Document:

Ex-4.1 Thomas Fitzgerald Warrant

 

Exhibit 4.1

SINOFRESH HEALTHCARE, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR

THOMAS FITZGERALD

Agreement

     1. Grant of Option. SinoFresh Healthcare, Inc., a Florida corporation (the “Company”) hereby issues this
option agreement to evidence an option (the “Option”) committed to Thomas Fitzgerald (“Optionee”) by the Company
as of May 31, 2005 (which date shall be deemed the “Date of Grant”) and which Option is assumed by the Company.
This is an Option to purchase up to 10,000 shares of the Company’s Common Stock, no par value (the “Stock”), at
an exercise price per share equal to One Dollar ($1.00) (the “Option Price”). This Option shall be subject to
the terms and conditions set forth herein. This Option is a nonqualified stock option, and not an incentive
stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

     2.  Exercise Schedule. This Option is exercisable immediately.

     3. Method of Exercise. This Option shall be exercisable in whole or in part by written notice which shall
state the election to exercise this Option, the number of shares of Stock in respect of which this Option is
being exercised, and such other representations and agreements as to the holder’s investment intent with respect
to such shares of Stock as may be required by the Company. Such written notice shall be signed by the Optionee
and shall be delivered in person or by certified mail to the President of the Company. The written notice shall
be accompanied by payment of the exercise price. This Option shall be deemed to be exercised after (a) receipt
by the Company of such written notice accompanied by the exercise price, and (b) arrangements that are
satisfactory to the Board of Directors in its sole discretion have been made for Optionee’s payment to the
Company of the amount that is necessary to be withheld in accordance with applicable Federal or state withholding
requirements. No shares of Stock will be issued pursuant to this Option unless and until such issuance and such
exercise shall comply with all relevant provisions of applicable law, including the requirements of any stock
exchange upon which the Stock then may be traded.

     4. Method of Payment. Payment of the exercise price shall be by any of the following, or a combination
thereof, at the election of the Optionee: (a) cash; (b) check; (c) with shares that have been held by the
Optionee for at least 6 months (or such other shares as the Company determines will not cause the Company to
recognize for financial accounting purposes a charge for compensation expense); (d) subject to there being an
effective Form S-8 registration statement (or other applicable registration) in place for this Option, pursuant
to a “cashless exercise” procedure, by delivery of a properly executed exercise notice together with such other
documentation, and subject to such guidelines, as the Company shall require to effect an exercise of this Option
and delivery to the Company by a licensed broker acceptable to the Company of proceeds from the sale of Stock or
a margin loan sufficient to pay the Option Price and any

 

 

applicable income or employment taxes; or (d) such other consideration or in such other manner as may be determined by the Board of Directors in its absolute discretion.

     This Option may also be exercised by a cashless exercise procedure pursuant to a formula (“Formula
Cashless Exercise”), or a combination of cash and Formula Cashless Exercise. In the event of a Formula Cashless
Exercise, the Optionee shall surrender this Option to the Company with a written notice of the Optionee’s
intention to effect a cashless exercise, including a calculation of the number of shares of common stock to be
issued upon such exercise in accordance with the terms hereof; and, in lieu of paying the Option Price in cash,
the Optionee shall surrender this Option for that number of shares of common stock determined by multiplying the
number of shares of common stock to which it would otherwise be entitled by a fraction, the numerator of which
shall be the difference between (i) the average Market Price per share of the common stock for the five (5)
Trading Days immediately prior to the date of delivery of the cashless exercise notice to the Company (the
“Cashless Exercise Market Price”) and (ii) the Option Price, and the denominator of which shall be the Cashless
Exercise Market Price. As used herein, “Market Price” means, as of any Trading Day, (i) the closing sale price
for the shares of common stock on the NASD OTC Bulletin Board (“OTCBB”) as reported by Bloomberg, or (ii) if the
OTCBB is not the principal trading market for the shares of Common Stock, the closing sale price on the principal
trading market for the common stock as reported by Bloomberg, or (iii) if market value cannot be calculated as of
such date on any of the foregoing basis, the Market Price shall be the fair market value as reasonably determined
in good faith by the Company’s Board of Directors. As used herein, a “Trading Day” shall mean any day on which
the common Stock is traded for any period on the OTCBB, or on the principal securities exchange or other
securities market on which the common stock is then being traded.”

     5. Termination of Option.

          (a) This Option shall terminate and become null and void on the fifth (5th) anniversary of
the Date of Grant.

          (b) To the extent not previously exercised, (i) this Option shall terminate immediately in
the event of (1) the liquidation or dissolution of the Company, or (2) any reorganization, merger, consolidation
or other form of corporate transaction in which the Company does not survive, or the Company’s outstanding shares
are converted into or exchanged for securities issued by another entity, or an affiliate of such successor or
acquiring entity, unless the successor or acquiring entity, or a parent or subsidiary of such successor or
acquiring entity, assumes this Option or substitutes an equivalent option or right pursuant to Section 6 below,
and (ii) the Board of Directors in its sole discretion may by written notice (“cancellation notice”) cancel,
effective upon the consummation of a corporate transaction described in Section 5(b)(A) below in which the
Company does survive, this Option (or portion thereof) that remains unexercised on such date. The Board of
Directors shall give written notice of any proposed transaction referred to in this Section 5(b) a reasonable
period of time prior to the closing date for such transaction (which notice may be given either before or after
approval of such transaction), in order that the Optionee may have a reasonable period of time prior to the
closing date of such transaction within which to exercise this Option if and to the extent that it then is
exercisable. The Optionee may condition his exercise of this Option upon the consummation of a transaction
referred to in this Section 5(b).

2

 

         
          (A) As used in Section 5(b) above, a corporate transaction in which the Company
does survive shall mean the approval by the shareholders of the Company of a reorganization, merger,
consolidation or other form of corporate transaction or series of transactions, in each case, with respect to
which persons who were the shareholders of the Company immediately prior to such reorganization, merger or
consolidation or other transaction do not, immediately thereafter, own more than 50% of the combined voting power
entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s then
outstanding voting securities, or a liquidation or dissolution of the Company or the sale of all or substantially
all of the assets of the Company (unless such reorganization, merger, consolidation or other corporate
transaction, liquidation, dissolution or sale (any such event being referred to as a “Corporate Transaction”) is
subsequently abandoned).

          (c) Notwithstanding anything to the contrary contained in this Agreement, the merger of
the Company with and into SinoFresh Acquisition Corp., a Florida corporation, shall not constitute a corporate
transaction subject to this Section 5.

     6. Stock Dividend or Reorganization.

          (a) If (i) the Company shall at any time be involved in a transaction described in Section
424(a) of the Code (or any successor provision) or any “corporate transaction” described in the regulations
thereunder; (ii) the Company shall declare a dividend payable in, or shall subdivide or combine, its Common Stock
or (iii) any other event with substantially the same effect shall occur, the Board of Directors shall, subject to
applicable law, with respect to this Option, proportionately adjust the number of shares of Common Stock subject
to this Option and/or the exercise price per share so as to preserve the rights of the Optionee substantially
proportionate to the rights of the Optionee prior to such event.

          (b) In the event that the presently authorized capital stock of the Company is changed
into the same number of shares with a different par value, or without par value, the stock resulting from any
such change shall be deemed to be Common Stock within the meaning of this Option, and this Option shall apply to
the same number of shares of such new stock as it applied to old shares immediately prior to such change.

          (c) If the Company shall at any time declare an extraordinary dividend with respect to the
Common Stock, whether payable in cash or other property, the Board of Directors may, subject to applicable law,
in the exercise of its sole discretion and with respect to this Option, proportionately adjust the number of
shares of Common Stock subject to this Option and/or adjust the exercise price per share so as to preserve the
rights of the Optionee substantially proportionate to the rights of the Optionee prior to such event.

          (d) The foregoing adjustments in the shares subject to this Option shall be made by the
Board of Directors, or by the applicable terms of any assumption or substitution document.

          (e) The grant of this Option shall not affect in any way the right or power of the Company
to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to
merge, consolidate or dissolve, to liquidate or to sell or transfer all or any

3

 

part of its business or assets.

     7. Transferability. Unless otherwise determined by the Board of Directors, this Option is not transferable
otherwise than by will or under the applicable laws of descent and distribution, and during the lifetime of the
Optionee this Option shall be exercisable only by the Optionee or the Optionee’s guardian or legal
representative. In addition, this Option shall not be assigned, negotiated, pledged or hypothecated in any way
(whether by operation of law or otherwise), and this Option shall not be subject to execution, attachment or
similar process. Upon any attempt to transfer, assign, negotiate, pledge or hypothecate this Option, or in the
event of any levy upon this Option by reason of any execution, attachment or similar process contrary to the
provisions hereof, this Option shall immediately become null and void. The terms of this Option shall be binding
upon the executors, administrators, heirs, successors and assigns of the Optionee.

     8. No Rights of Stockholders. Neither the Optionee nor any personal representative (or beneficiary) shall
be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any shares of
Stock purchasable or issuable upon the exercise of this Option, in whole or in part, prior to the date of
exercise of this Option.

     9. No Right to Employment. Neither this Option nor this Agreement shall confer upon the Optionee any right
to employment or service with the Company.

     10.  Law Governing. This Agreement shall be governed in accordance with and governed by the internal laws of
the State of Florida.

     11. Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly
given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and
addressed, in the case of the Company, to the Company’s President at 516 Paul Morris Drive, Englewood, Florida
34223, or if the Company should move its principal office, to such principal office, and, in the case of the
Optionee, to the Optionee’s last permanent address as shown on the Company’s records, subject to the right of
either party to designate some other address at any time hereafter in a notice satisfying the requirements of
this Section.

     12. Tax Consequences. Set forth below is a brief summary as of the date of this Option of some of the
federal tax consequences of exercise of this Option and disposition of the Stock. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
EXERCISING THIS OPTION OR DISPOSING OF THE SHARES OF STOCK.

          (a) 
Exercise of Option. There may be a regular federal income tax liability upon the
exercise of this Option. The Optionee will be treated as having received compensation income (taxable at
ordinary income tax rates) equal to the excess, if any, of the fair market value of the Stock on the date of
exercise over the Option Price. If Optionee is an employee, the Company will be required to withhold from
Optionee’s compensation or collect from Optionee

4

 

and pay to the applicable taxing authorities an amount equal to
a percentage of this compensation income at the time of exercise.

          (b) Disposition of Stock. If the Stock is held for at least one year, any gain
realized on disposition of the Stock will be treated as long-term capital gain for federal income tax purposes.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	SinoFresh Healthcare, Inc., a Florida corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Name: Charles Fust
	 	 	Title: Chairman and CEO

     Optionee has reviewed this Option in its entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Option, and fully understands all provisions of this Option.

	 	 	 
	 

	 	OPTIONEE:
	 
	 	 
	 

	 	 
	 

	 	Name: [Thomas Fitzgerald]

5<PAGE>

                                 SALES CONTRACT

                                 By and Between

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

                                      and

                  ROBERTS PROPERTIES PEACHTREE DUNWOODY, LLC,
                      sa Georgia limited liability company,
                                   as Seller.

                                  June 28, 2005

                                    Property:

          Pod T in Cousins Westside, Alpharetta, Fulton County, Georgia

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                               <C>
ARTICLE I --    PROPERTY TO BE CONVEYED.........................................  1
ARTICLE II --   PURCHASE PRICE..................................................  1
ARTICLE III --  ITEMS TO BE DELIVERED BY SELLER AT CLOSING......................  1
ARTICLE IV --   ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING...................  2
ARTICLE V --    SELLER'S DELIVERY OF DOCUMENTS..................................  3
ARTICLE VI --   TIME AND PLACE OF CLOSING AND CLOSING COSTS.....................  3
ARTICLE VII --  APPORTIONMENTS..................................................  3
ARTICLE VIII -- BROKERS.........................................................  4
ARTICLE IX --   MISCELLANEOUS...................................................  4
ARTICLE X --    SECTION 1031 EXCHANGE...........................................  5
</TABLE>

<PAGE>

                                 SALES CONTRACT

      THIS AGREEMENT is made and entered into as of the 28th day of June, 2005,
by and between ROBERTS PROPERTIES RESIDENTIAL, L.P., a Georgia limited
partnership ("PURCHASER") and ROBERTS PROPERTIES PEACHTREE DUNWOODY, LLC, a
Georgia limited liability company ("SELLER").

                      ARTICLE I -- PROPERTY TO BE CONVEYED

            A. Seller shall sell to Purchaser, and Purchaser shall purchase from
Seller, upon the terms and conditions hereinafter set forth, that certain parcel
of land described on EXHIBIT A attached hereto and by this reference
incorporated herein (the "LAND"), together with any buildings and improvements
on the Land (the "IMPROVEMENTS"; the Land and the Improvements are hereinafter
collectively referred to as the "PROPERTY").

            B. The Property is commonly known as Parcel T in Cousins Westside
(the "PROJECT") in Alpharetta, Fulton County, Georgia. Seller and Purchaser
acknowledge that the Land has been labeled as Pod T for the purpose of
distinguishing the separate allowable uses of the Land pursuant to the current
zoning of the Property.

                          ARTICLE II -- PURCHASE PRICE

      The purchase price ("PURCHASE PRICE") for the Property shall be Three
Million Three Hundred Thirteen Thousand Three Hundred Two and 77/100 Dollars
($3,313,302.77). Subject to all prorations and adjustments provided for herein,
the Purchase Price shall be paid at Closing (as hereinafter defined) by
Purchaser to Seller by wire-transfer of funds immediately available to Seller to
an account designated by Seller.

            ARTICLE III - ITEMS TO BE DELIVERED BY SELLER AT CLOSING

      At the Closing, Seller will deliver the following to Purchaser:

            A. A duly executed limited warranty deed (the "DEED") that will
convey title to the Property subject only to the title exceptions set forth on
EXHIBIT B attached hereto and made a part hereof (the "PERMITTED EXCEPTIONS").

            B. A duly executed affidavit in a form customarily used for
commercial real estate transactions in the State of Georgia and which is
acceptable to the Purchaser's title insurance company (the "TITLE COMPANY") in
order to delete the standard exceptions for mechanics' and materialmen's liens
and parties in possession (other than matters which would be shown by a current
survey) from the title policy at Closing, showing among other things that all
debts for

<PAGE>

labor and materials in respect of the Property incurred by or on behalf of
Seller have been paid in full and that there are no outstanding claims, suits,
debts, rights of occupancy, encumbrances, liens or judgments against the
Property, except for the Permitted Exceptions.

            C. A duly executed Certification of Non-Foreign Status that pursuant
to Section 1445 of the Internal Revenue Code, certifies Seller is not a foreign
person, foreign corporation, foreign partnership, foreign trust or foreign
estate (as those terms are defined in the Internal Revenue Code and Income Tax
Regulations).

            D. A duly executed Affidavit that pursuant to O.C.G. A. Section
48-7-128 et seq., no withholding from the proceeds of the transaction
contemplated hereby is required.

            E. Such evidence as is reasonably required by the Title Company and
the Purchaser evidencing the authority of Seller to enter into this Agreement
and consummate the transaction contemplated herein.

            F. A Closing Statement evidencing the prorations between Seller and
Purchaser and disbursements made in connection with this transaction.

            G. An assignment of all of Seller's right, title and interest in and
to that certain Escrow Agreement by and among Seller, Cousins Properties
Incorporated and Commonwealth Land Title Insurance Company dated as of March 25,
2005, with respect to payment for the sewer extension to the Property to be
constructed by Cousins Properties Incorporated.

            H. An assignment in recordable form of all of Seller's right, title
and interest in and to that certain Right of First Refusal with respect to
Parcel S in Cousins Westside, as evidenced by that certain Memorandum of Right
of First Refusal by and between Seller and Cousins Properties Incorporated dated
as of December 29, 2004, filed for record on March 28, 2005, and recorded in
Deed Book 39668, page 372, Fulton County, Georgia records.

            I. An assignment of all of Seller's right, title and interest in and
to that certain Sales Contract by and between Seller, as purchaser, and Cousins
Properties Incorporated, as seller, dated December 29,2004, with respect to the
Property.

            J. Any other documents referred to or specified in this Agreement
and any other documents or agreements deemed necessary or reasonably appropriate
by Seller's and Purchaser's respective counsel.

           ARTICLE IV - ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING

      At Closing, Purchaser agrees to deliver the following items to Seller:

            A. The cash portion of the Purchase Price as required by and in the
manner specified in Article II hereof.

                                       -2-
<PAGE>

            B. A Closing Statement evidencing the prorations between Seller and
Purchaser and disbursements made in connection with this transaction.

            C. Any other documents referred to or specified in this Agreement
and any other documents or agreements deemed necessary or reasonably appropriate
by Purchaser's and Seller's respective counsel.

                   ARTICLE V -- SELLER'S DELIVERY OF DOCUMENTS

      Seller has delivered or will deliver the following to Purchaser (or as
designated make available to Purchaser at the Property) within three (3)
business days after the date of this Agreement:

            A. A copy of the latest dated survey of the Land and title insurance
policy in Seller's possession.

            B. A copy of the ad valorem tax bill in Seller's possession.

            C. All existing soil reports, environmental and engineering reports,
including, but not limited to, structural, plumbing, electrical, mechanical and
civil matters in Seller's possession.

            ARTICLE VI -- TIME AND PLACE OF CLOSING AND CLOSING COSTS

            A. The consummation of the transaction contemplated herein shall
take place at the offices of Holt Ney Zatcoff & Wasserman, LLP, Atlanta, Georgia
on June 30,2005, commencing at 10:00 A.M. The consummation of the transaction
contemplated herein is herein referred to as the "Closing", and the date the
Closing occurs is herein referred to as the "CLOSING DATE."

            B. At Closing, Purchaser shall pay the transfer tax incident to the
Deed and all other closing expenses with respect to the closing of the
transaction contemplated herein, including without limitation the cost of any
survey which Purchaser elects to obtain, recording fees and the premium incident
to any title insurance policy to be issued to Purchaser, except that Seller and
Purchaser will each pay their own attorney's fees.

                          ARTICLE VII - APPORTIONMENTS

      Seller shall be entitled to receive any income in respect of the Property
and shall be obligated to pay all expenses in respect of the Property for all
time periods prior to and including the day prior to the Closing Date. Purchaser
shall be entitled to receive all such income and shall be obligated to pay all
such expenses for all time periods commencing with

                                       -3-
<PAGE>

the Closing Date. All real property taxes including the current installment for
any assessment (special, bond, or otherwise) shall be prorated at Closing. In
the event that the current year's taxes are not available as of the Closing
Date, the proration shall be based upon such taxes for the preceding year, but
such taxes shall be reprorated between Purchaser and Seller as soon as the
current year's taxes are available, immediately upon demand being made therefor
by either Purchaser or Seller. This Article VII shall survive the Closing of the
transaction contemplated herein.

                             ARTICLE VIII - BROKERS

            Purchaser and Seller hereby represent to each other that no real
estate broker or agent was involved in negotiating the transaction contemplated
herein. In the event any claim(s) for real estate commissions, fees or
compensation arise in connection with this Agreement and the transaction
contemplated herein, the party so incurring or causing such claim(s) shall
indemnify, defend and hold harmless the other party from any loss, claim or
damage which the other party suffers because of said claim(s).

                           ARTICLE IX -- MISCELLANEOUS

            A. This Agreement constitutes the entire agreement between the
parties hereto and cannot be changed or modified other than by a written
agreement executed by both Purchaser and Seller.

            B. There shall also be executed and delivered at Closing all other
documents and instruments reasonably required or necessary to effect the
transaction contemplated herein.

            C. Irrespective of the place of execution or performance, this
Agreement shall be governed by and construed in accordance with the laws of the
State of Georgia. This Agreement shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Agreement to be drafted. If any words or phrases in this Agreement shall have
been stricken out or otherwise eliminated, whether or not any other words or
phrases have been added, this Agreement shall be construed as if the words or
phrases so stricken out or otherwise eliminated were never included in this
Agreement and no implication or inference shall be drawn from the fact that said
words or phrases were so stricken out or otherwise eliminated, unless such
changes have been duly initialed by all parties reflecting mutual agreement. All
terms and words used in this Agreement regardless of the number or gender in
which they are used, shall be deemed to include any other number and any other
gender as the context may require.

            D. This Agreement may be executed in more than one counterpart, each
of which shall be deemed an original.

                                       -4-
<PAGE>

            E. The captions of this Agreement are inserted for convenience or
reference only and do not define, describe or limit the scope or intent of this
Agreement or any of the terms hereof.

            F. Time is of the essence of this Agreement and each term and
provision hereof.

            G. If any term, covenant or condition of this Agreement or the
application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement and the application of
such terms, covenants and conditions to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby and each term, covenant and condition of this Agreement shall be valid
and be enforced to the fullest extent permitted by law.

            H. All rights, powers and privileges conferred hereunder upon the
parties unless otherwise provided shall be cumulative and not restricted to
those given by law.

            I. No failure of any party to exercise any power given such party
hereunder or to insist upon strict compliance by any other party to its
obligations hereunder, and no custom or practice of the parties in variance with
the terms hereof, shall constitute a waiver of any party's right to demand exact
compliance with the terms hereof.

            J. Purchaser shall have the right to waive any condition or
contingency herein in Purchaser's favor and Seller shall have the right to waive
any condition or contingency herein in Seller's favor.

            K. Anything contained in this Agreement to the contrary
notwithstanding, (i) the terms and provisions of this Agreement shall not
survive Closing and shall be merged into the Deed; and (ii) Seller does not make
any warranties or representations of any kind or character, expressed or
implied, with respect to the Property, its physical condition, income to be
derived therefrom or expenses to be incurred with respect thereto, or any other
matter or thing relating to or affecting the Property, and there are no oral or
written agreements, warranties or representations with respect to the Property,
except as otherwise expressly set forth in this Agreement.

                          ARTICLE X -- SECTION 1031 EXCHANGE

            Purchaser and/or Seller may desire to accomplish the acquisition and
sale of the Property by means of exchanges of "like-kind" property which will
qualify as such under Section 1031 of the Internal Revenue Code of 1986 and all
regulations issued thereunder. Seller and Purchaser are willing to cooperate
with each other in an exchange, provided that neither Seller nor Purchaser
incurs additional expenses or liability, is not delayed in its sale of the
Property, and does not take title to the exchange property. Seller agrees that
Seller will, at the direction of Purchaser or a third party intermediary acting
at Purchaser's direction, receive the Purchase Price from the third party
intermediary who will facilitate the like-kind exchange

                                       -5-
<PAGE>

for Purchaser pursuant to an intermediary agreement between Purchaser and such
third party intermediary. Purchaser agrees that Purchaser will, at the direction
of Seller or third party intermediary acting at Seller's direction, pay the
Purchase Price to the third party intermediary who will facilitate the like-kind
exchange for Seller pursuant to an intermediary agreement between Seller and
such third party intermediary.

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed, sealed and delivered the day and year first above written.

                                 PURCHASER:

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

                                 By: Roberts Realty Investors, Inc., a
                                     Georgia corporation, sole general
                                     partner

                                     By: /s/ Michael A. Quinlan
                                         ---------------------------------------
                                         Michael A. Quinlan, Vice President,
                                         Secretary and Controller

                                 SELLER:

                                 ROBERTS PROPERTIES PEACHTREE DUNWOODY, LLC,
                                 a Georgia limited liability company

                                 By: Roberts Properties, Inc., a Georgia
                                     corporation, sole manager

                                     By: /s/ Anthony W. Shurtz
                                         ---------------------------------------
                                         Anthony W. Shurtz
                                         Chief Financial Officer and
                                         Secretary

                                       -6-
<PAGE>

                                    EXHIBIT A
                              (LEGAL DESCRIPTION)

All that tract or parcel of land lying and being in Land Lots 700 and 743 of the
1st District, 2nd Section, City of Alpharetta, Fulton County, Georgia and being
more particularly described as follows:

Beginning at an iron pin set on the northwesterly right-of-way of State Route
400 (also known as McDonald Parkway and having a varied right-of-way) at its
intersection with the line common to land lots 743 and 744; Thence running along
the northwesterly right-of-way of State Route 400 South 63 degrees 43 minutes 36
seconds West a distance of 154.60 feet to an iron pin set; Thence continuing
along said right-of-way South 70 degrees 43 minutes 17 seconds West a distance
of 499.99 feet to a concrete monument found; Thence continuing along said
right-of-way South 70 degrees 39 minutes 47 seconds West a distance of 199.60
feet to a concrete monument found; Thence continuing along said right-of-way
South 63 degrees 43 minutes 47 seconds West a distance of 201.60 feet to a
concrete monument found; Thence continuing along said right-of-way South 70
degrees 44 minutes 42 seconds West a distance of 343.70 feet to a concrete
monument found; Thence continuing along said right-of-way along a curve to the
left an arc distance of 280.19 feet (said arc having a radius of 5879.58 feet
and being subtended by a chord 280.16 feet in length lying to the southeast of
said arc and bearing South 69 degrees 25 minutes 04 seconds West) to an iron pin
set; Thence leaving said right-of-way and running North 22 degrees 04 minutes 59
seconds West a distance of 120.00 feet to an iron pin set; Thence running along
said right-of-way along a curve to the right an arc distance of 137.93 feet
(said arc having a radius of 5999.58 feet and being subtended by a chord 137.92
feet in length lying to the southeast of said arc and bearing South 67 degrees
23 minutes 29 seconds West) to an iron pin set; Thence running North 21 degrees
36 minutes 37 seconds West a distance of 450.80 feet to an iron pin set; Thence
running South 68 degrees 43 minutes 50 seconds East a distance of 184.56 feet to
an iron pin set; Thence running North 22 degrees 04 minutes 58 seconds West a
distance of 238.22 feet to an iron pin set on the line common to land lots 699
and 700; Thence running along the line common to land lots 699 and 700 and
thence along the line common to land lots 743 and 744 South 89 degrees 02
minutes 39 seconds East a distance of 1822.75 feet to an iron pin set at its
intersection with the northwesterly right-of-way of State Route 400 and The
Point of Beginning;

Said tract contains 14.4796 acres (630,729 square feet), as shown on that
certain ALTA/ACSM Land Title Survey for Roberts Properties Residential, L.P.,
Roberts Properties, Inc., Roberts Properties Peachtree Dunwoody, LLC, Wachovia
Bank, National Association and Commonwealth Land Title Insurance Company
prepared by Lowe Engineers, Inc., and bearing the seal and certification of
William J. Daniel, III, Georgia Registered Land Surveyor No. 2257, dated
December 23, 2004, last revised March 17, 2005.

<PAGE>

TOGETHER WITH a non-exclusive right, title and interest in and to the easements
created in the following (collectively, the "APPURTENANT EASEMENTS"):

(a)   that certain Master Declaration of Covenants and Easements for Westside by
      Cousins Properties Incorporated, dated as of December 15, 2003, filed
      December 18, 2003 recorded in DEED BOOK 36717, PAGE 273, Fulton County,
      Georgia records; as amended by First Amendment to Master Declaration of
      Covenants and Easements for Westside by Cousins Properties Incorporated,
      dated as of September 28, 2004, filed September 30, 2004, recorded in DEED
      BOOK 38521, PAGE 525, aforesaid records; and

(b)   that certain Access Easement Agreement between Roberts Properties
      Residential, L.P. and Roberts Properties Peachtree Dunwoody, LLC, dated
      March 25, 2005, filed March 28,2005, recorded in DEED BOOK 39668, PAGE
      377, aforesaid records.

                                       -8-
<PAGE>

                                    EXHIBIT B
                             (PERMITTED EXCEPTIONS)

1.    General and special taxes and assessments for the year 2005 and subsequent
      years, not yet due and payable; and the lien of additional real property
      taxes by reason of increased or amended assessments.

2.    Master Declaration of Covenants and Easements for Westside by Cousins
      Properties Incorporated, dated as of December 15, 2003, filed December 18,
      2003 recorded in DEED BOOK 36717, PAGE 273, aforesaid records; as amended
      by First Amendment to Master Declaration of Covenants and Easements for
      Westside by Cousins Properties Incorporated, dated as of September 28,
      2004, filed September 30, 2004, recorded in DEED BOOK 38521, PAGE 525,
      aforesaid records.

3.    Terms and conditions of that certain Access Easement Agreement between
      Roberts Properties Residential, L.P. and Roberts Properties Peachtree
      Dunwoody, LLC, dated March 25, 2005, filed March 28, 2005, recorded in
      DEED BOOK 39668, PAGE 377, aforesaid records.

4.    All matters disclosed on that certain ALTA/ACSM Land Title Survey for
      Roberts Properties Residential, L.P., Roberts Properties Peachtree
      Dunwoody, LLC, Wachovia Bank, National Association, and Commonwealth Land
      Title Insurance Company, prepared by William J. Daniel, III Georgia
      Registered Land Surveyor No. 2257 of Lowe Engineers, dated December 23
      2004, last revised March 17, 2005.

5.    Easement from Cousins Properties Incorporated to Georgia Power Company,
      dated June 17, 1998, filed August 3 1998, recorded in DEED BOOK 25056,
      PAGE 291, aforesaid records, (affects Appurtenant Easements only).

6.    Sewer Easement from Cousins Properties Incorporated to Fulton County,
      dated December 23, 1999, filed March 22, 2000, recorded in DEED BOOK
      28732, PAGE 306, aforesaid records, (affects Appurtenant Easements only).

7.    Easements, reservations and covenants contained in that certain Limited
      Warranty Deed from Cousins Properties Incorporated, a Georgia corporation,
      to Roberts Properties Residential, L.P., dated as of December 29, 2004,
      filed December 30, 2004, recorded in DEED BOOK 39097, PAGE 560, aforesaid
      records, (affects Appurtenant Easements only).

8.    Sewer easement contained in that certain Limited Warranty Deed from
      Cousins Properties Incorporated, a Georgia corporation, and Roberts
      Properties Peachtree Dunwoody, LLC, a Georgia limited liability company,
      dated March 25, 2005, filed March 28, 2005, recorded in DEED BOOK 39668,
      PAGE 353, aforesaid records.

<PAGE>

9.    Easements, reservations, covenants and restrictions contained in that
      certain Limited Warranty Deed from Cousins Properties Incorporated, a
      Georgia corporation, to Roberts Properties Peachtree Dunwoody, LLC, a
      Georgia limited liability company, dated March 25, 2005, filed March 28,
      2005, recorded in DEED BOOK 39668, PAGE 353, aforesaid records.

10.   Access Easement Agreement between Roberts Properties Residential, L.P. and
      Roberts Properties Peachtree Dunwoody, LLC, dated March 25, filed March
      28, 2005, recorded in DEED BOOK 39668, PAGE 377, aforesaid records.

                                      -10-

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