PURCHASE AGREEMENT ------------------ For and in consideration of the terms hereof, Aberdeen Development Corporation of 416 Production Street North, Aberdeen, South Dakota 57401, hereinafter referred to as "Buyer", and APA Enterprises, Inc. of 2950 NE 84th Lane, Blaine, MN 55449, hereinafter referred to as "Seller" agree to the sale and purchase of the following described real property in Brown County, South Dakota as follows: 1. DESCRIPTION: ----------- North 200 feet of Lot 2 of the ADC 2005-1 Subdivision in Aberdeen, Brown County, South Dakota. 2. PURCHASE PRICE: The total purchase price shall be the sum of $ 120,000.00, --------------- which shall be paid via the retirement of the outstanding loan between the parties as agreed upon on April 13, 2005. 3. TAXES: Buyer to assume all taxes remaining unpaid and owing for 2005 and ----- thereafter. 4. TITLE: Seller shall provide to Buyer a properly executed Warranty Deed ----- conveying to Buyer from Seller good and merchantable title to said premises, subject to all zoning regulations, restrictive covenants, reservations, rights-of-way and easements of record, and any rights of tenants and lessees. Buyer acknowledges the premises are unimproved and agrees to take premises in 'as-is' condition. 5. TITLE INSURANCE: Buyer to obtain title insurance at the Buyer's expense. ---------------- 6. TRANSFER TAX: Buyer shall be responsible for and pay the transfer tax ------------- required to be paid upon recording of the deed to transfer. 7. RECORDING FEE: Buyer shall bear the expense of recording the deed. -------------- 8. POSSESSION: Buyer shall have possession of said premises from and after ---------- closing. 9. CLOSING DATE: The closing date shall be on or about June 1, 2005. ------------- ------------ DUPLICATE ORIGINAL ------------------ Dated this 1st day of June , 2005. ----- ------ ABERDEEN DEVELOPMENT APA ENTERPRISES, INC. CORPORATION By: /s/ Larry Frost By: /s/ Anil Jain --------------------------- ---------------------------- Larry Frost Dr. Anil Jain Its: President Its: President --------------------- ---------------------- BUYER SELLER WITNESS: WITNESS: /s/ Christopher A. Haas /s/ Daniel Herzog - ------------------------------ Christopher A. Haas Daniel Herzog ---------------------------------- DUPLICATE ORIGINAL ------------------ - 2 -