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Under the rental purchase agreement, Pitman & Japhet
agreed as a condition to closing to pay to EPIC 6.8 percent
of the purchase price of each unit. We refer to this
amount as the builder fee. As a further condition to
closing, Pitman & Japhet agreed to pay to the purchaser a
sum equal to the percentage of the purchase price of each
unit that is set forth on exhibit A to the agreement as a
contribution towards rental deficits (rental deficit
contribution). The percentages set forth on exhibit A
range from 20.30 percent to 21.39 percent. We refer to
this amount as the rental deficit contribution.
As a further condition to EPIC's obligation, the
agreement provides:
Rental of the Properties to individual tenants
shall have been arranged, or shall be arranged,
upon execution by Purchaser of the Agreement
in accordance with the procedures set forth in
Exhibit "C", attached hereto and by this
reference made a part hereof.
Pursuant to exhibit C, in the event that any of the
properties were not leased as of 7 days before closing,
Pitman & Japhet agreed to pay to the purchaser, in addition
to the rental deficit contribution, an amount equal to
three times the monthly rent set forth for each unit that
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