0000950142-99-000336 Sample Contracts

Sincerely yours, /s/ Douglas S. Krupp -------------------- Douglas S. Krupp The Krupp Corporation, a General Partner
Limited Partnership Agreement • May 4th, 1999 • Krupp Realty Fund LTD Iii • Real estate

As you are by now aware, Madison Liquidity Investors 104, LLC, a Delaware limited liability company (the "Purchaser"), has made an offer (the "Madison Offer") to purchase limited partnership units ("Units") of Krupp Realty Fund, Ltd.- III (the "Partnership") for $425 per Unit (less a $50 transfer fee charged by the Partnership and any cash distributions made after April 21, 1999). The Madison Offer currently is scheduled to expire on May 24, 1999.

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