"Dear John, RE: PURCHASE OF 24 APARTMENTS AT 131 GLENHUNTLY ROAD, ELWOOD Following our inspection of the property and assessment of the works required to undertake the proposed refurbishment, I confirm our agreement to acquire the 24 apartments that are for sale at the above property. We have reviewed the contracts of sale that were prepared by Rigby Cooke and note that the basis of the contracts are agreed subject to the following amendments:- To the basic terms of the deal are as follows:- 1) Purchaser Omni Property Group Company and/or nominee 2) Apartments being Acquired To the apartments will be acquired as follows:- a) Apartment 1 and 16 will be acquired from Niparay Investments for a consideration of $83,000 each and will settle in 30 days. b) Apartments 3 and 4 will be acquired from John Chandler for a consideration of $83,000 each and will settle in 30 days. c) Apartments 12, 13, 14 and 2 will be acquired from Niparay Investments for a consideration of $83,000 each and will settle in 60 days. d) Apartment 5 will be acquired from John Chandler for a consideration of $83,000 each and will settle in 60 days. e) Apartments 6, 10 and 21 will be acquired from Niparay Investments for a consideration of $83,000 and will settle in 60 Days. f) To the balance of the apartments will be the subject of an option to purchase agreement which will be prepared and agreed by the solicitors for the vendor and purchasers and be executed at the time of exchange of the above contracts. Niparay Investments has agreed in principle to a direct settlement of contracts with Omni Group Purchasers subject to solicitors approval in order to minimise transfer costs. To the option agreement will be on identical terms and conditions to the contracts of sale, save and except that the consideration will be for $85,000 and that the option must be exercised within 180 days of the contracts referred to for apartments 1, 2, 3, 4, 5, 6, 10, 12, 13, 14, 16 and 21 becoming unconditional. 3) Price: As noted in clause 2 4) Special Conditions: This offer is made subject to the conditions and special condition listed in the draft contracts of sale save and except as follows:- a) Receipt and acceptance of a copy of the Body Corporate rules and any licences issued in favour of Lots 11 and 7. b) Amendments to the Condition relating to GST in accordance with the Correspondence received from Meerkin & Apel which states:- "the GST Clause be amended to contain a confirmation from the vendor that the property is used as a residence and that the property is sold as a going concern. Furthermore the purchaser may require in certain circumstances that the GST clause also allow for the purchase to be undertaken for GST purposes under the margin scheme" as agreed between the solicitors. c) The agreements and consents referred to in special conditions 16 and 17 of the contract must be altered to be on terms acceptable to the purchaser. This clause needs to specify that this condition is for the benefit of the purchaser. d) The Option agreement referred to in Special Condition 19 will be expanded to better reflect the terms and conditions of the option save and except that the terms will reflect a purchase consideration of $85,000 and the option must be exercised and settled within 180 days of the above contracts becoming unconditional. e) The consent of the mortgagee referred to in special condition 20 must be obtained prior to settlement. f) The contract is to contain a special condition pursuant to which the Vendor will allow the Purchaser and its consultants access to the units for the purposes of investigating whatever is required in connection with the proposed redevelopment. The Vendor is to assist the Purchaser in all ways reasonably required of it including the necessary applications and consents. g) The contract should require the Vendor to serve notice on the tenants at the request of the purchaser to provide vacant possession at settlement. h) Copies of all body corporate leases are required. i) Collateral Contracts Special Condition 13.b Special Condition 13.b should provide that neither party is required to settle on a contract unless the Collateral contract settles at the same time. Special Condition 13.b should state that the default by either of the vendors under the Contracts shall be deemed a default under the collateral contract. j) Individual Transfers The apportionment of the consideration in Special Condition 14 needs to be as follows:- Apartments 1, 2, 3, 4, 5, 6, 10, 12, 13, 14, 16 and 21 being $83,000. The balance of the apartments being $85,000. As we discussed the changes to the special conditions, I anticipate that these alterations are acceptable. Please countersign the footnote of this letter as your acceptance on the basic terms of the deal to enable the preparation of contracts and the commencement of final negotiations with the owners of Lots 11 and 7 while you are away. Rob Watson has been provided with a cheque for $55,000 and the balance of this deposit to $110,000 to be applied against the 12 initial contracts will be provided at exchange of the contracts. I look forward to completing paperwork for this project and look forward to seeing you after your break to formally sign up the paperwork. Should you have any queries, please do not hesitate to call. LOU GARITA PROJECT MANAGER"