii)
any benefit payable under all employee benefit plans, programs and arrangements
of the Company in which Executive is a participant on the date of his death.

COMPENSATION UPON DISABILITY. If the Employment Term is terminated by the
Company due to Executive's disability, the Company shall have no further
liability under this Agreement except to pay Executive (i) the value of any
accrued salary or other compensation due to Executive as of the effective date
of such termination, and (ii) any benefit payable under the employee benefit
plans, programs and arrangements of the Company in which Executive is a
participant on the date of delivery of the Notice of Termination, provided,
however, that in the event Executive is paid disability benefits under any
disability benefit plan of the Company in which he participates, any salary
payments made to Executive during such period shall be reduced by the sum of
such amounts.

CHANGE OF CONTROL Within three months preceding or twelve months following a
change of control, as defined below, should the Executive's employment be
terminated without cause, or should the Executive be assigned duties or
responsibilities that are inconsistent with his authority, duties and
responsibilities as Chief Financial Officer of the Company, or should the
Executive be transferred to a location which is an unreasonable distance from
the principal executive office of the Company, the Executive shall be entitled
to receive, and the Company shall be obligated to pay, an amount equal to two
years base salary and bonus at the current targeted amount. Additionally, all
stock options held by the Executive shall be deemed to be vested and immediately
exercisable. Payment of such salary and bonus shall be made within thirty days
of the Company receiving notice from the Executive that such payment under this
section is due, and, along with the immediate vesting of all stock options,
shall constitute a complete discharge of all obligations of the Company to the
Executive, except that Executive shall continue to be bound by Sections 5 and 6
hereof. As used herein, a "change of control" of the Company shall be deemed to
have occurred if any person, group or company, other than Robert Bland and
William Thoms, shall at any time beneficially own shares of Common stock of the
Company which represent in excess of 50% of either (a) the total votes entitled
to be cast by all outstanding shares of Common stock of the Company or (b) all
outstanding shares of Common stock of the Company.

                            CONFIDENTIAL INFORMATION.

DISCLOSURE AND USE. Executive shall not disclose or use at any time, either
during or after Executive's employment with the Company or any other direct or
indirect subsidiary of the Company (collectively referred to herein as the
"Company"), any trade secrets or other confidential information, whether
patentable or not, of the Company, including but not limited to, technical or
non-technical data, a formula, pattern, compilation, program, device, method,
technique, drawing, process, financial data, or list of actual or potential
customers or suppliers, of which Executive is or becomes informed or aware
during his employment, whether or not developed by

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Executive, except (i) as may be required for Executive to perform his employment
duties with the Company; (ii) to the extent such information has been disclosed
to Executive by a third party who is not subject to restriction on the
dissemination of such information or becomes generally available to the public
other than as a result of a disclosure by a party who is not subject to
restriction on the dissemination of such information; (iii) information which
must be disclosed as a result of a subpoena or other legal process, after the
Company has had the opportunity to request a suitable protective order for such
information, or (iv) unless Executive shall first secure the Company's prior
written authorization. This covenant shall survive the termination of
Executive's employment with the Company, and shall remain in effect and be
enforceable against Executive for so long as any such Company secret or
confidential information retains economic value, whether actual or potential,
from not being generally known to other persons who can obtain economic value
from its disclosure or use. Executive shall execute such reasonable further
agreements of Executive's obligations to the Company concerning non-disclosure
of Company trade secrets and confidential information as the Company may require
from time to time. RETURN OF MATERIALS. Upon termination of the Employment Term,
Executive (or in the event of termination due to Executive's death, his estate
or devisee, legatee or other designee, as applicable) shall promptly deliver to
the Company all assets of the Company, including materials of a secret or
confidential nature relating to the Company's business, which are in the
possession or under the control of Executive.

                           INVENTIONS AND DISCOVERIES.

      Executive hereby assigns to the Company all of his rights, title and
interest in and to all inventions, discoveries, processes, designs and other
intellectual property, including without limitation, copyrights, patents,
trademarks and trade names (hereinafter referred to collectively as the
"Inventions"), and all improvements on existing Inventions made or discovered by
Executive during the Employment Term. Promptly upon the development or making of
any such Invention or improvement thereon, Executive shall disclose the same to
the Company and shall execute and deliver to the Company such reasonable
documents as the Company may request to confirm the assignment of Executive's
rights therein and, if requested by the Company, shall assist the Company in
applying for copyrights and trademark protection and in applying for and
prosecuting any patents which may be available for said Invention or
improvement. The Company acknowledges and hereby notifies Executive that this
section 6 does not apply to an Invention for which no equipment, supplies,
facility or trade secret information of the Company was used and which was
developed entirely on Executive's own time, unless (a) the Invention relates to
(i) the business of the Company, or (ii) the Company's actual or demonstrably
anticipated research or development, or (b) the Invention results from any work
performed by Executive for the Company.

                             RESTRICTIVE COVENANTS.

      RESTRICTION ON COMPETITION. During the Employment Term and for a one-year
period following the Employment Term, Executive shall not, without the prior
written authorization of the Board of Directors of the Company, directly or
indirectly render services of a business, professional or commercial nature
(whether for compensation or otherwise) to a broker of personal lines insurance
or engage in any activity whether alone, as a partner, or as an officer,
director, employee, consultant, independent contractor, or stockholder in any
other corporation, person, or entity which is a personal lines insurance broker.

      RESTRICTION ON EMPLOYEE SOLICITATION. During the Employment Term and for a
one-year period following the Employment Term, Executive shall not employ or
attempt to employ or assist anyone else to employ any person who is at such
time, or at any time during the preceding year was, an employee of or consultant
to the Company. As used in this section 8, the verb "employ" shall include its
variations, for example, retain, engage or conduct business with; the term the
"Company" shall include subsidiaries or affiliates, if any, of the Company.

      REASONABLE SCOPE AND TIME. The parties acknowledge that the time, scope,
and other provisions of this Agreement have been specifically negotiated by the
parties and agree that all such provisions are reasonable under the
circumstances and are given as an integral and essential part of Executive's
employment hereunder. In the event that any covenant contained in this Agreement
is determined by any court of competent jurisdiction to be unenforceable by
reason of its extending for too great a period of time or by reason of its being
too extensive in any other respect, it shall be interpreted to extend only over
the maximum period of time for which it may be enforceable and to the maximum
intent in all other respects as to which it may be enforceable, all as
determined by such court in such action.

                                  SEVERABILITY.

      If any provision of this Agreement is held invalid or unenforceable,
either in its entirety or by virtue of its scope or application to given
circumstances, such provision shall thereupon be deemed (i) modified only to the
extent necessary to render it valid, or (ii) not applicable to given
circumstances, or (iii) excised from this

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Agreement, as the situation may require, and this Agreement shall be construed
and enforced as if such provision had been included herein as so modified in
scope or application, or had not been included herein, as the case may be.

                            ARBITRATION OF DISPUTES.

      Any controversy or claim arising out of or relating to this Agreement, or
the breach of this Agreement, (other than a controversy arising out of or
relating to Sections 5, 6, 7 or 8 hereof), shall be settled by arbitration in
Chicago, Illinois, conducted in accordance with the American Arbitration
Association Commercial Arbitration Rules by an independent arbitrator chosen by
mutual consent and agreement of both parties. Either the Company or Executive
may institute such arbitration proceeding by giving written notice to the other
party. The decision of the arbitrator shall be final and binding upon both
parties hereto. Judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof.

                                  ENFORCEMENT.

      Executive hereby acknowledges that the Company would suffer irreparable
injury if the provisions of sections 6, 7, and 8 herein, which shall survive the
termination of this Agreement, were breached and that the Company's remedies at
law would be inadequate in the event of such breach or threatened breach.
Accordingly, Executive hereby agrees that any such breach or threatened breach
may, in addition to any and all other available remedies (including those
remedies provided in section 10), be preliminarily and permanently enjoined in a
court of law or equity by the Company without bond.

                               GENERAL PROVISIONS.

NOTICES. ANY NOTICE, REQUEST, DEMAND OR OTHER COMMUNICATION REQUIRED OR
PERMITTED TO BE GIVEN HEREUNDER SHALL BE IN WRITING AND DELIVERED OR SENT BY
E-MAIL, REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY A
FACSIMILE, TELEGRAM OR TELEX, ADDRESSED AS FOLLOWS:

      To the Company:   Quotesmith.com, Inc.
                        8205 South Cass Avenue, Suite 102, Darien, IL 60561
                        Attention:  President
                        Fax:  (630) 515-0276

      To Executive:     Phillip A. Perillo, at current address on file.

Either the Company or Executive may, at any time, by notice to the other,
designate another address for service of notice on such party. When the letter,
facsimile, telegram or telex is dispatched as provided for above, the notice
shall be deemed to be made when the addressee receives the e-mail, letter,
facsimile, telegram or telex, or within three days after it is sent, whichever
is earlier.

AMENDMENTS. Neither this Agreement nor any of the terms or conditions hereof may
be waived, amended or modified except by means of a written instrument duly
executed by the party to be charged therewith.

CAPTIONS AND HEADINGS. The captions and section headings used in this Agreement
are for convenience of reference only, and shall not affect the construction or
interpretation of this Agreement or any of the provisions hereof.

GOVERNING LAW. This Agreement, and all matters or disputes relating to the
validity, construction, performance or enforcement hereof, shall be governed,
construed and controlled by and under the laws of the State of Illinois without
regard to principles of conflicts of law.

SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and permitted assigns.

COUNTERPARTS. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original hereof, but all of which together
shall constitute one and the same instrument.

ENTIRE AGREEMENT. Except as otherwise set forth or referred to in this
Agreement, this Agreement constitutes the sole and entire agreement and
understanding between the parties hereto as to the subject matter hereof, and
supersedes all prior discussions, agreements and understandings of every kind
and nature between them as to such subject matter.

RELIANCE BY THIRD PARTIES. This Agreement is intended for the sole and exclusive
benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and permitted

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assigns, and no other person or entity shall have any right to rely on this
Agreement or to claim or derive any benefit therefrom absent the express written
consent of the party to be charged with such reliance or benefit.

                                 EFFECTIVE DATE.

      This Agreement shall be effective on the Effective Date.

                                ACKNOWLEDGEMENT.

      EXECUTIVE ACKNOWLEDGES THAT HE HAS READ, UNDERSTOOD AND ACCEPTS THE
PROVISIONS OF THIS AGREEMENT, WHICH IS THE ENTIRE AGREEMENT BETWEEN THE
EXECUTIVE AND THE COMPANY. EXECUTIVE ALSO ACKNOWLEDGES THAT HE HAS HAD THE
OPPORTUNITY TO AND HAS REVIEWED THE TERMS AND CONDITIONS OF THIS AGREEMENT WITH
COMPETENT COUNSEL.

      IN WITNESS WHEREOF, the parties have executed this Employment Agreement as
of the date written above.

FOR QUOTESMITH.COM, INC.                 FOR EXECUTIVE

By:  /s/ Robert S. Bland                 By: /s/ Phillip A. Perillo
     -------------------------               ----------------------
Robert S. Bland                          Phillip A. Perillo
President and Chief Executive Officer    Senior Vice President and Chief
                                         Financial Officer

Date: December 19, 2002                  Date: December 19, 2002
      ------------------------                 -----------------

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                                                        FHLMC Loan No. 002697238

                                MULTIFAMILY NOTE
                     (MULTISTATE - REVISION DATE 11-01-2000)

US $10,000,000.00                                           ______________, 2002

         FOR VALUE RECEIVED, the undersigned ("BORROWER") jointly and severally
(if more than one) promises to pay to the order of PRIMARY CAPITAL ADVISORS LC,
a Georgia limited liability company, the principal sum of Ten Million and
no/100th Dollars (US $10,000,000.00), with interest on the unpaid principal
balance at the annual rate of six and seventy-six hundredths percent (6.76%).

         1.       DEFINED TERMS. As used in this Note, (i) the term "LENDER"
means the holder of this Note, and (ii) the term "INDEBTEDNESS" means the
principal of, interest on, and any other amounts due at any time under, this
Note, the Security Instrument or any other Loan Document, including prepayment
premiums, late charges, default interest, and advances to protect the security
of the Security Instrument under Section 12 of the Security Instrument. "Event
of Default" and other capitalized terms used but not defined in this Note shall
have the meanings given to such terms in the Security Instrument.

         2.       ADDRESS FOR PAYMENT. All payments due under this Note shall be
payable at 2060 Mt. Paran Road, Suite 101, Atlanta, GA 30327, or such other
place as may be designated by written notice to Borrower from or on behalf of
Lender.

         3.       PAYMENT OF PRINCIPAL AND INTEREST. Principal and interest
shall be paid as follows:

         (a)      Unless disbursement of principal is made by Lender to Borrower
on the first day of the month, interest for the period beginning on the date of
disbursement and ending on and including the last day of the month in which such
disbursement is made shall be payable simultaneously with the execution of this
Note. Interest under this Note shall be computed on the basis of a 360-day year
consisting of twelve 30-day months.

         (b)      Consecutive monthly installments of principal and interest,
each in the amount of Sixty-Four Thousand Nine Hundred Twenty-Six and 30/100
Dollars (US $64,926.30), shall be payable on the first day of each month
beginning on January 1, 2003, until the entire unpaid principal balance
evidenced by this Note is fully paid.

         (c)      Any accrued interest remaining past due for 30 days or more
may, at Lender's discretion, be added to and become part of the unpaid principal
balance and shall bear interest at the rate or rates specified in this Note, and
any reference below to "accrued interest" shall refer to

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accrued interest which has not become part of the unpaid principal balance. Any
remaining principal and interest shall be due and payable on December 1, 2012 or
on any earlier date on which the unpaid principal balance of this Note becomes
due and payable, by acceleration or otherwise (the "MATURITY DATE"). The unpaid
principal balance shall continue to bear interest after the Maturity Date at the
Default Rate set forth in this Note until and including the date on which it is
paid in full.

         (d)      Any regularly scheduled monthly installment of principal and
interest that is received by Lender before the date it is due shall be deemed to
have been received on the due date solely for the purpose of calculating
interest due.

         4.       APPLICATION OF PAYMENTS. If at any time Lender receives, from
Borrower or otherwise, any amount applicable to the Indebtedness which is less
than all amounts due and payable at such time, Lender may apply that payment to
amounts then due and payable in any manner and in any order determined by
Lender, in Lender's discretion. Borrower agrees that neither Lender's acceptance
of a payment from Borrower in an amount that is less than all amounts then due
and payable nor Lender's application of such payment shall constitute or be
deemed to constitute either a waiver of the unpaid amounts or an accord and
satisfaction.

         5.       SECURITY. The Indebtedness is secured, among other things, by
a multifamily mortgage, deed to secure debt or deed of trust dated as of the
date of this Note (the "SECURITY INSTRUMENT"), and reference is made to the
Security Instrument for other rights of Lender as to collateral for the
Indebtedness.

         6.       ACCELERATION. If an Event of Default has occurred and is
continuing, the entire unpaid principal balance, any accrued interest, the
prepayment premium payable under Paragraph 10, if any, and all other amounts
payable under this Note and any other Loan Document shall at once become due and
payable, at the option of Lender, without any prior notice to Borrower (except
if notice is required by applicable law, then after such notice). Lender may
exercise this option to accelerate regardless of any prior forbearance.

         7.       LATE CHARGE. If any monthly amount payable under this Note or
under the Security Instrument or any other Loan Document is not received by
Lender within ten (10) days after the amount is due (unless applicable law
requires a longer period of time before a late charge may be imposed, in which
event such longer period shall be substituted), Borrower shall pay to Lender,
immediately and without demand by Lender, a late charge equal to five percent
(5%) of such amount (unless applicable law requires a lesser amount be charged,
in which event such lesser amount shall be substituted). Borrower acknowledges
that its failure to make timely payments will cause Lender to incur additional
expenses in servicing and processing the loan evidenced by this Note (the
"LOAN"), and that it is extremely difficult and impractical to determine those
additional expenses. Borrower agrees that the late charge payable pursuant to
this Paragraph represents a fair and reasonable estimate, taking into account
all circumstances existing on the date of this Note, of the additional expenses
Lender will incur by reason of such

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late payment. The late charge is payable in addition to, and not in lieu of, any
interest payable at the Default Rate pursuant to Paragraph 8.

         8.       DEFAULT RATE. So long as (a) any monthly installment under
this Note remains past due for thirty (30) days or more, or (b) any other Event
of Default has occurred and is continuing, interest under this Note shall accrue
on the unpaid principal balance from the earlier of the due date of the first
unpaid monthly installment or the occurrence of such other Event of Default, as
applicable, at a rate (the "DEFAULT RATE") equal to the lesser of four (4)
percentage points above the rate stated in the first paragraph of this Note and
the maximum interest rate which may be collected from Borrower under applicable
law. If the unpaid principal balance and all accrued interest are not paid in
full on the Maturity Date, the unpaid principal balance and all accrued interest
shall bear interest from the Maturity Date at the Default Rate. Borrower also
acknowledges that its failure to make timely payments will cause Lender to incur
additional expenses in servicing and processing the Loan, that, during the time
that any monthly installment under this Note is delinquent for more than thirty
(30) days, Lender will incur additional costs and expenses arising from its loss
of the use of the money due and from the adverse impact on Lender's ability to
meet its other obligations and to take advantage of other investment
opportunities, and that it is extremely difficult and impractical to determine
those additional costs and expenses. Borrower also acknowledges that, during the
time that any monthly installment under this Note is delinquent for more than
thirty (30) days or any other Event of Default has occurred and is continuing,
Lender's risk of nonpayment of this Note will be materially increased and Lender
is entitled to be compensated for such increased risk. Borrower agrees that the
increase in the rate of interest payable under this Note to the Default Rate
represents a fair and reasonable estimate, taking into account all circumstances
existing on the date of this Note, of the additional costs and expenses Lender
will incur by reason of the Borrower's delinquent payment and the additional
compensation Lender is entitled to receive for the increased risks of nonpayment
associated with a delinquent loan.

         9.       LIMITS ON PERSONAL LIABILITY.

         (a)      Except as otherwise provided in this Paragraph 9, Borrower
shall have no personal liability under this Note, the Security Instrument or any
other Loan Document for the repayment of the Indebtedness or for the performance
of any other obligations of Borrower under the Loan Documents, and Lender's only
recourse for the satisfaction of the Indebtedness and the performance of such
obligations shall be Lender's exercise of its rights and remedies with respect
to the Mortgaged Property and any other collateral held by Lender as security
for the Indebtedness. This limitation on Borrower's liability shall not limit or
impair Lender's enforcement of its rights against any guarantor of the
Indebtedness or any guarantor of any obligations of Borrower.

         (b)      Borrower shall be personally liable to Lender for the
repayment of a portion of the Indebtedness equal to zero percent (0.00%) of the
original principal balance of this Note, plus any other amounts for which
Borrower has personal liability under this Paragraph 9.

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         (c)      In addition to Borrower's personal liability under Paragraph
9(b), Borrower shall be personally liable to Lender for the repayment of a
further portion of the Indebtedness equal to any loss or damage suffered by
Lender as a result of (1) failure of Borrower to pay to Lender upon demand after
an Event of Default all Rents to which Lender is entitled under Section 3(a) of
the Security Instrument and the amount of all security deposits collected by
Borrower from tenants then in residence; (2) failure of Borrower to apply all
insurance proceeds and condemnation proceeds as required by the Security
Instrument; or (3) failure of Borrower to comply with Section 14(d) or (e) of
the Security Instrument relating to the delivery of books and records,
statements, schedules and reports.

         (d)      For purposes of determining Borrower's personal liability
under Paragraph 9(b) and Paragraph 9(c), all payments made by Borrower or any
guarantor of this Note with respect to the Indebtedness and all amounts received
by Lender from the enforcement of its rights under the Security Instrument shall
be applied first to the portion of the Indebtedness for which Borrower has no
personal liability.

         (e)      Borrower shall become personally liable to Lender for the
repayment of all of the Indebtedness upon the occurrence of any of the following
Events of Default: (1) Borrower's acquisition of any property or operation of
any business not permitted by Section 33 of the Security Instrument; (2) a
Transfer (including, but not limited to, a lien or encumbrance) that is an Event
of Default under Section 21 of the Security Instrument, other than a Transfer
consisting solely of the involuntary removal or involuntary withdrawal of a
general partner in a limited partnership or a manager in a limited liability
company; or (3) fraud or written material misrepresentation by Borrower or any
officer, director, partner, member or employee of Borrower in connection with
the application for or creation of the Indebtedness or any request for any
action or consent by Lender.

         (f)      In addition to any personal liability for the Indebtedness,
Borrower shall be personally liable to Lender for (1) the performance of all of
Borrower's obligations under Section 18 of the Security Instrument (relating to
environmental matters); (2) the costs of any audit under Section 14(d) of the
Security Instrument; and (3) any costs and expenses incurred by Lender in
connection with the collection of any amount for which Borrower is personally
liable under this Paragraph 9, including fees and out of pocket expenses of
attorneys and expert witnesses and the costs of conducting any independent audit
of Borrower's books and records to determine the amount for which Borrower has
personal liability.

         (g)      To the extent that Borrower has personal liability under this
Paragraph 9, Lender may exercise its rights against Borrower personally without
regard to whether Lender has exercised any rights against the Mortgaged Property
or any other security, or pursued any rights against any guarantor, or pursued
any other rights available to Lender under this Note, the Security Instrument,
any other Loan Document or applicable law. For purposes of this Paragraph 9, the
term "MORTGAGED PROPERTY" shall not include any funds that (1) have been applied
by

                                                                          PAGE 4

<PAGE>

Borrower as required or permitted by the Security Instrument prior to the
occurrence of an Event of Default or (2) Borrower was unable to apply as
required or permitted by the Security Instrument because of a bankruptcy,
receivership, or similar judicial proceeding. To the fullest extent permitted by
applicable law, in any action to enforce Borrower's personal liability under
this Paragraph 9, Borrower waives any right to set off the value of the
Mortgaged Property against such personal liability.

         10.      VOLUNTARY AND INVOLUNTARY PREPAYMENTS.

         (a)      A prepayment premium shall be payable in connection with any
prepayment (any receipt by Lender of principal, other than principal required to
be paid in monthly installments pursuant to Paragraph 3(b), prior to the
scheduled Maturity Date set forth in Paragraph 3(c)) under this Note as provided
below:

                  (1)      Borrower may voluntarily prepay all of the unpaid
principal balance of this Note on a Business Day designated as the date for such
prepayment in a written notice from Borrower to Lender given at least 30 days
prior to the date of such prepayment. Such prepayment shall be made by paying
(A) the amount of principal being prepaid, (B) all accrued interest, (C) all
other sums due Lender at the time of such prepayment, and (D) the prepayment
premium calculated pursuant to Paragraph 10(c). For all purposes including the
accrual of interest, any prepayment received by Lender on any day other than the
last calendar day of the month shall be deemed to have been received on the last
calendar day of such month. For purposes of this Note, a "BUSINESS DAY" means
any day other than a Saturday, Sunday or any other day on which Lender is not
open for business. Unless expressly provided for in the Loan Documents, Borrower
shall not have the option to voluntarily prepay less than all of the unpaid
principal balance. However, if a partial prepayment is provided for in the Loan
Documents or is accepted by Lender in Lender's discretion, a prepayment premium
calculated pursuant to Paragraph 10(c) shall be due and payable by Borrower.

                  (2)      Upon Lender's exercise of any right of acceleration
under this Note, Borrower shall pay to Lender, in addition to the entire unpaid
principal balance of this Note outstanding at the time of the acceleration, (A)
all accrued interest and all other sums due Lender, and (B) the prepayment
premium calculated pursuant to Paragraph 10(c).

                  (3)      Any application by Lender of any collateral or other
security to the repayment of any portion of the unpaid principal balance of this
Note prior to the Maturity Date and in the absence of acceleration shall be
deemed to be a partial prepayment by Borrower, requiring the payment to Lender
by Borrower of a prepayment premium.

         (b)      Notwithstanding the provisions of Paragraph 10(a), no
prepayment premium shall be payable with respect to (A) any prepayment made
during the period from ninety (90) days before the scheduled Maturity Date to
the scheduled Maturity Date, or (B) any prepayment

                                                                          PAGE 5

<PAGE>

occurring as a result of the application of any insurance proceeds or
condemnation award under the Security Instrument.

         (c)      Any prepayment premium payable under this Note shall be
computed as follows:

                  (1)      If the prepayment is made between the date of this
Note and the date that is one-hundred fourteen (114) months after the first day
of the first calendar month following the date of this Note (the "YIELD
MAINTENANCE PERIOD"), the prepayment premium shall be whichever is the greater
of subparagraphs (i) and (ii) below:

                  (i)      1.0% of the unpaid principal balance of this Note; or

                  (ii)     the product obtained by multiplying:

                           (A)      the amount of principal being prepaid,
                           by

                           (B)      the excess (if any) of the Monthly Note Rate
                                    over the Assumed Reinvestment Rate,
                           by

                           (C)      the Present Value Factor.

                  For purposes of subparagraph (ii), the following definitions
                  shall apply:

                  MONTHLY NOTE RATE: one-twelfth (1/12) of the annual interest
                  rate of this Note, expressed as a decimal calculated to five
                  digits.

                  PREPAYMENT DATE: in the case of a voluntary prepayment, the
                  date on which the prepayment is made; in the case of the
                  application by Lender of collateral or security to a portion
                  of the principal balance, the date of such application; and in
                  any other case, the date on which Lender accelerates the
                  unpaid principal balance of this Note.

                  ASSUMED REINVESTMENT RATE: one-twelfth (1/12) of the yield
                  rate as of the date 5 Business Days before the Prepayment
                  Date, on the 4.875% U.S. Treasury Security due February 1,
                  2012, as reported in The Wall Street Journal, expressed as a
                  decimal calculated to five digits. In the event that no yield
                  is published on the applicable date for the Treasury Security
                  used to determine the Assumed Reinvestment Rate, Lender, in
                  its discretion, shall select the non-callable Treasury
                  Security maturing in the same year as the Treasury Security
                  specified above with the lowest yield published in The Wall
                  Street Journal as of the applicable date. If the publication
                  of such yield rates in The Wall Street Journal is discontinued
                  for any reason, Lender shall select a security with a
                  comparable rate and term to the Treasury Security used to
                  determine the Assumed Reinvestment Rate. The

                                                                          PAGE 6

<PAGE>

                  selection of an alternate security pursuant to this Paragraph
                  shall be made in Lender's discretion.

                  PRESENT VALUE FACTOR: the factor that discounts to present
                  value the costs resulting to Lender from the difference in
                  interest rates during the months remaining in the Yield
                  Maintenance Period, using the Assumed Reinvestment Rate as the
                  discount rate, with monthly compounding, expressed numerically
                  as follows:

                                   [EQUATION]

                  n = number of months remaining in Yield Maintenance Period

                  ARR = Assumed Reinvestment Rate

                  (2)      If the prepayment is made after the expiration of the
Yield Maintenance Period but before the period set forth in Paragraph 10(b)(A)
above, the prepayment premium shall be 1.0% of the unpaid principal balance of
this Note.

         (d)      Any permitted or required prepayment of less than the unpaid
principal balance of this Note shall not extend or postpone the due date of any
subsequent monthly installments or change the amount of such installments,
unless Lender agrees otherwise in writing.

         (e)      Borrower recognizes that any prepayment of the unpaid
principal balance of this Note, whether voluntary or involuntary or resulting
from a default by Borrower, will result in Lender's incurring loss, including
reinvestment loss, additional expense and frustration or impairment of Lender's
ability to meet its commitments to third parties. Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and
agrees that it is extremely difficult and impractical to ascertain the extent of
such damages. Borrower therefore acknowledges and agrees that the formula for
calculating prepayment premiums set forth in this Note represents a reasonable
estimate of the damages Lender will incur because of a prepayment.

         (f)      Borrower further acknowledges that the prepayment premium
provisions of this Note are a material part of the consideration for the Loan,
and acknowledges that the terms of this Note are in other respects more
favorable to Borrower as a result of the Borrower's voluntary agreement to the
prepayment premium provisions.

         11.      COSTS AND EXPENSES. To the fullest extent allowed by
applicable law, Borrower shall pay all expenses and costs, including fees and
out-of-pocket expenses of attorneys

                                                                          PAGE 7

<PAGE>

(including Lender's in-house attorneys) and expert witnesses and costs of
investigation, incurred by Lender as a result of any default under this Note or
in connection with efforts to collect any amount due under this Note, or to
enforce the provisions of any of the other Loan Documents, including those
incurred in post-judgment collection efforts and in any bankruptcy proceeding
(including any action for relief from the automatic stay of any bankruptcy
proceeding) or judicial or non-judicial foreclosure proceeding.

         12.      FORBEARANCE. Any forbearance by Lender in exercising any right
or remedy under this Note, the Security Instrument, or any other Loan Document
or otherwise afforded by applicable law, shall not be a waiver of or preclude
the exercise of that or any other right or remedy. The acceptance by Lender of
any payment after the due date of such payment, or in an amount which is less
than the required payment, shall not be a waiver of Lender's right to require
prompt payment when due of all other payments or to exercise any right or remedy
with respect to any failure to make prompt payment. Enforcement by Lender of any
security for Borrower's obligations under this Note shall not constitute an
election by Lender of remedies so as to preclude the exercise of any other right
or remedy available to Lender.

         13.      WAIVERS. Presentment, demand, notice of dishonor, protest,
notice of acceleration, notice of intent to demand or accelerate payment or
maturity, presentment for payment, notice of nonpayment, grace, and diligence in
collecting the Indebtedness are waived by Borrower and all endorsers and
guarantors of this Note and all other third party obligors.

         14.      LOAN CHARGES. Neither this Note nor any of the other Loan
Documents shall be construed to create a contract for the use, forbearance or
detention of money requiring payment of interest at a rate greater than the
maximum interest rate permitted to be charged under applicable law. If any
applicable law limiting the amount of interest or other charges permitted to be
collected from Borrower in connection with the Loan is interpreted so that any
interest or other charge provided for in any Loan Document, whether considered
separately or together with other charges provided for in any other Loan
Document, violates that law, and Borrower is entitled to the benefit of that
law, that interest or charge is hereby reduced to the extent necessary to
eliminate that violation. The amounts, if any, previously paid to Lender in
excess of the permitted amounts shall be applied by Lender to reduce the unpaid
principal balance of this Note. For the purpose of determining whether any
applicable law limiting the amount of interest or other charges permitted to be
collected from Borrower has been violated, all Indebtedness that constitutes
interest, as well as all other charges made in connection with the Indebtedness
that constitute interest, shall be deemed to be allocated and spread ratably
over the stated term of the Note. Unless otherwise required by applicable law,
such allocation and spreading shall be effected in such a manner that the rate
of interest so computed is uniform throughout the stated term of the Note.

         15.      COMMERCIAL PURPOSE. Borrower represents that the Indebtedness
is being incurred by Borrower solely for the purpose of carrying on a business
or commercial enterprise, and not for personal, family, household, or
agricultural purposes.

                                                                          PAGE 8

<PAGE>

         16.      COUNTING OF DAYS. Except where otherwise specifically
provided, any reference in this Note to a period of "days" means calendar days,
not Business Days.

         17.      GOVERNING LAW. This Note shall be governed by the law of the
jurisdiction in which the Land is located.

         18.      CAPTIONS. The captions of the paragraphs of this Note are for
convenience only and shall be disregarded in construing this Note.

         19.      NOTICES; WRITTEN MODIFICATIONS. All notices, demands and other
communications required or permitted to be given by Lender to Borrower pursuant
to this Note shall be given in accordance with Section 31 of the Security
Instrument. Any modification or amendment to this Note shall be ineffective
unless in writing signed by the party sought to be charged with such
modification or amendment; provided, however, that in the event of a Transfer
under the terms of the Security Instrument, any or some or all of the
Modifications to Multifamily Note may be modified or rendered void by Lender at
Lender's option by notice to Borrower/transferee.

         20.      CONSENT TO JURISDICTION AND VENUE. Borrower agrees that any
controversy arising under or in relation to this Note shall be litigated
exclusively in the jurisdiction in which the Land is located (the "PROPERTY
JURISDICTION"). The state and federal courts and authorities with jurisdiction
in the Property Jurisdiction shall have exclusive jurisdiction over all
controversies which shall arise under or in relation to this Note. Borrower
irrevocably consents to service, jurisdiction, and venue of such courts for any
such litigation and waives any other venue to which it might be entitled by
virtue of domicile, habitual residence or otherwise.

         21.      WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH (A) AGREES
NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE
OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE
OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO
SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS
WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY
AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

         ATTACHED EXHIBIT.  THE FOLLOWING EXHIBIT IS ATTACHED TO THIS NOTE:

         |X|      EXHIBIT A         MODIFICATIONS TO MULTIFAMILY NOTE

                                                                          PAGE 9

<PAGE>

         IN WITNESS WHEREOF, Borrower has signed and delivered this Note under
seal or has caused this Note to be signed and delivered under seal by its duly
authorized representative. Borrower intends that this Note shall be deemed to be
signed and delivered as a sealed instrument.

                                             ROBERTS PROPERTIES RESIDENTIAL,
                                             L.P., a Georgia limited partnership

                                             By:   ROBERTS REALTY INVESTORS,
                                                   INC., a Georgia corporation
                                                   Its General Partner

                                                   By:  /s/ Charles S. Roberts
                                                       ------------------------
                                                   Name:  Charles S. Roberts
                                                   Title: President

                                                               [Corporate Seal]

                                                    Taxpayer ID No: 58-2122875

PAY TO THE ORDER OF

__________________________________

WITHOUT RECOURSE

PRIMARY CAPITAL ADVISORS LC

By:  /s/ Faron G. Thompson
   -------------------------------
         Faron G. Thompson
         Managing Director
         Commercial Mortgage Banking

                                                                         PAGE 10

<PAGE>

                                    EXHIBIT A

                        MODIFICATIONS TO MULTIFAMILY NOTE

The following modifications are made to the text of the instrument that precedes
this Exhibit:

1.       Paragraph 9(c) is amended to add the following as subparagraph (4):

         "(4) failure by Borrower to pay the amount of any fire, hazard or other
         insurance premiums, real estate taxes, water and sewer charges,
         assessments or other charges and expenses in accordance with the terms
         of the Security Instrument."

                                                                        PAGE A-1

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