Document:

exv10w23

 

Exhibit 10.23

PURCHASE AND SALE AGREEMENT

(Deerwood Village; Villa Tuscany; Midway Mills; and Vista Grande)

     THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of this 7th day of November,
2007 by and among: TAMPA PALMS TARRAGON, LLC (“Tampa Palms”), a Florida limited liability company;
OCALA TARRAGON, LLC (“Ocala”), a Florida limited liability company; LAKE SHERWOOD PARTNERS, LLC
(“Lake Sherwood”), a Florida limited liability company; and MIDWAY MILLS PARTNERS, L.P., a Texas
limited partnership (“Midway”: together with Tampa Palms, Ocala and Lake Sherwood, collectively,
“Seller”) whose address is 423 West 55th Street, 12th Floor, New York, New
York 10019, and BREOF INVESTORS LLC, a Delaware limited liability company (together with its
permitted successors, assigns or designees, the “Purchaser”) whose address is Three World Financial
Center, 200 Vesey Street, 11th Floor, New York, NY 10281-1021.

W I T N E S S E T H : 

     WHEREAS, (i) Ocala Tarragon is the owner of the real property and the apartment complex
thereon known as “Deerwood Village”, located in Ocala, Florida, more particularly described on
Exhibit “A-1” attached hereto; (ii) Lake Sherwood is the owner of the real property and the
apartment complex thereon known as “Villa Tuscany”, located in Orlando, Florida, more particularly
described on Exhibit “A-2” attached hereto; (iii) Tampa Palms is the owner of the real property
and the apartment complex thereof known as “Vista Grande”, located in Tampa, Florida more
particularly described on Exhibit “A-3” attached hereto (each, an “Apartment Complex”, and
collectively, the “Apartment Complexes”); and (iv) Midway Mills is the owner of the real property
and the shopping center thereon known as the “Midway Mills Shopping Center”, located in Carollton,
Texas, more particularly described on Exhibit “A-4” attached hereto (the “Shopping Center”); and

     WHEREAS, Purchaser desires to acquire the Apartment Complexes and Shopping Center from Seller
and Seller desires to transfer the Apartment Complexes and Shopping Center to Purchaser.

     NOW, THEREFORE, in consideration of the mutual covenants and representations herein contained,
Seller and Purchaser agree as follows:

ARTICLE 1.

DEFINITIONS

     1.1 In this Agreement, and in the Exhibits and Schedules attached hereto, the following words
and phrases shall have the following meanings:

     “Amendment” means an amendment, renewal, supplement, modification, expansion, restatement,
extension, or any other change or revision.

 

 

Exhibit 10.23 (Continued)

     “Apartment Complex” and “Apartment Complexes” is defined in the recitals.

     “Appurtenance” means all easements, rights-of-way, covenants, restrictions, tenements, rights
and appurtenances benefiting or appertaining to the Premises and the land lying in the streets and
roads in front of and adjoining the Premises.

     “Books and Records” means copies of the annual 2006 and 2007 year-to-date operating statements
for the Premises and, to the extent in Seller’s possession, copies of all real estate and personal
property tax statements and assessments notices for 2007, together with current water, sewer,
utility and fuel bills received by Seller prior to the date hereof.

     “Broker” is defined in Section 13.1

     “Business Day” means any day other than (a) a Saturday or Sunday, (b) a Federal, State of
Florida or State of Texas banking holiday or Canadian banking holiday or (c) a day on which the
county recorder’s office in the county where the Premises is located is closed.

     “Casualty” is defined in Section 10.1.

     “Casualty Notice” is defined in Section 10.1

     “Casualty Termination Notice” is defined in Section 10.1 (a)

     “Closing” means (i) the consummation of the transactions contemplated under this Agreement on
the Closing Date with respect to the Apartment Complexes and Shopping Center, other than Villa
Tuscany, and (ii) the consummation of the transaction contemplated under this Agreement on the
Villa Tuscany Closing Date with respect to Villa Tuscany.

     “Closing Date” is defined in Section 6.1.

     “Closing Documents” is defined in Section 6.2.

     “Closing Statement” is defined in Section 6.2 (o)

     “Commitment” is defined in Section 4.2

     “Condemnation” is defined in Section 10.2.

     “Condemnation Notice” is defined in Section 10.2

     “Contracts” means all agreements between Seller and any third party affecting the Property.

     “Deerwood Existing Loan” means that certain loan in the original principal amount of
$22,125,000, as evidenced by that certain Promissory Note dated as of August 15, 2005, from

 

 

Exhibit 10.23 (Continued)

Ocala Tarragon, LLC to the order of Wachovia Bank, National Association, which Note is secured
by that certain Mortgage, Assignment of Leases and Rents and Security Agreement, dated as of August
15, 2005, between Ocala Tarragon, LLC and Wachovia Bank, National Association, which is a lien
encumbering the Deerwood Village Apartment Complex.

     “Deerwood Holder” means Wachovia Bank, National Association, as holder of the Deerwood
Existing Loan.

     “Deposits” means all refundable security deposits, expense deposits and/or prepaid rentals
received from a Tenant under a Tenant Lease, including security, key, cleaning, storage locker, and
pet deposits of Tenants.

     “Development Rights” means all rights of Seller to the air space above the Land, if any, all
zoning entitlements, development rights and appurtenances accruing to the Premises under, or by
reason of, any applicable zoning ordinance or other laws.

     “Due Diligence Review” is defined in Section 14.1

     “Earnest Money” is defined in Section 3.2(a).

     “Encumbrances” means any and all liens, mortgages, deeds of trust, security agreements,
security interests, options, rights of purchase or first refusal, rights-of-way, restrictive
covenants, reservations, judgments, leases, subleases, licenses, assignments, restrictions, or
other encumbrances affecting title to the Property.

     “Escrow Holder” means the Title Company, or such other escrow holder as may be mutually
acceptable to the parties, and which agrees to serve as the escrow holder pursuant to the terms of
this agreement.

     “Existing Loans” means, collectively, the Deerwod Village Existing Loan, the Vista Grande
Existing Loan, and the Villa Tuscany Existing Loan.

     “Governmental Entity” means any national, state or local government (domestic or foreign), any
political subdivision thereof or any other governmental or quasi-governmental, judicial, public or
statutory instrumentality, authority, body, agency, bureau or entity or any arbitrator with
authority to bind a party at law.

     “Holder” means, collectively, (i) Fannie Mae or its successors and assigns, as holder of the
Villa Tuscany Existing Loan, and/or the servicer of the Villa Tuscany Existing Loan, (ii) the
Deerwood Holder, and (iii) the Vista Grande Holder.

     “Holder Consent” means, collectively, Villa Tuscany Holder Consent, Deerwood Holder Consent,
and Vista Grande Holder Consent, as such terms are defined in Sections 15.1., 15.2 and 15.3,
respectively.

 

 

Exhibit 10.23 (Continued)

     “Improvements” means the Apartment Complexes and the Shopping Center and all other buildings,
structures, and improvements located on the Land.

     “Initial Deposit” is defined in Section 3.2

     “Land” means the real property more particularly described on Exhibits “A-1” – “A-4” attached
hereto.

     “Legal Proceeding” means any litigation, arbitration, administrative proceeding, or other
legal proceeding of any kind.

     “Licenses and Permits” means all building, construction, land use, environmental or other
certificates, licenses, permits, consents, authorizations and approvals issued by any Governmental
Entity for or in connection with the construction, ownership, use, occupation and operation of the
Premises.

     “Notice of Waiver” is defined in Section 14.2.

     “Objections” is defined in Section 4.3

     “Objection Notice” is defined in Section 4.3.

     “Oxford Place Property” means all unsold condominium units at Oxford Place, a Condominium, at
5125 Palm Springs Blvd., Tampa, Florida.

     “Permitted Encumbrances” is defined in Section 4.2.

     “Permitted Termination” is defined in Section 11.1

     “Person” means an individual person, a corporation, partnership, trust, joint venture,
proprietorship, estate, association, Governmental Entity or other incorporated or unincorporated
enterprise, entity or organization of any kind.

     “Personal Property” means all equipment, machinery, furniture, furnishings, fixtures, goods,
inventory, boilers, appliances, dynamos, elevators, escalators, elevator and escalator plants,
stokers, tanks and vacuum, cleaning, plumbing, heating, lighting, air conditioning, ventilating,
refrigerating, disposal and incinerating and laundry systems, cleaning, cooking and cooling
apparatus and equipment, stoves, cleaning and lifting equipment, public address and communications
systems, switchboards, security and surveillance equipment and devices, power equipment,
transformers, sprinkler systems and other fire prevention and extinguishing apparatus, golf carts
and all financial equipment, calculators, adding machines, and all other tangible and intangible
personal property of every nature and description used in connection with the Premises (excluding
computer hardware, software and peripherals, except for any which might be necessary to operate or
control the operation of any portions of the Property, such as lighting, irrigation, security,
etc., which shall be included in this sale), which are not owned by

 

 

Exhibit 10.23 (Continued)

the Tenants, which are owned by and in the possession of Seller, and also including any rights
Seller may have, if any, with respect to the use of the names of the Apartment Complexes and the
Shopping Center.

     “Plans” means all architectural, electrical, mechanical or plumbing plans and specifications
and any environmental, engineering and geotechnical studies or reports, including without
limitation, any Phase I environmental report, performed in connection with the Property or any
portion thereof, which are not owned by the Tenants and which are owned by and in the possession of
Seller.

     “Premises” means the Land and all Improvements thereon and the Appurtenances thereto.

     “Property” means the Premises, Personal Property, Development Rights, Contracts, Licenses and
Permits, Plans, Books and Records, Deposits and Warranties and Guaranties on, to or in connection
with the Land.

     “Rent Roll” is defined in Section 4.1(a).

     “Response Notice” is defined in Section 4.4.

     “Seller Party” is defined in Section 8.1 (c).

     “Shopping Center” is defined in the recitals.

     “Survey” is defined in Section 4.1 (b).

     “Tenant” means all tenants and other parties having the right to use or occupy all or any
portions of the Property.

     “Tenant Lease” means all leases, rental agreements, subleases, or other agreements which
permit or authorize the use and occupancy of the Property, together with any and all, if any,
guaranties, security deposits, or other security for performance of a Tenant’s obligations
thereunder, all Amendments and/or other agreements forming a part thereof.

     “Termination Deadline” means 4:00 p.m. (Eastern time) on the date hereof.

     “Title Company” means Chicago Title Insurance Company, and/or its affiliated title insurance
companies, together with such other title insurance companies as Purchaser may request.

     “Title Policy” means one or more ALTA Owner’s policies of Title Insurance, insuring
Purchaser’s right, title and interest in the Property in the aggregate amount of the Purchase
Price, allocated among the Apartment Complexes and the Shopping Center in the manner set forth in
Section 3.1, subject only to Permitted Encumbrances.

 

 

Exhibit 10.23 (Continued)

     “Villa Tuscany Closing Date” is defined in Section 6.1.

     “Villa Tuscany Existing Loan” means that certain loan in the original principal amount of
$24,340,500, as evidenced by that certain Consolidated, Amended and Restated Multifamily Note dated
as of March 17, 2005, between Lake Sherwood Partners, LLC, a Florida limited liability company, and
Harborpoint Capital, L.P., a Delaware limited partnership, which note is secured by that certain
Consolidated, Amended and Restated Multifamily Mortgage, Assignment of Rents and Security
Agreement, dated as of March 17, 2005, between Lake Sherwood Partners, LLC, a Florida limited
liability company, and Harborpoint Capital, L.P., a Delaware limited partnership, which is a lien
encumbering the Apartment Complex known as “Villa Tuscany”.

     “Villa Tuscany Purchase Price” is defined in Section 3.1.

     “Vista Grande Existing Loan” means that certain loan in the original principal mount of
$70,350,000, as evidenced by that certain Second Amended and Restated Promissory Note dated as of
October 6, 2005, from Tampa Palms Tarragon, LLC to the order of the Vista Grande Holder, which Note
is secured by that certain Second Amended and Restated Mortgage, Security Agreement and Fixture
Filing dated as of October 6, 2005, between Tampa Palms Tarragon, LLC and the Vista Grande Holder,
which is a lien encumbering the Vista Grande Apartment Complex and Oxford Place Property.

     “Vista Grande Holder” means General Electric Capital Corporation, as holder of the Vista
Grande Existing Loan.

     “Warranties and Guaranties” means all unexpired warranties and guaranties and payment and/or
performance bonds required to be provided under the Contracts and run to the benefit of Seller in
connection with the construction, renovation and/or operation of the Property.

     1.2 Unless specified to the contrary, references to Sections, Exhibits and Schedules mean the
particular Section, Exhibit or Schedule in or to this Agreement, all of which Exhibits and
Schedules are made a part hereof for all purposes the same as if set forth herein verbatim; it
being expressly understood that if any Exhibit attached hereto which is to be executed and
delivered at Closing contains blanks, such Exhibit attached hereto shall be deemed completed in the
form executed.

     1.3 Wherever used in this Agreement:

          1. the words “include” or “including” shall be construed as incorporating, also, “but not
limited to” or “without limitation”;

          2. the word “day” means a calendar day unless otherwise specified;

          3. the word “party” means each of Seller and Purchaser;

 

 

Exhibit 10.23 (Continued)

          4. the word “law” (or “laws”) means any statute, ordinance, resolution, regulation, code,
rule, order, decree, judgment, injunction, mandate or other legally binding requirement of a
Governmental Entity;

          5. each reference to the Premises or Property shall be deemed to include “and/or any portion
thereof”; and

          6. each reference to $ or dollars means United States dollars.

     1.4 Certain other words and phrases are defined or described elsewhere in this Agreement.

ARTICLE 2.

PURCHASE AND SALE

     2.1 Purchase and Sale. Subject to the terms and conditions of this Agreement, Seller
hereby agrees to sell and convey to Purchaser, and Purchaser hereby agrees to purchase from Seller,
the Property.

ARTICLE 3.

PURCHASE PRICE AND EARNEST MONEY

     3.1 Purchase Price. Subject to the mechanics for closing and as otherwise amended
or reduced by the terms hereof, described in Article 6 below and the prorations and adjustments
described in Article 7 below, the purchase price (the “Purchase Price”) for the Property shall be
an aggregate ONE HUNDRED TWENTY-THREE MILLION EIGHT HUNDRED NINETY-TWO THOUSAND DOLLARS
($123,892,000), the allocated portion of which shall be paid by Purchaser to Seller by federal
funds wire transfer on or prior to 2:00 P.M. (Florida time) on the Closing Date or the Villa
Tuscany Closing Date as applicable. If all conditions to Purchaser’s obligation to close have
been satisfied, but Seller does not receive the net sales proceeds credited to its account by 3:00
P.M. (Florida time) on the Closing Date or the Villa Tuscany Closing Date, as applicable, then
prorations and adjustments will made as of 11:59 P.M. (Florida time) on the Closing Date and the
Villa Tuscany Closing Date, as applicable. The Purchase Price shall, for purposes of title
insurance, brokerage, documentary stamp tax, transfer tax and other closing matters, be allocated
among the Apartment Complexes and the Shopping Center as follows: (a) Vista Grande, $45,000,000
(the “Vista Grande Purchase Price”); (b) Deerwood Village, $32,892,000 (the “Deerwood Village
Purchase Price”); (c) Midway Mills, $6,000,000 (the “Midway Mills Purchase Price”); and (d) Villa
Tuscany, $40,000,000 (the “Villa Tuscany Purchase Price”). Purchaser shall receive a credit
against the portion of the Purchase Price payable for the Villa Tuscany Apartment Complex and/or
the Deerwood Village Apartment Complex and/or the Vista Grande Apartment Complex, as applicable,
equal to (i) the principal balance of the Existing Loans assumed by Purchaser on the applicable
Closing Date, or (ii) the principal balance of the Existing Loans repaid by Purchaser, plus any
default interest, late

 

 

Exhibit 10.23 (Continued)

charges or other costs or amounts paid by Purchaser to cure any defaults existing under the
Existing Loans immediately prior to the prepayment thereof.

     3.2 Earnest Money.

          (a) Purchaser shall deliver to the Escrow Holder no later than 5:00 pm (Florida time) on the
second (2nd) Business Days after a counterpart of this Agreement signed by Purchaser and Seller has
been delivered to Purchaser, the sum of $1,277,000 by federal funds wire transfer (together with
all interest earned thereon, the “Earnest Money”). This Agreement shall terminate and be deemed
void ab initio if the Earnest Money is not timely deposited with Escrow Holder. The
Earnest Money shall be held in escrow by the Escrow Holder in a segregated interest-bearing
account, with interest accruing for the benefit of the party entitled to the payment or return of
the Earnest Money. The Earnest Money shall be paid to Seller and applied toward the Purchase Price
at Closing, and shall otherwise be paid or applied in accordance with this Agreement. $339,374 of
the Earnest Money (the “Deerwood Earnest Money”) shall be allocated to Deerwood Village. $412,144
of the Earnest Money shall be allocated to Villa Tuscany (the “Villa Tuscany Earnest Money”).
$61,821 of the Earnest Money shall be allocated to Midway Mills, and $463,661 of the Earnest Money
shall be allocated to Vista Grande (the “Vista Grande Earnest Money”). The Villa Tuscany Earnest
Money shall remain in escrow following the Closing of Vista Grande and Midway Mills, and shall be
paid to Seller and applied to the Villa Tuscany Purchase Price and, if applicable, the portion of
the Purchase Price allocated to the Deerwood Village Apartment Complex at the Closing of each such
Apartment Complex, and shall otherwise be paid or applied in accordance with this Agreement.

          (b) The Escrow Holder shall hold the Earnest Money pursuant to the following provisions:

               (i) The Escrow Holder is not a party to, and is not bound by, or charged with notice of any
agreement out of which this escrow may arise, other than the terms and provisions of this Section
3.2.

               (ii) The Escrow Holder shall deliver the Earnest Money to the party so designated on written
notice from both the Purchaser and Seller specifying the time and the place where the
Earnest Money is to be delivered, provided, however that the Escrow Holder shall have received such
written instructions at least one (1) Business Day prior to the date designated for delivery;
provided, further, however, the Closing Statement shall be sufficient to constitute such notice
regardless of the date so executed.

               (iii) The Escrow Holder is acting solely as a stakeholder and depository as an accommodation
to Purchaser and Seller, and is not responsible or liable for any matter or loss arising out of the
Escrow Holder’s conduct hereunder, except for its gross negligence or willful misfeasance. The
Escrow Holder shall not be responsible or liable for the sufficiency, correctness, genuineness, or
validity of the subject matter of this Agreement, or for the identity or authority of any person
executing any documents or instruments in connection herewith.

 

 

Exhibit 10.23 (Continued)

               (iv) Purchaser and Seller agree to jointly and severally, indemnify, defend and hold harmless
the Escrow Holder from and against any loss, cost, claims, damage or expense, including, without
limitation, any and all court costs and attorney’s fees and expenses, collectively called
“Expenses”, incurred by the Escrow Holder in connection with or in any way arising out of this
Agreement, other than Expenses resulting from the Escrow Holder’s gross negligence or willful
misconduct, provided that as between Purchaser and Seller any costs or expenses incurred as a
result of any dispute between Seller and Purchaser shall be the responsibility of the
non-prevailing party in such dispute. The Escrow Holder may, at its own expense, consult with
legal counsel in the event of any dispute or questions as to the construction of any provisions
hereof or its duties hereunder, and it shall be fully protected in acting in accordance with the
written opinion or instructions of such counsel.

               (v) The Escrow Holder shall be entitled to act or rely upon, and the Escrow Holder shall be
protected in acting or relying upon, the genuineness and validity of any written notice, request,
waiver, consent, certificate, receipt, authorization, power of attorney or other document the
Escrow Holder shall receive from any party hereto.

               (vi) Except as otherwise provided in Section 3.2 (b) (ii) above, in the event that (a) the
Escrow Holder receives contradictory instructions from the parties hereto, or (b) there
shall be any dispute between Seller and Purchaser as to any matter arising under this Agreement,
or (c) there shall be any uncertainty as to the meaning or applicability of the provisions
hereof or any written instructions received by the Escrow Holder pursuant hereto, the Escrow Holder
shall continue to hold the Earnest Money pending resolution of the matter if so instructed by
written notification from both Seller and Purchaser or if not so instructed shall deposit the
Earnest Money with any appropriate court in the State of New York at the cost and expense of
Purchaser and Seller jointly and severally, and, upon making such deposit, the Escrow Holder shall
thereupon be discharged and released from any and all liability with respect to the Earnest Money.
The Escrow Holder may dispose of the escrowed funds in accordance with a court order, and shall be
fully protected if it acts in accordance with any such court order.

               (vii) Deposits made pursuant to these instructions may be invested on behalf of any party or
parties hereto, provided that any direction to the Escrow Holder for such investment shall be in
writing and contain the consent of all other parties to this Agreement together with a completed,
signed W-9 Form. The Escrow Holder is not to be held responsible for the loss of principal or
interest on any investment made pursuant to the aforesaid instruction or in the redemption thereof.

               (viii) The Earnest Money must be held in a segregated escrow account and may not be commingled
with any other escrowed funds held by the Escrow Holder; and

               (ix) Upon delivery of the Earnest Money in accordance with the terms hereof, the Escrow Holder
shall be discharged and released from any and all liability with respect to the Earnest Money.

 

 

Exhibit 10.23 (Continued)

               (x) Escrow Holder may resign as Escrow Holder hereunder at any time upon written notice to
Purchaser and Seller, provided that such resignation shall not be effective unless and until a
replacement escrow agent acceptable to Purchaser and Seller shall have been identified and such
replacement escrow agent shall have agreed in writing to serve as Escrow Holder hereunder pursuant
to the terms and conditions of this Agreement.

               (xi) Purchaser and Seller may jointly terminate the services of Escrow Holder hereunder at any
time upon written notice to Escrow Holder, provided that such termination shall not be effective
unless and until a replacement escrow agent acceptable to Purchaser and Seller shall have been
identified and such replacement escrow agent shall have agreed in writing to serve as Escrow Holder
hereunder pursuant to the terms and conditions of this Agreement.

ARTICLE 4.

DELIVERY OF DOCUMENTS/TITLE

     4.1 Within two (2) Business Days after a fully executed counterpart of this Agreement is
delivered to Purchaser (except as otherwise provided), Seller shall deliver the following
information and documents to Purchaser with respect to each Apartment Complex and the Shopping
Center:

          (a) Tenant Leases (which shall be made available for inspection at the Shopping Center and
each Apartment Complex, and not delivered to Purchaser), a current rent roll concerning each
Property (each, a “Rent Roll” and collectively, the “Rent Roll”) setting forth, with respect to
each apartment unit: (i) the name of the Tenant, (ii) the rent payable, (iii) the expiration date
of each lease and the status of the rental payments payable thereunder, and (iv) the security or
other deposit(s) held by Seller.

          (b) The most recent surveys of the Property in Seller’s possession (the “Survey”). Any
updated Surveys required by Purchaser shall be ordered and paid for by Purchaser.

          (c) Copies of any unrecorded written agreements with utility companies in Seller’s possession,
if any.

          (d) Copies of all Books and Records (provided that Seller will promptly forward to Purchaser
copies of any tax, water, sewer, utility and/or fuel bills received by Seller after the date
hereof), Contracts, Licenses and Permits, Plans, and Warranties and Guaranties.

          (e) Copies of the most recent title commitments and owner’s title policies for each Property
in Seller’s possession, if any. If Seller shall fail to deliver to Purchaser items (a) through (e)
above within two (2) Business Days after a fully-executed copy of this Agreement is delivered to
Purchaser, Purchaser’s sole remedy therefor shall be Purchaser’s right to terminate this Agreement
by delivering written notice thereof to Seller prior to the delivery of all such

 

 

Exhibit 10.23 (Continued)

items and receive the return of the Earnest Money, in which event neither party shall have any
further rights or obligations hereunder (except as otherwise provided herein).

     4.2 Purchaser shall request the Title Company to deliver to Purchaser and Seller: (a) current
commitments for Owner’s Policies of Title Insurance issued by the Title Company, whereby said Title
Company commits to issue the Title Policy, written in accordance with this Agreement (collectively,
the “Commitment”, and each, individually, a “Commitment”); and (b) copies of all instruments shown
on Schedule B of the Commitments, and Purchaser may also order such Survey updates as Purchaser
reasonably deems necessary. The Commitments shall describe the Property; shall list Purchaser as
the prospective named insured; shall show as the policy amounts the allocable portions of the
Purchase Price specified in Section 3.1; and shall contain the commitment of the Title Company to
insure Purchaser’s fee simple interest in the Property upon the Closing, subject only to the
Permitted Encumbrances. The Commitments shall show the status of the title of the Property and all
exceptions which would appear in the Title Policy. Any items or exceptions to title which are
accepted or waived in writing or deemed to have been accepted or waived by Purchaser pursuant to
the terms of this Agreement are hereinafter referred to as “Permitted Encumbrances”. Seller makes
no representations or warranties with respect to the accuracy of the Commitment. Notwithstanding
anything contained in this Agreement to the contrary, Purchaser shall be entitled to reasonable
adjournments of the Closing Date or the Villa Tuscany Closing Date, in the event the Title Company
is not able to deliver any Commitments and/or updated Surveys in a reasonable time prior to the
Closing Date or the Villa Tuscany Closing Date.

     4.3 Within two (2) Business Days after the later of (i) the date hereof, or (ii) receipt of
any Commitment (and all instruments shown thereon and any updated Survey, if applicable) for any
Property (or, with respect to any title matter appears in an update or bringdown to the Commitment
which did not appear in the original Commitment, within two (2) Business Days after receipt of such
update or bringdown), Purchaser shall give written notice (the “Objection Notice”) to the Seller
and the Title Company of any conditions of title and anything contained or set forth in the
Commitment (or such update or bringdown thereto) or on the Survey, regardless of whether or not the
items being objected to were known to Purchaser, which are unacceptable to Purchaser in its
reasonable discretion or for which Purchaser will in its reasonable discretion require the Title
Company give affirmative insurance with respect thereto and which Purchaser is unwilling to take
title subject to (the “Objections”), separately specifying and setting forth each of such
Objections. Seller shall be entitled to reasonable adjournments of the Closing Date and the Villa
Tuscany Closing Date, as applicable, to cure the Objections, not to exceed thirty (30) days in the
aggregate. If Purchaser gives Seller an Objection Notice as set forth above, then all matters
disclosed on such Commitment which are not objected to in such Objection Notice shall be deemed to
be Permitted Encumbrances. If Purchaser fails to give Seller an Objection Notice within the period
set forth above, then all matters disclosed on the Commitment shall be deemed to be Permitted
Encumbrances.

     4.4 Except as otherwise set forth in this Section 4.4, Seller shall not be required to expend
any money or bring any action or proceeding to cure such Objections. Notwithstanding the
foregoing: (a) the standard preprinted exceptions set forth in the Commitment shall not

 

 

Exhibit 10.23 (Continued)

constitute Permitted Encumbrances for purposes hereof to the extent they can be omitted in the
State of Florida or Texas, as applicable, by Seller’s affidavit without payment of additional
premium by Purchaser; (b) all mortgages and other encumbrances evidencing or securing indebtedness
of Seller, or any predecessor-in-interest, shall not constitute Permitted Encumbrances and shall be
discharged and satisfied by Seller prior to Closing; provided, however, upon receipt of the Holder
Consent the Existing Loans shall constitute a Permitted Encumbrance; (c) Seller shall be required
to expend up to $1,000,000 in the aggregate to satisfy, discharge or bond over liens or other
monetary or non-monetary items which can be satisfied by the expenditure of less than $1,000,000 in
the aggregate; (d) Seller shall use its reasonable good faith efforts (without cost to Seller) to
cure any objections to Seller’s title raised by Purchaser or the Title Company with respect to
affidavits or consents of stockholders, directors and officers approving any acts of affiliated
corporations in the chain of title, and proof of payment of franchise or dissolution taxes thereof;
and (e) Seller shall be required to discharge or satisfy any encumbrances first appearing of record
following the date hereof which are created by or at the direction of Seller, regardless of the
amount of the expenditure required to discharge or satisfy such encumbrances. Within five (5)
Business Days after an Objection Notice is given, Seller shall give Purchaser notice (the “Response
Notice”) if Seller is unable or unwilling (except as otherwise required in accordance with clauses
(a) through (e) in the immediately preceding sentence) to cure any of Purchaser’s Objections. If
Seller’s Response Notice indicates that Seller is unwilling or unable (except as otherwise required
in accordance with clauses (a) through (e) above) to cure Purchaser’s Objections, or if Seller
shall fail to timely give a Response Notice, then Purchaser may, as its exclusive remedy, elect by
written notice given to Seller within five (5) Business Days after the Response Notice is given,
either (a) to accept such title as Seller is able to convey without any reduction or abatement of
the Purchase Price, or (b) terminate this Agreement with respect to the individual Apartment
Complex or Shopping Center for which Seller has indicated that it is unwilling or unable to cure
Purchaser’s Objections, or (c) to terminate this Agreement, in which event the Earnest Money and
all interest thereon shall be returned to Purchaser. If Purchaser fails to deliver any such
notice, Purchaser will be deemed to have elected to terminate under clause (c). Notwithstanding
anything contained in this Agreement to the contrary, in the event Purchaser elects option (b) in
the immediately preceding sentence, this Agreement shall be deemed to be amended upon receipt of
Purchaser’s notice of such partial termination and (i) the Purchase Price shall be deemed to be
reduced by the amount of the Purchase Price allocated to such Apartment Complex or Shopping Center,
(ii) the Earnest Money and all interest earned thereon with respect to the Earnest Money allocated
to such Apartment Complex or Shopping Center shall be returned to Purchaser, and (iii) the
Apartment Complex or Shopping Center which is the subject of the Purchaser’s Objection causing such
partial termination shall be eliminated from the Property being purchased hereunder.

 

 

Exhibit 10.23 (Continued)

ARTICLE 5.

CONDITIONS TO CLOSING

     5.1 Conditions to Obligations of Purchaser. The obligations of Purchaser to execute
and deliver the applicable Closing Documents, to pay the Purchase Price and to perform Purchaser’s
other obligations at the Closing for all or a portion of the Property under this Agreement are and
shall be subject to the satisfaction of each of the following conditions at or prior to the
Closing, unless otherwise specified:

          (a) Title to the Property shall be free of Encumbrances other than Permitted Encumbrances.

          (b) Seller shall have executed (where applicable) and delivered to Escrow Holder the Closing
Documents to be executed and delivered by Seller.

          (c) All of the representations and warranties of Seller contained in this Agreement shall have
been true and correct in all material respects when made, and shall be true and correct in all
material respects on the Closing Date, the Villa Tuscany Closing Date or the Deerwood Village
Closing Date, as applicable, with the same effect as if made on and as of such date.

          (d) Seller shall have performed, observed, and complied in all material respects with all
covenants, agreements, and conditions required by this Agreement to be performed, observed, and
complied with on Seller’s part prior to or as of the Closing Date, the Villa Tuscany Closing Date
or the Deerwood Village Closing Date, as applicable.

          (e) Other than in the event of a Casualty or a Condemnation, the physical condition of the
Property shall be substantially the same on the Closing Date, the Villa Tuscany Closing Date or the
Deerwood Village Closing Date, as applicable, as on the date hereof, reasonable wear and tear
excepted.

          (f) With respect to the Closing of the Villa Tuscany Apartment Complex, Villa Tuscany Holder
Consent (as defined in Article 15) shall have been issued.

          (g) With respect to the Closing of the Vista Grande Apartment Complex, Vista Grande Holder
Consent (as defined in Article 15) shall have been issued.

          (h) With respect to the Closing of the Deerwood Village Apartment Complex, Deerwood Village
Holder Consent (as defined in Article 15) shall have been issued.

          (i) Seller shall have delivered to the Title Company funds in amounts sufficient to pay any
transfer or other taxes or fees and/or expenses required to be paid by Seller hereunder (unless
Seller authorizes the Title Company to deduct and pay such expenses out of monies payable to
Seller).

 

 

Exhibit 10.23 (Continued)

          (j) The Warranties and Guarantees have been made available for inspection by Purchaser or have
been delivered to Purchaser.

In the event that one of the above conditions precedent to the obligations of Purchaser shall not
occur by the Closing Date or the Villa Tuscany Closing Date, as applicable, and the occurrence of
such condition is not waived by Purchaser, then upon written notice from Purchaser to Seller and
Escrow Agent delivered on or prior to the Closing Date or the Villa Tuscany Closing Date, as
applicable, this Agreement shall terminate, the Earnest Money (or applicable portion thereof) shall
be returned to Purchaser (and, if such failure was due to a default by Seller, Purchaser may pursue
its remedies hereunder) and neither party shall have any further obligation to the other.

     5.2 Conditions to Obligations of Seller. The obligations of Seller to execute and
deliver the applicable Closing Documents and to perform Seller’s other obligations at the Closing
for all or a portion of the Property under this Agreement are and shall be subject to the
satisfaction of each of the following conditions at or prior to the Closing:

          (a) Subject to Sections 4.1 and 6.1, Purchaser shall have delivered the balance of the
Purchase Price due at Closing to Escrow Holder for delivery to Seller at the Closing pursuant to
the terms of this Agreement.

          (b) Purchaser, or its designee, as applicable, shall have executed (where applicable) and
delivered to Escrow Holder the Closing Documents to be executed and delivered by Purchaser.

          (c) All of the representations and warranties of Purchaser contained in this Agreement shall
have been true and correct in all material respects when made, and shall be true and correct in all
material respects on the Closing Date, the Villa Tuscany Closing Date or the Deerwood Village
Closing Date, as applicable, with the same effect as if made on and as of such date.

          (d) Purchaser shall have performed, observed, and complied in all material respects with all
covenants, agreements, and conditions required by this Agreement to be performed, observed, and
complied with on Purchaser’s part prior to or as of the Closing Date.

          (e) With respect to the Closing of the Vista Grande Apartment Complex, the Deerwood Village
Apartment Complex, and the Villa Tuscany Apartment Complex only, the applicable Holder Consent
shall have been issued, and Seller and all of its affiliates shall have been released by Holder
from all obligations under the Existing Loans.

In the event that one of the above conditions precedent to the obligations of Seller shall not
occur by the Closing Date and the occurrence of such condition is not waived by Seller, then upon
written notice from Seller to Purchaser and Escrow Agent delivered on or prior to the Closing Date,
this Agreement shall terminate (and, if such failure was due to a default by Purchaser, the Earnest
Money shall be paid to the Seller) and neither party shall have any further obligation to the
other.

 

 

Exhibit 10.23 (Continued)

ARTICLE 6.

CLOSING

     6.1 Closing. The Closing shall occur through an escrow at the Title Company, no later
than 2:00 p.m. (EST) on November 13, 2007 (the “Closing Date”) as to the Shopping Center and all
Apartment Complexes other than the Villa Tuscany Apartment Complex, the Closing Dates for which
shall occur as to Villa Tuscany, no later than seven (7) Business Days after the Villa Tuscany
Holder Consent (as defined in Article 15) has been obtained (the “Villa Tuscany Closing Date”),
TIME BEING OF THE ESSENCE TO SUCH DATES (subject, however, to any adjournment rights provided for
in this Agreement), unless the parties mutually agree in writing upon another place, time or date.
The parties will deliver (i) the Closing Documents to the Escrow Holder by hand, overnight delivery
service or fax one (1) Business Day prior to the Closing Date or the Villa Tuscany Closing Date, as
applicable, and (ii) the funds by wire transfer(s) on or prior to the Closing Date or the Villa
Tuscany Closing Date, as applicable, in accordance with the terms of this Agreement.

     6.2 Seller’s Obligations at Closing. At least one (1) Business Day prior to the
applicable Closing, Seller shall deliver to Escrow Holder four (4) copies of the following
documents with respect to Seller, the Shopping Center and each Apartment Complex (the “Closing
Documents”):

          (a) a Special Warranty Deed (herein so called), in form and substance as set forth on Exhibit
“C” attached hereto, duly executed and acknowledged by the applicable Seller, conveying fee simple
title to the Premises to Purchaser or its designee, subject only to the Permitted Encumbrances;

          (b) counterparts of an Assignment and Assumption of Leases (herein so called), in form and
substance as set forth on Exhibit “D” attached hereto, duly executed by the applicable Seller,
conveying the Tenant Leases and Deposits for the Property to Purchaser;

          (c) counterparts of a Bill of Sale (herein so called), in form and substance as set forth on
Exhibit “E” attached hereto, duly executed by the applicable Seller, conveying the Property other
than the Premises to Purchaser;

          (d) counterparts of a General Assignment and Assumption (herein so called), in form and
substance as set forth on Exhibit “F” attached hereto, duly executed by the applicable Seller,
conveying the Contracts, Licenses and Permits and Warranties and Guaranties owned by Seller for the
Property to Purchaser;

          (e) a form of Notice Letter (herein so called) originally executed by the applicable Seller
and addressed to Tenants under the Tenant Leases, in form and substance as set forth in Exhibit “G”
attached hereto;

 

 

Exhibit 10.23 (Continued)

          (f) an affidavit originally executed by the applicable Seller to the effect that such Seller
is not a foreign person for purposes of 26 U.S.C. 1445 (b) (2);

          (g) such affidavits executed by the applicable Seller as the Title Company shall reasonably
require in order to omit from the Title Policy all exceptions for (i) judgments, bankruptcies or
other returns against persons or entities whose names are the same or similar to the applicable
Seller’s name, (ii) mechanic’s and materialman’s liens for work conducted by or on the applicable
Seller’s behalf, (iii) rights of parties in possession (other than Tenants under the Tenant Leases,
as tenants only), (iv) notices of commencement for work conducted by or on the applicable Seller’s
behalf, (v) any matters arising as a result of Seller’s acts during the “gap” period between the
time of execution and delivery of the deed and the recordation thereof, and (vi) survey matters
which can be resolved by Seller’s affidavit that there have been no material changes to the
Property since the date of the Survey;

          (h) a Certificate of an officer of the managing member of the applicable Seller, reflecting
the authorization of (i) the actions to be taken by the applicable Seller under this Agreement and
(ii) the execution and delivery of this Agreement, the Closing Documents and all other documents
required to be executed and delivered by the applicable Seller pursuant to this Agreement and such
organizational and other authorizing documents of Seller as may be reasonably required by the Title
Company.;

          (i) all Tenant Leases, Books and Records (originals when available or photocopies if not
available) in the possession or control of the applicable Seller;

          (j) all keys and master keys to all locks at the Property which are in the possession or
control of the applicable Seller;

          (k) all Licenses and Permits in the applicable Seller’s possession or control;

          (l) all Plans in the applicable Seller’s possession or control;

          (m) all Contracts, if any, in the applicable Seller’s possession or control;

          (n) executed and acknowledged counterparts of all documents and instruments required by Holder
in connection with the issuance of Holder Consent, the assumption of the Existing Loans by
Purchaser and the release of Seller and its affiliates from all obligations under the Existing
Loans;

          (o) a closing statement prepared by Seller and approved by Purchaser (the “Closing
Statement”);

          (p) original counterparts of a management agreement for each Apartment Complex (collectively,
the “Management Agreements”), pursuant to which Tarragon Management, Inc. (the “Manager”) will
manage such Apartment Complexes for a term of one

 

 

Exhibit 10.23 (Continued)

year, for a fee equal to 3% of gross revenues from each Apartment Complex, which Management
Agreements shall substantially be on the form annexed hereto as Exhibit “M”;

          (q) an updated Rent Roll for the Property;

          (r) all transfer tax and other similar tax returns which Seller is required by law to execute
and acknowledge and to deliver, either individually or together with Purchaser, to any governmental
authority as a result of the sale, and if Seller is responsible for payment of such taxes in
accordance with this Agreement, checks made payable to the appropriate governmental authority in
the required amounts (unless Seller authorizes the Title Company to deduct and pay such expenses
out of monies payable to Seller).

          (s) Certificates of Occupancy for all Improvements.

     6.3 Purchaser’s Obligations at Closing. At Closing, Purchaser shall deliver to
Escrow Holder the following:

          (a) subject to Article 4 and Article 6 hereof, the balance of the Purchase Price, by wire
transfer of immediately available funds to the account of the Title Company;

          (b) executed counterparts of all of the Assignments and Assumptions of Leases, General
Assignments and Assumptions and Notice Letters, originally executed and acknowledged (where
applicable) by Purchaser, or its designee, as applicable;

          (c) a certificate of the manager of Purchaser, reflecting the authorization of (i) the actions
to be taken by Purchaser under this Agreement, (ii) the execution and delivery of this Agreement,
the Closing Documents and all other documents to be executed and delivered by Purchaser pursuant to
this Agreement and/or as customarily required by the Title Company, and (iii) the payment of the
Purchase Price;

          (d) executed and acknowledged counterparts of all documents and instruments required by Holder
in connection with the issuance of Holder Consent, the assumption of the Existing Loans by
Purchaser and the release of Seller and its affiliates from all obligations under the Existing
Loans;

          (e) the Closing Statement; and

          (f) original counterparts of the Management Agreements, duly executed by Purchaser or its
designee, as applicable.

     6.4 Closing Costs. Except as otherwise expressly provided herein, Purchaser shall
pay (i) all sales taxes on personal property, if any, (ii) the title premiums and the cost of any
endorsements to the Title Policy required by Purchaser or Purchaser’s acquisition lender and the
search and examination fees incurred in connection with the transfer of the Property, (iii)
Purchaser’s share of prorations, (iv) the cost of updating the Survey, (v) all recording charges

 

 

Exhibit 10.23 (Continued)

(other than for discharges of mortgages), (vi) all documentary stamps and intangible taxes in
connection with Purchaser’s financing, (vii) all application fees, assumption fees and other costs
associated with obtaining Villa Tuscany Holder Consent, Deerwood Village Holder Consent and Vista
Grande Holder Consent, and (viii) fifty percent (50%) of any escrow fees and other customary
charges of the Escrow Holder (if any). Seller shall pay (i) Seller’s share of prorations, (ii) all
applicable state, city and county deed stamp tax, excise, documentary stamp, conveyance and
transfer taxes and (iii) fifty percent (50%) of any escrow fees and other customary charges of the
Escrow Holder (if any). Except as otherwise provided herein, each party shall pay its own
attorneys’ fees.

     6.5 Electronic Data Transfer. Seller shall, with Purchaser’s cooperation, use its
commercially reasonable efforts to electronically transfer all Property-related financial and
operational information to Purchaser as of the Closing Date, in a manner such that Purchaser will
not have to manually input such data into its computer records or systems, provided that Seller
shall not be required to transfer any proprietary information, violate any license agreements, or
incur any material costs in so doing.

ARTICLE 7.

PRORATIONS

     7.1 The following shall be apportioned and adjusted between Seller and Purchaser as of 11:59
p.m. (Florida time) on October 31, 2007 (the “Adjustment Date”), except as otherwise specified:

          (a) rents and additional rents under or in respect of the Tenant Leases, as, when and to the
extent actually collected, on the basis of the period for which payable under the applicable Tenant
Lease and apportioned on the basis of the actual number of days in such period;

          (b) any real property taxes, water and sewer rents and charges; property owners’ association
dues, assessments, fees and charges; the cost of any real property tax appeal commenced or
continuing after the date hereof, as well as any tax credit or refund collected as a result
thereof; vault taxes or charges, elevator inspection charges and other like and similar municipal
taxes and charges, each on the basis of the fiscal year or other period for which assessed, and
apportioned upon the basis of the actual number of days in such year or period. If actual tax
bills are not available, taxes shall be apportioned based on the most recent tax bills available,
with a post-Closing adjustment to be made as soon as tax bills for the fiscal year during which the
Closing occurs become available;

          (c) subject to Section 7.5, electric, gas, steam and other public utility charges for services
furnished to the Property, on the basis of the actual number of days in any period covered by the
charge being apportioned (except that no apportionment shall be made for any of such items as are
furnished and charged by the applicable utility company directly to Tenants under the Tenant
Leases);

 

 

Exhibit 10.23 (Continued)

          (d) all charges under the Contracts to be assumed by Purchaser, on the basis of the actual
number of days in any period covered by the charge being apportioned. Seller shall pay, at or
prior to the Closing, all installments or amounts of items which are being apportioned under this
Section which became due and payable prior to the Adjustment Date; and

          (e) interest actually paid under the Existing Loan but excluding any penalties and default
interest accruing between the Adjustment Date and the Closing Date, which shall be paid by Seller
on or prior to Closing.

     7.2 Seller shall pay all unpaid commissions, fees and other charges due on or prior to the
Adjustment Date to real estate brokers or other Persons with respect to any Tenant Lease beginning
prior to the Adjustment Date. If the Closing occurs, then Purchaser shall be responsible for
commissions, fees, or other charges due to real estate brokers or other Persons with respect to
Tenant Leases, and any renewals, extensions and expansions thereof beginning after the Adjustment
Date. Purchaser will receive a credit against the Purchase Price for all Deposits.

     7.3 If the Closing occurs before a new real property or other applicable tax rate or charge of
a Governmental Entity is fixed, then the apportionment of such tax or charge at the Closing shall
be based upon the tax rate for the immediately preceding fiscal period applied to the latest
assessed valuation. Promptly after the new tax rate has been fixed, the apportionment of such tax
or charge made at the Closing shall be recalculated and any reimbursement owed by Purchaser to
Seller or Seller to Purchaser, as the case may be, shall be paid promptly after such recalculation.

     7.4 If any Tenant under a Tenant Lease is in arrears in the payment of rent, or other charges,
payments received from such Tenant after the Adjustment Date shall be applied in the following
order of priority: first, to any rents or other sums due and owing during the month in which the
payment is received, then to the payment of current rents and other sums due Purchaser as the
current owner of the Property and landlord under the Tenant Leases, and the balance to any
delinquent sums owing to Seller under the Tenant Leases. Notwithstanding the preceding sentence,
any arrearages from delinquent Tenants at the Shopping Center shall remain the property of
Purchaser and shall not be remitted to Seller if and when collected. If any payments from a Tenant
received by Purchaser or Seller after the Closing are payable to the other party by reason of this
Section, then the appropriate sum shall be promptly paid to the other party. After the Closing,
Seller may bring, in Seller’s name and at Seller’s expense, an action against any Tenant to collect
rent, additional rent, or other payments due Seller for a period prior to the Adjustment Date,
together with the cost of collection thereof; but in no event shall Seller seek any remedy against
any such Tenant other than collection of funds from the particular Tenant. Seller shall not
interfere with other Tenants of the Property and shall comply with all applicable laws in
connection with its collection of delinquent sums pursuant to the terms of this paragraph.
Notwithstanding anything contained herein to the contrary, nothing shall prevent Purchaser from
commencing eviction proceedings against any Tenant for non-payment of current rents as they become
due.

 

 

Exhibit 10.23 (Continued)

     7.5 The apportionment of utility charges shall be made upon the basis of charges shown on the
latest available bills of such utilities. The charges shown on such available bills for periods
prior to the Adjustment Date shall be paid by Seller, and for the period from the date of each such
last available utility bill to the Adjustment Date, an apportionment shall be made based on the
amount charged for the period covered by such last available bill. Notwithstanding the foregoing,
Seller will use reasonable efforts to cause the respective utility companies to read their meters
or fix their charges to the Closing Date, and the Villa Tuscany Closing Date, as applicable, in
which event Seller shall pay such charges, when billed, to the Adjustment Date, and Purchaser shall
pay such charges from and after the Adjustment Date, and/or promptly reimburse Seller for any such
charges paid by Seller for any period subsequent to the Adjustment Date.

     7.6 At the Closing if requested by Purchaser, Seller shall assign to Purchaser, all deposits
or escrows held for Seller’s account at or by any public utility company in connection with the
utility services furnished to the Property; and in such case Purchaser shall pay Seller, at the
Closing, for the amount of deposits, or escrows so assigned. Prior to the Closing Date or the Villa
Tuscany Closing Date, as applicable, Seller shall notify all such public utilities in writing of
the applicable transfer of service. Seller shall receive a credit at Closing equal to the amount
of all escrows or reserves held by or on behalf of Holder under the Existing Loans.

     7.7 If any item covered by this Article cannot be apportioned because the same has not been
(or cannot be) fully ascertained on the Closing Date or the Villa Tuscany Closing Date, as
applicable, or if any error has been made with respect to any apportionment, then such item shall
be apportioned (or corrected, as applicable) as soon as the same is fully ascertained and shall be
paid within twenty (20) days thereafter by the appropriate party. Any Property-related bills
received after Closing related to the period prior to the Adjustment Date shall be promptly paid by
Seller.

     7.8 Real estate tax refunds and credits received after the Closing which are attributable to
the fiscal tax year during which the Adjustment Date, occurs shall be apportioned between Seller
and Purchaser, pursuant to this Article.

     7.9 If, as of the Adjustment Date, the Property shall be (or shall have become) subject to a
special or local assessment or charge of any kind (whether or not yet a lien), then (to the extent
not payable by the tenants) Seller shall pay all installments thereof due and payable prior to the
Adjustment Date; provided, however, any installment thereof attributable to a period from and after
the Adjustment Date shall be apportioned at the Closing in the same manner as for taxes under
Section 7.1(b). Purchaser shall be responsible for all installments of such assessment attributable
to the period from and after the Adjustment Date.

     7.10 In the event either Purchaser or Seller shall owe the other any money as a result of the
terms of this Article 7 (whether at Closing or thereafter), then the party owing such money shall
pay the other party such money promptly, as soon as the amount is finally determined.

 

 

Exhibit 10.23 (Continued)

     7.11 At the Closing if requested by Purchaser, Seller shall cause all existing insurance
policies currently held by Seller with respect to the Property to remain in effect, and shall take
all steps reasonably requested by Purchaser to have Purchaser, and Purchaser’s lender, if
applicable, named as “additional insureds” and “loss payee(s)” on any such insurance policies. In
such event, the prepaid premium paid by Seller in connection with any such insurance policies shall
be apportioned and adjusted based on the actual number of days remaining in the period for which
such policies were prepaid, between Seller and Purchaser as of 11:59 p.m. (Florida time) the day
preceding the Closing Date, and Seller shall receive, a credit at Closing in the amount equal to
such apportionment.

     7.12 If Tarragon Ocala Development Corp., as a member of Ocala, is or becomes entitled to
receive proceeds from the sale of the Deerwood Village Apartment Complex pursuant to the Operating
Agreement for Ocala Tarragon or the consent of S.E.T., LLC to the sale of the Deerwood Village
Apartment Complex pursuant to this Agreement, in excess of what Tarragon Ocala Development Corp.
would have been entitled to receive under the Tarragon Ocala Operating Agreement if such Apartment
Complex were sold to Purchaser for $32,000,000, then Purchaser will receive a credit against the
Purchase Price or a reimbursement equal to the amount of such excess.

     7.13 This Article 7, and all rights and duties of the parties hereunder, shall survive the
Closing.

ARTICLE 8.

REPRESENTATIONS AND WARRANTIES OF SELLER

     8.1 Disclaimer of Seller.

          (a) Except as expressly set forth in this Agreement and except for those items delivered
pursuant to the terms of this Agreement, including Section 8.2, Purchaser acknowledges and agrees
that Seller, or any member, shareholder, partner, director, officer, manager, person, firm, agent,
employee or representative of, or acting or purporting to act on behalf of, Seller has not made,
does not make and specifically negates and disclaims any representations, warranties, promises,
covenants, agreements or guaranties of any kind or character whatsoever, whether express or
implied, oral or written, past, present or future, of, as to, concerning or with respect to the
Property. Seller is not liable or bound in any manner by any verbal or written statements,
representations or information pertaining to the Property, or the operation thereof, furnished by
any real estate broker or any agent or employee of Seller, except for those items delivered by or
on behalf of Seller pursuant to the terms of this Agreement. Purchaser further acknowledges and
agrees that except as expressly set forth in this Agreement, to the maximum extent permitted by
law, that should the Closing occur, then the sale of the Property as provided for herein will be
made on an “AS IS” condition and basis “WITH ALL FAULTS” as of the date hereof, reasonable wear and
tear, and casualty and condemnation (as provided in Article 10) excepted. It is understood and
agreed that the Purchase Price has been adjusted by prior negotiation to reflect that the Property
is sold by Seller and purchased by

 

 

Exhibit 10.23 (Continued)

Purchaser subject to the foregoing.

          (b) Except as expressly set forth in Section 8.2 below, Seller makes no representations or
warranties as to the truth, accuracy or completeness of any materials, data or other information
supplied to Purchaser in connection with Purchaser’s inspection of the Property (e.g., that such
materials are complete, accurate or the final version thereof, or that all such materials are in
Seller’s possession). It is the parties express understanding and agreement that such materials
are provided only for Purchaser’s convenience in making its own examination and determination prior
to the date hereof as to whether it wishes to purchase the Property, and, in doing so, Purchaser
shall rely exclusively on its own independent investigation and evaluation of every aspect of the
Property and not on any materials supplied by Seller, except as may be expressly set forth below in
Section 8.2.

          (c) Each party comprising Seller and its shareholders, officers, directors, agents, employees,
property manager and affiliates (individually a “Seller Party” and collectively the
“Seller Parties”) are hereby released from all responsibility and liability regarding the
condition (including the presence in the soil, air, structures and surface and subsurface waters,
of any and all materials or substances that have been or may in the future be determined to be
toxic, hazardous, undesirable or subject to regulation and that may need to be specially treated,
handled and/or removed from the Property under current or future federal, state and local laws,
regulations or guidelines), valuation, salability or utility of the Property, or its suitability
for any purpose whatsoever. Without limitation, Purchaser specifically releases Seller from any
claims it may have against Seller now or in the future under the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., as amended; the Resource
Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as amended; any other analogous state or
federal statute; and common law arising from the environmental conditions of the Property or the
presence of hazardous materials, solid wastes, or any other pollutants or contamination the
Property.

          (d) Notwithstanding anything herein (including, without limitation, the other provisions of
this Article 8) or otherwise to the contrary, (a) Purchaser has not released Seller from, and
Seller agrees to be and remain fully liable and responsible for (i) any breach of Seller’s
representations and warranties contained in this Agreement and/or documents executed and delivered
by Seller at or contemporaneously with the Closing, (ii) any breach by Seller of its covenants in
this Agreement or in any document executed and delivered by Seller at or contemporaneously with the
Closing, (iii) Seller’s fraud, or (iv) Seller’s acts or omissions from and after the Closing; and
(b) Purchaser has not assumed, and shall have no obligation to indemnify Seller from and against,
any governmental or third party claims asserted after the Closing as a result of any act or
omission taken or failed to be taken prior to the Closing.

          (e) THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART OF THE CONSIDERATION FOR SELLER’S
ENTERING INTO THIS AGREEMENT, AND SHALL SURVIVE CLOSING.

 

 

Exhibit 10.23 (Continued)

     8.2 Representations and Warranties of Seller. Each party comprising Seller represents
and warrants to Purchaser as follows with respect to the Property owned by such party, which
representations and warranties shall be true and correct as of the date hereof and as of the
Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as applicable,
subject to changes in facts permitted hereunder and occurring in the ordinary course of Seller’s
business:

          (a) Rent Roll. Attached hereto as Exhibits “H-1” – “H-4” are true, correct
and complete copies of the Rent Roll for the Shopping Center and each Apartment Complex, and the
information set forth therein is true and correct in all material respects as of the date hereof.
An updated Rent Roll for the Shopping Center and each Apartment Complex will be provided at
Closing. There are no leases, license agreements, occupancy agreements, tenancies (written or
oral) or other agreements or contracts between Seller and any other party for any space in the
Property, or relating to the Property except as disclosed thereon.

          (b) Authority, Actions of Seller, Authorization and Consents.

               (i) Each party comprising Seller is a limited liability company or limited partnership duly
organized and validly existing under the laws of its state of organization and is qualified as a to
do business in each jurisdiction in which it is required to so qualify in order to conduct its
business and own the Property. Each party comprising Seller has all necessary power and lawful
authority to own and operate its assets and properties, including, but not limited to the Apartment
Complex or Shopping Center owned by it, and to carry on its business (including all business
contemplated under this Agreement and the Closing Documents). The execution and delivery by Seller
of this Agreement and the Closing Documents, and the consummation by Seller of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary action of Seller.
There are no other approvals, authorizations, consents or other actions by or filings with any
Person which are required to be obtained or completed by Seller in connection with the execution
and delivery of this Agreement or any of the Closing Documents (or any other agreement or
instrument required hereunder) or the sale or assignment of the Property or in connection with any
other action required to be taken by Seller hereunder at or before the Closing, except for Holder
Consent.

               (ii) Neither the execution and delivery of this Agreement or the Closing Documents by Seller
nor the consummation of the transaction contemplated hereby will: (A) violate any provision of
Seller’s articles of organization or operating agreements; (B) violate, conflict with or result in
a breach or termination of, or give any other party the right to terminate, or constitute a default
under the terms of, any agreement or instrument to which Seller is a party or by which it is bound;
(C) violate any judgment, order, injunction, award or decree of any Governmental Entity against or
binding upon Seller or upon the Property or business of Seller; or (D) constitute a violation by
Seller of any applicable law or regulation to which Seller is subject.

          (c) Legal Proceedings. To Seller’s knowledge, except as set forth on Exhibit
“I”, Seller is not a party to and has not received any written notice of any pending Legal
Proceedings against Seller (to the extent that the same would have material adverse effect on

 

 

Exhibit 10.23 (Continued)

Seller’s performance of it’s obligations under this Agreement or the Closing Documents) or
otherwise affecting the Property.

          (d) FIRPTA. No party comprising Seller is a foreign person within the meaning of
Section 1445(b) (2) of the Internal Revenue Code of 1986, as amended.

          (e) Documents Delivered. The Tenant Leases, Plans, Books and Records, Warranties and
Guarantees, Contracts and other financial information concerning the Properties delivered or made
available by Seller to Purchaser for inspection pursuant to Section 4.1 are or at the Closing Date,
the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as applicable, will be true
and correct copies of the originals thereof in Seller’s possession. Attached hereto as Exhibits
“J-1” – “J-4” is a true, correct and complete copy of the current inventory of the Personal
Property at each Apartment Complex and the Shopping Center, and the information set forth therein
is true and correct in all material respects as of the date thereof.

          (f) Other Agreements. Seller is not a party to any outstanding contracts or options
to purchase the Property or any portion thereof in favor of any third party. Exhibits “B-1” –
“B-4” attached hereto are a true, correct and complete list of Contracts affecting the Property.

          (g) Licenses and Permits. To Seller’s knowledge, there are no conditions to the
Licenses and Permits, or other agreements or obligations associated therewith, which are not
expressly set forth in such Licenses and Permits, in the publicly adopted resolutions pursuant to
which the Licenses and Permits were issued, or elsewhere in this Agreement. Seller has not
received written notice that the Property or the use thereof violates any Licenses and Permits or
other law or regulation applicable thereto.

          (h) Hazardous Materials. Except as may otherwise be specified in any environmental
reports delivered to Purchaser pursuant to Section 4.1, to Seller’s knowledge, each Property is
free of the presence on or under such Property of any hazardous materials or hazardous substances,
as such terms are defined in applicable federal and state environmental laws, in a manner which
violates any such laws. Seller has not received written notice from any Governmental Entity that
the Property or any Tenant in the Shopping Center or any commercial Tenant is in violation of any
environmental Laws. Seller has provided or otherwise made available to Purchaser copies of all
documents, maintenance records and other reports, Contracts or agreements related to environmental
matters, hazardous substances and hazardous materials in connection with the Property in Seller’s
possession or control. Seller has no knowledge of any contamination in association with the
Property or any property adjoining the Property.

          (i) Violations. To Seller’s knowledge, there are no outstanding written violations of
any state, federal or local law or ordinance against the Property or any written complaints or
notices issued with respect thereto.

          (j) Existing Loans. The outstanding principal balance of the Villa Tuscany Existing
Loan as of the date hereof is approximately $23,508,000. There are no defaults under

 

 

Exhibit 10.23 (Continued)

the Villa Tuscany Existing Loan and there has occurred no event or circumstance, or the
failure of any event to occur, which with the passage of time or giving of notice could become an
event of default thereunder. The outstanding principal balance of the Deerwood Existing Loan as of
the date hereof is approximately $21,859,000. The outstanding principal balance of the Vista
Grande Existing Loan is approximately $36,300,000 as of the date hereof. The Deerwood Existing
Loan and the Vista Grande Loan have matured and are due and payable.

          (k) Contesting of Taxes. Except as disclosed on Exhibit “I”, Seller is not
currently engaged in any real property tax appeal.

          (l) Leases. Attached hereto as Exhibit “K” is a true, correct and complete
copy of Seller’s standard forms of Tenant Lease for the Apartment Complexes. All Tenant Leases for
the Apartment Complexes are in form and substance substantially similar to the forms attached as
Exhibit “K”. Except as otherwise described on the Rent Roll, Seller has not accepted any
rental payments more than thirty (30) days in advance of the date due, and no tenant has been given
any free rent, any concession in the payment of rent or any abatement in the payment of rent which
has not yet been satisfied, except as set forth on the Rent Roll. Seller has delivered to
Purchaser true, correct and complete copies of all Tenant Leases for the Shopping Center, together
with all Amendments thereto.

          (m) ERISA. Seller is not selling the Property form any account holding the “plan of
assets” or any “employees benefit plan” as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I of ERISA, or any
“plan” as defined in Section 4975 of the Internal Revenue Code of 1986, as amended.

          (n) Tenant Leases. Attached hereto as Exhibit “L” is a true, correct and
complete schedule of all Amendments to Tenant Leases at the Shopping Center, and there are no
unpaid commissions, fees and other charges due to real estate brokers or other Persons with respect
to any Tenant Lease at the Shopping Center beginning prior to the Closing Date. Except as
disclosed on Exhibit “L”, there are no Amendments to Tenant Leases at the Shopping Center
or other agreements in connection therewith or with the Properties which would result in any
commissions, fees and other charges due to real estate brokers or other Persons with respect to any
Tenant Lease. To Seller’s knowledge, there are no payment defaults under any Tenant Leases which
are not reflected on the Rent Roll, and there has occurred no event or circumstance, or the failure
of any event to occur, which with the passage of time or giving of notice could become an event of
default thereunder. The material terms of any amendments to Tenant Leases at the Apartment
Complexes are reflected on the Rent Roll.

          (o) Deposits. All Deposits held by Seller in connection with any Tenant Lease are
held in accordance with applicable law. Seller has not used or withdrawn any Deposits except in
strict accordance with the applicable Tenant Lease and applicable law and as disclosed on the Rent
Roll.

 

 

Exhibit 10.23 (Continued)

          (p) Solvency. Each party comprising Seller represents and warrants that both before
and after giving effect to the transactions contemplated by this Agreement each such party is and
will continue to be solvent and no transfer of property is being made, and no obligation is being
incurred in connection with the transactions contemplated by this Agreement, with the intent to
hinder, delay or defraud either the present or future creditors of any party compromising Seller.

          (q) Deerwood Consent. Seller has received the Consent of S.E.T., LLC to the sale of
the Deerwood Village Apartment Complex to Purchaser pursuant to this Agreement.

          (r) Licenses and Permits. To Seller’s knowledge, there are no licenses, permits,
approvals, consents, authorizations or certificates required to be issued by any Governmental
Entity in connection with the lawful operation of the Apartment Complex and the Shopping Center,
other than the Licenses and Permits.

          (s) Deerwood Ownership. Tarragon Ocala Development Corp. (“Tarragon Ocala”) is the
owner and holder of a 50% membership interest in Ocala, and holds such interest free and clear of
all liens, claims and encumbrances.

     8.3 Knowledge. As used herein, the term “to Seller’s knowledge” shall mean only the
“current knowledge” (as defined below) of the following designees of Seller: Chris Clinton, Michael
Johnson, Teri Bridenbaugh, Aimee Bakh, Debra Carter, Karina Nahmens, Dori Carr-Day, Jan Surrat and
Paige Beale, who are the persons with the most knowledge and experience in connection with the
ownership and operation of the Property by Seller. As used herein, the term “current knowledge”
shall mean only the actual, current, conscious and not constructive, imputed or implied knowledge
of such designee after due investigation and inquiry. Anything herein to the contrary
notwithstanding, such designee shall not have any personal liability or obligation whatsoever with
respect to any of the matters set forth in this Agreement or any of the Seller’s representations
herein being or becoming untrue, inaccurate or incomplete in any respect.

     8.4 Survival. The representations and warranties of Seller set forth in this Article
8 and anywhere else in this Agreement (unless expressly stated otherwise) shall survive the Closing
of the transaction contemplated in this Agreement and the delivery of the Special Warranty Deed
from Seller to Purchaser for a period of six (6) months from and after the Closing Date or the
Villa Tuscany Closing Date, as applicable. Consequently, Purchaser stipulates and agrees that from
and after such six (6) month period, it is entitled to and agrees to claim no damages of any kind
with respect to any alleged breach and/or violation of any of such representations and/or
warranties of Seller. As a condition precedent to Purchaser’s obligation to close the purchase
contemplated by this Agreement, Seller’s representation and warranties contained herein shall
remain and be true and correct in all material respects as of the Closing Date or the Villa Tuscany
Closing Date, as applicable, unless such representations and warranties have changed by reason of
facts or circumstances occurring in the ordinary course of business and operation of the Property
which pursuant to the terms of this Agreement are expressly permitted or contemplated to have
occurred. In the event Purchaser becomes aware of any breach and/or violation of any Seller’s
representations and warranties prior to Closing and

 

 

Exhibit 10.23 (Continued)

following notice thereof to Seller, Seller fails or is unable to cure any such breach or violation
to the reasonable satisfaction of Purchaser, Purchaser’s sole remedy for any such breach or
violation shall be to terminate this Agreement by delivering written notice of such termination to
Seller on or before the Closing Date or the Villa Tuscany Closing Date, as applicable, in which
event the Earnest Money will be returned to Purchaser, and neither party shall have any obligation
hereunder. Purchaser hereby waives any right Purchaser may have to commence any action(s) to
enforce any alleged breach and/or violation of any of the representations of Seller as set forth in
this Agreement or to seek damages in connection therewith in the event that Purchaser becomes aware
of any such alleged breach and/or violation prior to Closing and fails to give Seller notice
thereof on or before the Closing Date or the Villa Tuscany Closing Date, as applicable.

     8.5 Indemnification. Seller agrees to indemnify and hold Purchaser harmless from and
against any and all loss, claim, liability or expense, including reasonable attorneys fees, arising
as a result of any personal injury or property damage occurring on or about the Property prior to
the Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as
applicable, except if occasioned by Purchaser or its agents, servants or employees, or as otherwise
provided in Section 14.3 below. Purchaser agrees to indemnify and hold Seller harmless from and
against any and all loss, claim, liability or expense, including reasonable attorneys fees, arising
as a result of any personal injury or property damage occurring on or about the Property from and
after the Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as
applicable, except if occasioned by Seller or its agents, servants or employees. The provisions of
this Section 8.5 shall survive the Closing.

ARTICLE 9.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

     9.1 Representations and Warranties of Purchaser. Purchaser hereby represents and
warrants to Seller as follows, which representations and warranties shall be true and correct as of
the date hereof and as of the Closing Date or the Villa Tuscany Closing Date, as applicable:

          (a) Authority, Actions of Purchaser and Authorization. Purchaser has all necessary
power and lawful authority to own and operate its assets and properties, including, but not limited
to the Property, and to carry on its business (including all business contemplated under this
Agreement and the Closing Documents). The execution and delivery by Purchaser of this Agreement and
the Closing Documents, and the consummation by Purchaser of the transactions contemplated thereby,
have been duly authorized by all necessary action of Purchaser. There are no other approvals,
authorizations, consents or other actions by or filings with any Person which are required to be
obtained or completed by Purchaser in connection with the execution and delivery of this Agreement
or any of the Closing Documents (or any other agreement or instrument required hereunder) or the
sale or assignment of the Property or in connection with any other action required to be taken by
Purchaser hereunder at or before the Closing.

 

 

Exhibit 10.23 (Continued)

          (b) Consents. Neither the execution and delivery of this Agreement or the Closing
Documents by Purchaser nor the consummation of the transaction contemplated hereby will: (i)
violate, conflict with or result in a breach or termination of, or give any other party the right
to terminate, or constitute a default under the terms of, any agreement to which Purchaser is a
party or by which it is bound; (ii) violate any judgment, order, injunction, award or decree of
any Governmental Entity against or binding upon Purchaser or upon the Property or business of
Purchaser; or (iii) constitute a violation by Purchaser of any applicable law or regulation to
which Purchaser is subject.

          (c) Patriot Act. Purchaser further represents, warrants and covenants to Seller as
follows:

               (i) Purchaser is not now nor shall it be at any time until Closing an individual, corporation,
partnership, joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust, government or any
agency or political subdivision thereof, or any other form of entity (collectively, a “Person”)
with whom a United States citizen, entity organized under the laws of the United States or its
territories or entity having its principal place of business within the United States or any of its
territories (collectively, a “U.S. Person”), is prohibited from transacting business of the type
contemplated by this Agreement, whether such prohibition arises under United States law,
regulation, executive orders and lists published by the Office of Foreign Assets Control,
Department of the Treasury (“OFAC”) (including those executive orders and lists published by OFAC
with respect to Persons that have been designated by executive order or by the sanction regulations
of OFAC as Persons with whom U.S. Persons may not transact business or must limit their
interactions to types approved by OFAC (“Specially Designated Nationals and Blocked Persons”) or
otherwise.

               (ii) Neither Purchaser nor any Person who owns a direct interest in Purchaser (collectively, a
“Purchaser Party”) is now nor shall be at any time until Closing a Person with whom a U.S. Person,
including a United States Financial Institution as defined in 31 U.S.C. 5312, as periodically
amended (“Financial Institution”), is prohibited from transacting business of the type contemplated
by this Agreement, whether such prohibition arises under United States law, regulation, executive
orders and lists published by the OFAC (including those executive orders and lists published by
OFAC with respect to Specially Designated Nationals and Blocked Persons) or otherwise.

               (iii) Purchaser has taken, and shall continue to take until Closing, such measures as are
required by law to assure that the funds used to pay to Seller the Purchase Price are derived
(i) from transactions that do not violate United States law nor, to the extent such funds originate
outside the United States, do not violate the laws of the jurisdiction in which they originated;
and (ii) from permissible sources under United States law and to the extent such funds originate
outside the United States, under the laws of the jurisdiction in which they originated.

               (iv) To the best of Purchaser’s knowledge after making due inquiry, neither Purchaser nor any
Purchaser Party, nor any Person providing funds to Purchaser (i) is

 

 

Exhibit 10.23 (Continued)

under investigation by any governmental authority for, or has been charged with, or convicted
of, money laundering, drug trafficking, terrorist related activities, any crimes which in the
United States would be predicate crimes to money laundering, or any violation of any Anti-Money
Laundering Laws (as defined herein); (ii) has been assessed civil or criminal penalties under any
Anti-Money Laundering Laws; or (iii) has had any of its funds seized or forfeited in any action
under any Anti-Money Laundering Laws. For purposes of this Subsection (b), the term “Anti-Money
Laundering Laws” shall mean laws, regulations and sanctions, state and federal, criminal and civil,
that (1) limit the use of and/or seek the forfeiture of proceeds from illegal transactions;
(2) limit commercial transactions with designated countries or individuals believed to be
terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests of the
United States; (3) require identification and documentation of the parties with whom a Financial
Institution conducts business; or (4) are designed to disrupt the flow of funds to terrorist
organizations. Such laws, regulations and sanctions shall be deemed to include the USA PATRIOT Act
of 2001, Pub. L. No. 107-56 (the “Patriot Act”), the Bank Secrecy Act, 31 U.S.C. Section 5311 et.
seq., the Trading with the Enemy Act, 50 U.S.C. App. Section 1 et. seq., the International
Emergency Economic Powers Act, 50 U.S.C. Section 1701 et. seq., and the sanction regulations
promulgated pursuant thereto by the OFAC, as well as laws relating to prevention and detection of
money laundering in 18 U.S.C. Sections 1956 and 1957.

               (v) Purchaser is in compliance with any and all applicable provisions of the Patriot Act.

     9.2 Survival. The representations and warranties of Purchaser set forth in this
Article 9 and anywhere else in this Agreement (unless expressly stated otherwise) shall survive the
Closing of the transaction contemplated in this Agreement and delivery of the Special Warranty
Deeds from Seller to Purchaser for a period of six (6) months from and after the Closing Date or
the Villa Tuscany Closing Date, as applicable. Consequently, Seller stipulates and agrees if from
and after such six (6) month period it is entitled to and agrees to claim no damages of any kind
with respect to any alleged breach and/or violation of such representations or warranties of
Purchaser.

ARTICLE 10.

RISK OF LOSS

     10.1 Casualty. Seller assumes all risks for damage to or injury occurring to the
Property by fire, storm, accident, or any other casualty or cause (a “Casualty”) until the Closing.
Immediately after Seller has received notice of the occurrence of any Casualty between the date
hereof and the Closing, Seller shall give Purchaser written notice thereof (a “Casualty Notice”),
which Casualty Notice shall state the type, location and amount of damage to the Shopping Center or
any Apartment Complex and Seller’s good faith estimate of the cost to complete repairs of such
Casualty.

          (a) If prior to the Closing such a Casualty shall occur and the cost to complete repairs of
such Casualty shall be greater than or equal $1,000,000 with respect to the Shopping Center or any
one Apartment Complex, or greater than or equal to $2,500,000 in the aggregate

 

 

Exhibit 10.23 (Continued)

with respect to the Shopping Center and all Apartment Complexes, as determined by Purchaser in its
reasonable discretion, then in any such event, Purchaser may, at its sole option, (i) terminate
this Agreement with respect to the Property which was the subject of such Casualty Notice, or (ii)
terminate this Agreement in its entirety, by written notice to Seller (any such notice, a “Casualty
Termination Notice”) within ten (10) Business Days after Purchaser has received the Casualty Notice
(provided, however, if the Closing is scheduled for a date which is less than ten days after
Purchaser’s receipt of the Casualty Notice the Closing shall be postponed until ten days after
Purchaser’s receipt of the Casualty Notice), specifying whether the termination will be with
respect to an individual Property or the Agreement in its entirety. In the event (A) the Casualty
Termination Notice specifies a termination with respect to the Shopping Center or an individual
Apartment Complex only, then this Agreement automatically shall be deemed to have been amended and
(i) the Purchase Price shall be deemed to be reduced by the amount of the Purchase Price allocated
to such Apartment Complex or Shopping Center, (ii) the Earnest Money and all interest earned
thereon with respect to the Earnest Money allocated to such Apartment Complex or Shopping Center
shall be returned to Purchaser, and (iii) the Apartment Complex or Shopping Center which is the
subject of such Casualty Notice shall be eliminated from the Property being purchased hereunder, or
(B) Purchaser elects to terminate this Agreement in its entirety, this Agreement shall be null and
void, the Earnest Money shall be returned to Purchaser and neither party shall have any further
liability or obligations to the other (except as specifically provided in this Agreement).

          (b) If (i) Purchaser has the right, but elects not to terminate this Agreement as set forth in
clause (a) of this Section 10.1, or (ii) the cost to complete repairs of such Casualty shall be
less than $1,000,000 with respect to the Shopping Center or any one Apartment Complexes, or
$2,500,000 in the aggregate with respect to the Shopping Center and all Apartment Complex, as
determined by Purchaser in its reasonable discretion, then the Closing shall take place as provided
herein, and at the Closing Purchaser shall receive a credit to be applied toward the Purchase Price
in an amount equal to (A) the cost to complete the repairs of such Casualty(ies) as determined by
Purchaser in its reasonable discretion, if the cost to complete repairs of such Casualty shall be
less than $1,000,000 with respect to the Shopping Center or any one Apartment Complexes, or
$2,500,000 in the aggregate with respect to the Shopping Center and all Apartment Complex, or (B)
the threshold amounts enumerated above, individually or in the aggregate, as the case may require,
if the cost of repairs for such Casualty(ies) shall exceed such thresholds, and there shall be
assigned to Purchaser all of Seller’s rights, titles and interest in and to any insurance policies
covering such Casualty (including rental interruption insurance) and all proceeds to be paid
thereunder in excess of the amount of the credit given to Purchaser, as may be then uncollected.
Seller shall credit against the Purchase Price, at Closing, an amount equal to the deductible under
such policy applicable to such casualty. From and after the Closing Date or the Villa Tuscany
Closing Date, as applicable, Seller agrees to execute, acknowledge and deliver each and every such
further reasonable acts, agreement, assignments, notices of assignments, reasonably requested by
Purchaser or its insurance company in connection with any such Casualty.

     10.2 Condemnation. If, prior to the Closing, an action is initiated to take all or
any portion of the Shopping Center or any Apartment Complex by eminent domain proceedings or

 

 

Exhibit 10.23 (Continued)

by deed in lieu thereof (a “Condemnation”), Seller, upon receipt of written notice of such action
from any Governmental Entity, shall immediately give Purchaser written notice of such Condemnation
stating the amount, type and location of such Condemnation (a “Condemnation Notice”) and, if the
proceeds to be paid under such Condemnation equal or exceed $1,000,000 with respect to the Shopping
Center or any one Apartment Complex, as determined by Purchaser in its reasonable discretion, or
$2,500,000 in the aggregate with respect to the Shopping Center and all Apartment Complexes after
attorneys fees, or if any material part of the Property, including parking spaces or access to the
Property is to be condemned, as determined by Purchaser in its reasonable discretion, then
Purchaser may, at its sole option, either (a) terminate this Agreement with respect to the Shopping
Center or Apartment Complex which is the subject of such Condemnation Notice by written
notification, within ten (10) Business Days after Purchaser has received the Condemnation Notice
(provided, however, if the Closing is scheduled for a date which is less than ten (10) days after
Purchaser’s receipt of the Condemnation Notice the Closing shall be adjourned until ten (10) days
after Purchaser’s receipt of the Condemnation Notice), (b) terminate this Agreement in its entirety
by written notification, within ten (10) Business Days after Purchaser has received the
Condemnation Notice (provided, however, if the Closing is scheduled for a date which is less than
ten (10) days after Purchaser’s receipt of the Condemnation Notice the Closing shall be adjourned
until ten (10) days after Purchaser’s receipt of the Condemnation Notice), or (c) consummate the
Closing, in which latter event Purchaser shall receive a credit to be applied toward the Purchase
Price in the amount of the award of the condemning authority which such award shall be paid to
Seller at the Closing, in form and substance reasonably satisfactory to Seller and Purchaser. If
the proceeds to be paid under such Condemnation are less than $1,000,000 with respect to the
Shopping Center or any one Apartment Complex or $2,500,000 in the aggregate with respect to the
Shopping Center and all Apartment Complexes, and the condemnation action only applies to an
immaterial portion of the Property, as determined by Purchaser in its reasonable discretion, then
the Closing shall take place as provided herein, Purchaser shall receive a credit to be applied
toward the Purchase Price in the amount of the award of the condemning authority and such award of
the condemning authority shall be assigned to Seller at the Closing, in form and substance
reasonably satisfactory to Seller and Purchaser. In the event (A) Purchaser elects to termination
this Agreement with respect to the Shopping Center or an individual Apartment Complex only, then
this Agreement automatically shall be deemed to have been amended and (i) the Purchase Price shall
be deemed to be reduced by the amount of the Purchase Price allocated to such Apartment Complex or
Shopping Center, (ii) the Earnest Money and all interest earned thereon with respect to the Earnest
Money allocated to such Apartment Complex or Shopping Center shall be returned to Purchaser, and
(iii) the Apartment Complex or Shopping Center which is the subject of such Casualty shall be
eliminated from the Property being purchased hereunder, or (B) Purchaser elects to terminate this
Agreement in its entirety, this Agreement shall be null and void, the Earnest Money shall be
returned to Purchaser and neither party shall have any further liability or obligations to the
other (except as specifically provided in this Agreement).

 

 

Exhibit 10.23 (Continued)

ARTICLE 11.

DEFAULT

     11.1 Permitted Termination. If this Agreement is terminated by either party pursuant
to a right expressly given to it hereunder (a “Permitted Termination”), neither party shall have
any further obligation to the other party except as expressly provided in the Agreement.

     11.2 Default Remedies of Purchaser.

          (a) Seller shall be in default hereunder upon the occurrence of any one or more of the
following events:

               (i) any of Seller’s warranties or representations set forth herein are untrue or inaccurate
and Seller fails to cure the condition rendering such representation or warranty untrue or
inaccurate within ten (10) days after notice from Purchaser of such untruth or inaccuracy; or

               (ii) Seller shall fail to meet, comply with or perform any covenant, agreement, or obligation
on its part required, within the time limits and in the manner required in this Agreement, for any
reason other than a Permitted Termination.

          (b) In the event of a default by Seller under this Section 11.2, Purchaser may, at Purchaser’s
sole option, do any of the following:

               (i) terminate this Agreement by written notice delivered to Seller and Escrow Agent at or
prior to the Closing, in which event the Earnest Money and all interest earned thereon shall be
returned to Purchaser and thereafter neither Seller nor Purchaser shall have any obligations to the
other under this Agreement, except as specifically set forth herein;

               (ii) enforce specific performance of this Agreement against Seller; and/or

               (iii) following the Closing, and prior to the expiration of the survival period set forth in
Section 8.4 above, seek damages resulting from any breach of any or the representations and
warranties included in this Agreement.

     11.3 Default Remedies of Seller.

          (a) Purchaser shall be in default hereunder upon the occurrence of any one or more of the
following events:

               (i) any of Purchaser’s warranties or representations set forth herein are untrue or inaccurate
in any material respect and Purchaser fails to cure the condition rendering such representation or
warranty untrue in any material respect within ten (10) days after the earlier to occur of (a)
notice from Seller of such untruth or inaccuracy and (b) Purchaser’s self discovery of such untruth
or inaccuracy; or

 

 

Exhibit 10.23 (Continued)

               (ii) Purchaser shall fail to meet, comply with or perform in any material respect any
covenant, agreement, or obligation on its part required, within the time limits and in the manner
required in this Agreement, for any reason other than a Permitted Termination.

          (b) In the event of a default by Purchaser under this Section 11.3, Seller may terminate this
Agreement by written notice delivered to Purchaser at or prior to the Closing, in which event
Seller shall, as Seller’s sole and exclusive remedy, retain all of the Earnest Money actually
deposited (plus all interest accrued thereon), it being agreed between Purchaser and Seller that
such sum shall be liquidated damages for a default by Purchaser hereunder because of the
difficulty, inconvenience and uncertainty of ascertaining actual damages for such default and
thereafter neither Seller nor Purchaser shall have any obligations to the other under this
Agreement, except as specifically set forth herein.

ARTICLE 12.

FUTURE OPERATIONS

     12.1 Operations. Seller hereby agrees and covenants that from the date hereof through
the Closing or earlier termination of this Agreement:

     (a) Seller shall not enter into any contract, agreement or other arrangement with regards to
the Property which will be binding on Purchaser or the Property after the Closing and which cannot
be terminated by Purchaser after Closing on 30 or fewer days notice without any cancellation fee or
penalty and without approval of Purchaser. Seller agrees to terminate all Contracts designated by
Purchaser prior to the Closing Date, other than Tenant Leases, at Seller’s sole cost, on or before
the Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as
applicable, provided, however, Seller has no obligation to terminate any Contracts which cannot be
terminated by Seller, without cause and without any payment or other penalty, on thirty (30) or
less days notice.

     (b) Seller shall not initiate or consent to any zoning changes, liens or encumbrances of or
against the Property without the prior written consent of Purchaser, and shall give Purchaser
copies of all notices received by Seller with respect to any such matters.

     (c) Seller shall not sell or otherwise transfer or dispose of all or any part of any Property.

     (d) Seller shall continue to manage, lease and operate the Property in the ordinary course of
business in accordance with the management, leasing and operation standards and practices currently
in effect at the Property, and shall continue to perform all of its obligations with respect to the
Tenant Leases.

 

 

Exhibit 10.23 (Continued)

     (e) Seller shall repair and maintain the Property in its present condition, normal wear and
tear excluded.

     (f) Seller shall not enter into any new lease or amend any existing Tenant Lease, without
Purchaser’s consent, not to be unreasonably withheld or delayed, unless (i) same is on the
Apartment Project’s current standard lease form; (ii) provides for payment of monthly rent at the
rates currently in effect for the Apartment Project, subject only to changes required by market
conditions; (iii) is for a term of no less than 6 months nor more than 15 months; and (iv) does not
provide any “free rent” or other concessions beyond those currently in effect with respect to the
Apartment Project, subject only to changes required by market conditions.

     (g) Seller shall, or shall cause its affiliates and subsidiaries to, continue to make interest
payments and otherwise perform all of the obligations required to be performed (and which it is
capable of performing) pursuant to the documents governing the Existing Loan. Seller shall not
take, or fail to take, nor shall it permit any affiliate or subsidiary to take or fail to take, any
action which with the giving of notice and passage of time could reasonably be expected to result
in a default or event of default thereunder.

     (h) From and after the Termination Deadline, Seller shall not, nor shall it permit, the use,
application or withdrawal of any Security Deposit held by Seller, without the prior written consent
of Purchaser.

     (i) Seller agrees that, from and after the date hereof, it will work with Purchaser in good
faith and take such further actions as may be reasonably requested by Purchaser to timely file,
commence and prosecute any real property tax appeal Purchaser deems reasonably necessary or
advisable, including, without limitation, filing any such appeal on or prior to Closing.

ARTICLE 13.

BROKERS

     13.1 Except for: Cushman & Wakefield of Florida, Inc.; CB Richard Ellis, Inc.; Marcus &
Millichap; and The Weitzman Group (collectively, “Broker”), Seller represents and warrants to
Purchaser, and Purchaser represents and warrants to Seller, that they know of no broker or finder
who has claimed or who has the right to claim any fee, commission or other similar compensation in
connection with the transaction contemplated by this Agreement, and that they have taken no actions
which would form the basis for such a claim. In the event that the transactions herein
contemplated close, and only in such event, Seller shall pay a commission to the Broker pursuant to
a separate agreement. Seller shall be responsible for the payment to Lazard of any fee or
commission owed to it in connection with this transaction.

     13.2 Seller shall indemnify, hold harmless and defend Purchaser against all liability, loss,
cost, claim or expense arising out of any breach of Seller’s obligation or representation in
Sections 13.1. Purchaser shall indemnify, hold harmless, and defend Seller against all liability,

 

 

Exhibit 10.23 (Continued)

loss, cost, claim or expense arising out of any breach of Purchaser’s obligations or
representations in Sections 13.1.

     13.3 This Article shall survive the Closing (or, if the Closing does not occur, the earlier
termination of this Agreement).

ARTICLE 14.

DUE DILIGENCE REVIEW

     14.1 Purchaser’s Right to Inspect the Property. A. Purchaser, at Purchaser’s sole
cost and expense, shall be entitled, on and after the date hereof, to inspect and review the
Property and all matters relating to the Property (the “Due Diligence Review”), including without
limitation the physical condition of the Property, Contracts, Leases, Books and Records (including,
without limitation, all maintenance records in Seller’s possession or control with respect to the
Property), Plans, surveys and title examinations. During the Due Diligence Review, Purchaser, at
Purchaser’s sole cost, shall also have the right to make such inspections, investigations and tests
as Purchaser may elect to make or obtain, subject to the right of the Tenants and the terms and
provisions of this Agreement. Seller will provide access to Purchaser and Purchaser’s agents to
the Property during normal business hours provided that Purchaser shall provide reasonable advance
notice. Purchaser and Purchaser’s representatives, agents, designees and contractors have the
right during the term of this Agreement upon twenty four hours prior notice (by telephone and
electronic mail) to Seller, at Purchaser’s sole cost, to enter the Property to conduct any
environmental, soils, seismic, hydro geologic, geologic and engineering tests and studies with
respect to the Property, provided that any environmental testing other than a standard Phase I
(ASTM) assessment shall require the prior written consent of Seller, not to be unreasonably
withheld. Purchaser shall have the right, at Purchaser’s sole cost and expense, to conduct a final
walk-through and inspection of the Property the day of or immediately prior to Closing.

     14.2 Intentionally Deleted.

     14.3 Purchaser’s Responsibility and Indemnity. Purchaser’s right to inspect the
Property and conduct the tests referred to in Section 14.1 is subject to the condition that such
inspection and tests shall not materially interfere with the use and occupancy of any Tenant at the
Property. Purchaser shall be responsible for and shall indemnify and hold Seller harmless from and
against all damages, liabilities, losses, costs or expenses, together with reasonable attorney’s
fees and disbursements, which may arise as a result of the acts or omissions of Purchaser or its
representatives or agents in connection with any tests conducted by any such parties in connection
with Purchaser’s inspection rights under Section 14.1, and in the event the sale of the Property
fails to close, Purchaser shall repair any such damage to the condition that the Property was prior
to such tests; provided Purchaser is not responsible for any such costs associated with the
discovery of a condition existing on or prior to testing or for any such losses or costs
attributable to Seller’s negligence or misconduct. Purchaser shall carry not less than One Million
and 00/100 Dollars ($1,000,000) comprehensive general liability insurance which insures against

 

 

Exhibit 10.23 (Continued)

Purchaser’s indemnity obligations under this Section, naming Seller as additional insured, and,
prior to any entry onto the Property, Purchaser shall deliver to Seller a certificate of insurance
evidencing the required coverages and insureds.

     14.4 Confidentiality of Results. Prior to Closing, Purchaser shall not disclose the
results of any environmental investigation or other due diligence results to any Person or
Governmental Entity without the prior written consent of Seller, except for Purchaser’s attorneys
and other advisors in connection with the transactions contemplated by this Agreement and except as
Purchaser may otherwise be required by any applicable law, rule or regulation, and except as may be
required by Purchaser’s prospective lenders or investors.

     14.5 Expense Deposit. On or prior to the date hereof, Seller has paid $50,000 to
Purchaser to defray, in part, the out-of-pocked due diligence costs to be incurred by Purchaser in
connection with the transactions contemplated hereby. The expense deposit is non-refundable.

     14.6 Survival. The provisions of this Article 14 shall survive the Closing.

ARTICLE 15.

     15.1 Villa Tuscany Holder Consent. The obligations of the parties under this
Agreement with respect to the Villa Tuscany Apartment Complex are subject to and conditioned upon
the approval by the Villa Tuscany Holder of the transfer of the Villa Tuscany Apartment Complex to
Purchaser, the assumption by Purchaser of the Villa Tuscany Existing Loan and the release of Seller
and its affiliates from all liability and obligations thereunder that arise after the Closing Date
of this transaction on terms and conditions reasonably acceptable to Purchaser (the “Villa Tuscany
Holder Consent”) and the execution and delivery by Villa Tuscany Holder and Purchaser of the
documents reasonably required by Villa Tuscany Holder to evidence the assumption by Purchaser of
the Villa Tuscany Existing Loan, in form and substance reasonably acceptable to Purchaser. For
purposes of establishing the Villa Tuscany Closing Date, Villa Tuscany Holder Consent shall be
deemed issued upon the transmittal by Villa Tuscany Holder of a written notice indicating that it
is prepared to approve the assumption, subject only to the satisfaction of Villa Tuscany Holder’s
customary closing requirements and documentation provided such documentation has been reviewed and
accepted by Purchaser. Purchaser, with Seller’s assistance, as necessary, shall apply for the
Villa Tuscany Holder Consent, in good faith, within three (3) Business Days after the date hereof,
shall at that time pay the Villa Tuscany Holder’s required application fee, and shall thereafter
diligently take such actions, deliver such information and documents and pay such other costs and
expenses as the Villa Tuscany Holder may require, provided that Purchaser shall not be obligated to
pay an assumption fee in excess of 1% of the principal balance of the Villa Tuscany Existing Loan.
Purchaser agrees to provide a “Key Principal” or limited guarantor satisfactory to Villa Tuscany
Holder to guarantee the “non-recourse carve-outs” and provide environmental indemnifications under
the Villa Tuscany Existing Loan, if so required by Villa Tuscany Holder, and to continue to provide
escrows or reserves at the levels required under the Villa Tuscany Existing Loan, as such levels
may be modified by Villa Tuscany Holder based on current property conditions. Purchaser shall
deliver

 

 

Exhibit 10.23 (Continued)

to Seller evidence (in the form of copies of correspondence to the Villa Tuscany Holder
transmitting applications and other data) of its timely application for Villa Tuscany Holder
Consent and payment of the required application fee. If Purchaser shall fail to deliver such
evidence to Seller prior to the fifth (5th) Business Day after the date hereof, this
Agreement shall, at Seller’s option, by notice to Purchaser and the Title Company, be deemed
amended so as to eliminate the Villa Tuscany Apartment Complex from the Property being purchased
hereunder, the Villa Tuscany Earnest Money shall be delivered by Escrow Holder to Seller, the
Purchase Price shall be automatically reduced by the Villa Tuscany Purchase Price and the parties
shall have no further liability hereunder with respect to such Apartment Complex. If Purchaser
timely makes application therefor, but the Villa Tuscany Holder Consent in accordance with the
requirements of this Section 15.1 is not obtained on or before November 30, 2007 (the “Consent
Deadline”), then, except as otherwise set forth below in this Section 15.1, this Agreement shall be
deemed amended so as to eliminate the Villa Tuscany Apartment Complex from the Property being
purchased hereunder and the Villa Tuscany Earnest Money shall be returned to Purchaser and the
Purchase Price shall be deemed to have been reduced by the Villa Tuscany Purchase Price. If the
Villa Tuscany Holder Consent is not obtained on or before the Consent Deadline, then (i) either
party shall have the right, exercisable by written notice to the other given not more than two (2)
days after the original Consent Deadline, to extend the Consent Deadline by an additional period of
time not to exceed 20 days, and Purchaser shall continue to diligently seek Villa Tuscany Holder
Consent during such 20 day period and (ii) Purchaser shall (if permitted under the terms of the
Villa Tuscany Existing Loan) have the right, but not the obligation, in lieu of assuming the Villa
Tuscany Existing Loan, to pay off the Villa Tuscany Existing Loan in full at Closing, including any
applicable prepayment premiums and/or penalties, and other costs associated therewith and to take
title to the Villa Tuscany Apartment Complex in such event free and clear of the Villa Tuscany
Existing Loan in which event the Villa Tuscany Earnest Money, and the outstanding principal balance
of the Villa Tuscany Existing Loan, plus any default interest, late charges or other costs or
amounts paid by Purchaser to cure any defaults existing under the Villa Tuscany Existing Loan
immediately prior to the prepayment thereof, shall be credited against the Villa Tuscany Purchase
Price. If the required Villa Tuscany Holder Consent is not obtained during the extended period and
the Purchaser does not elect to pay off the Villa Tuscany Existing Loan, this Agreement shall be
deemed amended so as to eliminate the Villa Tuscany Apartment Complex from the Property being
purchased hereunder, and the Villa Tuscany Earnest Money shall be returned by Escrow Holder to
Purchaser and the Purchase Price shall be deemed to have been reduced by the Villa Tuscany Purchase
Price.

     15.2 Deerwood Holder Consent. The obligations of the parties under this Agreement
with respect to the Deerwood Village Apartment Complex are subject to and conditioned upon the
approval by the Deerwood Holder of the transfer of the Deerwood Village Apartment Complex to
Purchaser, the assumption by Purchaser of the Deerwood Existing Loan, an extension of the maturity
of the Deerwood Existing Loan until at least February 12, 2008, and the release of Seller and its
affiliates from all liability and obligations thereunder that arise after the Closing Date of this
transaction on terms and conditions reasonably acceptable to Purchaser (the “Deerwood Holder
Consent”) and the execution and delivery by Deerwood Holder and Purchaser of the documents
reasonably required by Deerwood Holder to evidence the assumption by Purchaser of the Deerwood
Existing Loan, in form and substance reasonably

 

 

Exhibit 10.23 (Continued)

acceptable to Purchaser. Purchaser represents that prior to the date hereof it has applied
for the Deerwood Holder Consent, and agrees that it shall hereafter timely pay all necessary fees
and expenses, and diligently take such actions, deliver such information and documents and pay such
other reasonable costs and expenses as the Deerwood Holder may require. Purchaser agrees to
provide a “Key Principal” or limited guarantor satisfactory to Deerwood Holder to guarantee the
“non-recourse carve-outs” and provide environmental indemnifications under the Deerwood Existing
Loan, if so required by Holder, and to continue to provide escrows or reserves at the levels
required under the Deerwood Existing Loan, as such levels may be modified by Deerwood Holder based
on current property conditions. Purchaser shall deliver to Seller evidence (in the form of copies
of correspondence to the Deerwood Holder transmitting applications and other data) of its timely
application for Deerwood Holder Consent and payment of the required application fee. If Purchaser
shall fail to deliver such evidence to Seller prior to the fifth (5th) Business Day
after the date hereof, this Agreement shall, at Seller’s option, by notice to Purchaser and the
Title Company, be deemed amended so as to eliminate the Deerwood Apartment Complex from the
Property being purchased hereunder, the Deerwood Earnest Money shall be delivered by Escrow Holder
to Seller, the Purchase Price shall be automatically reduced by the Deerwood Purchase Price and the
parties shall have no further liability hereunder with respect to such Apartment Complex. If
Purchaser timely makes application therefor, but the Deerwood Holder Consent in accordance with the
requirements of this Section 15.2 is not obtained on or before the Closing Date, then this
Agreement shall be deemed amended so as to eliminate the Deerwood Apartment Complex from the
Property being purchased hereunder, the Deerwood Earnest Money shall be returned to Purchaser and
the Purchase Price shall be deemed to have been reduced by the Deerwood Purchase Price.
Notwithstanding the preceding sentence, if the Deerwood Holder Consent is not obtained on or before
the Closing Date, then Purchaser shall (if permitted under the terms of the Deerwood Existing Loan)
have the right, but not the obligation, in lieu of assuming the Deerwood Existing Loan, to pay off
the Deerwood Existing Loan in full at Closing, including any applicable prepayment premiums and/or
penalties, and other costs associated therewith and to take title to the Deerwood Village Apartment
Complex in such event free and clear of the Deerwood Existing Loan in which event the Deerwood
Earnest Money, and the outstanding principal balance of the Deerwood Existing Loan, plus any
default interest, late charges or other costs or amounts paid by Purchaser to cure any defaults
existing under the Deerwood Existing Loan immediately prior to the prepayment thereof, shall be
credited against the Deerwood Purchase Price. If the Purchaser does not elect to pay off the
Existing Loan, this Agreement shall be deemed amended so as to eliminate the Deerwood Apartment
Complex from the Property being purchased hereunder, the Deerwood Earnest Money shall be returned
by Escrow Holder to Purchaser and the Purchase Price shall be deemed to have been reduced by the
Deerwood Purchase Price.

     15.3 Vista Grande Holder Consent. The obligations of the parties under this
Agreement with respect to the Vista Grande Apartment Complex are subject to and conditioned upon
the approval by the Vista Grande Holder of the transfer of the Vista Grande Apartment Complex to
Purchaser, the assumption by Purchaser of the Vista Grande Existing Loan, an extension of the
maturity of the Vista Grande Existing Loan until at least February 12, 2008, the release of the
Oxford Place Property from the Vista Grande Existing Loan, and the release of Seller and its
affiliates from all liability and obligations thereunder that arise after the Closing

 

 

Exhibit 10.23 (Continued)

Date of this transaction on terms and conditions reasonably acceptable to Purchaser (the
“Vista Grande Holder Consent”) and the execution and delivery by Vista Grande Holder and Purchaser
of the documents reasonably required by Vista Grande Holder to evidence the assumption by Purchaser
of the Vista Grande Existing Loan, in form and substance reasonably acceptable to Purchaser.
Purchaser represents that prior to the date hereof it has applied for the Vista Grande Holder
Consent, and agrees that it shall hereafter timely pay all necessary fees and expenses, and
diligently take such actions, deliver such information and documents and pay such other reasonable
costs and expenses as the Vista Grande Holder may require. Purchaser agrees to provide a “Key
Principal” or limited guarantor satisfactory to Vista Grande Holder to guarantee the “non-recourse
carve-outs” and provide environmental indemnifications under the Vista Grande Existing Loan, if so
required by Vista Grande Holder, and to continue to provide escrows or reserves at the levels
required under the Vista Grande Existing Loan, as such levels may be modified by Vista Grande
Holder based on current property conditions. Purchaser shall deliver to Seller evidence (in the
form of copies of correspondence to the Vista Grande Holder transmitting applications and other
data) of its timely application for Vista Grande Holder Consent and payment of the required
application fee. If Purchaser shall fail to deliver such evidence to Seller prior to the fifth
(5th) Business Day after the date hereof, this Agreement shall, at Seller’s option, by
notice to Purchaser and the Title Company, be deemed amended so as to eliminate the Vista Grande
Apartment Complex from the Property being purchased hereunder, the Vista Grande Earnest Money shall
be delivered by Escrow Holder to Seller, the Purchase Price shall be automatically reduced by the
Vista Grande Purchase Price and the parties shall have no further liability hereunder with respect
to such Apartment Complex. If Purchaser timely makes application therefor, but the Holder Consent
in accordance with the requirements of this Section 15.3 is not obtained on or before the Closing
Date, then this Agreement shall be deemed amended so as to eliminate the Vista Grande Apartment
Complex from the Property being purchased hereunder, the Vista Grande Earnest Money shall be
returned to Purchaser and the Purchase Price shall be deemed to have been reduced by the Vista
Grande Purchase Price. Notwithstanding the preceding sentence, if the Vista Grande Holder Consent
is not obtained on or before the Closing Date, then Purchaser shall (if permitted under the terms
of the Vista Grande Existing Loan) have the right, but not the obligation, in lieu of assuming the
Vista Grande Existing Loan, to pay off the Vista Grande Existing Loan in full at Closing, including
any applicable prepayment premiums and/or penalties, and other costs associated therewith and to
take title to the Vista Grande Apartment Complex in such event free and clear of the Vista Grande
Existing Loan, in which event the Vista Grande Earnest Money, and the outstanding principal balance
of the Vista Grande Existing Loan, plus any default interest, late charges or other costs or
amounts paid by Purchaser to cure any defaults existing under the Vista Grande Existing Loan
immediately prior to the prepayment thereof, shall be credited against the Vista Grande Purchase
Price. If the Purchaser does not elect to pay off the Vista Grande Existing Loan, this Agreement
shall be deemed amended so as to eliminate the Vista Grande Apartment Complex from the Property
being purchased hereunder, the Vista Grande Earnest Money shall be returned by Escrow Holder to
Purchaser and the Purchase Price shall be deemed to have been reduced by the Vista Grande Purchase
Price.

 

 

Exhibit 10.23 (Continued)

ARTICLE 16.

MISCELLANEOUS

     16.1 Notices. All notices, demands and requests which may be given or which are
required to be given by either party to the other, and any exercise of a right of termination
provided by this Agreement, shall be in writing and shall be deemed effective when (a) personally
delivered to the address of the party to receive such notice set forth below, (b) transmitted if
sent via facsimile (with confirmation of successful transmission), (c) the next succeeding Business
Day after deposit with a nationally recognized overnight courier service (e.g., Federal Express)
and addressed to the party as set forth below, or (d) three days after when deposited in any post
office or mail receptacle regularly maintained by the United States Government, certified or
registered mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 
	If to Seller:

	 	TARRAGON CORPORATION
	 

	 	423 West 55th Street – 12th Floor
	 

	 	New York, New York 10019
	 

	 	Attn: William S. Friedman &
	 

	 	           Charles D. Rubenstein, Esq.
	 

	 	Phone: (212) 949-5000
	 

	 	Fax: (646) 354-2171
	 

	 	E-mail: crubenstein@tarragoncorp.com
	 
	 	 
	With a copy to:

	 	TARRAGON CORPORATION
	 

	 	423 West 55th Street – 12th Floor
	 

	 	New York, New York 10019
	 

	 	Attn: David Goldban
	 

	 	Phone: (212) 949-5000
	 

	 	Fax: (646) 354-2171
	 

	 	E-mail: dgoldban@tarragoncorp.com
	 
	 	 
	If to Purchaser:

	 	BROOKFIELD ASSET MANAGEMENT, LLC
	 

	 	Three World Financial Center
	 

	 	200 Vesey Street – 11th Floor
	 

	 	New York, NY 10281-1021
	 

	 	Attn: Steven H. Ganeless
	 

	 	Phone: (212) 417-7269
	 

	 	Fax: (212) 417-7292
	 

	 	E-mail: sganeless@brookfield.com

 

 

Exhibit 10.23 (Continued)

 

	 	 	 
	and to:

	 	BROOKFIELD ASSET MANAGEMENT, LLC
	 

	 	Three World Financial Center
	 

	 	200 Vesey Street — 11th Floor
	 

	 	New York, NY 10281-1021
	 

	 	Attn: Alexander D. Greene
	 

	 	Phone: (212) 417-7202
	 

	 	Fax: (212) 417-7292
	 

	 	E-mail: agreene@brookfield.com
	 
	 	 
	With a copy to:

	 	WEIL, GOTSHAL & MANGES LLP
	 

	 	767 Fifth Avenue
	 

	 	New York, NY 10153
	 

	 	Attn: J. Philip Rosen, Esq.
	 

	 	Phone: (212) 310-8000
	 

	 	Fax: (212) 310-8007
	 

	 	E-mail: Philip.rosen@weil.com
	 
	 	 
	If to Title Company

	 	Chicago Title Insurance Company
	Or Escrow Holder:

	 	711 Third Avenue
	 

	 	New York, NY 10017
	 

	 	Attn: Elliot L. Hurwitz
	 

	 	Phone: (212) 880-1205
	 

	 	Fax: (212) 880-1402
	 

	 	E-mail: hurwitze@ctt.com

or such other place as Seller or Purchaser or Title Company, respectively, may from time to time
designate by written notice to the other. A notice may be given by a party or by a party’s attorney
at law. Any notice given by facsimile shall be followed within one (1) day by a second notice
given by one of the other methods specified above. The parties hereto acknowledge and agree that
any notice required to be given by Purchaser may be given by the attorneys representing Purchaser,
which as of the date hereof, and until receipt by Seller of a notice from the Purchaser to the
contrary, shall be Weil, Gotshal & Manges LLP.

     16.2 Entire Agreement. This Agreement embodies the entire agreement between the
parties relative to the subject matter hereof, and there are no oral or written agreements between
the parties, nor any representations made by either party relative to the subject matter hereof,
which are not expressly set forth herein. The parties hereto do not intend to confer any benefit
hereunder on any Person other than the parties hereto.

     16.3 Amendment. This Agreement may be amended only by a written instrument executed
by the party or parties to be bound thereby.

 

 

Exhibit 10.23 (Continued)

     16.4 Headings. The captions and headings used in this Agreement are for convenience
only and do not in any way limit, amplify, or otherwise modify the provisions of this Agreement.

     16.5 Governing Law. This Agreement shall be governed by the laws of the State of
Florida.

     16.6 Successors and Assigns. This Agreement shall bind and inure to the benefit of
Seller and Purchaser and their respective successors and permitted assigns.

     16.7 Invalid Provision. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future laws, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part of this Agreement; and, the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by such illegal, invalid,
or unenforceable provision or by its severance from this Agreement.

     16.8 Multiple Counterparts. This Agreement may be executed in a number of identical
counterparts, each of which for all purposes is deemed an original, and all of which constitute
collectively one agreement; but in making proof of this Agreement, it shall not be necessary to
produce or account for more than one such counterpart.

     16.9 Construction. The words “herein” “hereof “hereunder” and other similar compounds
of the words “here” when used in this Agreement shall refer to the entire Agreement and not to any
particular provision or section. Whenever used in this Agreement, the singular shall include the
plural, the plural the singular, and the use of any gender shall be applicable to all genders.
Marginal notes are inserted for convenience only and shall not form part of the text of this
Agreement. This Agreement shall not be construed as if it had been prepared by one of the parties,
but rather as if both parties had prepared the same. Each party acknowledges that such party’s
obligations with respect to any covenant, indemnity, representation or warranty under this
Agreement which expressly survives the Closing shall be considered a “liability” for purposes of
any distribution limitation imposed under the organizational laws applicable to such party, its
members and/or their respective partners, members and shareholders.

     16.10 Waivers. No waiver of any breach of any covenant or provision herein
contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other
covenant or provision herein contained. No extension of time for performance of any obligation or
act shall be deemed an extension of the time for performance of any other obligation or act.

     16.11 Time of Essence. Seller and Purchaser hereby acknowledge and agree that time
is strictly of the essence with respect to each and every term, condition, obligation and provision
hereof and that failure to timely perform any of the terms, conditions, obligations or provisions
hereof by either party shall constitute a material breach of and a non-curable default under this
Agreement by the party so failing to perform.

 

 

Exhibit 10.23 (Continued)

     16.12 No Joint Venture. This Agreement shall not create a partnership or joint
venture relationship between Purchaser and Seller.

     16.13 Assignment. Except as provided in this Section, this Agreement may not be
assigned by Purchaser without the prior written consent of Seller. The foregoing sentence to the
contrary notwithstanding, Purchaser may (i) assign this Agreement, in whole or in part, to an
entity or entities which are owned by, controlled by or under common control with Purchaser,
provided that Purchaser delivers to Seller not less than three (3) Business Days prior to the
Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as applicable, a
draft instrument or instruments evidencing such assignment, and (ii) may, without assigning this
Agreement but upon notice to Seller, appoint a designee to receive fee simple title to any one or
more of the Properties; provided that such designee shall be an entity or entities which are owned
by, controlled by or under common control with Purchaser. No assignment of this Agreement shall
release the original Purchaser named herein from its obligations hereunder without the express
written consent of Seller.

     16.14 Timing. If the final date of any period which is set out in any provision of
this Agreement falls on a day which is not a Business Day, in such event, the time of such period
shall be extended to the next Business Day.

     16.15 Attorney’s Fees. In the event of any dispute between the parties concerning
this Agreement, the non-prevailing party in such dispute shall reimburse the prevailing party for
its reasonable attorneys fees incurred in connection with such dispute.

     16.16 Section 1031 Exchange. Purchaser acknowledges that Seller may elect to effect
the disposition of the Property pursuant to this Agreement as a like-kind exchange pursuant to
Section 1031 of the United States Internal Revenue Code (an “Exchange”). Purchaser agrees to
cooperate with Seller in all respects in effecting such Exchange, including, without limitation, by
executing and delivering such documents as may be customarily required in such exchange
transactions, provided that Purchaser shall not be required to incur any expense or additional
obligation in connection therewith nor shall any such Exchange delay the Closing Date, the Villa
Tuscany Closing Date or the Deerwood Village Closing Date, as applicable. Seller acknowledges that
Purchaser may acquire the Property as part of an Exchange. Seller agrees to cooperate with
Purchaser in all respects in effecting such Exchange, including, without limitation, by executing
and delivering such documents as may be customarily required in such Exchange, provided that Seller
shall not be required to incur any expense or additional obligation in connection therewith, nor
shall any such Exchange delay the Closing Date, the Villa Tuscany Closing Date or the Deerwood
Village Closing Date, as applicable.

 

 

Exhibit 10.23 (Continued)

ARTICLE 17.

PURCHASER’S RIGHTS WITH RESPECT TO CERTAIN OTHER PROPERTIES

     17.1 In the event that at any time prior to April 30, 2008, Omni Monterra LLC (“Omni”), an
affiliate of Seller, receives a bona fide written offer from a third party unaffiliated with Seller
or Omni (the “Offer”) to purchase its property in Bonita Springs, Florida known as “Monterra at
Bonita Springs” (“Monterra”), Seller shall promptly deliver a copy of such Offer to Purchaser.
Purchaser shall have the right (the “ROFR”), exercisable by notice to Seller (the “Exercise
Notice”) given within five (5) Business Days after delivery of a copy of the offer to Purchaser, to
purchase Monterra from Omni for “all cash” on the same price, down payment, due diligence time and
closing time as set forth in the Offer, pursuant to a Purchase and Sale Agreement in form and
substance the same as this Agreement, subject only to changes necessitated by the different
property and terms ( the “Monterra Agreement”). If Purchaser timely exercises the ROFR, it shall
within three (3) Business Days after giving the Exercise Notice deliver to Seller four original
counterparts of the Monterra Agreement, executed by Purchaser, and Seller will promptly returns two
original counterparts executed by Omni to Purchaser. If Purchaser does not timely exercise the
ROFR, or does not timely deliver the executed Monterra Agreement to Seller, Purchaser shall be
deemed to have waived the ROFR, and Seller shall thereafter be entitled to sell Monterra pursuant
to the Offer free and clear of the ROFR. If a contract to sell Monterra is entered into by Omni
pursuant to the Offer, but such contract is terminated and not reinstated within five (5) Business
Days after any such termination on substantially the same terms and conditions (in Purchaser’s
reasonable judgment) as the executed contract, then Monterra shall once again be subject to the
ROFR.

     17.2 If Omni shall transfer Monterra to the holder of the mortgage currently encumbering
Monterra, such transfer shall not be subject to the ROFR, and the ROFR shall expire upon such
transfer. Seller will notify Purchaser in the event of such transfer.

     17.3 Seller’s affiliate, Middletown Tarragon, LLC is currently under contract (the “Northgate
Contract”) to sell its property in Middletown, Rhode Island known as “Northgate Apartments”
(“Northgate”). In the event that the Northgate Contract is terminated and not reinstated within
five (5) Business Days after any such termination on substantially the same terms and conditions
(in Purchaser’s reasonable judgment) as the executed contract, then Northgate shall also be subject
to the ROFR set forth in Section 17.1 above, in accordance with the terms and procedures set forth
therein.

     17.4 Seller’s affiliate, Freesia Acquisitions, LLC, is negotiating a purchase and sale
agreement for the sale of its property in Murfreesboro, Tennessee known as Cason Estates (“Cason”)
to DeSanto Realty Group, LLC. In the event that such contract is not executed and delivered on or
prior to November 1, 2007, or after having been executed such contract is terminated and not
reinstated within five (5) Business Days after any such termination on substantially the same terms
and condition (in Purchaser’s reasonable judgment) as the executed contract, then Cason Estates
shall also be subject to the ROFR set forth in Section 17.1 above, in accordance with the terms and
procedures set forth therein.

 

 

Exhibit 10.23 (Continued)

     17.5 In the event that the Deerwood Holder Consent is not timely obtained as provided in
Section 15.2, then the Deerwood Village Apartment Complex shall also be subject to the ROFR set
forth in Section 17.1 above, in accordance with the terms and procedures set forth therein.

     17.6 In the event that the Vista Grande Holder Consent is not timely obtained as provided in
Section 15.3, then the Vista Grande Apartment Complex shall be subject to the ROFR set forth in
Section 17.1 above in accordance with the terms and procedures set forth therein.

     17.7 The provisions of this Article 17 shall survive the Closing.

[remainder of page intentionally left blank — signatures on next page]

 

 

Exhibit 10.23 (Continued)

     IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the date first
written above.

SELLERS:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEERWOOD VILLAGE:	 	OCALA TARRAGON, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Tarragon Ocala Development Corp., manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ William S. Friedman	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	William S. Friedman	 	 
	 

	 	 	 	 	 	CEO	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(As to Section 7.12 only)	 	TARRAGON OCALA DEVELOPMENT CORP.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ William S. Friedman	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	William S. Friedman	 	 
	 	 	 	 	 	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	VILLA TUSCANY:	 	LAKE SHERWOOD PARTNERS, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Ansonia Apartments, L.P., manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Tarragon Development Company,	 	 
	 	 	 	 	 	 	LLC, general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Tarragon Corporation, manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ William S. Friedman	 	 
	 

	 	 	 	 	 	 	 	 	 	 

William S. Friedman
	 	 
	 

	 	 	 	 	 	 	 	 	 	CEO	 	 

 

 

Exhibit 10.23 (Continued)

	 	 	 	 	 	 	 	 	 
	VISTA GRANDE:	 	TAMPA PALMS TARRAGON, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Tarragon Corporation, manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ William S. Friedman	 	 
	 

	 	 	 	 	 	 

William S. Friedman
	 	 
	 

	 	 	 	 	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	MIDWAY MILLS:	 	MIDWAY MILLS PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Tarragon Corporation, manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ William S. Friedman	 	 
	 

	 	 	 	 	 	 

William S. Friedman
	 	 
	 

	 	 	 	 	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	PURCHASER:	 	BREOF INVESTORS LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Steven H. Ganeless	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Steven H. Ganeless	 	 
	 	 	 	 	Senior Vice President	 	 

 

 

Exhibit 10.23 (Continued)

	 	 	 	 	 	 	 	 	 
	ESCROW HOLDER:	 	CHICAGO TITLE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Elliot L. Hurwitz	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Elliot L. Hurwitz	 	 
	 	 	 	 	Title: Chief Commercial Counsel	 	 

 

 

Exhibit 10.23 (Continued)

EXHIBIT “A”

LEGAL DESCRIPTION

 

 

Exhibit 10.23 (Continued)

EXHIBIT “B”

CONTRACTS

 

 

Exhibit 10.23 (Continued)

EXHIBIT “C”

SPECIAL WARRANTY DEED

[Florida Form]

Prepared by:

Charles D. Rubenstein, Esq.

Tarragon Corporation

423 West 55th Street, 12th Floor

New York, New York 10019

Return to:

J. Philip Rosen, Esq.

Weil Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Tax Parcel I.D. No.:                     

Grantee’s FEIN No.:                     

SPECIAL WARRANTY DEED

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     THIS SPECIAL WARRANTY DEED, made this ___ day of ___, 2007, by                                         ,
a                                         , having an address of 423 West 55th Street, 12th Floor,
New York, New York 10019 (“Grantor”), in favor of                                         , a Delaware limited
liability company, having an address c/o                     ,                                          (“Grantee”).

 

 

Exhibit 10.23 (Continued)

     WITNESSETH, that Grantor, for and in consideration of the sum of Ten Dollars ($10.00) in hand
paid and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, by these presents does GRANT, SELL and CONVEY unto Grantee, its successors and
assigns the following described real property:

     Being that certain tract of land located in                     ,                      and being more
particularly described on Schedule A attached hereto and made a part hereof, together with all
improvements, buildings, or fixtures situated or located thereon, and all appurtenant rights,
privileges or easements belonging or in any way relating thereto, including but not limited to, all
interest, if any, of Grantor in any land lying in or under the bed of any highway, avenue, street,
road, alley, easement or right-of-way, open or proposed, in, on, across, abutting or adjacent to
the property described on Schedule A hereto, together with all of Grantor’s right, title and
interest to any strips and gores within or bounding the property described on Schedule A attached
hereto (all of said property and interest being collectively referred to herein as the “Property”).

     TO HAVE AND TO HOLD the Property, together with any and all the rights and appurtenances
thereto in anywise belonging to Grantor, unto Grantee, its successors and assigns FOREVER.
Grantor, (a) for itself and its successors, does covenant, promise and agree, to and with Grantee
that Grantor has not done or suffered to be done, anything whereby the Property hereby granted is,
or may be, in any manner encumbered or charged, except as set forth in Schedule B hereto and (b)
does hereby warrant and agree to defend title to the Property against the lawful claims of all
persons claiming by, through or under Grantor, but not otherwise, subject in each case only to the
matters described in Schedule B hereto, but without intent to reimpose the same to the extent such
matters have expired or been extinguished by law or otherwise.

     IN WITNESS WHEREOF, Grantor has caused its name to be signed to these presents the day and
year first above written.

Witnessed:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Tarragon Corporation, manager
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit 10.23 (Continued)

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on                     , by
                                        , the  
                  
  of               
      
                    , the                      of
                                        , a                       
                  
                    . He is personally known to me.

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Notary Public, State of	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name printed:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	My Commission Expires:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Commission No.:	 	 
	 

	 	 	 	 

[NOTARIAL SEAL]

 

 

Exhibit 10.23 (Continued)

EXHIBIT “C”

SPECIAL WARRANTY DEED

[Texas Form]

Return to:

J. Philip Rosen, Esq.

Weil Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Tax Parcel I.D. No.:                     

Grantee’s FEIN No.:                     

SPECIAL WARRANTY DEED

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

KNOW ALL MEN BY THESE PRESENTS:

     THIS SPECIAL WARRANTY DEED, made this ___ day of ___, 2007, by                                         ,
a                     , having an address of 423 West 55th Street, 12th Floor,
New York, New York 10019 (“Grantor”), in favor of                                         , a Delaware limited
liability company, having an address c/o                     ,                                          (“Grantee”).

 

 

Exhibit 10.23 (Continued)

     WITNESSETH, that Grantor, for and in consideration of the sum of Ten Dollars ($10.00) in hand
paid and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, by these presents does GRANT, SELL and CONVEY unto Grantee, its successors and
assigns the following described real property:

     Being that certain tract of land located in                     ,                      and being more
particularly described on Schedule A attached hereto and made a part hereof, together with all
improvements, buildings, or fixtures situated or located thereon, and all appurtenant rights,
privileges or easements belonging or in any way relating thereto, including but not limited to, all
interest, if any, of Grantor in any land lying in or under the bed of any highway, avenue, street,
road, alley, easement or right-of-way, open or proposed, in, on, across, abutting or adjacent to
the property described on Schedule A hereto, together with all of Grantor’s right, title and
interest to any strips and gores within or bounding the property described on Schedule A attached
hereto (all of said property and interest being collectively referred to herein as the “Property”).

     TO HAVE AND TO HOLD the Property, together with any and all the rights and appurtenances
thereto in anywise belonging to Grantor, unto Grantee, its successors and assigns FOREVER.
Grantor, (a) for itself and its successors, does covenant, promise and agree, to and with Grantee
that Grantor has not done or suffered to be done, anything whereby the Property hereby granted is,
or may be, in any manner encumbered or charged, except as set forth in Schedule B hereto and (b)
does hereby warrant and agree to defend title to the Property against the lawful claims of all
persons claiming by, through or under Grantor, but not otherwise, subject in each case only to the
matters described in Schedule B hereto, but without intent to reimpose the same to the extent such
matters have expired or been extinguished by law or otherwise.

     IN WITNESS WHEREOF, Grantor has caused its name to be signed to these presents the day and
year first above written.

Witnessed:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: Tarragon Corporation, manager
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit 10.23 (Continued)

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on                     , by
                                        , the                      of
                 
              
          , the                      of
            
               
             , a  
                
                
       . He is personally known to me.

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Notary Public, State of	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name printed:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	My Commission Expires:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Commission No.:	 	 
	 

	 	 	 	 

[NOTARIAL SEAL]

 

 

Exhibit 10.23 (Continued)

EXHIBIT “D”

ASSIGNMENT AND ASSUMPTION OF LEASES AND DEPOSITS

     THIS ASSIGNMENT AND ASSUMPTION OF LEASES AND DEPOSITS (the “Assignment”) is made as of
                    , 2007, by and between OCALA TARRAGON, LLC, a Florida limited liability company
(“Assignor”), whose address is 423 West 55th Street, 12th Floor, New York,
New York 10019, and                     , an                      (“Assignee”), whose mailing address is                             
            .

Introductory Provisions:

     The following provisions form a part of this Assignment:

     A. Assignor and/or Assignor’s predecessor in title heretofore entered into certain leases with
tenants covering spaces located in those certain buildings on certain land situated in Ocala,
Florida (the “Property”) and described in Exhibit “A” which is attached hereto and incorporated
herein by reference for all purposes.

     B. Assignor represents that attached hereto as Exhibit “B” and incorporated herein by
reference for all purposes is a true and correct copy of a current rent roll listing all leases
affecting the Property or any portion thereof presently in force (collectively, the “Leases”).

     C. Assignee desires to acquire from Assignor, and Assignor desires to convey and assign to
Assignee, the Leases and all security deposits, pet deposits and other refundable deposits
currently held by Assignor under the Leases (the “Deposits”) and all of the rights, benefits and
privileges of the lessor under the Leases and the Deposits in connection with Assignee’s
acquisition of the Property from Assignor.

     THEREFORE, in consideration of the foregoing and the agreements and covenants herein set
forth, together with the sum of Ten Dollars ($10.00) and other good and valuable consideration this
day paid and delivered by Assignee to Assignor, the receipt and sufficiency of which are hereby
acknowledged by Assignor, Assignor does hereby ASSIGN, TRANSFER, SET OVER, CONVEY and DELIVER unto
Assignee all of Assignor’s right, title and interest in and to all of the Leases and Deposits
pertaining to the Property, and all of the rights, benefits and privileges of the lessor under the
Leases and/or Deposits including without limitation those with respect to all security deposits and
prepaid rentals, but subject to all terms, conditions, reservations and limitations set forth in
the Leases (the Leases, Deposits properties, rights and interests, subject as aforesaid, being
hereinafter collectively referred to as the “Assigned Leases”).

     TO HAVE AND TO HOLD the Assigned Leases unto Assignee, and Assignee’s successors, and assigns
forever, and Assignor does hereby bind Assignor, and Assignor’s successors and assigns, to warrant
and forever defend the Assigned Leases unto Assignee, and

 

 

Exhibit 10.23 (Continued)

Assignee’s successors and assigns, against every person whomsoever lawfully claiming or to claim
the same, or any part thereof, by, through or under Assignor, but not otherwise.

     Assignee hereby assumes and agrees to perform all of the terms, covenants and conditions of
the Assigned Leases on the part of the lessor therein required to be performed from and after the
date hereof including, but not limited to, the obligation to repay to the lessees thereunder, in
accordance with the terms of the Assigned Leases, any and all Deposits and prepaid rentals, to the
extent (and only to the extent) of the amount of cash delivered by Assignor to Assignee with
respect to such Deposits and prepaid rentals. Assignor shall not be responsible to the lessees
under the Leases for the discharge or performance of any duties or obligations to be performed or
discharged by the lessor thereunder after the date hereof, except for repayment of Deposits owed to
Tenants in excess of amounts thereof actually delivered or credited to Assignee.

     Assignee hereby agrees to indemnify and hold harmless Assignor from and against any and all
damages, loss, cost or expenses (including but not limited to reasonable attorneys fees) resulting
by reason of Assignee’s failure to perform any of the obligations assumed by Assignee hereunder
arising from and after the date hereof. Assignor hereby agrees to indemnify and hold harmless
Assignee from and against any and all damages, loss, cost or expenses (including but not limited to
reasonable attorney fees) resulting by reason of Assignor’s failure to perform any of the
obligations assumed by Assignor hereunder arising from any claims brought by third parties for
injury or damage to person or property occurring on or about the Property prior to the date hereof.
The foregoing indemnifications shall survive for a period of six months after the date hereof and
shall thereafter expire.

     All of the covenants, terms and conditions set forth herein shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and assigns. This
Assignment may only be modified, altered, amended, or terminated by the written agreement of
Assignor and Assignee. If any term, covenant or condition of this Assignment shall be held to be
invalid, illegal or unenforceable in any respect, this Assignment shall be construed without such
provision. This Assignment shall be governed by and construed under the laws of the state in which
the Property is located without regard to the principles of conflicts of law.

[remainder of page intentionally left blank]

 

 

Exhibit 10.23 (Continued)

     IN WITNESS WHEREOF, Assignor and Assignee have duly executed this Assignment as of the day
first above written.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	OCALA, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Tarragon Ocala Development Corp., manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Charles D. Rubenstein,
	 

	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 
	ASSIGNEE:
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

Exhibit 10.23 (Continued)

EXHIBIT “E”

BLANKET CONVEYANCE, BILL OF SALE AND ASSIGNMENT

     THIS BLANKET CONVEYANCE, BILL OF SALE AND ASSIGNMENT (the “Assignment”), dated as of
                    , 2007 is executed by and between OCALA TARRAGON, LLC, a Florida limited liability
company (“Assignor”), whose address is 423 West 55th Street, 12th Floor, New York, New York 10019,
and               
      , an        
             
 (“Assignee”), whose mailing address is       
              
              
      .

Introductory Provisions:

     The following provisions form a part of this Assignment:

     Assignor and Assignee are parties to that certain Purchase and Sale Agreement dated as of
October ___, 2007 (the “Agreement”), which provides, among other things, for the sale by Assignor
to Assignee of that certain land (the “Land”) lying and being situated in Ocala, Florida and
described on Exhibit “A” which is attached hereto and incorporated herein by reference for all
purposes, together with the buildings on the Land (the said Land and the improvements thereon being
herein referred to as the “Property”), and the execution of this Assignment.

     It is the desire of Assignor hereby to sell, assign, transfer and convey to Assignee all of
Assignor’s rights, titles and interests in the below described items.

     THEREFORE, in consideration of the foregoing and Ten Dollars ($10.00) and other good and
valuable consideration in hand paid by Assignee to Assignor, the receipt and sufficiency of which
are hereby acknowledged and confessed by Assignor, Assignor does hereby ASSIGN, SELL, TRANSFER, SET
OVER and DELIVER to Assignee all of the following items listed in (a) through and including (f)
below, (collectively, the “Assigned Properties”):

     (a) all of Assignor’s rights, titles and interests in all appliances, equipment, machinery,
fixtures and other personal property of every nature and description used in connection with the
Property, which are not owned by any of the tenants in the Property and which are in the possession
of Assignor, including without limitation, the personal property described on Exhibit “C”
attached hereto and incorporated herein by reference for all purposes;

     (b) all of Assignor’s rights, titles and interests in any and all, if any, rights to the air
space above the Property, all zoning entitlements, development rights and appurtenances accruing to
the Property (and/or the Assignor with respect to the Property) under, or by reason of, any
applicable zoning ordinance or other laws;

     (c) all books, records and tenant lists for the Property owned by Assignor and in the
possession or control of Assignor, together with any and all, files, reports, surveys, studies,

 

 

Exhibit 10.23 (Continued)

and/or budgets owned by Assignor in connection with the ownership, operation, maintenance and/or
management of the Property, and in the possession or control of Assignor; and

     (d) any and all, if any, architectural, electrical, mechanical, plumbing and other plans and
specifications and soil reports, grading plans and topographical maps produced in connection with
the construction, repair and maintenance of the Property (including all revisions and supplements
thereto), which are not owned by any of the tenants and are in the possession or control of
Assignor.

     This Assignment is made subject to the permitted encumbrances set forth in Exhibit “B” hereto,
to the extent the same are valid and subsisting and affect the Assigned Properties (the “Permitted
Encumbrances”).

     TO HAVE AND TO HOLD the Assigned Properties unto Assignee, and Assignee’s successors and
assigns forever, and Assignor does hereby bind Assignor, and Assignor’s successors and assigns, to
WARRANT and FOREVER DEFEND, all and singular the Assigned Properties unto Assignee, and Assignee’s
successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or
any part thereof, by, through or under Assignor, but not otherwise; subject, however, to the
Permitted Encumbrances.

     Assignor hereby represents, warrants, covenants and agrees with Assignee that Assignor is the
owner of the personal property described on Exhibit “C” attached hereto and incorporated by
reference, which personal property is free and clear of any and all liens, security interests or
encumbrances, except as described on Exhibit “B” attached hereto and incorporated herein by
reference.

EXCEPT AS OTHERWISE PROVIDED IN THE AGREEMENT, ASSIGNEE TAKES THE ASSIGNED PROPERTIES “AS IS”,
“WHERE IS” AND WITH “ALL FAULTS”. EXCEPT AS OTHERWISE SET FORTH HEREIN AND IN THE AGREEMENT,
ASSIGNOR HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATIONS AS TO THE PHYSICAL CONDITION, OPERATION
OR ANY OTHER MATTER AFFECTING OR RELATED TO THE ASSIGNED PROPERTIES, AND BY ITS ACCEPTANCE OF THIS
ASSIGNMENT, ASSIGNEE HEREBY EXPRESSLY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS HAVE BEEN MADE.
ASSIGNOR EXPRESSLY DISCLAIMS AND BY ITS ACCEPTANCE OF THIS ASSIGNMENT, ASSIGNEE ACKNOWLEDGES AND
ACCEPTS THAT ASSIGNOR HAS DISCLAIMED TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY AND ALL
REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND, ORAL OR WRITTEN, EXPRESS OR IMPLIED, EXCEPT
AS OTHERWISE SET FORTH HEREIN AND IN THE AGREEMENT, CONCERNING THE ASSIGNED PROPERTIES, INCLUDING
WITHOUT LIMITATION: (I) THE VALUE, CONDITION, MERCHANTABILITY, MARKETABILITY, PROFITABILITY,
SUITABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE ASSIGNED PROPERTIES, (ii) THE MANNER
OR QUALITY OF THE CONSTRUCTION OR MATERIALS INCORPORATED INTO ANY OF THE ASSIGNED PROPERTIES AND
(iii) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE

 

 

Exhibit 10.23 (Continued)

ASSIGNED PROPERTIES. EXCEPT AS OTHERWISE PROVIDED IN THE AGREEMENT, ASSIGNOR IS NOT LIABLE OR
BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING
TO THE ASSIGNED PROPERTIES FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER
PERSON.

     If any term, covenant or condition of this Assignment shall be held to be invalid, illegal or
unenforceable in any respect, this Assignment shall be construed without such provision. This
Assignment shall be governed by and construed under the laws of the state in which the Property is
located without regard to the principles of conflicts of law.

     EXECUTED this ___ day of October, 2007.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	OCALA TARRAGON, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Tarragon Ocala Development Corp., manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Charles D. Rubenstein,
	 

	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 
	ASSIGNEE:
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

Exhibit 10.23 (Continued)

EXHIBIT “F”

GENERAL ASSIGNMENT AND ASSUMPTION

     THIS GENERAL ASSIGNMENT AND ASSUMPTION (the “Assignment”) is made as of                     , 2007 by
and between OCALA TARRAGON, LLC, a Florida limited liability company (“Assignor”), whose address
is 423 West 55th Street, 12th Floor, New York, New York 10019, and                     , an                      (“Assignee”),
whose mailing address is                                         .

W I T N E
 S S E T H :

     WHEREAS, Assignor and Assignee are parties to that certain Purchase and Sale Agreement dated
as of October ___, 2007 (the “Agreement”), which provides, among other things, for the sale by
Assignor to Assignee of that certain tract of land located in Florida, as more particularly
described on Exhibit “A” attached hereto and made part hereof for all purposes together with the
Apartment Complex located thereon (the “Property”), and the execution and delivery of this
Assignment; and

     WHEREAS, the Agreement requires Assignor to assign to Assignee all of Assignor’s rights,
titles and interests in all Contracts, Licenses and Permits and Warranties and Guaranties (as such
terms are defined below in this Assignment) owned by Assignor and requires Assignee to assume
Assignor’s obligations thereunder;

     THEREFORE, in consideration of the foregoing and the agreements and covenants herein set
forth, together with the sum of Ten Dollars ($10.00) and other good and valuable consideration this
day paid and delivered by Assignee to Assignor, the receipt and sufficiency of all of which are
hereby acknowledged by Assignor, Assignor does hereby ASSIGN, TRANSFER, CONVEY, SET OVER and
DELIVER unto Assignee all of Assignor’s right, title and interest in and to the following
(collectively, the “Assigned Properties”):

     (a) any and all agreements between Assignor and any third party affecting the Property, as
more particularly described on Exhibit “C” attached hereto and made a part hereof for all purposes
(the “Contracts”);

     (b) any and all building, construction, land use, environmental, zoning and other
certificates, licenses, certificates of compliance, certificates of occupancy, consents,
authorizations, permits and building inspection approvals issued or granted by any Governmental
Entity (as such term is defined in the Agreement) running to the benefit of the Property, Assignor
and/or Assignor’s predecessors in interest and any covenants, conditions and restrictions,
reciprocal easement agreements, access easement agreements and other common or planned development
agreements or documents necessary for or in connection with the use, construction, ownership or
operation of any of the Property (collectively, the “Licenses and Permits”); and

 

 

Exhibit 10.23 (Continued)

     (c) any and all unexpired warranties and guaranties and payment and/or performance bonds
required to be provided under the Contracts and run to the benefit of Assignor in connection with
the construction, renovation and/or operation of the Property (the “Warranties and Guaranties”).

     This Assignment is made subject to the permitted encumbrances set forth in Exhibit “B” hereto,
to the extent the same are valid and subsisting and affect the Assigned Properties (the “Permitted
Encumbrances”).

     TO HAVE AND TO HOLD all and singular the Assigned Properties unto Assignee, and Assignee’s
successors, and assigns forever, and Assignor does hereby bind Assignor, and Assignor’s successors
and assigns, to warrant and forever defend all and singular the Assigned Properties unto Assignee,
and Assignee’s successors and assigns, against every person whomsoever lawfully claiming or to
claim the same, or any part thereof, by, through or under Assignor, but not otherwise; subject,
however, to the Permitted Encumbrances.

     Assignee hereby assumes all of the obligations of Assignor arising under the Contracts,
Licenses and Permits and Warranties and Guaranties required to be performed from and after the
Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as applicable
(but not those required to be performed prior thereto).

     Assignee hereby agrees to indemnify and hold harmless Assignor from and against any and all
loss, liability, cost, claim, damage or expense incurred to enforce any rights and/or secure any
remedies under this Assignment resulting by reason of the failure of Assignee to perform its
obligations arising under the Assigned Properties from and after the Closing Date, the Villa
Tuscany Closing Date or the Deerwood Village Closing Date, as applicable, and/or Assignee’s failure
to perform its obligations under this Assignment. Assignor hereby agrees to indemnify and hold
harmless Assignee from and against any and all loss, liability, cost, claim, damage or expense
incurred to enforce any rights and/or secure any remedies under this Assignment resulting by reason
of the failure of Assignor to perform its obligations arising under the Assigned Properties prior
to Closing Date, the Villa Tuscany Closing Date or the Deerwood Village Closing Date, as
applicable, and/or Assignor’s failure to perform its obligations under this Assignment. Assignor
will cooperate with Assignee to secure performance by any warrantor or guarantor for any work
Assignee believes should be performed pursuant to any of the Warranties and Guaranties. The
foregoing indemnification shall survive for a period of twelve months after the date hereof and
shall thereafter expire.

EXCEPT AS OTHERWISE PROVIDED IN THE AGREEMENT, ASSIGNEE TAKES THE ASSIGNED PROPERTIES “AS IS”,
“WHERE IS” AND WITH “ALL FAULTS”. EXCEPT AS OTHERWISE SET FORTH HEREIN AND IN THE AGREEMENT,
ASSIGNOR HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATIONS AS TO THE PHYSICAL CONDITION, OPERATION
OR ANY OTHER MATTER AFFECTING OR RELATED TO THE PERSONAL PROPERTY AND/ OR THE ASSIGNED PROPERTIES,
AND BY ITS ACCEPTANCE OF THIS ASSIGNMENT, ASSIGNEE HEREBY EXPRESSLY ACKNOWLEDGES THAT NO SUCH
REPRESENTATIONS HAVE BEEN MADE.

 

 

Exhibit 10.23 (Continued)

ASSIGNOR EXPRESSLY DISCLAIMS AND BY ITS ACCEPTANCE OF THIS ASSIGNMENT, ASSIGNEE ACKNOWLEDGES AND
ACCEPTS THAT ASSIGNOR HAS DISCLAIMED TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY AND ALL
REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND, ORAL OR WRITTEN, EXPRESS OR IMPLIED,
CONCERNING THE ASSIGNED PROPERTIES, EXCEPT AS OTHERWISE SET FORTH HEREIN AND IN THE AGREEMENT,
INCLUDING WITHOUT LIMITATION: (i) THE VALUE, CONDITION, MERCHANTABILITY, MARKETABILITY,
PROFITABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE ASSIGNED PROPERTIES,
(ii) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS INCORPORATED INTO ANY OF THE ASSIGNED
PROPERTIES AND (iii) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE ASSIGNED
PROPERTIES. EXCEPT AS OTHERWISE SET FORTH IN THE AGREEMENT, ASSIGNOR IS NOT LIABLE OR BOUND IN ANY
MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING TO THE
ASSIGNED PROPERTIES FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON.

     All of the covenants, terms and conditions set forth herein shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and assigns. This
Assignment may only be modified, altered, amended, or terminated by the written agreement of
Assignor and Assignee. If any term, covenant or condition of this Assignment shall be held to be
invalid, illegal or unenforceable in any respect, this Assignment shall be construed without such
provision. This Assignment shall be governed by and construed under the laws of the state in which
the Property is located without regard to principles of conflicts of law.

     IN WITNESS WHEREOF, Assignor and Assignee have duly executed this Assignment as of the day and
year first above written.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	OCALA TARRAGON, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Tarragon Ocala Development Corp., manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Charles D. Rubenstein,
	 

	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 
	ASSIGNEE:
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

Exhibit 10.23 (Continued)

EXHIBIT “G”

	 	 	 	 	 
	Ocala Tarragon, LLC
	 	 	 	 
	423 West 55th Street
	 	 	 	 
	12th Floor

	 	 

	 	 
	New York, New York 10019

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	         
            , 2007	 	 

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

     RE: Your apartment leased at Deerwood Village,_Ocala, Florida (the “Property”)

Gentlemen:

     This is to inform you that on                     , 2007                      (“Purchaser”) purchased the
Property from (“Seller”), and that as of such date Purchaser has succeeded to the rights and
assumed the obligations of Seller, as Landlord, under your Lease. The deposit under your Lease has
been transferred to and received by Purchaser.

     Kindly make all future rent payments under the Lease payable to the order of                     .
All rent payments will be collected by the resident manager and delivered to Purchaser. Formal
communications and all inquiries (including any request for return of security) should be sent to
                                        .

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	OCALA TARRAGON, LLC
	 	 	By:	 	Tarragon Ocala Development Corp., manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Charles D. Rubenstein,
	 

	 	 	 	 	 	Executive Vice President

 

 

Exhibit 10.23 (Continued)

 EXHIBIT “H”

RENT ROLL

 

 

Exhibit 10.23 (Continued)

EXHIBIT “I”

LEGAL PROCEEDINGS

Vista Grande

None

Villa Tuscany

Fannie Mae foreclosure action, which will be dismissed prior to Closing.

Midway Mills

None.

Deerwood Ocala

Wachovia bank foreclosure action, threatened but not yet served. If filed, this will be dismissed
prior to Closing.

 

 

Exhibit 10.23 (Continued)

EXHIBIT “J”

PERSONAL PROPERTY INVENTORY

 

 

Exhibit 10.23 (Continued)

EXHIBIT “K”

STANDARD FORM OF APARTMENT LEASE

 

 

Exhibit 10.23 (Continued)

EXHIBIT “L”

AMENDMENTS TO LEASES

None

 

 

Exhibit 10.23 (Continued)

EXHIBIT “M”

FORM OF MANAGEMENT AGREEMENTexv10w24

 

Exhibit 10.24

MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT

(Ballantrae, Reflection Lakes, Monterra at Bonita Springs,

Ybor City, Via Lugano and Madison at Park West)

     THIS MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of this
28th day of December, 2007 by and between BALLANTRAE MANAGER INC., a Nevada corporation
(“BMI”), REFLECTION LAKES MANAGER, INC. a Nevada corporation (“RLM”), MONTERRA TARRAGON, INC., a
Nevada corporation (“MTI”), MADISON TARRAGON MANAGER, INC., a Nevada corporation (“MTM”), TARRAGON
SOUTH DEVELOPMENT CORPORATION, a Nevada corporation (“TSD”), and TARRAGON CORPORATION, a Nevada
corporation (“Tarragon”; Tarragon, together with BMI, RLM, MTI, MTM and TSD shall collectively be
referred to herein as “Seller”) whose address is 423 West 55th Street, 12th
Floor, New York, New York 10019, and NORTHLAND FUND II, L.P., a Delaware limited partnership
(“Purchaser”) whose address is 2150 Washington Street, Newton, MA 02462.

WITNESSETH:

     WHEREAS, BMI and Tarragon are the owners of 100% of the membership interests in BALLANTRAE
TARRAGON, LLC, a Florida limited liability company (the “Ballantrae Company”), representing
economic, voting and other rights in the Company, as more particularly set forth in that certain
Operating Agreement dated as of February 16, 2006 (as the same may be amended or modified, the
“Ballantrae Operating Agreement”)

     WHEREAS, RLM and Tarragon are the owners of 100% of the membership interests in REFLECTION
LAKES TARRAGON, LLC, a Florida limited liability company (the “Reflection Lakes Company”),
representing economic, voting and other rights in the Company, as more particularly set forth in
that certain Operating Agreement dated as of January 6, 2006 (as the same may be amended or
modified, the “Reflection Lakes Operating Agreement”);

     WHEREAS, MTI and Tarragon are the owners of 100% of the membership interests in OMNI MONTERRA
LLC, a Florida limited liability company (the “Monterra Company”), representing economic, voting
and other rights in the Company, as more particularly set forth in that certain Operating Agreement
dated as of August 17, 2005 (as the same may be amended or modified, the “Monterra Operating
Agreement”);

     WHEREAS, MTM and Tarragon are the owners of 100% of the membership interests in MADISON AT
PARKWEST TARRAGON, LLC, a South Carolina limited liability company (the “Madison Company”),
representing economic, voting and other rights in the Company, as more particularly set forth in
that certain Operating Agreement dated as of November ___, 2005, as amended by that certain First
Amendment to Limited Liability Company Agreement dated as of September 12, 2006 (as the same may
be amended or modified, the “Madison Operating Agreement”);

 

 

Exhibit 10.24 (Continued)

     WHEREAS, TSD is the owner of 100% of the membership interests in YBOR CITY TARRAGON, LLC, a
Delaware limited liability company (the “Ybor City Company”), representing economic, voting and
other rights in the Company, as more particularly set forth in that certain Operating Agreement
dated as of April 13, 2005 (as the same may be amended or modified, the “Ybor City Operating
Agreement”);

     WHEREAS, Tarragon is the owner of 100% of the membership interests in TARRAGON LUGANO LLC, a
Delaware limited liability company (the “Lugano Company”; the Lugano Company, together with the
Ballantrae Company, the Reflection Lakes Company, the Monterra Company, the Madison Company and the
Ybor City Company shall collectively be referred to herein as the “Company”), representing
economic, voting and other rights in the Company, as more particularly set forth in that certain
Amended and Restated Limited Liability Company Agreement dated as of June 12, 2006 (as the same may
be amended or modified, the “Via Lugano Operating Agreement”; the Via Lugano Operating Agreement,
together with the Ballantrae Operating Agreement, the Reflection Lakes Operating Agreement, the
Monterra Operating Agreement, the Madison Operating Agreement and the Ybor City Operating Agreement
shall collectively be referred to herein as the “Operating Agreement”);

     WHEREAS, the (i) Ballantrae Company is the owner of the real property and the apartment
complex thereon in Sanford, Florida known as “Ballantrae”, as more particularly described on
Exhibit “A-1”, (ii) Reflection Lakes Company is the owner of the real property and the apartment
complex thereon in Fort Myers, Florida known as “The Promenade at Reflection Lakes”, as more
particularly described on Exhibit “A-2”, and (iii) Monterra Company is the owner of the real
property and the apartment complex thereon in Bonita Springs, Florida known as “Monterra at Bonita
Springs”, as more particularly described on Exhibit “A-3” (each, an “Apartment Complex” and
collectively, the “Apartment Complexes”);

     WHEREAS, the (i) Madison Company is the owner of the unsold condominium units (the “Madison
Units”) in that certain condominium known as Madison at Park West, a Condominium, located in Mt.
Pleasant, South Carolina (the “Madison Condominium”), as more particularly described herein and on
Exhibit “A-4”; (ii) Ybor City Company is the owner of the unsold condominium units (the “Ybor City
Units”) in that certain condominium known as Quarter at Ybor City, a Condominium, located in Tampa,
Florida (the “Ybor City Condominium”), as more particularly described herein and on Exhibit “A-5”
and (vi) the Lugano Company is the owner of the unsold condominium units (the “Lugano Units”) in
that certain condominium known as Via Lugano, a Condominium, located in Boynton Beach, Florida (the
“Lugano Condominium”), as more particularly described herein and on Exhibit “A-6”;

     WHEREAS,
Seller wishes to sell to Purchaser all of Seller’s entire right, title and interest
in and to the Company under the Operating Agreement, including its membership
interests therein (the “Interests”), and Purchaser wishes to purchase the Interests, all upon
the terms and subject to the conditions set forth in this Agreement.

2

 

Exhibit 10.24 (Continued)

     NOW, THEREFORE, in consideration of the mutual covenants and representations herein contained,
Seller and Purchaser agree as follows:

ARTICLE 1.

DEFINITIONS

     1.1 In this Agreement, and in the Exhibits and Schedules attached hereto, the following words
and phrases shall have the following meanings:

     “Amendment” means an amendment, renewal, supplement, modification, expansion, restatement,
extension, or any other change or revision.

     “Appurtenance” means all easements, rights-of-way, covenants, restrictions, tenements, rights
and appurtenances benefiting or appertaining to the Property and the land lying in the streets and
roads in front of and adjoining the Property.

     “Ballantrae Existing Loan” means that certain loan in the original principal amount of
$40,393,000, as evidenced by that certain Promissory Note dated as of October 10, 2006, from
Ballantrae Tarragon, LLC to the order of Holder, which Note is secured by that certain Amended and
Restated Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as
of October 10, 2006, which is a lien encumbering the Apartment Complexes and the Condominium
Parcels.

     “Books and Records” means copies of the 2006 and 2007 year-to-date operating statements for
the Property, and, to the extent in Seller’s possession, copies of all real estate and personal
property tax statements and assessments notices for 2006 and 2007.

     “Broker” is defined in Section 13.1

     “Business Day” means any day other than (a) a Saturday or Sunday, (b) a Federal, State of
Florida banking holiday or (c) a day on which the county recorder’s office in the county where the
Property is located is closed.

     “Casualty” is defined in Section 10.1.

     “Casualty Notice” is defined in Section 10.1

     “Casualty Termination Notice” is defined in Section 10.1 (a)

     “Closing” means the closing of the transactions contemplated under this Agreement.

     “Closing Date” is defined in Section 6.1.

     “Closing Documents” is defined in Section 6.2.

3

 

Exhibit 10.24 (Continued)

     “Closing Statement” is defined in Section 6.2 (o)

     “Commitment” is defined in Section 4.2

     “Condemnation” is defined in Section 10.2.

     “Condemnation Notice” is defined in Section 10.2.

     “Condominiums” means, collectively, the Madison Condominium, the Ybor City Condominium and the
Lugano Condominium.

     “Condominium Declarations” means that certain (i) Declaration of Condominium of MADISON AT
PARK WEST, a Condominium, and any amendments thereto, as recorded in the Public Records of
Charleston County, South Carolina, as amended from time to time, and other documents furnished
pursuant to South Carolina condominium statutes, (ii) Declaration of Condominium of THE QUARTER AT
YBOR CITY, a Condominium, and any amendments thereto, as recorded in the public records of
Hillsborough County, Florida, as amended from time to time, and other documents furnished pursuant
to Florida condominium statutes and (iii) Declaration of Condominium of VIA LUGANO, a Condominium,
and any amendments thereto, as recorded in the Public Records of Palm Beach County, Florida, as
amended from time to time, and other documents furnished pursuant to the Florida condominium
statutes.

     “Condominium Parcel Contracts” means all agreements between the Company and a third party for
the purchase and sale of one or more Units in a Condominium Parcel.

     “Condominium Parcels” means (i) the Units, (ii) a percentage of undivided ownership interest
in the common elements attributable to the Units, (iii) any other appurtenances as described in and
subject to the percentage of undivided ownership interest in the common elements attributable to
the Units and (iv) any other appurtenances as described in and subject to the Condominium
Declarations.

     “Contracts” means all agreements between the Company and any third party which are described
on Exhibit “B” hereto, but shall exclude the Condominium Parcel Contracts.

     “Deposits” means all refundable security deposits, expense deposits and/or prepaid rentals
received from a Tenant under a Tenant Lease and in the possession or control of the Seller or the
Company.

     “Development Rights” means all rights of the Company’s to the air space above the Land, if
any, and all zoning entitlements, development rights and appurtenances accruing to the Property
under, or by reason of, any applicable zoning ordinance or other laws.

     “Due Diligence Review” is defined in Section 14.1

4

 

Exhibit 10.24 (Continued)

     “Earnest Money” is defined in Section 3.2(a).

     “Encumbrances” means any and all liens, mortgages, deeds of trust, security agreements,
security interests, options, rights of purchase or first refusal, rights-of-way, restrictive
covenants, reservations, judgments, leases, subleases, licenses, assignments, restrictions, or
other encumbrances affecting title to the Property.

     “Escrow Holder” means Stewart Title Guaranty Company, and/or its affiliated title insurance
companies.

     “Existing Title” means the current commitments to issue title insurance, a schedule of which
is attached hereto as Exhibit “I”.

     “Existing Loans” means, collectively, the Ballantrae Existing Loan, the Reflection Lakes
Existing Loan, the Monterra Existing Loan, the Madison Existing Loan, the Ybor City Existing Loan
and the Lugano Existing Loan.

     “Existing Loan Documents” means all material loan documents executed by the Company and/or
Holder with respect to the Existing Loans, excluding any and all documents relating to the Seller’s
and/or the Company’s purchase of a rate cap with respect to the Existing Loans.

     “Governmental Entity” means the United States, the State, the County, the Town or the City
where the Property is located and any other State in which a party to this Agreement is
incorporated or organized.

     “Holder” means Barclays Capital Real Estate Inc.

     “Holder Consent” is defined in Section 15.1.

     “Improvements” means Apartment Complexes and the Condominium Parcels and all buildings,
structures, and improvements located on the Land.

     “Land” means the real property more particularly described on Exhibits “A-1” - “A-3” attached
hereto.

     “Legal Proceeding” means any litigation, arbitration, administrative proceeding, or other
legal proceeding of any kind.

     “Licenses and Permits” means all certificates, licenses, permits and approvals issued by any
Governmental Entity with respect to the Property.

     “Lugano Existing Loan” means that certain loan in the original principal amount of
$53,300,000, as evidenced by that certain Promissory Note dated as of October 10, 2006, from the
Lugano Company to the order of Holder, which Note is secured by that certain Amended and

5

 

Exhibit 10.24 (Continued)

Restated Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of October
10, 2006, which is a lien encumbering the Apartment Complexes and the Condominium Parcels.

     “Madison Existing Loan” means that certain loan in the original principal amount of
$22,860,000, as evidenced by that certain Amended and Restated Promissory Note dated as of October
10, 2006, from the Madison Company to the order of Holder, which Note is secured by that certain
Amended and Restated Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture
Filing dated as of October 10, 2006, which is a lien encumbering the Apartment Complex, the
Apartment Complexes and the Condominium Parcels.

     “Monterra Existing Loan” means that certain loan in the original principal amount of
$41,200,000, as evidenced by that certain Amended and Restated Promissory Note dated as of October
10, 2006, from the Monterra Company to the order of Holder, which Note is secured by that certain
Amended and Restated Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture
Filing dated as of October 10, 2006, which is a lien encumbering the Apartment Complexes and the
Condominium Parcels.

     “Notice of Termination” is defined in Section 14.2.

     “Objections” is defined in Section 4.3

     “Objection Notice” is defined in Section 4.3.

     “Permitted Encumbrances” is defined in Section 4.1.

     “Permitted Termination” is defined in Section 11.1

     “Person” means an individual person, a corporation, partnership, trust, joint venture,
proprietorship, estate, association, Governmental Entity or other incorporated or unincorporated
enterprise, entity or organization of any kind.

     “Personal Property” means all equipment, machinery and other tangible and intangible personal
property of every nature and description (including, without limitation, the personal property
described on Exhibit “G” attached hereto) used in connection with the Property (excluding
computer hardware, software and peripherals), which are not owned by the Tenants, which are owned
by the Company and in the possession of Seller or the Company, and also including any rights the
Company may have, if any, with respect to the use of the name of the Apartment Complexes or the
Condominiums or any variation thereof, including, without limitation, any domain names (provided,
however, the content of the Company’s website for the Property shall be specifically excluded).

     “Plans” means all architectural, electrical, mechanical or plumbing plans and specifications
and any environmental, engineering and geotechnical studies or reports, including without
limitation, any Phase I environmental report, performed in connection with the Property

6

 

Exhibit 10.24 (Continued)

or any portion thereof, which are not owned by the Tenants and which are owned by the Company and in the
possession of Seller.

     “Property” means the Land and the Condominium Parcels and all Appurtenances, Improvements,
Personal Property, Development Rights, Contracts, Licenses and Permits, Plans, and Warranties and
Guaranties on, to or in connection with the Land and the Condominium Parcels.

     “Rent Roll” is defined in Section 4.1(a).

     “Reflection Lakes Existing Loan” means that certain loan in the original principal amount of
$50,076,000, as evidenced by that certain Amended and Restated Promissory Note dated as of October
10, 2006, from the Reflection Lakes Company to the order of Holder, which Note is secured by that
certain Amended and Restated Mortgage, Assignment of Leases and Rents, Security Agreement and
Fixture Filing dated as of October 10, 2006, which is a lien encumbering the Apartment Complexes
and the Condominium Parcels.

     “Response Notice” is defined in Section 4.4.

     “Seller Party” is defined in Section 8.1 (c).

     “Survey” is defined in Section 4.1 (b).

     “Tenant” means all tenants and other parties having the right to use or occupy all or any
portions of the Property.

     “Tenant Lease” means all leases, rental agreements, subleases, or other agreements which
permit or authorize the use and occupancy of the Property, together with any and all, if any,
guaranties, security deposits, or other security for performance of a Tenant’s obligations
thereunder, all Amendments and/or other agreements forming a part thereof.

     “Termination Deadline” means 4:00 P.M. (EST) on December 11, 2007.

     “Title Company” means Stewart Title Guaranty Company, and/or its affiliated title insurance
companies.

     “Title Policy” means one or more ALTA Owner’s policies of Title Insurance, insuring
Purchaser’s right, title and interest in the Property in the aggregate amount of the Purchase
Price, allocated among the Apartment Complexes and the Condominium Parcels, subject only to the
Permitted Encumbrances.

     “Units” means, collectively, the Madison Units, the Ybor City Units and the Lugano Units.

7

 

Exhibit 10.24 (Continued)

     “Warranties and Guaranties” means all unexpired warranties and guaranties and payment and/or
performance bonds required to be provided under the Contracts which run to the benefit of the
Company in connection with the construction, renovation and/or operation of the Property.

     “Ybor Existing Loan” means that certain loan in the original principal amount of $7,142,000,
as evidenced by that certain Amended and Restated Promissory Note A in the amount of $7,079,295
dated as of October 10, 2006 and that certain Amended and Restated Promissory Note B in the amount
of $62,705, each from the Ybor City Company to the order of Holder, which Notes are secured by that
certain Amended and Restated Mortgage, Assignment of Leases and Rents, Security Agreement and
Fixture Filing dated as of October 10, 2006, which is a lien encumbering the Apartment Complexes
and the Condominium Parcels.

     1.2 Unless specified to the contrary, references to Sections, Exhibits and Schedules mean the
particular Section, Exhibit or Schedule in or to this Agreement, all of which Exhibits and
Schedules are made a part hereof for all purposes the same as if set forth herein verbatim; it
being expressly understood that if any Exhibit attached hereto which is to be executed and
delivered at Closing contains blanks, such Exhibit attached hereto shall be deemed completed in the
form executed.

     1.3 Wherever used in this Agreement:

          1. the words “include” or “including” shall be construed as incorporating, also, “but not
limited to” or “without limitation”;

          2. the word “day” means a calendar day unless otherwise specified;

          3. the word “party” means each of Seller and Purchaser;

          4. the word “law” (or “laws”) means any statute, ordinance, resolution, regulation, code,
rule, order, decree, judgment, injunction, mandate or other legally binding requirement of a
Governmental Entity;

          5. each reference to the Property shall be deemed to include “and/or any portion thereof”; and

          6. each reference to $ or dollars means United States dollars.

     1.4 Certain other words and phrases are defined or described elsewhere in this Agreement.

ARTICLE 2.

PURCHASE AND SALE

8

 

Exhibit 10.24 (Continued)

     2.1 Purchase and Sale. Subject to the terms and conditions of this Agreement, Seller
hereby agrees to sell and convey to Purchaser, and Purchaser hereby agrees to purchase from Seller,
the Interests.

ARTICLE 3.

PURCHASE PRICE AND EARNEST MONEY

     3.1 Purchase Price. The purchase price (the “Purchase Price”) for the Interests
shall be in the amount of ONE HUNDRED FIFTY-SIX MILLION SEVENTY-FIVE THOUSAND DOLLARS
($156,075,000), which represents the outstanding principal balance of the Existing Loans as of the
Closing Date. The Purchase Price shall be deemed paid at Closing by Purchaser’s acquisition of the
Property, subject to the Existing Loans in accordance with Article 15 below, by means of the
purchase of the Interests as contemplated herein.

     3.2 Earnest Money.

          (a) Within one (1) Business Day of the date hereof, Purchaser shall deliver to the Escrow
Holder the sum of $5,000,000 by federal funds wire transfer (the “Earnest Money”). This Agreement
shall terminate and be deemed void ab initio if the Earnest Money is not timely deposited
with Escrow Holder. After the Termination Deadline, if this Agreement is then in effect, the
Earnest Money shall be non-refundable to Purchaser except in the event of (i) the failure of a
condition precedent, as provided in Section 5.1, (ii) a default by Seller, as provided in Section
11.2 or (iii) the Holder Consent is not issued in accordance with Section 15.1 hereof. The Earnest
Money shall be held in escrow and invested by the Escrow Holder in an interest-bearing account,
with interest accruing for the benefit of the party entitled to the payment or return of the
Earnest Money. The Earnest Money shall be paid to Holder and applied toward the paydown of the
Existing Loans as provided in Article 15, and shall otherwise be paid or applied in accordance with
this Agreement.

          (b) The Escrow Holder shall hold the Earnest Money pursuant to the following provisions:

               (i) The Escrow Holder is not a party to, and is not bound by, or charged with notice of any
agreement out of which this escrow may arise, other than the terms and provisions of this Section
3.2 as well as Sections 4.3 and 14.2 of this Agreement.

               (ii) The Escrow Holder shall deliver the Earnest Money to the party so designated on written
notice from both the Purchaser and Seller specifying the time and the place where the
Earnest Money is to be delivered, provided, however that the Escrow Holder shall have received such
written instructions at least one (1) Business Day prior to the date designated for delivery.

               (iii) The Escrow Holder is acting solely as a stakeholder and depository as an accommodation
to Purchaser and Seller, and is not responsible or liable for any matter or

9

 

Exhibit 10.24 (Continued)

loss arising out of the
Escrow Holder’s conduct hereunder, except for its gross negligence or willful misfeasance. The
Escrow Holder shall not be responsible or liable for the sufficiency, correctness, genuineness, or
validity of the subject matter of this Agreement, or for the identity or authority of any person
executing any documents or instruments in connection herewith.

               (iv) Purchaser and Seller agree to jointly and severally, indemnify, defend and hold harmless
the Escrow Holder from and against any loss, cost, claims, damage or expense, including, without
limitation, any and all court costs and reasonable attorney’s fees and expenses, collectively
called “Expenses”, incurred by the Escrow Holder in connection with or in any way arising out of
this Agreement, other than Expenses resulting from the Escrow Holder’s gross negligence or willful
misconduct, provided that as between Purchaser and Seller any costs or expenses incurred as a
result of any dispute between Seller and Purchaser shall be the responsibility of the
non-prevailing party in such dispute. The Escrow Holder may, at its own expense, consult with
legal counsel in the event of any dispute or questions as to the construction of any provisions
hereof or its duties hereunder, and it shall be fully protected in acting in accordance with the
written opinion or instructions of such counsel.

               (v) The Escrow Holder shall be entitled to act or rely upon, and the Escrow Holder shall be
protected in acting or relying upon, the genuineness and validity of any written notice, request,
waiver, consent, certificate, receipt, authorization, power of attorney or other document the
Escrow Holder shall receive from any party hereto that it reasonably believes to be authentic.

               (vi) In the event that (a) the Escrow Holder receives contradictory instructions from the
parties hereto, or (b) there shall be any dispute between Seller and Purchaser as to any
matter arising under this Agreement, or (c) there shall be any uncertainty as to the
meaning or applicability of the provisions hereof or any written instructions received by the
Escrow Holder pursuant hereto, the Escrow Holder shall continue to hold the Earnest Money pending
resolution of the matter if so instructed by written notification from both Seller and Purchaser or
if not so instructed shall deposit the Earnest Money with any appropriate court in the State of
Florida at the cost and expense of Purchaser and Seller jointly and severally, and, upon making
such deposit, the Escrow Holder shall thereupon be discharged and released from any and all
liability with respect to the Earnest Money. The Escrow Holder may dispose of the escrowed funds
in accordance with a court order, and shall be fully protected if it acts in accordance with any
such court order.

               (vii) Deposits made pursuant to these instructions may be invested on behalf of any party or
parties hereto, provided that any direction to the Escrow Holder for such investment shall be in
writing and contain the consent of all other parties to this Agreement together with a completed,
signed W-9 Form. The Escrow Holder is not to be held responsible for the loss of principal or
interest on any investment made pursuant to the aforesaid instruction or in the redemption thereof.

10

 

Exhibit 10.24 (Continued)

               (viii) Except as to deposits of funds for which the Escrow Holder has received written
instructions as set forth in paragraph (vii) above, the Earnest Money may be commingled with other
escrowed funds in a non-segregated escrow account; and

               (ix) Upon delivery of the Earnest Money in accordance with the terms hereof, the Escrow Holder
shall be discharged and released from any and all liability with respect to the Earnest Money.

               (x) Escrow Holder may resign as Escrow Holder hereunder at any time upon written notice to
Purchaser and Seller, provided that such resignation shall not be effective unless and until a
replacement escrow agent acceptable to Purchaser and Seller shall have been identified and such
replacement escrow agent shall have agreed in writing to serve as Escrow Holder hereunder pursuant
to the terms and conditions of this Agreement.

               (xi) Purchaser and Seller may jointly terminate the services of Escrow Holder hereunder at any
time upon written notice to Escrow Holder, provided that such termination shall not be effective
unless and until a replacement escrow agent acceptable to Purchaser and Seller shall have been
identified and such replacement escrow agent shall have agreed in writing to serve as Escrow Holder
hereunder pursuant to the terms and conditions of this Agreement.

     3.3 Tax Elections. The Company’s tax year is from December 1st through
November 30th. Since the Closing shall occur after November 30, 2007, the
responsibility for filing the Company return for federal and state income tax from December 1, 2007
through the Closing Date shall be Seller’s responsibility, and Purchaser shall reasonably cooperate
with Seller in connection therewith. Further, should any returns for 2007 or prior years be
audited, the responsibility for dealing with, settling and paying any such tax liability shall be
Seller’s responsibility. Should Purchaser or the Company be included in such audits, Seller shall
furnish Purchaser or the Company with all necessary information to permit Purchaser or the Company
to respond to the appropriate authorities in a timely and responsive manner. Notwithstanding
anything to the contrary contained herein, if it is not required under the Internal Revenue Code to
file separate income tax returns for the Company for the period prior to the Closing and the period
on and after the Closing, each party shall prepare the same for its respective period of ownership
and the parties shall cooperate with each other so as to cause the Company’s tax returns for
calendar year 2007 to be filed in a timely manner and shall make such elections and/or allocations
as may be required so as to allocate to Seller for income tax purposes all income, expenses and tax
credits relating to the period of time prior to the Closing and to allocate to Purchaser all
income, expenses and, if permissible, tax credits for the period on and after the Closing.

11

 

Exhibit 10.24 (Continued)

ARTICLE 4.

DELIVERY OF DOCUMENTS/TITLE

     4.1 Within two (2) Business Days after a fully executed counterpart of this Agreement is
delivered to Purchaser (except as otherwise provided), Seller shall deliver the following
information and documents to Purchaser:

          (a) Tenant Leases relating to the Property (which shall be made available for inspection at
the applicable Apartment Complex or Condominium, and not delivered to Purchaser), a current rent
roll concerning the Property (the “Rent Roll”) setting forth, with respect to each apartment unit
and condominium unit: (i) the name of the Tenant, (ii) the rent payable, (iii) the expiration date
of each lease and the status of the rental payments payable thereunder, (iv) the security or other
deposit(s) held by Seller, (v) delinquencies and (vi) free rent and/or other concessions.

          (b) The most recent surveys of the Property in Seller’s possession (the “Survey”). Any
updated Survey required by Purchaser shall be ordered and paid for by Purchaser.

          (c) Copies of all Books and Records, Contracts, Licenses and Permits, Plans (which may be made
available for inspection at the applicable Apartment Complex or Condominium, and not delivered to
Purchaser), and Warranties and Guaranties.

          (d) Copies of the most recent title commitments and owner’s title policies for the Property in
Seller’s possession, if any.

          (e) Copies of 2006 tax returns for the Ballantrae Company, the Reflection Lakes Company, the
Monterra Company and the Madison at Park West Company. Purchaser acknowledges and agrees that
Seller shall not provide copies of the 2006 tax returns for the Lugano Company or the Ybor City
Company.

          (f) Copies of the Condominium Declarations, and all other condominium-related documents
relating to the Condominium Parcels, including without limitation, condominium by-laws, condominium
association minutes, notices of special assessments, if any, budgets and the like in the possession
or control of Seller.

          (g) Copies of the Existing Loans Documents.

     Seller’s failure to deliver to Purchaser items (a) through (g) above within two (2) Business
Days after a fully executed copy of this Agreement is delivered to Purchaser shall not result in
the extension of the Termination Deadline, and Purchaser’s sole remedy therefor shall be
Purchaser’s right to terminate this Agreement by delivering written notice thereof to Seller prior
to the Termination Deadline, in which event neither party shall have any further rights or
obligations hereunder (except as otherwise provided herein).

12

 

Exhibit 10.24 (Continued)

     4.2 Purchaser shall request the Title Company to deliver to Purchaser and Seller: (a) a
current commitment for a Title Policy to be issued by the Title Company, whereby said Title Company
commits to insure title to the Property for the benefit of Purchaser in accordance with this
Agreement (the “Commitment”); and (b) copies of all instruments shown on Schedule B of the
Commitment. The Commitment shall describe the Property; shall list the Company as the prospective
named insured; shall show as the policy amount the Purchase Price; and shall contain the commitment
of the Title Company to insure the Company’s fee simple interest in the Property upon the Closing.
The Commitment shall show the status of the title of the Property and all exceptions which would
appear in the Title Policy. Any items or exceptions to title which are accepted or waived in
writing or deemed to have been accepted or waived by Purchaser pursuant to the terms of this
Agreement are hereinafter referred to as “Permitted Encumbrances”. Seller makes no representations
or warranties with respect to the accuracy of the Commitment.

     4.3 As of the date of this Agreement, Purchaser (i) acknowledges receipt of the Existing
Title, (ii) acknowledges its approval of the Existing Title and (iii) confirms that all exceptions
to title set forth in the Existing Title (including all existing liens and encumbrances) shall be
deemed Permitted Encumbrances, except for those matters to be addressed by the title clearing items
set forth on Exhibit “K”, which will be delivered by Seller on or before the Closing Date.
Purchaser shall be entitled to raise Objections (as hereinafter defined) within two (2) Business
Days after Purchaser receives an update or bringdown to the Existing Title which contains
exceptions to title that did not previously appear in the Existing Title to the extent that any
such exception is monetary in nature or, in Purchaser’s reasonable opinion, will adversely
interfere with the Company’s title to or use, operation or financing of the Property, and which
Purchaser is unwilling to take title to the Property subject to any such matter (the “Objections”),
separately specifying and setting forth each of such Objections and the reasons therefor. Within
two (2) Business Days after Purchaser provides written notice (the “Objection Notice”) of the
Objections, Seller shall give Purchaser notice (the “Response Notice”) if Seller is unable or
unwilling to cure any of Purchaser’s Objections (and if Seller fails to timely deliver a Response
Notice, Seller shall be deemed to have elected not to cure Purchaser’s Objections). If Seller’s
Response Notice indicates that Seller is unwilling or unable to cure Purchaser’s Objections, then
Purchaser may, as its exclusive remedy, elect by written notice given to Seller within two (2)
Business Days after the Response Notice is given (or if deemed given, within three (3) Business
Days of the giving of Purchaser’s Objection Notice), either (a) to accept such title as Seller is
able to convey without any reduction or abatement of the Purchase Price, or (b) to terminate this
Agreement, in which event the Earnest Money and all interest thereon shall be paid to Purchaser,
Escrow Holder being unconditionally authorized to immediately release same to Purchaser. If
Purchaser fails to deliver any such notice, Purchaser will be deemed to have elected to proceed
under clause (a). If Seller elects to cure the Objections, the cure shall be effected on or before
the Closing Date. If Purchaser gives Seller an Objection Notice as set forth above, then all
matters disclosed on the updated title which are not objected to in such Objection Notice shall be
deemed to be Permitted Encumbrances. If Purchaser fails to give Seller an Objection Notice within
the period set forth above, then all matters disclosed on the updated title shall be deemed to be
Permitted Encumbrances.

13

 

Exhibit 10.24 (Continued)

     4.4 Seller shall not be required to expend any money or bring any action or proceeding to cure
such Objections. Notwithstanding anything to the contrary contained herein: (a) the standard
preprinted exceptions set forth in the Commitment shall not constitute Permitted Encumbrances for
purposes hereof to the extent they can be omitted in the State of Florida or South Carolina (as
applicable) by Seller’s affidavit without payment of additional premium by Purchaser; (b) all
mortgages and other encumbrances evidencing or securing indebtedness arising by, through or under
Seller (excluding the Existing Loan Documents) shall not constitute Permitted Encumbrances and
shall be discharged and satisfied by Seller prior to Closing; (c) Seller shall be required to
expend up to $10,000 in the aggregate to satisfy, discharge or bond over liens or other monetary or
non-monetary items which can be satisfied by the expenditure of less than $10,000 in the aggregate;
and (d) Seller shall use its reasonable good faith efforts (without cost to Seller) to cure any
objections to Seller’s title raised by Purchaser or the Title Company with respect to affidavits or
consents of stockholders, directors and officers approving any acts of affiliated corporations in
the chain of title, and proof of payment of franchise or dissolution taxes thereof.

ARTICLE 5.

CONDITIONS TO CLOSING

     5.1 Conditions to Obligations of Purchaser. The obligations of Purchaser to execute
and deliver the applicable Closing Documents, to pay the Purchase Price and to perform Purchaser’s
other obligations at the Closing under this Agreement are and shall be subject to the satisfaction
of each of the following conditions at or prior to the Closing, unless otherwise specified:

          (a) Title to the Property shall be free of Encumbrances other than Permitted Encumbrances.

          (b) Seller shall have executed (where applicable) and delivered to Escrow Holder the Closing
Documents to be executed and delivered by Seller.

          (c) All of the representations and warranties of Seller contained in this Agreement shall have
been true and correct in all material respects when made, and shall be true and correct in all
material respects on the Closing Date with the same effect as if made on and as of such date.

          (d) Seller shall have performed, observed, and complied in all material respects with all
covenants, agreements, and conditions required by this Agreement to be performed, observed, and
complied with on Seller’s part prior to or as of the Closing Date.

          (e) Other than in the event of a Casualty or a Condemnation, the physical condition of the
Property shall be substantially the same on the Closing Date as on the date hereof, reasonable wear
and tear excepted.

14

 

Exhibit 10.24 (Continued)

          (f) The Holder Consent shall have been issued.

In the event that any one of the above conditions precedent to the obligations of Purchaser shall
not occur by the Closing Date and the occurrence of such condition is not due to a default by
Seller and is not waived by Purchaser (in Purchaser’s sole discretion), and provided Purchaser is
not then in default under the terms of the Agreement, then upon written notice from Purchaser to
Seller and Escrow Agent delivered on or prior to the Closing Date, this Agreement shall terminate,
the Earnest Money shall be returned to Purchaser and neither party shall have any further
obligation to the other.

     5.2 Conditions to Obligations of Seller. The obligations of Seller to execute and
deliver the applicable Closing Documents and to perform Seller’s other obligations at the Closing
under this Agreement are and shall be subject to the satisfaction of each of the following
conditions at or prior to the Closing:

          (a) Intentionally deleted.

          (b) Purchaser shall have executed (where applicable) and delivered to Escrow Holder the
Closing Documents to be executed and delivered by Purchaser.

          (c) All of the representations and warranties of Purchaser contained in this Agreement shall
have been true and correct in all material respects when made, and shall be true and correct in all
material respects on the Closing Date with the same effect as if made on and as of such date.

          (d) Purchaser shall have performed, observed, and complied in all material respects with all
covenants, agreements, and conditions required by this Agreement to be performed, observed, and
complied with on Purchaser’s part prior to or as of the Closing Date.

          (e) The Holder Consent shall have been issued, and Seller and all of its affiliates shall have
been released by Holder from any obligation under the Existing Loans from and after the Closing
Date, except as otherwise provided in Article 15 below.

In the event that any one of the above conditions precedent to the obligations of Seller shall not
occur by the Closing Date and the occurrence is not waived by Seller (in its sole discretion), and
provided Seller is not then in default under the terms of the Agreement, then upon written notice
from Seller to Purchaser and Escrow Agent delivered on or prior to the Closing Date, this Agreement
shall terminate, the Earnest Money shall be paid to the Seller, and neither party shall have any
further obligation to the other. Notwithstanding the foregoing, Purchaser shall be entitled to the
return of the Earnest Money if the condition set forth in (e) above does not occur for reasons
other than a default by Purchaser.

15

 

Exhibit 10.24 (Continued)

ARTICLE 6.

CLOSING

     6.1 Closing. The Closing shall occur through an escrow at the Title Company on (or,
if Seller and Purchaser mutually agree, before) December 31, 2007 (the “Closing Date”), time being
of the essence to such date. The parties will deliver required closing documents and funds to the
Escrow Holder by overnight delivery service, fax and wire transfers.

     6.2 Seller’s Obligations at Closing. At the Closing, Seller shall deliver to Escrow
Holder the following documents (the “Closing Documents”):

          (a) An Assignment and Assumption of Membership Interests, in form and substance as set forth
on Exhibit “C” attached hereto, duly executed and acknowledged by Seller, with respect to
each of the Interests;

          (b) Intentionally deleted;

          (c) an affidavit originally executed by Seller to the effect that Seller is not a foreign
person for purposes of 26 U.S.C. 1445 (b) (2);

          (d) such affidavits executed by Seller as the Title Company shall reasonably require in order
to omit from the Title Policy all exceptions for (i) rights of parties in possession (other than
Tenants under the Tenant Leases, as tenants only), (ii) notices of commencement for work conducted
by or on the Company’s behalf or (iii) matters arising between the date of the Commitment and the
Closing Date, along with a “no change” affidavit stating that to Seller’s knowledge there have been
no changes to the existing surveys and, with respect to the Madison Condominium Parcels, a
non-imputation affidavit in the form attached hereto as Exhibit “M”;

          (e) such corporate, partnership and/or limited liability company certificates and resolutions
as the Purchaser and the Title Company may reasonably request in order to confirm the authorization
of (i) the actions to be taken by Seller under this Agreement and (ii) the execution and delivery
of this Agreement, the Closing Documents and all other documents required to be executed and
delivered by Seller pursuant to this Agreement;

          (f) all Tenant Leases, Books and Records (originals when available or photocopies if not
available) in the possession or control of Seller;

          (g) all keys and master keys to all locks at the Property which are in the possession or
control of Seller;

          (h) all Licenses and Permits in Seller’s possession or control;

          (i) all Plans in Seller’s possession or control;

16

 

Exhibit 10.24 (Continued)

          (j) all Contracts and Condominium Parcel Contracts, if any, in Seller’s possession or control;

          (k) an update of the Rent Roll, dated as of the Closing Date and represented and certified by
Seller to be true and correct;

          (l) original counterparts of a management agreement for each Apartment Complex and the rental
portion of each Condominium Parcel (collectively, the “Rental Management Agreements”), pursuant to
which Tarragon Management, Inc. will manage such Apartment Complexes and rental portion of each
Condominium Parcel on a month-to-month basis, for a management fee equal to 3% of gross revenues,
which Rental Management Agreements shall be negotiated in good faith and in a commercially
reasonable manner by the parties prior to Closing;

          (m) original counterparts of an agreement for the Condominium Parcels (the “Condominium
Project Management Agreement”), pursuant to which Tarragon Development Corporation will coordinate
all sales and marketing efforts for the Condominium Parcels on a month to month basis, for a fee
equal to the reasonable costs for personnel and services, which Condominium Project Management
Agreement shall be negotiated in good faith and in a commercially reasonable manner by the parties
prior to Closing;

          (n) a closing statement prepared by Seller and approved by Purchaser (the “Closing
Statement”); and

          (o) resignations from all employees, officers, directors or agents of Seller that are either
members of the Board of Directors of the condominium associations or officers of such associations
with respect to the Condominiums (collectively, the “Seller Board Members”).

     6.3 Purchaser’s Obligations at Closing. At Closing, Purchaser shall deliver to
Escrow Holder the following:

          (a) the balance of the Purchase Price, by wire transfer of immediately available funds to the
account of the Title Company;

          (b) executed counterparts of all of the Assignment and Assumption of Membership Interests and
Notice Letters, originally executed and acknowledged (where applicable) by Purchaser;

          (c) such corporate, partnership and/or limited liability company certificates and resolutions
as the Seller and the Title Company may reasonably request in order to confirm the authorization of
(i) the actions to be taken by Purchaser under this Agreement and (ii) the execution and delivery
of this Agreement, the Closing Documents and all other documents to be executed and delivered by
Purchaser pursuant to this Agreement and/or as customarily required by the Title Company;

17

 

Exhibit 10.24 (Continued)

          (d) the Closing Statement; and

          (e) a document in form and substance reasonably acceptable to Seller and Purchaser evidencing
the appointment of substitute members of the Board of Directors of the condominium associations
replacing the Seller Board Members.

     6.4 Closing Costs. Except as otherwise expressly provided herein, Purchaser shall
pay (i) all sales taxes on personal property, if any, (ii) the title premiums and the cost of any
endorsements to the Title Policy required by Purchaser or Existing Lender and the search and
examination fees, (iii) Purchaser’s share of prorations, (iv) the cost of updating the Survey, (v)
all recording charges (other than for discharges of mortgages and related documents), (vi) all
documentary stamps and intangible taxes in connection with Purchaser’s financing, (vii) legal fees
and disbursements of attorneys of Holder in connection with he assumption of the Existing Loans,
and (viii) one-half of any escrow fees and other customary charges of the Escrow Holder (if any).
Seller shall pay Seller’s share of prorations and one-half of any escrow fees and other customary
charges of the Escrow Holder (if any). Except as otherwise provided herein, each party shall pay
its own attorneys’ fees.

ARTICLE 7.

PRORATIONS

     7.1 The following shall be apportioned and adjusted between Seller and Purchaser as of 11:59
p.m. (Florida time) the day preceding the Closing Date, except as otherwise specified:

          (a) rents and additional rents under or in respect of the Tenant Leases, as, when and to the
extent actually collected, on the basis of the period for which payable under the applicable Tenant
Lease and apportioned on the basis of the actual number of days in such period, along with
security, pet, key and any other deposits held by Seller under Tenant Leases;

          (b) any real property taxes, water and sewer rents and charges; any tax credit or refund
collected as a result of any real property tax appeal; vault taxes or charges, elevator inspection
charges and other like and similar municipal taxes and charges, each on the basis of the fiscal
year or other period for which assessed, and apportioned upon the basis of the actual number of
days in such year or period. If actual tax bills are not available, taxes shall be apportioned
based on the most recent tax bills available, with a post-Closing adjustment to be made as soon as
tax bills for the fiscal year during which the Closing occurs become available;

          (c) subject to Section 7.5, electric, gas, steam and other public utility charges for services
furnished to the Property, on the basis of the actual number of days in any period covered by the
charge being apportioned (except that no apportionment shall be made for any of such items as are
furnished and charged by the applicable utility company directly to Tenants under the Tenant
Leases);

18

 

Exhibit 10.24 (Continued)

          (d) all charges under the Contracts, on the basis of the actual number of days in any period
covered by the charge being apportioned. Seller shall pay, at or prior to the Closing, all
installments or amounts of items which are being apportioned under this Section which became due
and payable prior to the Closing Date;

          (f) such other items as are customarily apportioned between sellers and purchasers of real
properties of a type similar to the Apartment Complexes and Condominium Parcels (including, without
limitation, fees and special assessments due and owing to the Condominium Associations); and

          (g) any excess deficit funding obligations due and owing from the Condominium Associations to
the “developer” of such Condominium at the time of “turnover” of each Condominiums if and to the
extent paid by the Associations.

     7.2 Seller shall pay all unpaid commissions, fees and other charges due on or prior to the
Closing to real estate brokers or other Persons with respect to (i) any Tenant Lease beginning
prior to the Closing Date or (ii) any Condominium Parcel Contract entered into prior to the Closing
Date. If the Closing occurs, then Purchaser shall be responsible for commissions, fees, or other
charges due to real estate brokers or other Persons with respect to Tenant Leases, and any
renewals, extensions and expansions thereof beginning after the Closing Date. Purchaser will
receive either a cash payment for all Deposits or, if applicable, a credit against any amounts due
and owing to Seller hereunder.

     7.3 If the Closing occurs before a new real property or other applicable tax rate or charge of
a Governmental Entity is fixed, then the apportionment of such tax or charge at the Closing shall
be based upon the tax rate for the immediately preceding fiscal period applied to the latest
assessed valuation. Promptly after the new tax rate has been fixed, the apportionment of such tax
or charge made at the Closing shall be recalculated and any reimbursement owed by Purchaser to
Seller or Seller to Purchaser, as the case may be, shall be paid promptly after such recalculation.

     7.4 If any Tenant under a Tenant Lease is in arrears in the payment of rent, or other charges,
payments received from such Tenant after the Closing shall be applied in the following order of
priority: first, to current rents and other sums due Purchaser as the current owner of the Property
and landlord under the Tenant Leases, and the balance to any delinquent sums owing to Seller under
the Tenant Leases. If any payments from a Tenant received by Purchaser or Seller after the Closing
are payable to the other party by reason of this Section, then the appropriate sum shall be
promptly paid to the other party.

     7.5 The apportionment of utility charges shall be made upon the basis of charges shown on the
latest available bills of such utilities. The charges shown on such available bills for periods
prior to the Closing Date shall be paid by Seller, and for the period from the date of each such
last available utility bill to the Closing Date an apportionment shall be made based on the amount
charged for the period covered by such last available bill. Notwithstanding the foregoing, Seller
will use reasonable efforts to cause the respective utility companies to read

19

 

Exhibit 10.24 (Continued)

their meters or fix their charges to the Closing Date, in which event Seller shall pay such
charges, when billed, to the Closing Date, and Purchaser shall pay such charges from and after the
Closing Date and/or promptly reimburse Seller for any such charges paid by Seller for any period
subsequent to the Closing Date.

     7.6 At the Closing if requested by Purchaser, Seller shall assign to Purchaser, as part of the
Assignment, all deposits or escrows held for Seller’s account at or by any public utility company
in connection with the utility services furnished to the Property; and in such case Purchaser shall
pay Seller, at the Closing, for the amount of deposits, or escrows so assigned. Prior to the
Closing Date, Seller shall notify all such public utilities in writing of the applicable transfer
of service.

     7.7 If any item covered by this Article cannot be apportioned because the same has not been
(or cannot be) fully ascertained on the Closing Date, or if any error has been made with respect to
any apportionment, then such item shall be apportioned (or corrected, as applicable) as soon as the
same is fully ascertained and shall be paid within twenty (20) days thereafter by the appropriate
party. Any Property-related bills received after Closing related to the period prior to Closing
shall be promptly paid by Seller.

     7.8 Real estate tax refunds and credits received after the Closing which are attributable to
the fiscal tax year during which the Closing Date occurs shall be apportioned between Seller and
Purchaser, pursuant to this Article.

     7.9 If, as of the Closing Date, the Property shall be (or shall have become) subject to a
special or local assessment or charge of any kind (whether or not yet a lien), then (to the extent
not payable by the tenants) Seller shall pay all installments thereof due and payable prior to the
Closing Date; provided, however, any installment thereof attributable to a period from and after
the Closing Date shall be apportioned at the Closing in the same manner as for taxes under Section
7.1(b). Purchaser shall be responsible for all installments of such assessment attributable to the
period from and after the Closing Date.

     7.10 Except as otherwise provided herein, it is the intention of the parties that Seller be
responsible for all costs and expenses of the Company relating to the period up to the Closing
Date, and that Purchaser be responsible for such costs and expenses from and after the Closing
Date. In the event either Purchaser or Seller shall owe the other any money as a result of the
terms of this Article 7 (whether at Closing or thereafter), then the party owing such money shall
pay the other party such money promptly, as soon as the amount is finally determined.

     7.11 If and to the extent that any adjustment hereunder shall result in an amount due and
owing to Purchaser that is not offset by amounts due and owing to Seller, Seller shall make a
payment by wire transfer to Purchaser’s account or as otherwise directed by Purchaser on the
Closing Date.

     7.12 This Article 7, and all rights and duties of the parties hereunder, shall survive the
Closing.

20

 

Exhibit 10.24 (Continued)

ARTICLE 8.

REPRESENTATIONS AND WARRANTIES OF SELLER

     8.1 Disclaimer of Seller.

          (a) Except as expressly set forth in this Agreement, including Section 8.2, Purchaser
acknowledges and agrees that Seller, or any member, shareholder, partner, director, officer,
manager, person, firm, agent, employee or representative of, or acting or purporting to act on
behalf of, Seller has not made, does not make and specifically negates and disclaims any
representations, warranties, promises, covenants, agreements or guaranties of any kind or character
whatsoever, whether express or implied, oral or written, past, present or future, of, as to,
concerning or with respect to the Interests or the Property. Seller is not liable or bound in any
manner by any verbal or written statements, representations or information pertaining to the
Interests or the Property, or the operation thereof, furnished by any real estate broker or any
agent or employee of Seller (other than as expressly set forth in the Agreement). Purchaser
further acknowledges and agrees that except as expressly set forth in this Agreement, to the
maximum extent permitted by law, that should the Closing occur, then the sale of the Interests and
the Property as provided for herein will be made on an “AS IS” condition and basis “WITH ALL
FAULTS”. It is understood and agreed that the Purchase Price has been adjusted by prior
negotiation to reflect that the Interests and the Property are sold by Seller and purchased by
Purchaser subject to the foregoing.

          (b) Except as expressly set forth in Section 8.2 below, Seller makes no representations or
warranties as to the truth, accuracy or completeness of any materials, data or other information
supplied to Purchaser in connection with Purchaser’s inspection of the Interests or the Property
(e.g., that such materials are complete, accurate or the final version thereof, or that all such
materials are in Seller’s possession). It is the parties express understanding and agreement that
such materials are provided only for Purchaser’s convenience in making its own examination and
determination as to whether it wishes to purchase the Interests, and, in doing so, Purchaser shall
rely exclusively on its own independent investigation and evaluation of every aspect of the
Interests or the Property and not on any materials supplied by Seller, except as may be expressly
set forth below in Section 8.2.

          (c) Each party comprising Seller and its shareholders, officers, directors, agents, employees,
property manager and affiliates (individually a “Seller Party” and collectively the “Seller
Parties”) are hereby released from all responsibility and liability regarding the condition
(including the presence in the soil, air, structures and surface and subsurface waters, of any and
all materials or substances that have been or may in the future be determined to be toxic,
hazardous, undesirable or subject to regulation and that may need to be specially treated, handled
and/or removed from the Property under current or future federal, state and local laws, regulations
or guidelines), valuation, salability or utility of the Property, or its suitability for any
purpose whatsoever, except to the extent liability is based on an alleged breach of a
representation or warranty in Section 8.2(i) below. Without limitation, Purchaser specifically

21

 

Exhibit 10.24 (Continued)

releases Seller from any claims it may have against Seller now or in the future under the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., as
amended; the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as amended; any
other analogous state or federal statute; and common law arising from the environmental conditions
of the Property or the presence of hazardous materials, solid wastes, or any other pollutants or
contamination the Property.

          (d) Except as otherwise expressly provided in Section 8.2 below, Purchaser acknowledges that
any information of any type which Purchaser has received or may receive from any Seller Party,
including, without limitation, any environmental reports and surveys, is furnished on the express
condition that Purchaser shall make an independent verification of the accuracy of such
information, all such information being furnished without any representations or warranty of Seller
whatsoever, whether as to the completeness of such information, its accuracy or otherwise.

          (e) THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART OF THE CONSIDERATION FOR SELLER’S
ENTERING INTO THIS AGREEMENT, AND SHALL SURVIVE CLOSING.

     8.2 Representations and Warranties of Seller. Seller represents and warrants to
Purchaser as follows, which representations and warranties shall be true and correct as of the date
hereof and as of the Closing Date, subject to changes in facts permitted hereunder and occurring in
the ordinary course of Seller’s business:

          (a) Rent Roll. Attached hereto as Exhibit “E” is a true, correct and complete
copy of the Rent Roll for the Apartment Complexes and the Condominium Parcels, and the information
set forth therein is true and correct in all material respects as of the date thereof. An updated
Rent Roll for the Apartment Complexes and the Condominium Parcels will be provided at Closing.
There are no Tenant Leases (written or oral) between Seller and any other party for any space in
the Property, other than those relating to tenants set forth in the Rent Roll. Except as set forth
on the Rent Roll, no Tenant is in arrears in the payment of rent due under a Tenant Lease beyond
any applicable notice and cure periods.

          (b) Authority, Actions of Seller, Authorization and Consents.

               (i) The execution and delivery by Seller of this Agreement and the Closing Documents, and the
consummation by Seller of the transactions contemplated thereby, have been duly authorized by all
necessary action of Seller. Except for the approval of Holder as provided herein, there are no
other approvals, authorizations, consents or other actions by or filings with any Person which are
required to be obtained or completed by Seller in connection with the execution and delivery of
this Agreement or any of the Closing Documents (or any other agreement or instrument required
hereunder) or the sale or assignment of the Interests or the Property or in connection with any
other action required to be taken by Seller hereunder at or before the Closing.

22

 

Exhibit 10.24 (Continued)

               (ii) Except with respect to the Existing Loan, neither the execution and delivery of this
Agreement or the Closing Documents by Seller nor the consummation of the transaction contemplated
hereby will: (A) violate any provision of Seller’s or the Company’s articles of organization or
operating agreements; (B) violate, conflict with or result in a breach or termination of, or give
any other party the right to terminate, or constitute a default under the terms of, any agreement
to which Seller or the Company is a party or by which it is bound; (C) violate any judgment, order,
injunction, award or decree of any Governmental Entity against or binding upon Seller, the Company
or the Property or business of Seller or the Company; or (D) constitute a violation by Seller of
any applicable law or regulation to which Seller, the Company or the Property is subject.

          (c) Legal Proceedings.  Except as may be set forth on Exhibit “F”, neither
Seller nor the Company has received any written notice of any pending or, to Seller’s knowledge,
threatened Legal Proceedings against the Interests, the Company or the Property.

          (d) FIRPTA. Seller is not a foreign person within the meaning of Section 1445(b) (2)
of the Internal Revenue Code of 1986, as amended.

          (h) Documents Delivered. The Tenants Leases, Plans, Books and Records, Condominium
Parcel Contracts, Contracts and Condominium Declarations delivered or made available by Seller to
Purchaser for inspection pursuant to Section 4.1 are true and correct copies of the originals
thereof in Seller’s files in all material respects. Attached hereto as Exhibit “G” is a
true, correct and complete copy of the current inventory of the Personal Property at the Property,
and the information set forth therein is true and correct in all material respects as of the date
thereof.

          (i) Other Agreements. Seller is not a party to any outstanding contracts or options
to purchase the Property or any portion thereof in favor of any third party other than the
Condominium Parcel Contracts. Attached hereto as Exhibit “L” is a true, correct and complete list
of all Condominium Parcel Contracts as of the date hereof.

          (j) Licenses and Permits. To Seller’s knowledge, there are no conditions to the
Licenses and Permits, or other agreements or obligations associated therewith, which are not
expressly set forth in such Licenses and Permits, in the publicly adopted resolutions pursuant to
which the Licenses and Permits were issued, or elsewhere in this Agreement.

          (k) Hazardous Materials. Except as may otherwise be specified in any environmental
reports delivered to Purchaser pursuant to Section 4.1, Seller has no actual knowledge, without
independent inquiry, of the presence on or under the Property of any hazardous materials or
hazardous substances, as such terms are defined in applicable federal and state environmental laws,
in a manner which violates any such laws.

          (l) Violations. Seller has not received written notice of any violations of any
state, federal or local law or ordinance against the Property or any written complaints or notices
issued with respect thereto.

23

 

Exhibit 10.24 (Continued)

          (m) Deposits. Seller has not received written notice of any violations of the
requirements of chapter 83 of the Florida Statutes, including without limitation, all requirements
with respect to the holding of security deposits.

          (n) Employees. The Company has no employees.

          (o) Patriot Act. Neither Seller, nor any member, partner or shareholder of Seller,
nor, to Seller’s knowledge, any person or entity with actual authority to direct the actions of any
member, partner or shareholder of Seller, (i) are named on any list of persons, entities and
governments issued by the Office of Foreign Assets Control of the United States Department of the
Treasury (“OFAC”) pursuant to Executive Order 13224 — Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (“Executive
Order 13224”), as in effect on the date hereof, or any similar list known to Seller or publicly
issued by OFAC or any other department or agency of the United States of America (collectively, the
“OFAC Lists”), (ii) are included in, owned by, controlled by, knowingly acting for or on behalf of,
knowingly providing assistance, support, sponsorship, or services of any kind to, or otherwise
knowingly associated with any of the persons, entities or governments referred to or described in
the OFAC Lists, or (iii) has knowingly conducted business with or knowingly engaged in any
transaction with any person, entity or government named on any of the OFAC Lists or any person,
entity or government included in, owned by, controlled by, acting for or on behalf of, providing
assistance, support, sponsorship, or services of any kind to, or, to Sellers’ knowledge, otherwise
associated with any of the persons, entities or governments referred to or described in the OFAC
Lists.

          (p) Condominium. Except as set forth on Exhibit F, there are no outstanding
obligations of any kind arising out of or in connection with Seller’s proposed conversion of an
Apartment Complex to a regime of condominium (or the abandonment of such proposed conversion) that
will be binding on Purchaser after the Closing, including without limitation, any obligations under
any condominium prospectuses, any filings or payment obligations with or to the Division of Florida
Land Sales, Condominiums and Mobile Homes or any other Governmental Entity, and/or any obligations
of any kind in connection with any proposed condominium unit purchasers. None of the Condominium
Parcels have been “turned-over”. Neither Seller nor its affiliates currently manage the
condominium associations at the Condominium. The Company has no further obligations with respect
to the Condominiums in its capacity as developer other than those set forth in the Condominium
Declaration or those that exist as a matter of law.

          (q) Intentionally deleted.

          (r) At Closing, Seller shall be the sole legal and beneficial owner of the Interests free and
clear of all liens, pledges, mortgages, claims, charges or other encumbrances of any kind or nature
whatsoever.

24

 

Exhibit 10.24 (Continued)

          (s) The Company is a limited liability company, duly organized and validly existing under the
laws of the State of its organization and its status is active. The only activities conducted by
the Company since its inception have been the construction, ownership and operation of the
Property. The Company has no liabilities or obligations other than as set forth on Exhibit “N”
attached hereto (the “Disclosed Liabilities”).

          (t) All tax returns required by law to be filed by the Company prior to Closing will be filed
(or extensions to file will be obtained and such returns will be filed before the expiration of
such extensions), and all taxes, if any, shown on such returns or otherwise determined to be due,
together with any interest or penalties thereon, will be paid.

          (u) Intentionally deleted.

          (v) There is not currently pending, and Seller knows of no threatened (i) audit or
investigation of the Company with respect to any liability for income taxes relating to the Company
for which the Company may be liable or (ii) claims or assessments for income taxes against or
relating to the Company.

     8.3 Knowledge. As used herein, the term “to Seller’s knowledge” shall mean only the
“current actual knowledge” (as defined below) of the following designees of Seller: with respect
to (i) the Apartment Complexes, Joyce Marshall and Terri Bridenbaugh, and (ii) with respect to the
Condominium Parcels, Jamie Helman and Chris Cobbs, who are the persons with the most knowledge and
experience in connection with the ownership and operation of the Property by Seller. As used
herein, the term “current actual knowledge” shall mean only the actual, current, conscious and not
constructive, imputed or implied knowledge of such designee without having made a review of the
files or other inquiry. Anything herein to the contrary notwithstanding, such designee shall not
have any personal liability or obligation whatsoever with respect to any of the matters set forth
in this Agreement or any of the Seller’s representations herein being or becoming untrue,
inaccurate or incomplete in any respect.

     8.4 Survival. The representations and warranties of Seller set forth in this Article
8 and anywhere else in this Agreement (unless expressly stated otherwise) shall survive the Closing
of the transaction contemplated in this Agreement and the delivery of the Assignment and Assumption
of Membership Interests from Seller to Purchaser for a period of twelve (12) months from and after
the Closing Date. Consequently, Purchaser stipulates and agrees that from and after such twelve
(12) month period, it is entitled to and agrees to claim no damages of any kind with respect to any
alleged breach and/or violation of any of such representations and/or warranties of Seller. In the
event Purchaser obtains actual knowledge of any breach and/or violation of any Seller’s
representations and warranties prior to Closing and following notice thereof to Seller, Seller
fails or is unable to cure any such breach or violation to the reasonable satisfaction of
Purchaser, Purchaser’s sole remedy for any such breach or violation shall be to terminate this
Agreement by delivering written notice of such termination to Seller on or before the Closing Date
in which event the Earnest Money will be returned to Purchaser, and neither
party shall have any obligation hereunder. Purchaser hereby waives any right Purchaser may have to
commence any action(s) to enforce any alleged breach and/or violation of any of the

25

 

Exhibit 10.24 (Continued)

representations of Seller as set forth in this Agreement or to seek damages in connection therewith
in the event that Purchaser obtains actual knowledge of any such alleged breach and/or violation
prior to Closing and fails to give Seller notice thereof on or before the Closing Date.

     8.5 Indemnification. A. Seller agrees that, if the Closing occurs, Seller (meaning
each constituent entity of Seller, jointly and severally) shall indemnify, defend and hold harmless
Purchaser from and against any claim by a third-party and related loss, damage, liability,
obligation, suit, cause of action, judgment, settlement, penalty, fine, cost or expense (including
reasonable fees and disbursements of attorneys and other professionals and court costs) to the
extent arising out of or related to (1) any act, omission, activity or event in any way involving
the Company or the Property and occurring before the Closing Date (including, without limitation,
the threatened litigation listed on Exhibit F), (2) any failure of the Company to perform any
obligation prior to the Closing Date, 3) any violation of law by the Company alleged to have
occurred prior to the Closing Date other than any matters pertaining to the physical condition of
the Property or (4) any liability of the Company for which Seller is liable as provided in Section
7.10 above. The foregoing indemnification obligation shall survive for a period of four (4) years
after the Closing Date.

          B. Purchaser agrees that, if the Closing occurs, it will indemnify, defend and hold harmless
Seller from and against any claim by a third-party and related loss, damage, liability, obligation,
suit, cause of action, judgment, settlement, penalty, fine, cost or expense (including reasonable
fees and disbursements of attorneys and other professionals and court costs) to the extent arising
out of or related to (1) any act, omission, activity or event involving the Company or the Property
and occurring on or after the Closing Date, (2) any failure of the Company or Purchaser to perform
any obligation after the Closing Date, (3) any violation of law by the Company alleged to have
occurred on or after the Closing Date and (4) any liability of the Company for which Purchaser is
liable as provided in Section 7.10 above. The foregoing indemnification obligation shall survive
for a period of four (4) years after the Closing Date.

          C. Notwithstanding anything herein to the contrary, (i) Seller’s aggregate liability under
Sections 8.4 and 8.5A above shall not exceed $6,000,000 in the aggregate (except that Seller’s
liability for the threatened litigation set forth on Exhibit F shall not be subject to or apply to
the foregoing limitation) and (ii) Purchaser’s liability under Section 8.5B above shall not exceed
$6,000,000.

ARTICLE 9.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

     9.1 Representations and Warranties of Purchaser. Purchaser hereby represents and
warrants to Seller as follows, which representations and warranties shall be true and correct as of
the date hereof and as of the Closing Date:

          (a) Authority, Actions of Purchaser and Authorization.
Purchaser has all necessary power and lawful authority to own and operate its
assets and properties, including, but

26

 

Exhibit 10.24 (Continued)

not limited to the Property, and to carry on its business (including all business contemplated
under this Agreement and the Closing Documents). The execution and delivery by Purchaser of this
Agreement and the Closing Documents, and the consummation by Purchaser of the transactions
contemplated thereby, have been duly authorized by all necessary action of Purchaser. There are no
other approvals, authorizations, consents or other actions by or filings with any Person which are
required to be obtained or completed by Purchaser in connection with the execution and delivery of
this Agreement or any of the Closing Documents (or any other agreement or instrument required
hereunder) or the sale or purchase of the Interests or in connection with any other action required
to be taken by Purchaser hereunder at or before the Closing.

          (b) Consents. Neither the execution and delivery of this Agreement or the Closing
Documents by Purchaser nor the consummation of the transaction contemplated hereby will: (i)
violate, conflict with or result in a breach or termination of, or give any other party the right
to terminate, or constitute a default under the terms of, any agreement to which Purchaser is a
party or by which it is bound; (ii) violate any judgment, order, injunction, award or decree of
any Governmental Entity against or binding upon Purchaser or upon the Property or business of
Purchaser; or (iii) constitute a violation by Purchaser of any applicable law or regulation to
which Purchaser is subject.

          (c) Patriot Act. Neither Purchaser, nor any member, partner or shareholder of
Purchaser, nor, to Purchaser’s knowledge, any person or entity with actual authority to direct the
actions of any member, partner or shareholder of Purchaser, (i) are named on any list of persons,
entities and governments issued by OFAC pursuant to Executive Order 13224, as in effect on the date
hereof, or the OFAC Lists, (ii) are included in, owned by, controlled by, knowingly acting for or
on behalf of, knowingly providing assistance, support, sponsorship, or services of any kind to, or
otherwise knowingly associated with any of the persons, entities or governments referred to or
described in the OFAC Lists, or (iii) has knowingly conducted business with or knowingly engaged in
any transaction with any person, entity or government named on any of the OFAC Lists or any person,
entity or government included in, owned by, controlled by, acting for or on behalf of, providing
assistance, support, sponsorship, or services of any kind to, or, to Purchaser’s knowledge,
otherwise associated with any of the persons, entities or governments referred to or described in
the OFAC Lists.

     9.2 Survival. The representations and warranties of Purchaser set forth in this
Article 9 and anywhere else in this Agreement (unless expressly stated otherwise) shall survive the
Closing of the transaction contemplated in this Agreement and delivery of the Special Warranty Deed
from Seller to Purchaser for a period of twelve (12) months from and after the Closing Date.
Consequently, Seller stipulates and agrees if from and after such twelve (12) month period it is
entitled to and agrees to claim no damages of any kind with respect to any alleged breach and/or
violation of such representations or warranties of Purchaser.

27

 

Exhibit 10.24 (Continued)

ARTICLE 10.

RISK OF LOSS

     10.1 Casualty. Seller assumes all risks for damage to or injury occurring to the
Property by fire, storm, accident, or any other casualty or cause (a “Casualty”) until the Closing.
Immediately after Seller has received notice of the occurrence of any Casualty between the date
hereof and the Closing, Seller shall give Purchaser written notice thereof (a “Casualty Notice”),
which Casualty Notice shall state the type, location and amount of damage to any of the Apartment
Complex and Seller’s good faith estimate of the cost to complete repairs of such Casualty.

          (a) If prior to the Closing such a Casualty shall occur and the cost to complete repairs of
such Casualty shall be greater than or equal to $500,000 with respect to any one Apartment Complex
or Condominium, or greater than $2,500,000 in the aggregate with respect to all Apartment Complexes
and all Condominium Parcels, then in any such event, Purchaser may, at its sole option, terminate
this Agreement by written notice to Seller (the “Casualty Termination Notice”) within ten (10)
Business Days after Purchaser has received the Casualty Notice (provided, however, if the Closing
is scheduled for a date which is less than ten days after Purchaser’s receipt of the Casualty
Notice the Closing shall be postponed until ten days after Purchaser’s receipt of the Casualty
Notice), in which event if Purchaser so elects to terminate, this Agreement shall be null and void,
the Earnest Money shall be returned to Purchaser and neither party shall have any further liability
or obligations to the other (except as specifically provided in this Agreement).

          (b) If (i) Purchaser has the right but does not elect to terminate this Agreement as set forth
in Section 10.1(a) above, or (ii) the cost to complete repairs of such Casualty shall be less than
the threshold amounts provided in Section 10.1(a) above, then the Closing shall take place as
provided herein, and at the Closing there shall be assigned to Purchaser all of Seller’s rights,
titles and interest in and to any insurance policies covering such Casualty (including rental
interruption insurance) and all proceeds to be paid thereunder as may be then uncollected. Seller
shall credit against the Purchase Price, at Closing, an amount equal to the deductible under such
policy applicable to such casualty. Subject to the rights of Holder, so long as this Agreement has
not been terminated, Seller shall not consent to any insurance award concerning the Property
without first having obtained Purchaser’s consent, which consent shall not be unreasonably
withheld, conditioned or delayed

     10.2 Condemnation. If, prior to the Closing, an action is initiated to take all or
any portion of any Apartment Complex by eminent domain proceedings or by deed in lieu thereof (a
“Condemnation”), Seller, upon receipt of written notice of such action from any Governmental
Entity, shall immediately give Purchaser written notice of such Condemnation stating the amount,
type and location of such Condemnation (a “Condemnation Notice”) and, if the proceeds to be paid
under such Condemnation equal or exceed $500,000 with respect to any one Apartment Complex or
Condominium, or $2,500,000 in the aggregate with respect to all Apartment Complexes and Condominium
Parcels, or if any material part of the Property, including parking spaces or access to the
Property is to be condemned, then Purchaser may, at its

28

 

Exhibit 10.24 (Continued)

sole option, either (a) terminate this Agreement by written notification, within ten (10) Business
Days after Purchaser has received the Condemnation Notice (provided, however, if the Closing is
scheduled for a date which is less than ten (10) days after Purchaser’s receipt of the Condemnation
Notice the Closing shall be adjourned until ten (10) days after Purchaser’s receipt of the
Condemnation Notice), or (b) consummate the Closing, in which latter event the award of the
condemning authority shall be assigned to Purchaser at the Closing, in form and substance
reasonably satisfactory to Seller and Purchaser. If the proceeds to be paid under such
Condemnation are less than the threshold amounts provided above, and the condemnation action only
applies to an immaterial portion of the Property, then the Closing shall take place as provided
herein and the award of the condemning authority shall be assigned to Purchaser at the Closing, in
form and substance reasonably satisfactory to Seller and Purchaser. So long as this Agreement has
not been terminated, Seller shall not consent to any condemnation award concerning the Property
without first having obtained Purchaser’s consent, which consent shall not be unreasonably withheld
or delayed.

ARTICLE 11.

DEFAULT

     11.1 Permitted Termination. If this Agreement is terminated by either party pursuant
to a right expressly given to it hereunder (a “Permitted Termination”), neither party shall have
any further obligation to the other party except as expressly provided in the Agreement.

     11.2 Default Remedies of Purchaser.

          (a) Seller shall be in default hereunder upon the occurrence of any one or more of the
following events:

               (i) any of Seller’s warranties or representations set forth herein are untrue or inaccurate in
any material respect and Seller fails to cure the condition rendering such representation or
warranty untrue or inaccurate within two (2) Business Days after notice from Purchaser of such
untruth or inaccuracy; or

               (ii) Seller shall fail to meet, comply with or perform in any material respect any covenant,
agreement, or obligation on its part required, within the time limits and in the manner required in
this Agreement, for any reason other than a Permitted Termination.

          (b) In the event of a default by Seller under this Section 11.2, Purchaser may, at Purchaser’s
sole option, do any of the following:

               (i) terminate this Agreement by written notice delivered to Seller and Escrow Agent at or
prior to the Closing, in which event the Earnest Money and all interest earned thereon shall be
returned to Purchaser and thereafter neither Seller nor Purchaser shall have any obligations to the
other under this Agreement, except as specifically set forth herein; provided that in the event of
a willful default by Seller, Purchaser shall be entitled to pursue an

29

 

Exhibit 10.24 (Continued)

action for damages solely for the recovery of Purchaser’s reasonable out-of-pocket fees, costs and
expenses incurred in connection with the transactions described herein; or

               (ii) enforce specific performance of this Agreement against Seller; provided, that if specific
performance is not available due to the fact that Seller has conveyed the Property to a third
party, Purchaser shall be entitled to pursue an action for damages (excluding punitive damages).

     11.3 Default Remedies of Seller.

          (a) Purchaser shall be in default hereunder upon the occurrence of any one or more of the
following events:

               (i) any of Purchaser’s warranties or representations set forth herein are untrue or inaccurate
in any material respect and Purchaser fails to cure the condition rendering such representation or
warranty untrue in any material respect within two (2) Business Days after the earlier to occur of
notice from Seller of such untruth or inaccuracy; or

               (ii) Purchaser shall fail to meet, comply with or perform in any material respect any
covenant, agreement, or obligation on its part required, within the time limits and in the manner
required in this Agreement, for any reason other than a Permitted Termination.

          (b) In the event of a default by Purchaser under this Section 11.3, Seller may terminate this
Agreement by written notice delivered to Purchaser at or prior to the Closing, in which event
Seller shall, as Seller’s sole and exclusive remedy, retain all of the Earnest Money actually
deposited (plus all interest accrued thereon), it being agreed between Purchaser and Seller that
such sum shall be liquidated damages for a default by Purchaser hereunder because of the
difficulty, inconvenience and uncertainty of ascertaining actual damages for such default and
thereafter neither Seller nor Purchaser shall have any obligations to the other under this
Agreement, except as specifically set forth herein.

ARTICLE 12.

FUTURE OPERATIONS

     12.1 Operations. Seller hereby agrees and covenants that from the date hereof through
the Closing or earlier termination of this Agreement:

     (a) Seller shall not sell, encumber, further pledge, or otherwise transfer or dispose of all
or any part of the Interests or the Property without the prior consent of Purchaser.

     (b) Seller shall not permit the Company to enter into any contract, agreement or other
arrangement with regards to the Property which will be binding on the Company or the Property after
the Closing and which cannot be terminated by Purchaser after Closing on 30 or fewer days

30

 

Exhibit 10.24 (Continued)

notice without any cancellation fee or penalty and without approval of Purchaser. Seller
agrees to terminate all Contracts designated by Purchaser prior to the Closing Date, at Seller’s
sole cost, on or before the Closing Date unless Purchaser otherwise elects, by written notice prior
to the Termination Deadline, to assume same; provided, however, Seller has no obligation to
terminate any Contracts which cannot be terminated by Seller, without cause and without any payment
or other penalty, on thirty (30) or less days notice.

     (c) Seller shall not initiate or consent to (or permit the Company to initiate or consent to)
any zoning changes, liens or encumbrances of or against the Property without the prior written
consent of Purchaser, and shall give Purchaser copies of all notices received by Seller with
respect to any such matters.

     (d) Seller shall cause the Company to continue to manage, lease, market and operate the
Property in the ordinary course of business in accordance with the management, leasing and
operation standards and practices currently in effect at the Property, and shall continue to
perform all of its obligations with respect to the Tenant Leases, the Contracts and the Condominium
Parcel Contracts.

     (e) Seller shall cause the Company to repair and maintain the Property in its present
condition, normal wear and tear excluded.

     (f) Seller shall not permit the Company to enter into any new lease or amend any existing
Lease, without Purchaser’s consent, not to be unreasonably withheld, conditioned or delayed, unless
(i) same is on the current standard lease form for the Property; (ii) provides for payment of
monthly rent at the rates currently in effect for the Property; (iii) is for a term of no less than
one year nor more than 15 months; and (iv) does not provide any “free rent” or other concessions
beyond those currently in effect with respect to the Property.

     (g) Seller shall not enter into any new Condominium Parcel Contract without Purchaser’s
consent, not to be unreasonably withheld, conditioned or delayed. Purchaser acknowledges and
agrees that if Purchaser fails to respond to Seller’s request for consent to the terms of a
proposed Condominium Parcel Contract within one (1) Business Day after such request is sent via
e-mail to the attention of Suzanne Abair at “sabair@northland.com”, such request shall be deemed
granted and Seller shall be permitted to enter into such Condominium Parcel Contract on behalf of
the Company. Seller shall include the following material deal terms in any such e-mail
notification to Purchaser: (i) purchase price; (ii) seller incentives; (iii) the amount of the
contract deposit; and (iv) the closing date.

ARTICLE 13.

BROKERS

     13.1 Except for CB Richard Ellis (“Broker”), Seller represents and warrants to Purchaser, and
Purchaser represents and warrants to Seller, that they know of no broker or finder who has claimed
or who has the right to claim any fee, commission or other similar

31

 

Exhibit 10.24 (Continued)

compensation in connection with the transaction contemplated by this Agreement, and that they have
taken no actions which would form the basis for such a claim. In the event that the transactions
herein contemplated close, and only in such event, Seller shall pay a commission to the Broker
pursuant to a separate agreement.

     13.2 Seller shall indemnify, hold harmless and defend Purchaser against all liability, loss,
cost, claim or expense arising out of any breach of Seller’s obligation or representation in
Sections 13.1. Purchaser shall indemnify, hold harmless, and defend Seller against all liability,
loss, cost, claim or expense arising out of any breach of Purchaser’s obligations or
representations in Sections 13.1.

     13.3 This Article shall survive the Closing (or, if the Closing does not occur, the earlier
termination of this Agreement).

ARTICLE 14.

DUE DILIGENCE REVIEW

     14.1 Purchaser’s Right to Inspect the Property. Purchaser, at Purchaser’s sole cost
and expense, shall be entitled, on and after the date hereof, to inspect and review the Property
and all matters relating to the Property, the Company and the Interests (the “Due Diligence
Review”), including without limitation the physical condition of the Property, Contracts, Leases,
Books and Records, Plans, surveys and title examinations. During the Due Diligence Review,
Purchaser, at Purchaser’s sole cost, shall also have the right to make such inspections,
investigations and tests as Purchaser may elect to make or obtain, subject to the rights of the
Tenants and the terms and provisions of this Agreement. Seller will provide access to Purchaser
and Purchaser’s agents to the Property during normal business hours provided that Purchaser shall
provide reasonable advance notice. Purchaser and Purchaser’s representatives, agents, designees
and contractors have the right during the term of this Agreement upon twenty four hours prior
notice (by telephone and electronic mail) to Seller, at Purchaser’s sole cost, to enter the
Property to conduct any environmental, soils, seismic, hydro geologic, geologic and engineering
tests and studies with respect to the Property, provided that any environmental testing other than
a standard Phase I (ASTM) assessment shall require the prior written consent of Seller, not be
unreasonably withheld. Purchaser shall have the right, at Purchaser’s sole cost and expense, to
conduct a final walk-through and inspection of the Property the day of or immediately prior to
Closing.

     14.2 Termination of This Agreement. If Purchaser, at its sole discretion, chooses to
terminate this Agreement pursuant to this Article, then Purchaser shall, on or prior to the
Termination Deadline, give written notice (“ Notice of Termination”) to Seller and the Escrow
Holder of such fact and this Agreement shall terminate. If the Notice of Termination is not timely
given, this Agreement shall remain in full force and effect, and all obligations of each party
hereunder shall continue. If Purchaser timely elects not to proceed with the purchase for any
reason or no reason in its sole discretion, then Seller and Purchaser hereby specifically agree and
acknowledge that the Escrow Holder is and shall be immediately and unconditionally

32

 

Exhibit 10.24 (Continued)

authorized to return the Earnest Money and all interest which has accrued thereon to Purchaser,
less and with the exception of Ten Dollars ($10) (the “Independent Contract Consideration”) of the
Earnest Money, which shall be delivered to Seller as independent consideration for Seller’s
entering into this Agreement, and all rights and obligations of Purchaser and Seller shall
terminate and this Agreement shall be null and void and of no further force and effect.
Purchaser’s failure to give a Notice of Termination on or before the Termination Deadline shall
cause the Agreement to continue in full force and effect.

     14.3 Purchaser’s Responsibility and Indemnity. Purchaser’s right to inspect the
Property and conduct the tests referred to in Section 14.1 is subject to the condition that such
inspection and tests shall not materially interfere with the use and occupancy of any Tenant at the
Property. Purchaser shall be responsible for and shall indemnify and hold Seller harmless from and
against all damages, liabilities, losses, costs or expenses, together with reasonable attorney’s
fees and disbursements, which may arise as a result of the acts or omissions of Purchaser or its
representatives or agents in connection with any tests conducted by any such parties in connection
with Purchaser’s inspection rights under Section 14.1, and in the event the sale of the Property
fails to close, Purchaser shall repair any such damage to the condition that the Property was prior
to such tests; provided however, Purchaser shall not have any liability arising from mere discovery
of any condition on the Property. Purchaser shall carry not less than One Million and 00/100
Dollars ($1,000,000) comprehensive general liability insurance which insures against Purchaser’s
indemnity obligations under this Section, naming Seller as additional insured, and, prior to any
entry onto the Property, Purchaser shall deliver to Seller a certificate of insurance evidencing
the required coverages and insureds.

     14.4 Confidentiality of Results. Purchaser agrees that, prior to the Closing, it
shall not disclose the results of any environmental investigation or other due diligence results to
any Person or Governmental Entity without the prior written consent of Seller, except (1) to
Purchaser’s representatives (including, without limitation, attorneys, accountants, investment
advisors, contractors, employees and agents) who need to know the information for the purpose of
evaluating the Property and who are informed by the Purchaser of the confidential nature of the
information; (2) as may be necessary for Purchaser or Purchaser’s representatives to comply with
applicable laws, including, without limitation, governmental, regulatory, disclosure, tax and
reporting requirements; to comply with other requirements and requests of regulatory and
supervisory authorities and self-regulatory organizations having jurisdiction over Purchaser or
Purchaser’s representatives; to comply with regulatory or judicial processes; or to satisfy
reporting procedures and inquiries of credit rating agencies in accordance with customary practices
of Purchaser or its affiliates; and (3) to Holder and its representatives. Purchaser shall have no
obligation to preserve the confidential or proprietary nature of any Property information which:
(a) was already known to Purchaser; (b) is a matter of public record; or (c) is approved for
release in writing by Seller.

     14.5 Survival. The provisions of this Article 14 shall survive the Closing.

ARTICLE 15.

33

 

Exhibit 10.24 (Continued)

LOAN ASSUMPTION CONTINGENCY

     15.1 Holder Consent. A. This Agreement is subject to and conditioned upon the
approval by the Holder of the transfer of the Interests to Purchaser, the amendment and restatement
of the Existing Loan Documents in a manner reasonably acceptable to Seller, Purchaser and Holder,
the dismissal of all actions and discharge of all liens relating to the foreclosure of the Existing
Loan, the release of Seller and its affiliates (except as otherwise provided below) from all
liability and obligations thereunder that arise from and after the Closing Date (the “Holder
Consent”) and the execution and delivery by Holder and Purchaser of the documents reasonably
required by Holder to evidence the foregoing. In addition, the Holder Consent shall provide that
Holder shall release Tarragon Corporation from its obligations under that certain Amended and
Restated Payment and Performance Guaranty dated as of October 10, 2006 (as the same may be amended,
the “Tarragon Guaranty”) on a pro-rata basis as Purchaser prepays the Existing Loans. Purchaser
shall apply for the Holder Consent, in good faith, on or before the date hereof, and shall
thereafter diligently take such actions and deliver such information and documents as the Holder
may require. Purchaser agrees to (i) make a partial prepayment of the Existing Loans in the amount
of $18,000,000 at the Closing ($5,000,000 of which shall be paid by application of the Earnest
Money, which partial prepayment shall result in the outstanding principal amount as of Closing
being $138,075,000, (ii) provide a “Key Principal” or limited guarantor satisfactory to Purchaser
and Holder to guarantee the “non-recourse carve-outs” and provide environmental indemnifications
under the Existing Loan, if so required by Holder, and (iii) to continue to provide escrows as
reasonably required by Holder. Purchaser shall keep Seller reasonably apprised as to the status of
Purchaser’s negotiations with Holder regarding the Holder Consent and Seller shall reasonably
cooperate with Purchaser and Holder, to the extent reasonably necessary.

          B. Notwithstanding any provision herein to the contrary, Purchaser hereby reserves the right
to make arrangements with Holder to release the Ballantrae Apartment Complex from the lien of the
Existing Loan Documents at Closing, in which event (i) the Purchase Price hereunder shall be deemed
modified to reflect a reduction of $30,250,000 in the amount debt being assumed and a corresponding
increase in the cash payable to the Holder at Closing under Section 15.1A; (ii) at Closing, title
to the Ballantrae Apartment Complex shall be free of any liens securing the Existing Loan; (iii)
Tarragon’s liability under the Tarragon Guaranty shall be reduced on a pro-rata basis to reflect
the reduced outstanding principal balance of the Existing Loans; and (iv) the provisions of this
Agreement shall otherwise remain in full force and effect with respect to the Ballantrae Company,
the Ballantrae Apartment Complex and the transfer of the Ballantrae Interests.

     15.2 Purchaser shall endeavor to provide Tarragon with copies of all notices, if
any, received by Purchaser (or its affiliates) from Holder after the Closing Date which
purport to assert that an Event of Default, or a default which with the passage of
time, the giving of notice, or both, would constitute as an Event of Default, has
occurred under the Existing Loan Documents, as
amended and restated as of the Closing Date. The provisions of this
Section 15.2 shall survive the Closing.

34

 

Exhibit 10.24 (Continued)

ARTICLE 16.

MISCELLANEOUS

     16.1 Notices. All notices, demands and requests which may be given or which are
required to be given by either party to the other, and any exercise of a right of termination
provided by this Agreement, shall be in writing and shall be deemed effective when (a) personally
delivered to the address of the party to receive such notice set forth below, (b) transmitted if
sent via facsimile (with confirmation of successful transmission), (c) the next succeeding Business
Day after deposit with a nationally recognized overnight courier service (e.g., Federal Express)
and addressed to the party as set forth below, or (d) three days after when deposited in any post
office or mail receptacle regularly maintained by the United States
Government, certified or registered mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 	 	 
	 

	 	If to Seller:
	 	TARRAGON CORPORATION

423 West 55th Street — 12th Floor

New York, New York 10019

Attn: William S. Friedman &

          Charles D. Rubenstein, Esq.

Phone: (212) 949-5000

Fax: (646) 354-2171

	 

	 	 	 	E-mail: crubenstein@tarragoncorp.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	TARRAGON CORPORATION

423 West 55th Street — 12th Floor

New York, New York 10019

Attn: David Goldban

Phone: (212) 949-5000

Fax: (646) 354-2171

E-mail: dgoldban@tarragoncorp.com
	 
	 	 	 	 
	 

	 	If to Purchaser:
	 	Northland Fund II, L.P.

c/o Northland Investment Corporation
	 

	 	 	 	2150 Washington Street
	 

	 	 	 	Newton, MA 02462
	 

	 	 	 	Attn: Steven P. Rosenthal
	 

	 	 	 	Phone: (617) 630-7240
	 

	 	 	 	Fax: (617) 630-7201
	 

	 	 	 	E-mail: srosenthal@northland.com

35

 

Exhibit 10.24 (Continued)

	 	 	 	 	 
	 

	 	With a copy to:
	 	Northland Investment Corporation
	 

	 	 	 	2150 Washington Street
	 

	 	 	 	Newton, MA 02462
	 

	 	 	 	Attn: Suzanne Abair, Esquire
	 

	 	 	 	Phone: (617) 630-7275
	 

	 	 	 	Fax: (617) 630-7201
	 

	 	 	 	E-mail: sabair@northland.com
	 
	 	 	 	 
	 

	 	and
	 	Mary Lee Moore, Esquire
	 

	 	 	 	Mintz Levin Cohn Ferris Glovsky & Popeo, P.C.
	 

	 	 	 	One Financial Center
	 

	 	 	 	Boston, MA 02111
	 

	 	 	 	Phone: 617-348-1697
	 

	 	 	 	Fax: 617-542-2241
	 

	 	 	 	E-mail:  mlmoore@mintz.com
	 
	 	 	 	 
	 

	 	If to Title Company
	 	Stewart Title Guaranty Company
	 

	 	Or Escrow Holder:
	 	3402 West Cyprus, Suite 100
	 

	 	 	 	Tampa, Florida 33607
	 

	 	 	 	Attn: Kristin Konecy, CLA
	 

	 	 	 	Phone: 813-801-9090 x3203
	 

	 	 	 	Fax: 813-769-3336
	 

	 	 	 	E-mail: kkonecy@stewart.com

or such other place as Seller or Purchaser or Title Company, respectively, may from time to time
designate by written notice to the other. A notice may be given by a party or by a party’s attorney
at law. Any notice given by facsimile shall be followed within one (1) day by a second notice
given by one of the other methods specified above.

     16.2 Entire Agreement. This Agreement embodies the entire agreement between the
parties relative to the subject matter hereof, and there are no oral or written agreements between
the parties, nor any representations made by either party relative to the subject matter hereof,
which are not expressly set forth herein. The parties hereto do not intend to confer any benefit
hereunder on any Person other than the parties hereto.

     16.3 Amendment. This Agreement may be amended only by a written instrument executed
by the party or parties to be bound thereby.

     16.4 Headings. The captions and headings used in this Agreement are for convenience
only and do not in any way limit, amplify, or otherwise modify the provisions of this Agreement.

     16.5 Governing Law. This Agreement shall be governed by the laws of the
State of New York.

36

 

Exhibit 10.24 (Continued)

     16.6 Successors and Assigns. This Agreement shall bind and inure to the benefit of Seller
and Purchaser and their respective successors and permitted assigns.

     16.7 Invalid Provision. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future laws, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part of this Agreement; and, the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by such illegal, invalid,
or unenforceable provision or by its severance from this Agreement.

     16.8 Multiple Counterparts. This Agreement may be executed in a number of identical
counterparts, each of which for all purposes is deemed an original, and all of which constitute
collectively one agreement; but in making proof of this Agreement, it shall not be necessary to
produce or account for more than one such counterpart.

     16.9 Construction. The words “herein” “hereof “hereunder” and other similar compounds
of the words “here” when used in this Agreement shall refer to the entire Agreement and not to any
particular provision or section. Whenever used in this Agreement, the singular shall include the
plural, the plural the singular, and the use of any gender shall be applicable to all genders.
Marginal notes are inserted for convenience only and shall not form part of the text of this
Agreement. This Agreement shall not be construed as if it had been prepared by one of the parties,
but rather as if both parties had prepared the same. Each party acknowledges that such party’s
obligations with respect to any covenant, indemnity, representation or warranty under this
Agreement which expressly survives the Closing shall be considered a “liability” for purposes of
any distribution limitation imposed under the organizational laws applicable to such party, its
members and/or their respective partners, members and shareholders.

     16.10 Waivers. No waiver of any breach of any covenant or provision herein
contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other
covenant or provision herein contained. No extension of time for performance of any obligation or
act shall be deemed an extension of the time for performance of any other obligation or act.

     16.11 Time of Essence. Seller and Purchaser hereby acknowledge and agree that time
is strictly of the essence with respect to each and every term, condition, obligation and provision
hereof and that failure to timely perform any of the terms, conditions, obligations or provisions
hereof by either party shall constitute a material breach of and a non-curable default under this
Agreement by the party so failing to perform.

     16.12 No Joint Venture. This Agreement shall not create a partnership or joint
venture relationship between Purchaser and Seller.

     16.13 Assignment. Except as provided in this Section, this Agreement may not be
assigned by Purchaser without the prior written consent of Seller. The foregoing sentence to the

37

 

Exhibit 10.24 (Continued)

contrary notwithstanding, Purchaser may assign this Agreement to an entity or entities which
control, are owned and controlled by or are under common control with Purchaser, provided that
Purchaser delivers to Seller not less than three (3) Business Days prior to the Closing Date a
draft instrument or instruments evidencing such assignment. No assignment of this Agreement shall
release the original Purchaser named herein from its obligations hereunder without the express
written consent of Seller.

     16.14 Timing. If the final date of any period which is set out in any provision of
this Agreement falls on a day which is not a Business Day, in such event, the time of such period
shall be extended to the next Business Day.

     16.15 Attorney’s Fees. In the event of any dispute between the parties concerning
this Agreement, the non-prevailing party in such dispute shall reimburse the prevailing party for
its reasonable attorneys fees incurred in connection with such dispute.

     16.16 Section 1031 Exchange. Each party agrees to cooperate reasonably with the other
in effecting an exchange transaction which includes the Property pursuant to Section 1031 of the
United States Internal Revenue Code, provided that any exchange initiated by either shall be at
that party’s sole cost and expense, not cause the other party to actually take title to any
property other than the Property and not delay the Closing. In addition, the requesting party
shall indemnify and hold the other harmless from any and all cost, expense or liability incurred
solely as a result of the other accommodating such tax deferred exchange. The provisions of this
paragraph shall survive the Closing indefinitely

[Remainder of Page Left Intentionally Blank]

38

 

Exhibit 10.24 (Continued)

     IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the date first
written above.

	 	 	 	 	 
	SELLER: 	BALLANTRAE MANAGER, INC.,

a Nevada corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	REFLECTION LAKES MANAGER,
INC., 
A Nevada corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MONTERRA TARRAGON, INC.,

a Nevada corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MADISON TARRAGON MANAGER, INC.,

a Nevada
corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein 	 
	 	 	Title:  	Executive Vice President 	 
	 

[ADDITIONAL SIGNATURES PAGES FOLLOW]

39

 

Exhibit 10.24 (Continued)

	 	 	 	 	 
	 	TARRAGON SOUTH DEVELOPMENT
CORPORATION, 
a
Nevada corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	TARRAGON CORPORATION,

a Nevada corporation

 	 
	 	By:  	/s/
Charles D. Rubenstein
 	 
	 	 	Name:  	Charles D. Rubenstein 	 
	 	 	Title:  	Executive Vice President 	 
	 

[ADDITIONAL SIGNATURES PAGES FOLLOW]

40

 

Exhibit 10.24 (Continued)

	 	 	 	 	 
	PURCHASER: 	NORTHLAND FUND II, L.P.,

a Delaware limited partnership

 	 
	 	By:  	 Northland Fund II Partners LLC, its general partner
 	 
	 	 	 
	 	By:  	
/s/ Mark P. Consoli
 	 
	 	 	Name:  	Mark P. Consoli 	 
	 	 	Title:  	Treasurer 	 
	 

[ADDITIONAL SIGNATURE PAGE FOLLOWS]

41

 

Exhibit 10.24 (Continued)

	 	 	 	 	 
	ESCROW HOLDER: 	STEWART TITLE GUARANTY COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

42

 

Exhibit 10.24 (Continued)

EXHIBIT “A-1”

LEGAL DESCRIPTION — BALLANTRAE

43

 

Exhibit 10.24 (Continued)

EXHIBIT “A-2”

LEGAL DESCRIPTION — REFLECTION LAKES 

44

 

Exhibit 10.24 (Continued)

EXHIBIT “A-3”

LEGAL DESCRIPTION — MONTERRA 

45

 

Exhibit 10.24 (Continued)

EXHIBIT “A-4”

46

 

Exhibit 10.24 (Continued)

EXHIBIT “A-5”

47

 

Exhibit 10.24 (Continued)

EXHIBIT “A-6”

48

 

Exhibit 10.24 (Continued)

EXHIBIT “B”

CONTRACTS

49

 

Exhibit 10.24 (Continued)

EXHIBIT “C”

ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTERESTS

ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST

     THIS ASSIGNMENT, ASSUMPTION AND SALE OF MEMBERSHIP INTEREST (this “Assignment”) is made this
         day of December, 2007 by and between                     , a                      limited liability company
(“Assignor”), and                     , a                      (“Assignee”).

RECITALS:

     WHEREAS, Assignor entered into that certain                      dated as of                     , as
amended by                     , dated as of                      (as so amended, the “Operating
Agreement”), pursuant to which a limited liability company known as                      (the
“Company”), was formed;

     WHEREAS, Assignor owns                      percent (                    %) of the membership interests in the Company
(the “Interest”);

     WHEREAS, Assignor and Assignee have entered into that certain Membership Interest Purchase and
Sale Agreement dated as of                      as amended to date; and

     WHEREAS, Assignor desires to assign and transfer its Interest to Assignee, and Assignee
desires to acquire Assignor’s Interest.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

     1. Assignment of Membership Interest. Assignor hereby forever irrevocably sells,
assigns, transfers, conveys and sets over to Assignee, its successors and assigns, forever, all of
its right, title and interest in and to the Interest, whether pursuant to the Operating Agreement
or otherwise. This assignment includes all rights in and claims to any Company profits and losses,
undistributed allocations of any Company profits and losses, undistributed distributions of any
kind and any other benefits of any nature allocable under the Operating Agreement or otherwise to
the Interest hereby assigned, arising on or after the date hereof. In order to induce the Assignee
to enter into this Agreement, the Assignor represents and warrants to the Assignee that it (i) is
the record and beneficial owner of the Interest, (ii) has good and marketable title to the
Interest, free and clear of all liens, claims, charges, pledges, security interests and
encumbrances

50

 

Exhibit 10.24 (Continued)

of every kind and nature and (ii) has the absolute right to sell, assign and transfer the same
to the Assignee.

     2. Assumption of Membership Interest. Assignee hereby accepts the foregoing
assignment and agrees to assume and perform each and every one of the obligations and be bound by
all of the terms and provisions set forth in the Membership Agreement arising from and after the
date hereof, and agrees that it hereby is a member of the Company.

     3. Governing Law. This Assignment shall be governed by, and construed in accordance
with, the laws of the State of                     .

     4. Miscellaneous. This Assignment shall bind and inure to the benefit of the parties
hereto and their respective heirs, successors and assigns. This Assignment may be executed in two
or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. The parties hereto agree that they will execute such other
and further instruments and documents that may be necessary to effectuate this Assignment.

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the day and year
first above written.

ASSIGNOR:

ASSIGNEE:

51

 

Exhibit 10.24 (Continued)

EXHIBIT “D”

Intentionally deleted

52

 

Exhibit 10.24 (Continued)

EXHIBIT “E”

RENT ROLL

53

 

 Exhibit 10.24 (Continued)

EXHIBIT “F”

LEGAL PROCEEDINGS

     Barclays Capital Real Estate Inc. v Tarragon Lugano LLC, Ballantrae Tarragon LLC, Reflection
Lakes Tarragon, LLC, Omni Monterra LLC, Tarragon Corporation, Ybor City Tarragon, LLC, Via Lugano
Condominium Association, Inc. and The Quarter at Ybor Condominium Association, Inc., in the Circuit
Court of the15th Judicial Circuit, in and for Palm Beach County, Florida, Foreclosure Division,
Case No. 2007 CA 01 4548).

THREATENED LEGAL PROCEEDINGS

     Threatened litigation as set forth in that certain correspondence dated May 29, 2007 from
Holland & Knight to Ballantrae Tarragon LLC, with respect to Strategery Group, LLC vMCZ/Centrum
Florida XII, LLC, a copy of which was provided to Purchaser

54

 

 Exhibit 10.24

EXHIBIT “G”

PERSONAL PROPERTY

 

 

 Exhibit 10.24 (Continued)

EXHIBIT “H”

Intentionally deleted

56

 

 Exhibit 10.24 (Continued)

EXHIBIT “I”

TITLE UPDATES

57

 

 Exhibit 10.24 (Continued)

EXHIBIT J

Intentionally deleted

58

 

 Exhibit 10.24 (Continued)

EXHIBIT K

TITLE CLEARING ITEMS

59

 

 Exhibit 10.24 (Continued)

EXHIBIT L

CONDOMINIUM PARCEL CONTRACTS

60

 

 Exhibit 10.24 (Continued)

EXHIBIT M

NON-IMPUTATION AFFIDAVIT

	 	 	 	 	 	 	 
	State of South Carolina

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	County of

	 	 	)	 	 	 

Affidavit and Indemnity

The undersigned, being first duly sworn, on oath, deposes and says the following:

	1.	 	The undersigned is (i) Executive Vice President of Tarragon Corporation, a Nevada corporation
and (ii) Executive Vice President of Madison Tarragon Manager, Inc., a Nevada corporation.

2. To the best knowledge of the undersigned,

	 	a.	 	there are presently no defects in or liens, encumbrances or other claims
against the title to the property described in the Commitment for Title Insurance No.
                                        , having an effective date of                     , issued
by Fidelity National Title Insurance Company (hereinafter referred to as “the Company”)
other than as disclosed in exceptions nos.                      on Schedule B — Section 2
of said commitment, other than the following: (if none, state “None”); and;
	 
	 	b.	 	There are presently no inchoate rights which may ripen into any defect, lien,
encumbrance or claim against the title to said property except as may be created by an
instrument or action required in Schedule B — Section 1 of said commitment, other than
the following: (If none, state “None”)

	3.	 	The undersigned hereby indemnifies the Company and agrees to hold it harmless against any
loss which the Company may suffer by virtue of any valid claim made under the said endorsement
based on the existence of any defect in or lien, encumbrance, right or claim against or with
respect to the title to the aforesaid property which was not disclosed above but which should
have been so disclosed in order to make all statements above true and correct.
	 
	 	 	The undersigned understands such losses may include court costs and attorney’s fees expended
by the Company in defending the title or interest of the insured against such lien,
encumbrance, right or claim.

	4.	 	The undersigned makes these statements and gives the aforesaid indemnity for the purpose of
inducing the Company to issue the endorsement attached hereto as Exhibit A to one or more of
the owner’s or loan policies issued pursuant to the said Commitment for Title Insurance.

61

 

Exhibit 10.24 (Continued)

The undersigned further agrees to pay all court costs and reasonable attorney’s fees which the
Company may expend in enforcing the terms of this indemnity agreement.

Dated:

                                                                      

Name of Affiant & Indemnitor

62

 

Exhibit 10.24 (Continued)

EXHIBIT N

DISCLOSED LIAIBILITIES

     1. The obligations of the Company with respect to the Existing Loan Documents.

     2. The obligations of the Company under the Tenant Leases and Condominium Parcel Contracts
(including, without limitation, any incentives provided to third party purchasers as provided in
the Condominium Parcel Contracts).

     3. The obligations of the Company under or with respect to the Permitted Exceptions, Licenses,
Permits, Warranties and Guaranties and Contracts.

     4. The obligations of the Company with respect to taxes relating to the Company and the
Property.

     5. The obligations relating to the maintenance of the status of the Company as a limited
liability company in accordance with Holder’s requirements.

     6. Customary unsecured trade debt.

     7. The obligations of the Company under the Condominium Declarations (including, without
limitation, the Company’s obligation to provide deficit funding to the condominium associations for
the Condominiums).

63

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