Document:

Exhibit 10.37

                               PURCHASE AGREEMENT

         This PURCHASE AGREEMENT (the "Agreement") is entered into on December
2, 2009, by and between BKF Capital Group, Inc., a Delaware corporation, having
an address at 1 North Federal Highway, Suite 201, Boca Raton, Florida 33432
("Purchaser") and Steven N. Bronson, an individual, having an address at 1 North
Federal Highway, Suite 201, Boca Raton, Florida 33432 and Kimberly Bronson, an
individual, having an address at 1 North Federal Highway, Suite 201, Boca Raton,
Florida 33432 (collectively the "Sellers").

                                  W I T N E S S E T H:

         WHEREAS, Catalyst Financial, LLC (the "Company"), a New York limited
liability company, is a broker-dealer registered with the United States
Securities and Exchange Commission (the "Commission") and a member in good
standing of the Financial Industry Regulatory Authority ("FINRA").

         WHEREAS, Sellers are the owners of 100% of the membership interests in
the Company. Steven N. Bronson is the owner of 99% of the membership interests
in the Company and Kimberly Bronson is the owner of 1% of the membership
interests in the Company. Sellers are the owners of 100% of the equity of the
Company.

         WHEREAS, Purchaser desires to acquire, and Sellers desire to sell, 100%
of the membership interests of the Company, upon the terms and conditions
hereinafter set forth. In connection with Purchaser's acquisition of the
Company, the Purchaser shall assume and succeed to the Company's registration
with the Commission as a broker-dealer and the Company's membership with FINRA,

         NOW, THEREFORE, in consideration of the covenants and agreements
hereafter set forth, and other valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the parties hereto agree as
follows:

                                    ARTICLE I
                        Purchase and Sale of the Company
                        --------------------------------

         1. Purchase and Sale of the Company. Sellers agree to sell, transfer
and deliver to Purchaser, and Purchaser agrees to purchase and accept, upon the
terms and conditions hereinafter set forth, at the Closing, as defined below,
100% of the membership interests (the "Membership Interests") of Catalyst
Financial, LLC, a limited liability company organized under the laws of New York
(the "Company"). Sellers are the owners of 100% of the Membership Interests of
the Company. Upon the sale and transfer of the Sellers' Membership Interests to
Purchaser, the Purchaser will own 100% of the Membership Interests of the
Company and the Company shall maintain all registrations and/or approvals from
the Commission and/or FINRA necessary to operate the broker-dealer business of
the Company (the "Business") as an on-going concern as contemplated by this
Agreement.

<PAGE>

                                   ARTICLE II
                       Transfer of Assets and Liabilities
                       ----------------------------------

         2.       Assets.

         2.1 Acquired Assets. Upon the terms and subject to the conditions set
forth in this Agreement, at the Closing the Purchaser shall acquire all of
Sellers' right, title and interest in and to the Company and all of Sellers'
property and assets, real, personal or mixed, tangible and intangible, of every
kind and description, wherever located, which are used in connection with the
Business (collectively, the "Acquired Assets"), including the following (but
excluding the Excluded Assets, as defined below):

         2.1.1 Assumed Contracts. Purchaser agrees to assume all rights and
obligations under the specific contracts, agreements and/or understandings of
the Company related to the Business;

         2.1.2 Franchises, Licenses and Permits. All franchises, licenses,
certificates, and/or permits from third parties, including, but not limited to,
governmental authorizations and all pending applications therefore or renewals
thereof, used primarily in or related primarily to the operation of the
Business, in each case to the extent transferable to Purchaser;

         2.1.3 Business Information and Records. All financial books, data and
records (whether on paper, computer storage media or any other form) owned by
Sellers and used primarily in or related primarily to the operation of the
Company and the Business, including, but not limited to the Company's
organizational documents, business records, tax returns and all other documents
and records required to be maintained under the rules and regulations of the
Commission and FINRA.

         2.2 Excluded Assets. Notwithstanding anything to the contrary contained
elsewhere in this Agreement, the assets of the Company set forth below (the
"Excluded Assets") are not part of the sale and purchase contemplated by this
Agreement, and are excluded from the Acquired Assets and shall remain the
property of Sellers after the Closing:

         2.2.1 Tangible Personal Property. All tangible personal property not
used exclusively in the operation of the Business, to the extent owned by
Sellers;

         2.2.2 All benefits and obligations under the Consulting Agreement,
dated as of June 6, 2008, between Ridgefield Acquisition Corp. and Catalyst
Financial LLC;

         2.2.3 All cash and cash equivalents on hand in banks, certificates of
deposit, money market certificates, commercial paper and securities, including,
but not limited to the shares of common stock of Ridgefield Acquisition Corp.,
as of the Closing Date.

<PAGE>

         2.2.4 All claims for refund of Taxes and other governmental charges of
whatever nature relating to a tax period or event occurring prior to the Closing
Date;

         2.2.5 All rights in connection with and assets of any Employee Benefit
Plan, including the Catalyst Financial, LLC Profit Sharing Plan;

         2.2.6 All rights, claims and causes of action related to the Excluded
Assets and the Excluded Liabilities, as defined below.

         2.3 Liabilities

         2.3.1 Assumed Liabilities.

         (a)      Pre-Closing Liabilities. In the event the Closing occurs, the
                  Purchaser assumes and agrees to pay all of the expenses
                  incurred by the Company in its operations from August 24,
                  2009. Specifically, the Purchaser shall pay directly or
                  reimburse Sellers for all expenses incurred by the Company on
                  or after August 24, 2009, for operations, including employee
                  salaries and the expenses associated with satisfying the
                  conditions precedent to this Agreement, including, but not
                  limited to the Company's obtaining FINRA approval of the
                  transfer of control of the Company from Sellers to Purchaser
                  (the "Assumed Pre-Closing Expenses"). The Assumed Pre-Closing
                  Expenses shall be reduced by all revenues received by the
                  Company following August 24, 2009, except for any revenues
                  received by the Company under the Consulting Agreement, dated
                  as of June 6, 2008, between Ridgefield Acquisition Corp. and
                  Catalyst Financial LLC. A description of the Assumed
                  Pre-Closing Expenses is set forth on Schedule 2.3.1(a), which
                  is attached hereto and made a part hereof.

         (b)      Post-Closing Liabilities. On the Closing Date, Purchaser shall
                  assume and agree to discharge the liabilities arising on or
                  after the Closing Date relating to the business of the Company
                  including any liabilities under the Assumed Contracts included
                  in the Acquired Assets, other than any liability of Sellers
                  arising out of or relating to a breach of any such Assumed
                  Contract that occurred prior to the Closing Date (the "Assumed
                  Liabilities").

<PAGE>

         2.3.2 Excluded Liabilities. Except for liabilities specifically assumed
under this Agreement, Purchaser does not assume any liabilities, obligations and
commitments of Sellers or its Affiliates that have been created, or have arisen,
or arise out of any event occurring prior to the Closing, all of which shall be
retained and paid, performed and discharged when due by Sellers, and Purchaser
does not assume any other liability or obligation of Sellers or its Affiliates
of whatever nature, whether presently in existence or arising hereafter
(collectively, the "Excluded Liabilities"). For greater certainty, Excluded
Liabilities shall include, without limitation:

         (a)      Any liability to the customers of the Company incurred or
                  accrued prior to the Closing Date;

         (c)      Any liability under any contract not assumed by Purchaser,
                  except for any Assumed Pre- Closing Expenses;

         (d)      Any liability under any Assumed Contract assumed by Purchaser
                  that arises after the Closing Date but that arises out of or
                  relates to any conduct that occurred prior to the Closing
                  Date;

         (d)      Any liability for taxes arising as a result of Sellers'
                  operation of the Business or the Company or the ownership of
                  the Acquired Assets prior to the Closing Date;

         (e)      Any liability arising primarily out of or relating primarily
                  to an Excluded Asset;

         (f)      Any environmental, health and safety liabilities arising out
                  of or relating to the operation of the Business of the
                  Company, incurred or accrued prior to the Closing Date;

         (g)      Any liability under any Employee Benefit Plans or liability
                  incurred prior to the Closing Date relating to payroll,
                  vacation, sick leave, workers' compensation, unemployment
                  benefits, pension benefits, employee stock option or
                  profit-sharing plans, health care plans or benefits or any
                  other employee plans or benefits of any kind for Sellers'
                  employees or former employees or both;

         (g)      Any liability arising out of any proceeding or lawsuit
                  commenced after the Closing Date due primarily to any
                  occurrence or event happening prior to the Closing Date;

<PAGE>

         (h)      Any liability arising out of or resulting from Sellers'
                  compliance or non-compliance with any legal requirement or any
                  order of any governmental authority prior to the Closing Date;
                  and

         (i)      Any liability of Sellers based upon Sellers' acts, errors or
                  omissions occurring on or prior to the Closing Date.

         2.4 Consents of Third Parties.

         Notwithstanding anything in this Agreement to the contrary, this
Agreement shall not constitute an agreement to assign any asset or any claim or
right or any benefit arising under or resulting from such asset if an attempted
assignment thereof, without the consent of a third party, would constitute a
breach or other contravention of the rights of such third party, would be
ineffective with respect to any party to an agreement concerning such asset, or
would in any way adversely affect the rights of Sellers or, upon transfer,
Purchaser under such asset. If any transfer or assignment by Sellers to, or any
assumption by Purchaser of, any interest in, or liability, obligation or
commitment under, any asset requires the consent of a third party, including,
but not limited to FINRA, then such assignment or assumption shall be made
subject to such consent being obtained. To the extent any Assumed Contract may
not be assigned to Purchaser by reason of the absence of any such consent,
Purchaser shall not be required to assume any Assumed Liabilities arising under
such Assumed Contract. If any such consent is not obtained prior to the Closing,
Sellers and Purchaser shall cooperate in any lawful and reasonable arrangement
reasonably proposed by Purchaser under which Purchaser shall obtain the economic
claims, rights and benefits under the asset, claim or right with respect to
which the consent has not been obtained in accordance with this Agreement
(offset by any related Liabilities which otherwise would have been assumed).
Such arrangement may include (i) the subcontracting, sublicensing or subleasing
to Purchaser of any and all rights of Sellers against the other party to such
third-party agreement arising out of a breach or cancellation thereof by the
other party, and (ii) the enforcement by Sellers of such rights.

                                   ARTICLE III
                                 Purchase Price
                                 --------------

         3. Purchase Price. The purchase price ("Purchase Price") to be paid by
Purchaser for the Membership Interests and the Business is Eighty-Seven Thousand
Seven Hundred and Fifty Dollars ($87,750.00). The Purchaser shall tender payment
of the Purchase Price in acceptable funds at the Closing, as defined below.

<PAGE>

                                   ARTICLE IV
                              Conditions to Closing
                              ---------------------

         4. Conditions to Closing. The obligations of Purchaser to close
hereunder are subject, at the option of Purchaser, to the following conditions:

         4.1 FINRA's approval or the expiration of the thirty (30) day notice
period required by FINRA Rule 1017(c) (1) concerning the sale and transfer of
Sellers' Membership Interests in the Company to the Purchaser;

         4.2 All of the terms, covenants, conditions and deliveries to be
complied with or performed by Sellers under this Agreement on or before the
Closing shall have been complied with or performed in all material respects;

         4.3 All representations or warranties of Sellers set forth herein are
true in all material respects as of the Closing Date; and

         4.4 On the Closing Date, there shall be no liens or Encumbrances
against the Company, the Membership Interests and/or the Business, except as may
be specifically provided for herein.

                                    ARTICLE V
                                   The Closing
                                   -----------

         5. The Closing. The "Closing" means the settlement of the obligations
of Sellers and Purchaser to each other under this Agreement, including the
payment of the Purchase Price to Sellers as provided in Article 3 hereof and the
delivery of the Closing documents provided for in Article 6 hereof. The Closing
shall be held at the offices of the Purchaser, at a mutually agreeable time,
within five (5) business days of the satisfaction of all of the conditions
precedent set forth in Article IV (the "Closing Date").

                                   ARTICLE VI
                                Closing Documents
                                -----------------

         6. Closing Documents.

         6.1 At the Closing Sellers shall execute and/or deliver to Purchaser:

         6.1.1 an executed agreement assigning the Membership Interests from
Sellers to Purchaser, in the form attached hereto as Schedule 6.1.1;

         6.1.2 the Acquired Assets including the Assumed Contracts;

         6.1.3 the operating agreement or other organizational documents of the
Company;

         6.1.4 all other books and records of the Company, including all
documents and papers, customer lists and all records of the accounts of
customers used in the operation of or relating to the business of the Company;

<PAGE>

         6.1.5 an itemized list of all Assumed Pre-Closing Expenses incurred by
the Sellers, pursuant to Paragraph 2.3.1.(a), above, in operating the Company
and satisfying the conditions precedent to this Agreement since August 24, 2009;
and

         6.1.6 such other instruments in form and substance satisfactory to
Purchaser's attorney as may be necessary or proper to transfer to Purchaser good
and marketable title to all other ownership interests in the Company to be
transferred under this Agreement.

         6.2 At the Closing Purchaser shall execute and deliver to Sellers:

         6.2.1 the Purchase Price, by check or other acceptable funds, to
Sellers in the amount of $87,750.00 in acceptable funds;

         6.2.2 a check or other acceptable funds payable to Sellers in an amount
equal to the Assumed Pre-Closing Expenses in accordance with Paragraph
2.3.1.(a), above;

         6.2.3 a check for all adjustments in accordance with Article VII,
below; and

         6.2.4 such other instruments in form and substance satisfactory to
Purchaser's attorney as may be necessary or proper to transfer to Purchaser good
and marketable title to all other ownership interests in the Company to be
transferred under this Agreement.

                                   ARTICLE VII
                               Closing Adjustments
                               -------------------

         7. Closing Adjustments. The following items shall be apportioned as of
midnight of the day preceding the Closing Date:

         7.1 Purchaser shall make a payment to Sellers for in an amount equal to
all cash and cash equivalents held by the Company on the Closing Date;

         7.2 Federal, state and local taxes;

         7.3 All state broker-dealer licensing/renewal fees incurred by the
Company for calendar year 2010.

         7.4 The Company's CRD deposit;

         7.5 The Company's fidelity bond deposit; and

         7.6 Other fees relating to the Assumed Contracts.

         The parties hereto represent and agree that any errors or omissions in
computing the apportionments under this Agreement shall be corrected after the
Closing.

<PAGE>

                                  ARTICLE VIII
                    Representations and Warranties of Sellers
                    -----------------------------------------

         8. Representations and Warranties of Sellers. Sellers represent and
warrant to Purchaser as follows:

         8.1 Sellers have full power and authority to carry out and perform its
undertakings and obligations as provided herein. The execution and delivery by
Sellers of this Agreement and the consummation of the transactions contemplated
herein do not and will not conflict with or result in any breach of any
condition or provision of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance upon the Company by
reason of the provisions of any contract, lien, lease, agreement, instrument or
judgment to which Sellers are a party, or which is or purports to be binding
upon Sellers or which affects or purports to affect the Company. No further
action or approval, corporate or otherwise, is required in order to constitute
this agreement the binding and enforceable obligation of Sellers.

         8.2 No action, approval, consent or authorization, including without
limitation any action, approval, consent or authorization of any governmental or
quasi-governmental agency, commission, board, bureau or instrumentality, is
necessary for Sellers to constitute this agreement the binding and enforceable
obligation of Sellers or to consummate the transactions contemplated hereby.

         8.3 The Company is a limited liability company duly organized under the
laws of the State of New York, and the Company validly exists and has not been
dissolved. The copies of the documents pertaining to the organization of the
Company provided by Sellers to Purchaser are true and complete copies of said
documents. The Company has no subsidiaries and neither owns nor has a right or
obligation to acquire any equity interest (or option therefore) of any
corporation, partnership, limited liability company, business trust or other
business or entity. The Company neither participates nor has an interest in any
joint venture or collective production, sales or marketing arrangement or
agreement.

         8.4 Sellers are the owners of the Membership Interests, and the
Membership Interests are all of the issued and outstanding equity interests of
the Company. All of the Membership Interests are fully paid and non-assessable,
have not been assigned, pledged or hypothecated, and are free of all liens,
claims and encumbrances. There are no outstanding rights for subscription to any
additional interests of the Company by any person or entity. There are no unpaid
debts or liabilities to any member of the Company. At the Closing, Sellers will
transfer and convey, and Purchaser will acquire, good and marketable title to
the Membership Interests, free and clear of all liens, encumbrances, pledges,
security interests and claims whatsoever. Following the Closing, Purchaser shall
own 100% of Catalyst Financial, LLC.

         8.5 The Company is the owner of all of the Acquired Assets enumerated
in Article 2 hereof, free of all liens, claims and encumbrances, except as may
be set forth herein.

<PAGE>

         8.6 There are no violations of any law or governmental rule or
regulation pending or, to the best of Sellers' knowledge, threatened against
Sellers, the Membership Interests or the Company. Sellers and the Company have
complied with all laws and governmental rules and regulations applicable to the
business or the Acquired Assets. The Business and operations of the Company have
been conducted and are now being conducted in compliance with all applicable
laws, rules and regulations of all regulatory authorities having jurisdiction
over the Company and/or relating to business, including but not limited to the
rules and regulations of the Commission and FINRA. The Company has made all
material filings and received all material approvals relating to the licenses
and/or registrations which are necessary in order for the Company to legally and
validly conduct its business after the Closing as it is currently and has
heretofore been conducted, including but not limited to all filings required by
the Commission and FINRA.

         8.7 There are no judgments, liens, suits, actions or proceedings
pending or, to the best of Sellers' knowledge, threatened against Sellers, the
Membership Interests or the Company. Neither Sellers, the Membership Interests
nor the Company are a party to, subject to or bound by any agreement or any
judgment or decree of any court, governmental body or arbitrator which would
conflict with or be breached by the execution, delivery or performance of this
agreement, or which could prevent the carrying out of the transactions provided
for in this agreement, or which could prevent the use by Purchaser of the
Company or adversely affect the conduct of the business by Purchaser.

         8.8 Except as set forth in Schedule 8.8, the Company has not entered
into, and is not subject to, any: (i) written contract or agreement for the
employment of any employee of the business; (ii) pension, profit-sharing,
retirement, bonus, insurance, or similar plan with respect to any employee of
the business; or (iii) similar contract or agreement affecting or relating to
the Company.

         8.9 Except as provided for in this Agreement, at the time of the
Closing, the Company will not have any (secured or unsecured) creditors.

         8.10 The Assumed Contracts are in full force and effect and without any
default by the Company thereunder. All copies of the Assumed Contracts provided
by Sellers to Purchaser are true and complete copies of the original Assumed
Contracts.

         8.11 The Company has filed each tax return, including without
limitation all income, excise, property, gain, sales, franchise and license tax
returns, required to be filed by the Company prior to the date hereof. Each such
return is true, complete and correct, and the Company has paid all taxes,
assessments and charges of any governmental authority required to be paid by it
and has created reserves or made provision for all taxes accrued but not yet
payable. No government is now asserting, or to Sellers' knowledge threatening to
assert, any deficiency or assessment for additional taxes or any interest,
penalties or fines with respect to the Company.

<PAGE>

         8.12 Financial Statements. Sellers have provided Purchaser copies of
its audited financial statements for the years ended December 31, 2008, 2007 and
2006, un-audited for the nine months ended September 30, 2009, and monthly for
August 31, 2009, September 30, 2009 and October 31, 2009 (the "Financial
Statements"). The Financial Statements are true, correct and complete as of the
dates and for the periods set forth therein; have been prepared in accordance
with generally accepted accounting principles consistently applied; and fairly
represent the financial position of the Company at such dates and for such
periods. The Company had at said dates no liabilities or obligations of any
kind, contingent or otherwise, not reflected in Financial Statements. Except as
shown in the Financial Statements, the Company owns outright each asset or item
of property reflected therein, free of all liens, claims and encumbrances. Since
said dates and periods, there has been no material adverse change in the
financial condition, assets or liabilities of the Company. Except as disclosed
in the Financial Statements, the Company does not have any liability, and there
is no basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rise to any liability.

         8.13. Litigation and Arbitration.

         8.13.1 To Sellers' knowledge no claim, action, cause of action, suit,
proceeding, inquiry, investigation or Order by or before any Governmental
Authority, administrative body or arbitration or mediation panel, including the
Commission and/or FINRA, is pending or threatened against the Company. No order
of any Governmental Authority, arbitrator or mediator is outstanding against the
Company, the Membership Interests or the Business, operations or assets. Sellers
have no knowledge of any fact or circumstance which could reasonably be expected
to result in any other claim, action, cause of action, suit, proceeding,
inquiry, investigation or Order being filed against the Company.

         8.13.2 No claim, action, suit, proceeding, inquiry or investigation has
been instituted and/or threatened to be instituted against the Company or the
Business.

         8.14 Taxes

         8.14.1 The Company has (i) filed all tax returns required to be filed
by any jurisdiction to which it is subject, (ii) paid in full on a timely basis,
including any extensions, all taxes due and claimed to be due by each such
jurisdiction, subject to audit by the taxing authority of such jurisdiction,
(iii) duly collected

<PAGE>

or withheld and timely paid, including any extensions, all Taxes required to be
collected from others or deducted and withheld from any amounts paid to
employees or others, and (iv) properly completed and filed all sales tax
exemption certificates for sales where tax was not charged. Such tax returns
accurately and completely set forth all relevant items and accurately reflect
the tax liabilities for such periods. No tax deficiency or penalty has been
asserted or threatened by any such jurisdiction against the Company. No claim
has ever been made by an authority in a jurisdiction where the Company does not
file tax returns that it is or may be subject to taxation by that jurisdiction,
nor, to the knowledge of the Sellers or the Company, its counsel, its
representatives, and its tax advisers, is there any factual or legal basis for
any such claim. There is no audit of any tax return of the Company in progress.
The Company has not (i) waived any statute of limitations with respect to Tax
obligations or agreed to any extension of time with respect to a Tax assessment
or deficiency, (ii) been a party to any tax allocation or sharing agreement,
(iii) been a member of an affiliated group filing a consolidated federal income
tax return, nor taken any other action that could result in Liability for taxes
of an affiliated group under Treas. Reg. Section 1.1502-6 (or any similar
provision of state, local, or foreign law), as a transferee or successor, by
contract, or otherwise, or (iv) is currently the beneficiary of any extensions
of time within which to file any tax return.

         8.14.2 To the knowledge of the Sellers, there is no threatened action,
suit, proceeding, investigation, audit, or claim against the Company or relating
to Taxes, there are no matters under discussion with any Governmental
Authorities with respect to Taxes that could result in an additional amount of
Taxes, and no Governmental Authority has indicated that it intends to audit any
Tax Return of the Company.

         8.14.3 The earliest taxable period of the Company for which the statute
of limitations is still open is the fiscal year ended December 31, 2006 for New
York state taxes and the fiscal year ended December 31, 2006 for federal income
taxes. The Sellers have delivered to the Purchaser correct and complete copies
of all state, federal, and foreign income tax returns with respect to all
taxable periods ending on or after December 31, 2006, for which the statute of
limitations is still open.

         8.14.4 There are no liens for taxes (other than for current Taxes that
are not yet due and payable or which are being contested in good faith) upon the
assets of the Company.

         8.14.5 There are no joint ventures, partnerships, or other arrangements
or contracts to which the Company is a party and that could be treated as a
partnership for federal income tax purposes.

<PAGE>

         8.15. Contracts. All of the Assumed Contracts, whether written or oral,
express or implied or having any other legally binding basis, have been provided
to Purchaser. To Sellers' knowledge all such contracts are legal, valid and
binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, and are in full force and effect to the
knowledge of Sellers. Neither the Company nor any other party to any such
contract is in material breach or default of its obligations thereunder, and
there exists no event or condition (including the transactions contemplated by
this Agreement) which has resulted or would result in a material breach or
default thereunder upon the giving of notice, the passage of time or both.

         8.16. Insurance. Neither Sellers nor the Company currently maintains
any insurance policies (including, without limitation, all life insurance,
health insurance, death benefit and similar policies) for the benefit of the
Company or with respect to the Business conducted by the Company. To Sellers
knowledge there are no claims pending or threatened against the Company.

         8.17 Labor Matters; Employees.

         8.17.1 The Company is in compliance in all material respects with all
federal, state and local laws respecting employment and employment practices
(including, but not limited to Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act and the Family and Medical Leave Act), terms and
conditions of employment, wages and hours, and nondiscrimination in employment.
The Company has not been charged by The National Labor Relations Board in any
unfair labor practice. No present or former employee of the Company has filed
within the applicable limitations periods or threatened any claim against the
Company under any Law, employment agreement or otherwise, for any reason,
including (i) wages or salary for any period other than the current payroll
period, (ii) any violation of any Law relating to minimum wages or maximum hours
of work, or (iii) any violation of any law relating to age, race, gender, or
national origin discrimination.

         8.17.2 Except as set forth on Schedule 8.8, the Company is not a party
to, or subject to any obligation, liability or commitment with respect to, any
written or oral employment, compensation, consulting, collective bargaining,
severance pay or similar agreement. Schedule 8.8 sets forth a payroll list as of
the most recent available date, showing as of such date each employee of the
Company and his or her social security number, annual salary and date of hire.

         8.17.3 Sellers have no knowledge of any employee who intends to
terminate his or her employment with the Company prior to or following the
Closing.

         8.18 Disclosure. No representation or warranty by Sellers in this
Agreement and no statement by Sellers in any of the other documents or
agreements or previously disclosed to Purchaser contains any untrue statement of
a material fact or omits to state any material fact necessary in order to make
the statements made herein or therein, in light of the circumstances under which
they were made, not misleading.

<PAGE>

                                   ARTICLE IX
                   Representations and Warranties of Purchaser
                   -------------------------------------------

         9. Representations and Warranties of Purchaser. Purchaser represents
and warrants to Sellers as follows:

         9.1 Purchaser has full power and authority to carry out and perform its
undertakings and obligations as provided herein.

         9.2 No action, approval, consent or authorization, including without
limitation any action, approval, consent or authorization of any governmental or
quasi-governmental agency, commission, board, bureau or instrumentality, is
necessary for Purchaser to constitute this agreement the binding and enforceable
obligation of Purchaser or to consummate the transactions contemplated hereby.

         9.3 No representation or warranty by Purchaser in this Agreement and no
statement by Purchaser in any of the other documents or agreements or previously
disclosed to Sellers contains any untrue statement of a material fact or omits
to state any material fact necessary in order to make the statements made herein
or therein, in light of the circumstances under which they were made, not
misleading.

                                    ARTICLE X
          Additional Covenants and Warranties of Sellers and Purchaser
          ------------------------------------------------------------

         10. Additional Covenants and Warranties of Sellers and Purchaser:

         10.1 Restrictive Covenants. This Agreement does not impose any
restrictive covenants upon the Sellers.

         10.2 Further Assurances; Cooperation. The parties shall from time to
time after the Closing, upon the request of any other party and without further
consideration, execute, acknowledge and deliver in proper form any further
instruments or documents, and take such further actions as such other party may
reasonably require, to carry out effectively the intent of this Agreement and
the other documents and agreements contemplated herein.

         10.3 Cooperation on Tax Matters. Purchaser, the Company and Sellers
shall cooperate fully, as and to the extent reasonably requested by the other
party, in connection with the filing of Tax Returns pursuant to this Paragraph
and any audit, litigation or other proceeding with respect to Taxes. No party
shall file any Tax Return which is inconsistent with the express provisions of
this Agreement. All Tax Returns relating to federal or state income or franchise
taxes filed after the Closing affecting Sellers or the Company prior to the
Closing shall be submitted to the Sellers for review at least seven (7) days
prior to filing and Purchaser shall provide Sellers with reasonable access to
all of the Company's books and records with respect thereto. Purchaser

<PAGE>

and Sellers further agree, upon request, to use their best efforts to obtain any
certificate or other document from any Governmental Authority or any other
Person as may be necessary to mitigate, reduce or eliminate any Tax that could
be imposed (including, but not limited to, with respect to the transactions
contemplated hereby). Sellers further agree, upon request, to provide Purchaser
with all information that is in Sellers' possession and that Purchaser may be
required to report pursuant to Paragraph 6043 of the Code and all Treasury
Regulations promulgated thereunder.

         10.4 Right of Access and Copies. Purchaser shall make all of the
Company's corporate books and records available to Sellers for inspection and
copying for all periods prior to Closing for as long as any representations and
warranties survive.

         10.5 Conduct of the Business. Sellers, until the Closing, shall:

         10.5.1 conduct the Business in the normal, useful and regular manner,
including the hiring of at least two employees, to serve as investment bankers,
and obtaining all regulatory approvals necessary for the consummation of the
transactions contemplated by this Agreement;

         10.5.2 preserve the Business and the goodwill of the Company and others
having relations with Sellers; and

         10.5.3 give Purchaser and its duly designated representatives
reasonable access to the premises of the Company and the books and records of
the Company, and furnish to Purchaser such data and information pertaining to
the Company as Purchaser from time to time reasonably may request.

         10.6 Transfer of Ongoing Business. It is the agreement and
understanding of the parties that the Company is being sold to Purchaser as an
ongoing business. Sellers shall endeavor to cause the operations of the Company
to continue be conducted, from the date of this Agreement until the Closing, in
substantially the same fashion as such operations have been conducted during the
preceding year, except that the it is anticipated that the Company will hire at
least 2 employees to pursue investment banking opportunities and the Sellers
shall endeavor to obtain all required approvals to transfer and convey the
Business to the Purchaser.

                                   ARTICLE XI
                 Sellers' Representations Regarding the Business
                 -----------------------------------------------

         11. In connection with the sale of the Membership Interests and the
transfer of the Business to the Purchaser the Sellers represent and warrant to
the Purchaser as follows:

         11.1 The Company is a securities broker-dealer duly registered with the
Commission and registered in the jurisdictions set forth in Schedule 11.1
attached hereto to conduct business as a securities broker-dealer (the "BD
License"). All documents filed by the Company with the Commission, FINRA or any
State in connection with to the BD License are accurate and complete.

         11.2 The Company is a member in good standing with FINRA (the "FINRA
Membership"). All documents filed by the Company with the Commission or FINRA in
connection with to the FINRA Membership are accurate and complete.

         11.3 In connection with the Sellers' sale and transfer of the
Membership Interests and the Business to the Purchaser, the Sellers shall convey
and transfer all of its rights, benefits and interest in the BD License and
FINRA Membership to the Purchaser. The Sellers do not make any representations,
guarantees, warranties or promises, written or implied, as to any registered
representatives that may or may not maintain their professional registration
with the Company before during or after the sale. Nor do Sellers make any
representations, guarantees, warranties or promises, written or implied, as to
any customer accounts that may or may not maintain their accounts with the
Company before during or after the sale.

         11.4 Sellers shall use their best efforts to obtain FINRA's approval of
the transactions contemplated by this Agreement, including Sellers' sale of the
Company and Business to Purchaser and the transfer of the BD License and FINRA
Membership to the Purchaser.

                                   ARTICLE XII
                                 Indemnification
                                 ---------------

         12.1 Indemnification by Sellers.

         12.1.1 General Indemnification. Sellers shall defend, indemnify, and
hold harmless Purchaser from, against and in respect of, any and all costs,
losses, claims, liabilities, fines, penalties, damages and expenses (whether or
not caused by negligence, including, without limitation, interest which may be
imposed in connection therewith, and court costs and reasonable fees and
disbursements of counsel) ("Damages") resulting from, arising out of or incurred
by Purchaser in connection with a claim by any party relating to: (i) any
Excluded Liabilities, (ii) any breach of the representations and warranties made
by Sellers in this Agreement, (iii) any failure or default by Sellers with
respect to the covenants or agreements made by Sellers in this Agreement and/or
any exhibits or schedules attached hereto, (iv) any claim against Purchaser or
the Company which is based upon or related to incidents and occurrences arising
out of the operation of the Business or the Company prior to the Closing Date or
(v) enforcement of this Paragraph.

         12.1.2 Sellers' Indemnification Of Purchaser Relative To Customer
Complaints, Arbitrations And Other Legal Claims Relative To Customer Accounts
Prior To The Closing. Sellers shall defend, indemnify, and hold harmless
Purchaser from, against and in respect of, any and all Damages resulting from,
arising out of or incurred by Purchaser in connection with a claim by any a
customer or client of the Company accruing prior to the Closing Date.

<PAGE>

         12.2 Indemnification by Purchaser.

         12.2.1 General Indemnification. Indemnification by Purchaser. Purchaser
shall defend, indemnify, and hold harmless Sellers from, against and in respect
of, any and all Damages resulting from, arising out of or incurred by Sellers in
connection with (i) any failure by Purchaser to timely pay, perform and
discharge the Assumed Liabilities, (ii) any breach of the representations and
warranties made by Purchaser in this Agreement, (iii) any failure or default by
Purchaser with respect to the covenants or agreements made by Purchaser in this
Agreement and/or any exhibits or schedules attached hereto, (iv) any claim
against Sellers which is based upon or related to incidents and occurrences
arising out of the operation of the Business or the Company after the Closing
Date, or (v) enforcement of this Paragraph.

         12.2.2 Purchaser's Indemnification Of Sellers Relative To Customer
Complaints, Arbitrations And Other Legal Claims Relative To Customer Accounts
After The Closing. Purchaser shall defend, indemnify, and hold harmless Sellers
from, against and in respect of, any and all Damages resulting from, arising out
of or incurred by Sellers in connection with a claim by any a customer or client
of the Company accruing after the Closing Date.

         12.3 Claims for Indemnification. If Purchaser or Sellers intend to seek
indemnity with respect to such claim under this Paragraph, such party must
promptly notify the other party ("Notified Party") of such claim. After receipt
of notice, the Notified Party shall undertake, at its sole expense, through
counsel of its choosing or its insurer the settlement or defense of the claim
(subject to the consent of the other party, such consent not to be unreasonably
withheld or delayed), and the other party shall reasonably cooperate in
connection with such efforts. The Notified Party shall permit the initial party
to participate in such settlement or defense through counsel of its choosing at
its sole expense. If the Notified Party does not promptly notify the initial
party that it elects to undertake the defense of a claim, the initial party
shall have the right to contest, settle, or compromise the claim in the exercise
of its exclusive discretion, but exercising reasonable business judgment, at the
expense of the Notified Party.

                                  ARTICLE XIII
                            Miscellaneous Provisions
                            ------------------------

         13.1 Survival. The representations, warranties and covenants contained
herein or in any document, instrument, certificate or schedule furnished in
connection herewith shall survive the delivery of the Closing and shall continue
in full force and effect after the Closing, except to the extent waived in
writing.

<PAGE>

         13.2 Use of Pronouns. The use of the neuter singular pronoun to refer
to the Parties described in this Agreement shall be deemed a proper reference
even though the Parties may be an individual, a partnership, a corporation, a
LLC, or group of two or more individuals, partnerships, corporations or LLCs.
The necessary grammatical changes required to make the provisions of this
Agreement apply in the plural sense where there is more then one party to this
Agreement, and to either corporations, LLCs, partnerships or individuals, males
or females, shall in all instances be assumed as though in each case fully
expressed.

         13.3. Governing Law. This Agreement shall be subject to and governed by
the laws of the State of Florida applicable to agreements made and performed
entirely therein. Any and all obligations or payments are due and payable in
Boca Raton, Florida.

         13.4 Severability. If any provision of this Agreement should, for any
reason, be held in violation of any applicable law, and so much of this
Agreement be held unenforceable, then the invalidity of such a specific
provision in this Agreement shall not be held to invalidate any other provisions
in this Agreement, which other provisions shall remain in full force and effect
unless removal of the invalid provisions destroys the legitimate purposes of
this Agreement, in which event this Agreement shall be canceled.

         13.5 Notices. All notices, demands and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been properly given if delivered by hand or by Federal Express courier or by
registered or certified mail, return receipt requested, with postage prepaid,
and addressed as follows:

         Sellers' Address:                  Steven N. Bronson
                                            1 North Federal Highway, Suite 201
                                            Boca Raton, Florida  33432

         Purchaser's Address:               BKF Capital Group, Inc.
                                            1 North Federal Highway, Suite 201
                                            Boca Raton, Florida  33432
                                            Attn: Leonard Hagan, Director

                  A party may change the address for notice by giving of such
         change to the other party in writing.

         13.6 Brokerage. The parties hereto represent and warrant to each other
that they have not dealt with any broker or finder in connection with this
Agreement or the transactions contemplated hereby, and no broker or any other
person is entitled to receive any brokerage commission, finder's fee or similar
compensation in connection with this Agreement or the transactions contemplated
hereby.

<PAGE>

         13.7 Further Assurances. In connection with the transactions
contemplated by this Agreement, the parties agree to execute and deliver such
further instruments, and to take such further actions, as may be reasonably
necessary or proper to effectuate and carry out the transactions contemplated in
this Agreement.

         13.8 Changes Must Be In Writing. No delay or omission by either Sellers
or Purchaser in exercising any right shall operate as a waiver of such right or
any other right. This Agreement may not be altered, amended, changed, modified,
waived or terminated in any respect or particular unless the same shall be in
writing signed by the party to be bound. No waiver by any party of any breach
hereunder shall be deemed a waiver of any other or subsequent breach.

         13.9 Captions and Schedules. The captions in this agreement are for
convenience only and are not to be considered in construing this Agreement. All
schedules attached hereto and referred to herein are an integral part of this
Agreement and are hereby incorporated herein by reference and expressly made a
part of this Agreement.

         13.10 Counterparts. This Agreement may be executed in any number of
counterparts and any Party hereto may execute any such counterpart, each of
which when executed and delivered shall be deemed to be an original and all of
which counterparts taken together shall constitute but one and the same
instrument. This Agreement shall become binding when one or more counterparts
taken together shall have been executed and delivered (which deliveries may be
by facsimile or email) by the Parties.

         13.11 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

         13.12 Entire Agreement. This Agreement represents the entire
understanding of the Parties hereto. There are no oral agreements,
understandings, or representations made by any party to this Agreement that are
outside of this Agreement and are not expressly stated in it.

                                   ARTICLE XIV
                                   Definitions
                                   -----------

         14. For purposes of this Agreement, the following terms shall have the
meanings set forth below (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

         "Acquired Assets" shall have the meaning set forth in Paragraph 2.1.

<PAGE>

         "Assumed Contracts" shall have the meaning set forth in Paragraph 2.1.1

         "Business" shall have the meaning provided in the recitals to this
Agreement.

         "Closing" shall mean the consummation of the transactions contemplated
by this Agreement.

         "Closing Date" shall have the meaning set forth in Paragraph 5.

         "Code" shall mean United States Internal Revenue Code, as amended.

         "Company" shall mean Catalyst Financial, LLC, a New York limited
liability company

         "Encumbrance" shall mean any lien, encumbrance, proxy, voting trust
arrangement, dower rights, pledge, security interest, collateral security
agreement, financing statement (and similar notices) filed with any Governmental
Authority, claim (including any claim as defined in the Code), charge, equities,
mortgage, pledge, burden, occupancy agreement, encroachment, objection, title
defect, option, easement, condition, reservation, covenant, restrictive
covenant, servitude, right-of-way, restriction on transfer of any nature
whatsoever and, for leased property or assets, lien or interest of the lessor or
of any mortgagee of the lessor arising by operation of law or pursuant to the
terms of the lease.

         "Excluded Asset" shall have the meaning set forth in Paragraph 2.2.

         "Governmental Authority" shall mean any government authority or
political subdivision thereof, whether federal, state, local or foreign, or any
agency, department, commission, board, bureau, court, tribunal, body,
administrative or regulatory authority or instrumentality of any such government
or political subdivision, including but not limited to the Commission and FINRA.

         "Law" shall mean any law (including common law), rule, regulation,
restriction (including building or zoning code), code, statute, ordinance,
order, writ, injunction, judgment, decree or other requirement of a Governmental
Authority.

         "Liability" shall mean any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated and whether due or to become due),
including any liability for Taxes.

<PAGE>

         "Losses" shall mean and include all demands, claims, actions, causes of
action, assessments, damages, losses, liabilities, judgments, settlements,
fines, penalties, sanctions, costs and expenses (whether absolute, accrued,
conditional or otherwise), including, without limitation, interest, penalties,
out-of-pocket expenses and reasonable attorneys' fees as incurred, and all other
reasonable costs of investigating and defending third-party claims as incurred.

         "Purchaser" shall mean BKF Capital Group, Inc., a Delaware corporation.

         "Order" shall mean any order, judgment, injunction, award, decree,
writ, rule or similar action of any Governmental Authority.

         "Sellers" shall mean Steven N. Bronson and Kimberly Bronson.

         "Tax" or "Taxes" shall mean any federal, state, local or foreign
income, gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental (including taxes under Code
Section 59A), customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value-added, alternative or add-on
minimum, estimated or other tax of any kind whatsoever, including any interest,
penalty or addition thereto, whether disputed or not.

         "Tax Return" shall mean any return, declaration, report, claim for
refund or information return or statement relating to Taxes, including any
schedule or attachment thereto and any amendment thereof.

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

                                                       STEVEN N. BRONSON

                                                  By: ________________________

                                                       KIMBERLY BRONSON

                                                  By: ________________________

                                                       BKF CAPITAL GROUP, INC.

                                                  By: ________________________
                                                        Leonard Hagan,
                                                        A duly authorized
                                                        representative

<PAGE>

                              DISCLOSURE SCHEDULES

            To The Purchase Agreement between BKF Capital Group, Inc.
       and Steven N. Bronson and Kimberly Bronson, dated September , 2009
       ------------------------------------------------------------------

Schedule 2.3.1 (a)         Description of Assumed Pre-Closing Expenses

Schedule 6.1.1             Form of Assignment Agreement between Sellers and
                           Purchaser

Schedule 8.8               Employees and Compensation Liabilities

Schedule 11.1              Jurisdictions in which Catalyst Financial, LLC is
                           registered as a securities broker-dealer

<PAGE>

                               Schedule 2.3.1 (a)

                   Description of Assumed Pre-Closing Expenses

1.       Cash compensation paid to Paul Appelbaum.

2.       Cash compensation paid to Joseph Smith.

3.       Cash compensation paid to Elliot Hagan.

4.       All business expenses, including travel and entertainment, incurred by
         Steven N. Bronson, E. Steven zum Tobel, Paul Applebaum and Joseph
         Smith.

5.       All expenses, including professional fees, incurred by Catalyst
         Financial LLC in connection with satisfying the conditions precedent
         contained in the Agreement, including but not limited to complying with
         FINRA Rule 1017.

<PAGE>

                                 Schedule 6.1.1

           Form of Assignment Agreement between Sellers and Purchaser

                              ASSIGNMENT AGREEMENT

         This ASSIGNMENT AGREEMENT, entered into on June 30, 2009, between
Steven N. Bronson and Kimberly Bronson, individuals having an address at 1 North
Federal Highway, Suite 2A, Boca Raton, Florida 33432 ("Assignors"), BKF Capital
Group, Inc., a Delaware corporation having an address at 1 North Federal
Highway, Suite 2A, Boca Raton, Florida 33432 ("Assignee") and Catalyst
Financial, LLC (the "Company"), a New York limited liability company having an
address at 1 North Federal Highway, Suite 2A, Boca Raton, Florida 33432.

                                    RECITALS:

         WHEREAS, the Company is engaged in business as a securities
broker-dealer and is duly registered with the United States Securities and
Exchange Commission and a member in good standing of the Financial Industry
Regulatory Authority.

         WHEREAS, Assignors' are the owners of 100% of the membership interests
("Membership Interests") of the Company.

         WHEREAS, Assignors desire to assign, sell, transfer and convey her
right, title and interest in the Membership Interests to Assignee; and the
Assignee desires to accept, acquire and assume the Membership Interests, upon
the terms and conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the covenants and agreements
hereafter set forth, and other valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the parties hereto agree as
follows:

         1. Assignor's Representation. Assignor represents and warrants that
they are the owners of the Membership Interests and that there are no liens,
claims, judgments or encumbrances on the Membership Interests, and that
Assignors have the power and authority to sell, convey, assign and transfer the
Membership Interests to Assignee.

<PAGE>

         2. Assignment of the Assignor's Interest. Assignors do hereby
irrevocably assign, convey, grant, transfer and deliver to Assignee, its
successors and assigns, forever, all of Assignor's right, title and interest in
and to the Membership Interests. The Assignors, the Company and the Assignee
acknowledge and agree that upon the execution and delivery of the Agreement, the
Assignee will own the Membership Interests, representing 100% of the equity
interests in the Company, and that the books and records of the Company shall
reflect the Assignee's ownership of a 100 % of the membership interests in the
Company.

         3. Acceptance and Assumption. Assignee does hereby accept such
assignment, conveyance, grant, transfer and delivery and hereby assumes and
agrees to pay, perform and discharge, all of Assignors' rights and obligations
relating to the Membership Interests.

         4. Consideration. The Assignors hereby acknowledges the receipt of good
and valuable consideration from Assignee in exchange for the assignment of the
Membership Interests to Assignee.

         5. Effective Time. The assignment of the Membership Interests by
Assignors, and the acceptance of such assignment by Assignee, all pursuant to
this Agreement, shall be effective on the date this Agreement is executed and
delivered.

         6. Miscellaneous Provisions.

         a.       This Agreement shall be subject to and governed by the laws of
                  the State of Florida applicable to agreements made and
                  performed entirely therein. Furthermore, both parties agree to
                  waive any and all right or claim to have any and all disputes
                  resolved through any arbitration process, regulatory or
                  otherwise, unless expressly agreed in writing by both parties.

         b.       All notices, demands and other communications required or
                  permitted to be given hereunder shall be in writing and shall
                  be deemed to have been properly given if delivered by hand or
                  by Federal Express courier or by registered or certified mail,
                  return receipt requested, with postage prepaid, to the parties
                  at the addresses set forth above.

         c.       In connection with the transactions contemplated by this
                  agreement, the parties agree to execute and deliver such
                  further instruments, and to take such further actions, as may
                  be reasonably necessary or proper to effectuate and carry out
                  the transactions contemplated in this agreement.

         d.       This Agreement may be executed in any number of counterparts
                  and any Party hereto may execute any such counterpart, each of
                  which when executed and delivered shall be deemed to be an
                  original and all of which counterparts taken together shall
                  constitute but one and the same instrument. This Agreement
                  shall become binding when one or more counterparts taken
                  together shall have been executed and delivered (which
                  deliveries may be by telephonic facsimile) by the Parties.

         e.       This agreement shall be binding upon and inure to the benefit
                  of the parties hereto and their respective heirs, executors,
                  administrators, successors and assigns.

<PAGE>

         f.       This Agreement represents the entire understanding of the
                  Parties hereto. There are no oral agreements, understandings,
                  or representations made by any party to this Agreement that
                  are outside of this Agreement and are not expressly stated in
                  it.

         IN WITNESS WHEREOF, the parties have executed this agreement the date
first above written.

                                       ASSIGNORS

                                       STEVEN N. BRONSON

                                       ---------------------------
                                       Steven N. Bronson

                                       KIMBERLY BRONSON

                                       ---------------------------
                                       Kimberly Bronson

                                       ASSIGNEE

                                       BKF CAPITAL GROUP, INC.

                                       By:
                                           -----------------------
                                           Leonard Hagan
                                           An Authorized Representative
Acknowledged by:

CATALYST FINANCIAL, LLC

By:
    ----------------------------
    Steven N. Bronson, President

<PAGE>

                                  Schedule 8.8

                     Employees and Compensation Liabilities

         1.     Offer Letter, dated August 17, 2009 to Paul Applebaum.

         2.     Offer Letter, dated August 18, 2009 to Joseph Smith.

         3.     Offer Letter, dated October 26, 2009 for Elliot Hagan

         4.     Offer Letter, dated November 16, 2009 for E. Steven zum Tobel

         5.     Catalyst Financial, LLC Investment Banking Compensation Program

<PAGE>

                                  Schedule 11.1

           Jurisdictions in which Catalyst Financial LLC is registered
                         as a securities broker-dealer.

<PAGE>

Alabama                                     Nevada

Alaska                                      New Hampshire

Arizona                                     New Jersey

Arkansas                                    New Mexico

California                                  New York

Colorado                                    North Carolina

Connecticut                                 North Dakota

Delaware                                    Ohio

District of Columbia                        Oklahoma

Florida                                     Oregon

Georgia                                     Pennsylvania

Hawaii                                      Rhode Island

Idaho                                       South Carolina

Illinois                                    South Dakota

Indiana                                     Texas

Iowa                                        Utah

Kansas                                      Vermont

Kentucky                                    Virginia

Louisiana                                   Washington

Maine                                       West Virginia

Maryland                                    Wisconsin

Massachusetts                               Wyoming

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraskaexhibit1.htm

    AGREEMENT
AND PLAN OF MERGER

     

    This
AGREEMENT AND PLAN OF MERGER, dated as of December 4, 2009 (this “Agreement”), is by
and among (a) ERI/PRESIDENTIAL LLC, a Massachusetts limited liability company
(the “Parent”),
(b) ERI/PRESIDENTIAL MERGER SUB LIMITED PARTNERSHIP, a Maryland limited
partnership (“Merger Sub”), (c)
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP, organized under the laws of the
State of Maryland (the “Partnership”), and
(d) WINTHROP FINANCIAL CO., INC. (the “Managing General Partner”), as the
managing general partner of the Partnership.

     

    WHEREAS, the parties to this
Agreement have agreed to consummate the business combination and other
transactions provided for herein, which each of the parties hereto deems to be
advisable and in the best interests of their respective partners or
stockholders, as the case may be;

     

    WHEREAS, §10-208 of the
Maryland Revised Uniform Limited Partnership Act (the “Act”) permits
Maryland limited partnerships to merge with other limited
partnerships;

     

    WHEREAS, Merger Sub and the
Partnership now desire to merge, following which the Partnership shall be the
surviving entity;

     

    NOW THEREFORE, in
consideration of the premises, and the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

     

    ARTICLE
I

     

    THE
MERGER

     

    1.01 Surviving
Entity.  In accordance with the provisions of this Agreement
and the Act, at the Effective Time (as defined below), Merger Sub shall be
merged with and into the Partnership (the “Merger”), and the
separate legal existence of Merger Sub shall cease.  The Partnership
shall be the surviving entity in the Merger and shall continue its legal
existence under the laws of the State of Maryland under the name it possesses
immediately prior to the Effective Time (i.e., Presidential Associates I Limited
Partnership).

     

    1.02 Effect of the
Merger.

     

    (a) Upon the
Effective Time, for all purposes of law, all of the rights, privileges and
powers of Merger Sub and the Partnership shall have merged, and all their
property, real, personal and mixed, and all the debts due on whatever account to
any of them, as well as all other things and other causes of action belonging to
any of them, shall be transferred to, vested in and devolve on the Partnership
as the surviving entity of the Merger, without further act or deed, and all
claims, demands, property and other interest shall be the property of the
Partnership, and the title to all real estate vested in either of Merger Sub or
the Partnership shall not revert or be in any way impaired by reason of the
Merger, but shall be vested in the Partnership.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (b) Upon the
Effective Time, all rights of creditors and all liens upon any property of
either of Merger Sub or the Partnership shall be preserved unimpaired, and all
debts, liabilities and duties of each of Merger Sub and the Partnership that
have merged shall thenceforth attach to the Partnership, and may be enforced
against it as the surviving entity to the same extent as if said debts,
liabilities and duties had been incurred or contracted by it.

     

    1.03 Additional Actions.  If,
at any time after the Effective Time, the Partnership shall consider or be
advised that any deeds, bills of sale, assignments, assurances or any other
actions or things are necessary or desirable to vest, perfect or confirm of
record or otherwise in the Partnership its right, title or interest in, to or
under any of the rights, properties or assets of Merger Sub acquired or to be
acquired by the Partnership as a result of, or in connection with, the Merger or
to otherwise carry out this Agreement, the general partners of the Partnership
shall and will be authorized to execute and deliver, in the name and on behalf
of Merger Sub and the Partnership or otherwise, all such deeds, bills of sale,
assignments and assurances and to take and do, in the name and on behalf of
Merger Sub and the Partnership or otherwise, all such other actions and things
as may be necessary or desirable to vest, perfect or confirm any and all right,
title and interest in, to and under such rights, properties or assets in the
Partnership or to otherwise carry out this Agreement.

     

    1.04 Effective Time; Conditions.  In
the event of, and as soon as is practicable after, the satisfaction or waiver of
the conditions set forth in Article VI hereof, the parties hereto will cause the
Merger to be consummated by filing, with the State Department of Assessments and
Taxation of Maryland (the “SDAT”), Articles of
Merger in substantially the form attached hereto as Exhibit A (the time
of acceptance for record of such filing by the SDAT or such later time (not to
exceed thirty (30) days thereafter) as is specified in such Articles of Merger
being the “Effective
Time”) under the Act.  Contemporaneously with the filing
referred to in this Section 1.04, a closing (the “Closing”) will be
held at 10:00 a.m. (Eastern Time) at the offices of Equity Resource Investments,
LLC, 1280 Massachusetts Ave., Cambridge, Massachusetts 02138 or at such other
time and location as the parties may establish for the purpose of confirming all
the foregoing.  The date of the Closing is referred to as the “Closing
Date.”

     

    1.05 Effect on Outstanding
Interests.

     

    (a) Partnership Interests
in Merger Sub.  By
virtue of the Merger, automatically and without any action on the part of the
holder thereof, (i) the limited partnership interest(s) in Merger Sub
outstanding immediately prior to the Effective Time shall be converted into a
number of Limited Partnership Units equal to the total number of Limited
Partnership Units outstanding at the Effective Time and (ii) general
partnership interest(s) in Merger Sub outstanding immediately prior to the
Effective Time shall be terminated.

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    (b) Partnership Interests in the
Partnership.

     

    (i) Limited Partnership
Units.  By virtue of the Merger, automatically and without any
action on the part of the holder thereof, each Limited Partnership Unit
outstanding immediately prior to the Effective Time, other than Dissenting Units
(as defined in Section 1.07 below), shall be cancelled and extinguished and be
automatically converted into, and become the right to receive, and each Eligible
Limited Partner shall be entitled to receive, subject to the requirements set
forth in Section 1.08, from Parent or Merger Sub, an amount per unit in cash
equal to the Limited Partnership Unit Amount.

     

    (ii) General Partnership Units. By virtue of
the Merger, automatically and without any action on the part of the holder
thereof, the managing general partnership interests in the Partnership and the
other remaining general partnership interests outstanding immediately prior to
the Effective Time (collectively the “General Partnership Interests”) shall
remain outstanding immediately after the Effective Time as General Partnership
Interests in the Partnership, as they existed immediately prior to the Effective
Time, and no payment shall be made with respect thereto.

     

    (iii)           Termination of
Rights.  After the Effective Time, holders of Limited
Partnership Units will cease to be, and will have no rights as, limited partners
of the Partnership, and such holders’ rights will consist only of, (A) in the
case of Limited Partnership Units other than Dissenting Units, the right to
receive the consideration provided for in this Section 1.05 in respect of such
units, and (B) in the case of Dissenting Units, the rights afforded to the
holders thereof under the applicable provisions of the
Act.  Notwithstanding anything to the contrary in this Agreement,
after the Effective Time, none of the Partnership, Parent or the Managing
General Partner shall be liable to any holders of Limited Partnership Units for
any amount properly paid to a public official pursuant to any applicable
abandoned property, escheat or similar law.

     

    (c) Dissenting Units.  The
holders of Dissenting Units, if any, shall be entitled to payment for such units
only to the extent permitted by and in accordance with the provisions of the
Act;  provided, however, that if, in
accordance with the applicable provisions of the Act, any holder of Dissenting
Units shall forfeit such right to payment of the fair value of such units, such
holder shall be bound by the terms of the Merger and such units shall thereupon
be deemed to have been converted into and to have become exchangeable for, as of
the Effective Time, the right to receive the Merger Consideration described in
Section 1.05(b)(i) hereof (and the holder of such units may be treated as an
Eligible Limited Partner hereunder).

     

    (d) Tax
Treatment.  For federal income tax purposes, the parties to
this Agreement agree to treat the Merger Consideration paid to holders of
Limited Partnership Units as consideration paid by Merger Sub and/or Parent to
purchase the Limited Partnership Units outstanding immediately prior to the
Effective Time, other

     

    
      
         

      

      
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    (e) than
Limited Partnership Units held by persons who perfect their dissenters rights
under Maryland law (and thereby hold Dissenting Units) and who do not
effectively withdraw or lose their dissenters rights.

     

    1.06 Other
Transactions.

     

    (a) Immediately
at and after the consummation of the Merger, for purposes of clarification, the
general partners of the Partnership shall continue to be the general partners of
the Partnership, and each Limited Partner after the Effective Time, including
Parent, hereby consents thereto.

     

    (b)           Promptly
after the Closing, the general partners of the Partnership shall amend and
restate the Amended and Restated Limited Partnership Agreement and Certificate
of Amendment of the Partnership that is in effect immediately prior to the
Effective Time (the “Partnership
Agreement”) to reflect, among other things, the transactions contemplated
hereby.

     

    1.07 Dissenting
Units.

     

    (a) Notwithstanding
any provision of this Agreement to the contrary, holders of Limited Partnership
Units which are entitled to dissenter’s rights in connection with the Merger
under the Act (collectively, “Dissenting Units”)
shall not be converted into or represent the right to receive the Merger
Consideration.  Such holders shall be entitled to receive in cash
payment of the fair value of such Dissenting Units held by them in accordance
with and as provided by the provisions of the Act, except that all Dissenting
Units held by holders who shall have failed to perfect or who effectively shall
have withdrawn or lost their rights to the payment of fair value for such units
under the Act shall thereupon be deemed to have been converted into and to have
become exchangeable for, as of the Effective Time, the right to receive the
Merger Consideration described in Section 1.05(b)(i), without any interest
thereon.

     

    (b) All
parties hereto shall give Parent and the Managing General Partner (i) prompt
notice of any demand for payment of fair value received by such party, the
withdrawals of any such demand, and any other instrument served pursuant to the
Act and received and (ii) the opportunity to participate in all negotiations and
proceedings with respect to demands for payment of fair value under the
Act.  No party to this Agreement shall, except with the prior written
consent of Parent, which shall not be unreasonably withheld, make any payment with
respect to any demands for payment of fair value or offer to settle or settle
any such demands; provided, however, that if
Parent withholds consent to a recommendation from the Managing General Partner
or the Partnership for payment or settlement of any such demand, then Parent
shall provide a written undertaking to indemnify and hold harmless the
Partnership and the Managing General Partner from any and all amounts,
including, but not limited to, attorneys’ fees, which may be awarded to the
holders of such Dissenting Units in respect of such Dissenting Units, to the
extent that the amount of such award is in excess of the amount which the
Managing General Partner or Partnership had proposed to pay or offer to pay to
the holder of such Dissenting Units.

     

    1.08 Payment of Merger
Consideration.

     

    (a) Promptly
after the Effective Time, Parent shall mail to each holder of Limited
Partnership Units a notice and form of letter of transmittal and instructions to
advise each Eligible Limited Partner of the effectiveness of the Merger and the
procedures for obtaining the Merger Consideration, which letter of transmittal
will include a release of all claims that such holder may have against the
Partnership, Parent (and its Affiliates) and the Managing General Partner and
the Associate General Partner (and their respective Affiliates) arising in
connection with the Partnership.  Upon the surrender to the Managing
General Partner of such letter of transmittal, duly completed and validly
executed in accordance with the instructions thereto, and such other documents
as may be required pursuant to such instructions, such holder shall receive the
Merger Consideration, without any interest thereon; and the Limited Partnership
Units, to the extent certificated, shall be cancelled.  Each of the
parties hereto (as may be appropriate under the circumstances), shall be
entitled to deduct and withhold from the consideration otherwise payable
pursuant to this Agreement such amounts as it is required to deduct and withhold
with respect to the making of such payment under the Code (including, without
limitation under Code Section 1445 or Code Section 3406), or any provision of
state, local or foreign tax law.  To the extent that amounts are so
withheld, such withheld amounts shall be treated for all purposes of this
Agreement as having been paid to such person in respect of which such deduction
and withholding was made.  If any Merger Consideration is to be paid
to a Person other than the Person in whose name a Limited Partnership Unit is
registered with the Partnership, it shall be a condition to such payment that
the Person requesting such payment shall pay to the Partnership any transfer or
other taxes required by reason of the payment of such Merger Consideration to a
Person other than that of the registered holder of such Limited Partnership
Unit, or such Person shall establish to the satisfaction of the Managing General
Partner that such tax has been paid or is not
applicable.  Notwithstanding the foregoing, no party hereto shall be
liable to a holder of units for any Merger Consideration delivered to a public
official pursuant to applicable abandoned property, escheat or similar
laws.

     

    (b) Parent
will promptly deliver the Merger Consideration to each Eligible Limited Partner
upon receipt from such Eligible Limited Partner of the appropriately completed
transmittal form.  Until a transmittal form is properly delivered, an
Eligible Limited Partner will not be entitled to payment of any Merger
Consideration.  All costs and expenses of the disbursing agent will be
paid by the Partnership [prior] [true?] to the Merger.

     

    (c) At and
after the Effective Time, there shall be no transfers on the partnership books
of the Partnership of the units which were outstanding immediately prior to the
Effective Time (other than units held by Parent or its Affiliates).

     

    
      
         

      

      
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    (d) The
provisions of this Section 1.08 shall also apply to Dissenting Units that lose
their status as such.

     

    ARTICLE
II

     

     

    THE SURVIVING
ENTITY

     

    2.01 Certificate of Limited
Partnership.  At the Effective Time, the Certificate of Limited
Partnership of the Partnership, as in effect immediately prior to the Effective
Time, shall continue to be the Certificate of Limited Partnership of the
Surviving Entity and the Partnership Agreement, as in effect immediately prior
to the Effective Time, shall be the Limited Partnership Agreement of the
Surviving Entity (as amended and restated as contemplated by Section
1.06(b)).

     

    2.02 Purposes of Surviving
Entity.  As of the Effective Time, the purposes of the
Surviving Entity shall be as stated in the Partnership Agreement.

     

    2.03 General
Partners.  At and after the Effective Time, the general
partners of the Partnership shall continue to be the general partners of the
Surviving Entity, subject to the terms of the Partnership Agreement as amended
and restated as contemplated by Section 1.06(b).

     

    ARTICLE
III

     

     

    REPRESENTATIONS AND
WARRANTIES OF PARENT

     

    Parent
hereby represents and warrants to the Partnership and the Managing General
Partner as follows:

     

    3.01 Organization.

     

    (a) Parent is
a limited liability company duly organized, validly existing and in good
standing under the laws of the Commonwealth of Massachusetts.  As of
the Effective Time, Equity Resource Investments, LLC will be the only member of
Parent.

     

    (b) Merger
Sub is a limited partnership, duly organized, validly existing and in good
standing under the laws of the State of Maryland.  From the date of
its formation to the Closing Date, Merger Sub will not engage in any material
activities other than in connection with, or as contemplated by, this
Agreement.  Merger Sub has been or will be formed solely for the
purpose of effectuating the Merger.  As of the Effective Time, Parent
will be the only limited partner of Merger Sub.

     

    3.02 Authority; No
Violation.

     

    (a) Parent
has all requisite power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereby.  Merger Sub has
all requisite power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby.  The execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly and validly approved by the requisite partners of Parent
and Merger Sub.  No other proceedings on the part of Parent or Merger
Sub are necessary to consummate the transactions contemplated by this
Agreement.  This Agreement has been duly and validly executed and
delivered by Parent and Merger Sub and (assuming due authorization, execution
and delivery by the Partnership and the Managing General Partner) constitutes
the valid and binding obligation of Parent and Merger Sub, enforceable against
Parent and Merger Sub in accordance with its terms, except that enforcement
hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting enforcement of creditors’ rights generally and
except that enforcement hereof may be subject to general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at
law) and the availability of equitable remedies.

     

    (b) Neither
the execution and delivery by Parent and Merger Sub of this Agreement, nor the
consummation by Parent and Merger Sub of the transactions contemplated hereby,
nor compliance by Parent and Merger Sub with any of the terms or provisions
hereof, will, assuming that the consents and approvals referred to in
Section 3.03 hereof are duly obtained, (i) violate any statute, code,
ordinance, rule, regulation, judgment, order, writ, decree or injunction
applicable to Parent or Merger Sub or any of their respective properties or
assets, or, (ii) violate, conflict with, result in a breach of any provisions
of, constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, result in the termination of,
accelerate the performance required by, or result in a right of termination or
acceleration or the creation of any lien, security interest, charge or other
encumbrance upon any of the properties or assets of Parent or Merger Sub under,
any of the terms, conditions or provisions of (x) the certificate of limited
partnership, partnership agreement or other equivalent documents of Parent or
Merger Sub, or (y) except as would not have a material adverse effect on Parent
or Merger Sub, their assets or their business, any note, bond, mortgage,
indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which Parent or Merger Sub is a party thereto, or by which Parent
or Merger Sub or any of their respective properties or assets may be bound or
affected.

     

    3.03 Consents and Approvals.  Except
for consents, waivers or approvals of, notices to or filings or registrations
with the SDAT under the Act, no consents, waivers or approvals of, notices to or
filings with any public body or authority are necessary, and no consents or
approvals of any third parties are necessary, in connection with (i) the
execution and delivery by Parent and Merger Sub of this Agreement, or (ii) the
consummation by Parent of the transactions contemplated by this Agreement,
including the Merger.

     

    3.04 Legal Proceedings.  There
is no suit, action or proceeding pending or, to the knowledge of Parent,
threatened, against Parent or Merger Sub or any other Affiliate of Parent or
challenging the validity or propriety of the transactions contemplated by this
Agreement, as to which there is a reasonable possibility of an adverse
determination and which, if adversely determined, would, individually or in the
aggregate, materially adversely affect Parent’s or Merger Sub’s ability to
perform its obligations under this Agreement.

     

    3.05 Broker’s
Fees.  Neither Parent, Merger Sub nor any of their respective
partners, officers, directors, employees or agents has employed any broker,
finder or financial advisor or incurred any liability for any fees or
commissions in connection with any of the transactions contemplated by this
Agreement.

     

    3.06 Financing.  Parent
has available to it sources of capital and financing sufficient to fulfill its
obligations under this Agreement and to consummate all of the transactions
contemplated hereby.

     

    
      
        
        

      

      
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    ARTICLE
IV

    

    REPRESENTATIONS AND
WARRANTIES OF THE PARTNERSHIP,

    AND THE MANAGING GENERAL
PARTNER

     

    Managing
General Partner and the Partnership (as to itself only) hereby represent and
warrant to Parent as follows:

     

    4.01 Organization.

     

    (a) Winthrop
Financial Co., Inc. is a corporation duly organized, validly existing and in
good standing under the laws of The Commonwealth of
Massachusetts.  The Partnership is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of
Maryland. Winthrop Financial is the sole managing general partner of the
Partnership.

     

    (b) The
Partnership has all requisite power and authority to carry on its business as it
is now being conducted.  The Partnership is duly licensed or qualified
to do business in each jurisdiction in which the nature of the business
conducted by it or the character or location of the properties and assets owned,
leased or operated by it makes such licensing or qualification necessary, except
where such failure to be licensed or qualified does not have a material adverse
effect on the Partnership or its assets or business.

     

    4.02 Partnership Interests;
Capitalization.  Schedule 4.02 attached hereto sets forth a
list of all holders of General Partnership Units and a list of the holders of
record of Limited Partnership Units on and as of December 4, 2009 (collectively,
the “Partners”), in each
case indicating the type of Partner, the percentage partnership interest in, and
number of units of the Partnership held by such holder.  The persons
listed as Partners are the only partners of the Partnership as of the date
hereof.  A true and complete copy of the Partnership Agreement has
been provided to Parent.  Except as set forth in Schedule 4.02
attached hereto, to the knowledge of Managing General Partner, no other Person,
other than the Partners, has of record, beneficially or otherwise, any ownership
interest, or right to acquire any ownership interest, whether directly or
indirectly, in the Partnership.  Except as described in Schedule 4.02
attached hereto, the Partnership does not have and is not bound by any
outstanding subscriptions, options, warrants, calls, commitments or agreements
of any character calling for the Partnership to issue, deliver or sell, or cause
to be issued, delivered or sold any partnership interest in the Partnership or
any securities convertible into, exchangeable for or representing the right to
subscribe for, purchase or otherwise receive any partnership interest in the
Partnership or obligating the Partnership to grant, extend or enter into any
such subscriptions, options, warrants, calls, commitments or
agreements.  There are no outstanding contractual obligations of the
Partnership to repurchase, redeem or otherwise acquire any partnership interest
of the Partnership.

     

    4.03 Authority; No
Violation.

     

    (a) The
Partnership and the Managing General Partner have all requisite power and
authority to enter into this Agreement and to perform its obligations hereunder
and, subject to obtaining Limited Partner Consent, to consummate the
transactions contemplated hereby.  The execution and delivery of this
Agreement by the Partnership and the Managing General Partner, the performance
by each of them of their respective obligations hereunder, and the consummation
by each of them of the transactions contemplated hereby have been duly and
validly authorized by the Managing General Partner and no other action on the
part of the Partnership or the Managing General Partner is necessary to
authorize this Agreement or to consummate the transactions contemplated hereby
(other than, with respect to the Merger, obtaining Limited Partner
Consent).  The Partnership and the Managing General Partner have
approved this Agreement and the transactions contemplated
hereby.  This Agreement has been duly and validly executed and
delivered by the Partnership and the Managing General Partner, and (assuming due
authorization, execution and delivery by Parent and Merger Sub) this Agreement
constitutes the valid and binding obligations of each such person, enforceable
against such person in accordance with its terms, except that enforcement hereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting enforcement of creditors’ rights generally and except
that enforcement hereof may be subject to general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at
law) and the availability of equitable remedies.

     

    (b) Neither
the execution and delivery of this Agreement by the Partnership or the Managing
General Partner, nor the consummation by any of them of the transactions
contemplated hereby, nor compliance by any of them with any of the terms or
provisions hereof, will, assuming that the consents and approvals referred to in
Section 4.04 are duly obtained, (i) violate any statute, code, ordinance,
rule, regulation, license, judgment, order, writ, decree or injunction
applicable to any of them or any of their respective properties or assets, or
(ii) violate, conflict with, result in a breach of any provisions of, constitute
a default (or an event which, with notice or lapse of time, or both, would
constitute a default) under, result in the termination of, accelerate the
performance required by, or result in a right of termination or acceleration or
the creation of any lien, security interest, charge or other encumbrance upon
any of the properties or assets of any of them under, any of the terms,
conditions or provisions of (x) the Partnership Agreement, certificate of
partnership or other charter document of like nature of each of them, or (y)
except as would not have a material adverse effect on any of them, their assets
or their business, any note, bond, mortgage, indenture, deed of trust, license,
lease, agreement, or other instrument or obligation to which any of them is a
party thereto, or by which they or any of their respective properties or assets
may be bound or affected.

     

    4.04 Consents and Approvals. Except for
consents, waivers or approvals of, notices to or filings or registrations with
the SDAT under the Act, no consents, waivers or approvals of, notices to or
filings with any public body or authority are necessary, and no consents or
approvals of any third parties (which term does not include the Partners) are
necessary, in connection with (i) the execution and delivery by the parties
(other than Parent or the Managing General Partner) of this Agreement or (ii)
the consummation by the parties (other than Parent or the General Partners) of
the transactions contemplated by this Agreement, including the
Merger.  The affirmative vote of holders of a majority of the Limited
Partnership Units and of holders of 100% of the General Partnership Units are
the only votes of the holders of any class or series of partnership interests of
the Partnership necessary under the terms of the Partnership Agreement and the
Act to approve this Agreement and the transactions contemplated
hereby.

     

    4.05 Broker’s Fees.  None
of the Partnership or the Managing General Partner, nor any Affiliates of any of
them, or their partners, officers, employees or agents, has employed any broker,
finder or financial advisor or incurred any liability for any fees or
commissions in connection with any of the transactions contemplated by this
Agreement.

     

    4.06 Legal Proceedings.  There
is no suit, action or proceeding pending or, to the knowledge of the Managing
General Partner, threatened, against the Partnership or the Managing General
Partner challenging the validity or propriety of the transactions contemplated
by this Agreement, as to which there is a reasonable probability of an adverse
determination and which, if adversely determined, would materially adversely
affect any such Person’s ability to perform its obligations under this
Agreement.

     

    4.07 Ownership of Real Property
and Assets.  The Partnership has good and marketable title to
all of its assets and properties, whether real or personal, tangible or
intangible.

     

    4.08 SEC
Documents.  Each of the filings made by the Partnership with
the Securities and Exchange Commission pursuant to and under the Exchange Act
(collectively, the “SEC Documents”), as
of their respective filing dates, complied in all material respects with the
requirements of the Exchange Act or the Securities Act, as applicable, and none
of the SEC Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading, as of their respective filing dates,
except to the extent such statements have been modified or superseded by later
SEC Documents filed by the Partnership.  The consolidated financial
statements contained in the Partnership’s Quarterly Reports on Form 10-QSB for
the periods ended March 31, 2009, June 30, 2009 and September 30, 2009 (the
“2009 Form
10-QSBs”) are true and correct in all material respects, and have been
prepared in accordance with GAAP consistently applied.  The balance
sheet set forth in each 2009 Form 10-QSB fairly and accurately presents the
financial condition of the Partnership as of the date thereof, and the
statements of income, partners’ equity and cash flows set forth in each 2009
Form 10-QSB fairly and accurately present the results of operations of the
Partnership for the respective periods covered thereby.

     

    4.09 Tax
Status.  None of the Partnership or Presidential Towers Ltd.,
an Illinois limited partnership is, nor has any of them
ever been, a “publicly traded partnership” within the meaning of Section 7704 of
the Code.

     

    
      
        
        

      

      
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    ARTICLE
V

     

     

    COVENANTS OF THE
PARTIES

     

    5.01 Conduct of the Partnership
and the Managing General
Partner.  During the period from the date of this Agreement to
the earlier of the Effective Time or the date of termination of this Agreement,
and except as may be required or specifically permitted pursuant to this
Agreement, the Partnership shall (and the Managing General Partner shall cause
the Partnership to):

     

    (a) conduct
its business only in the ordinary and usual course of business consistent with
past practices, which shall include without limitation (i) refraining from any
of the activities described in Section 5.01(b) below and (ii) not entering into
any transactions except in the ordinary and usual course of business consistent
with past practices, and (iii) complying with the following
covenants:

     

     

    (A)           maintaining
its partnership existence and good standing;

     

     

    (B)           using
all reasonable efforts to maintain in full force and effect insurance generally
comparable in amount and in scope of coverage to that now maintained by it;
and

     

     

    (C)           complying
with and performing in all material respects its obligations and duties (y)
under contracts, leases and documents relating to or affecting its assets,
properties and business and (z) imposed upon it by all federal, state and local
laws and all rules, regulations and orders imposed by federal, state or local
governmental authorities, judicial orders, judgments, decrees and similar
determinations;

     

    (b) except as
expressly permitted by Section 5.02 hereof, not, without the prior written
consent of Parent:

     

    (i) engage or
participate in any material transaction or incur or sustain any material
obligation or liability except in the ordinary, regular and usual course of its
business consistent with past practices; or

     

    (ii) sell,
lease, transfer, assign, encumber or otherwise dispose of or enter into any
material contract, agreement or understanding to lease, transfer, assign,
encumber or dispose of, any of the Real Property.

     

    (c) promptly
notify Parent of any emergency or other material change in the operations of the
Partnership’s assets or properties and of any governmental complaints,
investigations or hearings (or written communications indicating that the same
may be contemplated);

     

    (d) not make
any distribution of proceeds relating to a Capital Event or any other
distributions of cash or proceeds, except as required by the Partnership
Agreement prior to the Effective Time;

     

    (e) not
propose, adopt or approve any amendments to the Partnership’s Certificate of
Limited Partnership or the Partnership Agreement or other organizational
documents except to the extent that such amendment would not have an adverse
effect on the value or operation of the Partnership from and after the Effective
Time, and not to enter into any new agreement, document or arrangements or amend
or modify any existing agreement, document or arrangement that would prohibit or
restrict the performance of the transactions contemplated by this
Agreement;

     

    (f) not admit
any new partner except in connection with transfers of Limited Partnership Units
outstanding as of the date of this Agreement nor issue any new partnership units
(whether Limited Partnership Units or General Partnership Units);

     

    (g) not
grant, confer or award any options, warrants, conversion rights or other rights
not existing on the date hereof to acquire any partnership interest;
and

     

    (h) not
purchase, redeem or otherwise acquire any partnership interest.

     

    Notwithstanding
the foregoing, the Managing General Partner shall be permitted to cause the
Partnership to take any of the actions described in subclauses (b), (e), (f),
(g) or (h) of this Section 5.01 if the Managing General Partner determines in
good faith, after consultation with and receipt of advice from outside counsel,
that it is necessary to do so in order to comply with its fiduciary duties to
partners under applicable law; provided, that, prior
to taking any such actions, the Managing General Partner shall notify and
consult with Parent; provided, however, that if
Parent objects to the taking of any such actions and the Managing General
Partner causes the Partnership to take any of such actions notwithstanding such
objection, Parent shall be entitled to terminate this Agreement by delivering
written notice thereof to the Managing General Partner and the
Partnership.

     

    5.02 Limited Partner Consent.  In
consultation with Parent and Merger Sub, the Managing General Partner will cause
the Partnership to, as promptly as practicable after the date hereof, take all
steps necessary to seek, and use its reasonable efforts to obtain, the consent
of the associate general partner of the Partnership as well as the consent of
holders of Limited Partnership Units (the “Limited Partners”) holding at
least a majority of the Limited Partnership Units, in accordance with the Act,
to the Merger, the terms and provisions of this Agreement, and the transactions
contemplated hereby (the “Limited Partner
Consent”).  Parent and the Managing General Partner shall
cooperate with each other in the preparation of all documents to be delivered to
the Limited Partners in connection with seeking and obtaining the Limited
Partner Consent.  Parent and the Managing General Partner shall vote,
and shall cause its Affiliates to vote, all Limited Partnership Units and
General Partnership Units held by each of them and their Affiliates in favor of
this Agreement and the Merger.

     

    5.03 Consents.  Each
of the Partnership, the Managing General Partner, Merger Sub and Parent will
cooperate with one another and use all reasonable efforts to, as promptly as
practicable, prepare all documentation, to effect all filings and to obtain all
permits, consents, approvals and authorizations of governmental agencies and
authorities and nongovernmental third parties which are necessary or appropriate
to consummate the transactions contemplated by this Agreement, including without
limitation, the consent of any mortgage lender to the Partnership (such
nongovernmental third party approvals hereinafter referred to as, “Third Party Consents”).

     

    5.04 Proxy
Solicitor.  At the request of Parent, at any time prior to the
Closing, the Partnership shall retain a proxy solicitor (or other similar
service) chosen by Parent at Parent’s sole discretion in order to obtain the
consents and approvals required to be obtained in order to consummate the
transactions contemplated by this Agreement.  The parties hereto shall
coordinate all efforts in connection with the activities of any such proxy
solicitor.  Parent shall be responsible for the fees and expenses of
any such proxy solicitor.

     

    5.05 Further Assurances.  Subject
to the terms and conditions herein provided, each of the parties hereto agrees
to use all reasonable efforts to, as promptly as practicable, take, or cause to
be taken, all action and to do, or cause to be done, all things necessary,
proper or advisable under applicable laws and regulations to consummate and make
effective the transactions contemplated by this Agreement.  In case at
any time after the Effective Time any further action is necessary or desirable
to carry out the purposes of this Agreement, the parties hereto shall use
reasonable efforts to take all such necessary action.

     

    
      
        
        

      

      
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    ARTICLE
VI

     

     

    CLOSING
CONDITIONS

     

    6.01 Conditions to Each Party’s Obligations.  The
respective obligations of each party under this Agreement shall be subject to
the fulfillment at or prior to the Effective Time of the following conditions,
none of which may be waived:

     

    (a) Governmental Consents.  All
authorizations, consents, orders or approvals of, declarations or filings with
or notices to, and all expirations of waiting periods imposed by, any
governmental or regulatory authority or agency, which are necessary for the
consummation of the Merger, shall have been filed, occurred or been obtained
(all such authorizations, orders, declarations, approvals, filings, notices and
consents and the lapse of all such waiting periods being referred to as the
“Requisite
Regulatory
Approvals”),
and all such Requisite Regulatory Approvals shall be in full force and
effect.

     

    (b) No Injunctions or Restraints.  No
temporary restraining order, preliminary or permanent injunction or other order
issued by any court of competent jurisdiction or other legal restraint or
prohibition preventing the consummation of the Merger or the other transactions
contemplated by this Agreement shall be in effect.

     

    (c) Limited Partner
Consent.  Limited Partner Consent shall have been
obtained.

     

    (d) General Partner Consent. The consent
of all general partners shall have been obtained.

     

    6.02 Conditions to the Obligations of Parent.  The
obligations of Parent under this Agreement shall be further subject to the
satisfaction (or waiver by Parent), at or prior to the Effective Time, of the
following conditions:

     

    (a) No Change.  The
business, assets or properties of the Partnership (including the business,
assets and properties of the Local Limited Partnerships) shall not have been,
and shall not be threatened to be, adversely affected in any way as a result of
fire, explosion, earthquake, disaster, labor trouble or dispute, change in
business organization, any action by the United States or any other governmental
authority, flood, drought, embargo, riot, civil disturbance, uprising, activity
of armed forces or act of God or public enemy.  There shall not have
occurred any material adverse change in the condition, operations, business,
prospects or assets of the Partnership or imposition of any laws, rules or
regulations which would materially adversely affect the condition (financial or
otherwise), operations, business, prospects or assets of the
Partnership.

     

    (b) Representations and Warranties; Performance of Obligations.  The
obligations of the Partnership and the Managing General Partner required to be
performed by each of them at or prior to the Closing pursuant to the terms of
this Agreement shall have been duly performed and complied with in all material
respects, and the representations and warranties of the Partnership and the
Managing General Partner contained in this Agreement shall be true and correct
in all material respects as of the date of this Agreement and as of the
Effective Time as though made at and as of the Effective Time (except as
otherwise specifically contemplated by this Agreement, except as to any
representation or warranty which specifically relates to an earlier
date).

     

    (c) Certificates.  The
Managing General Partner, on behalf of itself and as the Managing General
Partner of the Partnership shall deliver a certificate, executed by an officer
or other authorized person, to the effect that the conditions set forth in this
Section 6.02 have been fulfilled, and the representations and warranties set
forth herein, are true and correct on and as of the Closing Date.

     

    (d) Third-Party Consents.  All
Third Party Consents shall have been received, obtained or made and shall be in
full force and effect.

     

    (e) Securities Law
Compliance.  Parent shall be satisfied that the Merger and the
payment of the Merger Consideration shall be conducted in material compliance
with all applicable federal and state securities laws.

     

    (f) Other
Instruments.  In addition to the foregoing, on behalf of itself
and/or the Partnership, the Managing  General Partner will furnish
Parent with such additional certificates, instruments or other documents in the
name or on behalf of the Partnership, or in its own name, including without
limitation certificates or correspondence of governmental agencies or
authorities or nongovernmental third parties, to evidence fulfillment of the
conditions set forth in this Section 6.02 as Parent may reasonably
request.

     

    6.03 Conditions to the Obligations of the Partnership and the Managing General Partner.  The
obligations of the Partnership and the Managing General Partner under this
Agreement shall be further subject to the satisfaction (or waiver by the
Managing General Partner), at or prior to the Effective Time, of the following
conditions:

     

    (a) Representations and Warranties; Performance of Obligations.  The
obligations of Parent and Merger Sub required to be performed by each at or
prior to the Closing pursuant to the terms of this Agreement shall have been
duly performed and complied with in all material respects, and the
representations and warranties of Parent and Merger Sub contained in this
Agreement shall be true and correct in all material respects as of the date of
this Agreement and as of the Effective Time as though made at and as of the
Effective Time (except as otherwise specifically contemplated by this Agreement
and except as to any representation or warranty which specifically relates to an
earlier date), and the Managing General Partner shall have received a
certificate to that effect signed by an officer of Parent and Merger
Sub.

     

    (b) Third-Party Consents.  All
Third Party Consents shall have been received, obtained or made and shall be in
full force and effect.

     

    (c) Other
Instruments.  In addition to the foregoing, Parent will furnish
the Partnership and the Managing General Partner with such additional
certificates, instruments or other documents in the name or on behalf of Parent,
executed by appropriate officers or others, including without limitation
certificates or correspondence of governmental agencies or authorities or
nongovernmental third parties, to evidence fulfillment of the conditions set
forth in this Section 6.03 as the Partnership and the Managing General Partner
may reasonably request.

     

    
      
        
        

      

      
        - 8
-

        
          

        

      

      
        
        

      

    

    ARTICLE
VII

     

     

    TERMINATION, AMENDMENT AND
WAIVER

     

    7.01 Termination.  This
Agreement may be terminated at any time prior to the Effective Time, whether
before or after approval of this Agreement and the transactions contemplated
hereby by the Limited Partners:

     

    (a) by mutual
consent of all of the parties to this Agreement in a written
instrument;

     

    (b) by either
Parent and Merger Sub, on the one hand, or the Managing General Partner and the
Partnership, on the other hand, if any governmental authority that must grant a
Requisite Regulatory Approval has denied approval of the Merger and such denial
has become final and nonappealable or any governmental authority of competent
jurisdiction shall have issued a final nonappealable order permanently enjoining
or otherwise prohibiting the consummation of the transactions contemplated by
this Agreement;

     

    (c) by either
Parent and Merger Sub, on the one hand, or the Managing General Partner and the
Partnership, on the other hand (provided that the terminating party is not then
in material breach of any representation, warranty, covenant or other agreement
contained herein), in the event of a material breach by the other party of any
representation, warranty, covenant or other agreement contained herein which
breach is not cured after thirty (30) days written notice thereof is given to
the party committing such breach;

     

    (d) by either
Parent and Merger Sub, on the one hand, or the Managing General Partner and the
Partnership, on the other hand, if the Limited Partner Consent has not been
obtained by [April 30, 2010] (provided that the failure to obtain such Limited
Partner Consent is not attributable to a breach by any party hereto, for which
the right to terminate arises under subsection (c) above) or the Effective Time
has not occurred by [April 30, 2010];

     

     (f)           by
Parent in the event it exercises its right to terminate pursuant to Section
5.01; or

     

    (g)           by
Parent in the event of a breach by the Managing General Partner (or the
Partnership) and/or their Affiliates of the covenants in Section 5.02 hereof
(except for a single inadvertent breach which has not adversely affected the
consummation of the transactions set forth in this Agreement).

     

    7.02 Effect of
Termination.  In the event of termination of this Agreement by
either Parent or the Managing General Partner, as provided in Section 7.01, this
Agreement shall forthwith become void and have no effect, and none of the
parties, or any of their respective Affiliates, shall have any liability of any
nature whatsoever hereunder, or in connection with the transactions contemplated
hereby, except
that the provisions in this Agreement that survive the termination of this
Agreement shall remain in full force and effect.  Notwithstanding any
termination of this Agreement, the provisions of this Section 7.02 shall
survive.

     

    7.03 Extension;
Waiver.  At any time prior to the Effective Time, the parties
hereto may, to the extent legally allowed, (a) extend the time for the
performance of any of the obligations or other acts of the other parties hereto,
(b) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto and (c) except for the
closing conditions set forth in Section 6.01(a), waive compliance with any of
the agreements or conditions contained herein.  Any agreement on the
part of a party hereto to any such extension or waiver shall be valid only if
set forth in a written instrument signed on behalf of such party, but such
extension or waiver or failure to insist on strict compliance with an
obligation, covenant, agreement or condition shall not operate as a waiver of,
or estoppel with respect to, any subsequent or other failure.

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

    

    ARTICLE
VIII

     

     

    MISCELLANEOUS

     

    8.01 Nonsurvival of
Representations, Warranties and Agreements. None of the representations,
warranties, covenants and agreements in this Agreement or in any instrument
delivered pursuant to this Agreement shall survive the Effective Time, except
for those covenants and agreements which by their terms apply in whole or in
part after the Effective Time.

     

    8.02 Expenses.  Except
as may otherwise be agreed to hereunder or in other writing by the parties, all
legal and other costs and expenses incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the party incurring
such costs and expenses.

     

    8.03 Notices.  All
notices or other communications hereunder shall be in writing and shall be
deemed given if delivered personally or mailed by prepaid registered or
certified mail (return receipt requested) or by telecopy, cable, telegram or
telex addressed as follows:

     

    
      	
              (a)  

            	
              If
      to Parent or Merger Sub,
      to:                           Equity
      Resource Investments, LLC

            

    

    1280
Massachusetts Ave., 4th
Fl.

    Cambridge,
MA 02138

    Attention:                  Eggert
Dagbjartsson

     

    
      	
              (b)  

            	
              If
      to the Partnership,
      to:                                      Presidential
      Associates I Limited

            

    

    Partnership

    1280
Massachusetts Ave., 4th
Fl.

    Cambridge,
MA 02138

    Attention:                  Eggert
Dagbjartsson

     

    
      	
              (c)  

            	
              If
      to the Managing General Partner,
      to:           
      Winthrop Financial Co., Inc,.

            

    

                                   
1280 Massachusetts Ave., 4th
Fl.

    Cambridge,
MA 02138

    Attention:                  Eggert
Dagbjartsson

     

    or such
other address as shall be furnished in writing by any party, and any such notice
or communication shall be deemed to have been given as of the date so
mailed.

     

    8.04 Counterparts.  This
Agreement may be executed in counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been
signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

     

    8.05 Entire
Agreement.  This Agreement (including the documents and the
instruments referred to herein) constitutes the entire agreement and amends and
restates all prior agreements and understandings, both written and oral, among
the parties with respect to the subject matter hereof.

     

    8.06 Governing
Law.  This Agreement shall be governed and construed in
accordance with the laws of the State of Maryland, without regard to any
applicable conflicts of law principles.

     

    8.07 Severability.  In
the event that any one or more provisions of this Agreement shall for any reason
be held invalid, illegal or unenforceable in any respect, by any court of
competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provisions of this Agreement and the parties shall use
their reasonable best efforts to substitute a valid, legal and enforceable
provision which, insofar as practicable, implements the original purposes and
intents of this Agreement.

     

    8.08 Assignment.  Neither
this Agreement nor any of the rights, interests or obligations shall be assigned
by any of the parties hereto (whether by operation of law or otherwise) without
the prior written consent of the other parties.  Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit of
and be enforceable by the parties and their respective successors and
assigns.

     

    8.09 Specific
Performance.  The parties hereto agree that irreparable damage
would occur in the event that the provisions contained in this Agreement were
not performed in accordance with its specific terms or was otherwise
breached.  It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions thereof in any court of the United
States or any state having jurisdiction, this being in addition to any other
remedy to which they are entitled at law or in equity.

     

    8.10 Definitions.  Except
as otherwise provided herein or as otherwise clearly required by the context,
the following terms shall have the respective meanings indicated when used in
this Agreement:

     

    “Affiliate” shall
mean, with respect to any Person, any other Person controlling, controlled by or
under common control with such Person and, with respect to Parent, any Related
Entities.  As used in this definition, “control” (including, with its
correlative meanings, “controlled by” and “under common control with”) means the
possession, directly or indirectly, of power to direct or cause the direction of
the management and policies of a Person whether through the ownership of voting
securities, by contract or otherwise.

     

    “Capital Event” shall
mean the sale, financing, refinancing, condemnation, casualty or other similar
event of or involving a Real Property or the improvements located
thereon.

     

    “Code” shall mean the
Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

     

    “Eligible Limited
Partners” shall mean all holders of record of Limited Partnership Units
immediately prior to the Effective Time, according to the books and records of
the Transfer Agent, but excluding Persons who are Affiliates of Parent and
Persons who hold Dissenting Units.

     

    “Excess Cash” shall
mean all cash and cash equivalents of the Partnership after deducting for (or
reserving against) all Liabilities and after deducting any and all cash relating
to a Capital Event.

     

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended and in effect from time to
time, and all of the rules and regulations promulgated thereunder.

     

    “GAAP” shall mean
United States generally accepted accounting principles which are consistent with
the principles promulgated or adopted by the Financial Accounting Standards
Board and its predecessors.

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

    “General Partnership
Unit(s)” shall mean units of general partnership interest in the
Partnership.

     

    “Liabilities” shall
mean all operating liabilities of the applicable Person incurred in the ordinary
course of business including, without limitation, all taxes, payroll expenses,
lease obligations, trade accounts payable arising out of the operation of such
Person’s business in the ordinary course of business, and all professional fees
and expenses payable by such Person, in each case, which are unpaid as of the
Effective Time.

     

    “Limited Partnership
Unit(s)” shall mean units of limited partnership interest in the
Partnership.

     

    “Limited Partnership Unit
Amount” shall mean the quotient obtained by dividing (a)  the
Purchase Price by (b) the aggregate number of Limited Partnership Units
outstanding immediately prior to the Effective Time (including all units held by
Parent and its Affiliates and Dissenting Units).

     

    “Merger Consideration”
shall mean the amounts or other property, if any, that any Person shall be
entitled to receive as set forth in Section 1.05.

     

    “Purchase Price” shall
mean $8,600.

     

    “Person” shall mean
any individual, corporation, partnership, limited liability company, joint
venture, association, trust, unincorporated organization or other legal entity,
or any governmental agency or political subdivision thereof.

     

    “Related Entities”
shall mean any entity for which any of Parent, the Managing General Partner or
any of their respective Affiliates serve as general partner and/or investment
advisor or in a similar capacity, and all mutual funds or other pooled
investment vehicles or entities under the control or management of any of Parent
or the general partners or the general partner or investment advisor thereof, or
any Affiliate of any of them, including the Managing General
Partner.

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended and in effect from time to time, and
all of the rules and regulations promulgated thereunder.

     

     “to the knowledge of the
General Partners” shall mean the actual knowledge, after reasonable
inquiry and investigation, of Eggert Dagbjartsson and Victor Paci.

     

    “Transfer Agent” shall
mean Phoenix Resources, the Person retained in such capacity by the
Partnership.

     

    8.12           Amendment.  Subject
to compliance with applicable law, this Agreement may be amended by the parties
hereto by an instrument in writing signed on behalf of each of the parties
hereto.

     

     

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement and Plan of
Merger to be duly executed and delivered as a sealed instrument as of the date
first above written.

     

    

     

    
      	
               
      

            	
              PARENT:

            

    

    
      	
               
      

            	
              ERI/PRESIDENTIAL
      LLC

            

    

    
      	
               
      

            	
              By:

            	
              ERF
      Manager LLC, its Manager

            

    

    
      	
               
      

            	
              By:

            	
              Equity
      Resource Investment, LLC, its Sole
Manager

            

    

    

    

    
      	
               
      

            	
              By:  

            	
              /s/ Eggert
      Dagbjartsson

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson

            

    

    
      	
               
      

            	
              Manager

            

    

    

    
      	
               
      

            	
              MERGER
      SUB:

            

    

    
      	
               
      

            	
              ERI/PRESIDENTIAL
      MERGER SUB LIMITED PARTNERSHIP

            

    

    
      	
               
      

            	
              By:

            	
              ERF
      Manager LLC, its General Partner

            

    

    
      	
               
      

            	
              By:

            	
              Equity
      Resource Investment, LLC, its Sole
Manager

            

    

    

    

    
      	
               
      

            	
              By: 

            	
              /s/ Eggert
      Dagbjartsson

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson

            

    

    
      	
               
      

            	
              Manager

            

    

    

    
      	
               
      

            	
              PARTNERSHIP:

            

    

    
      	
               
      

            	
              PRESIDENTIAL
      ASSOCIATES I LIMITED PARTNERSHIP

            

    

    
      	
               
      

            	
              By:

            	
              Winthrop
      Financial Co., Inc., its Managing General
  Partner

            

    

    

    

    
      	
               
      

            	
              By:  

            	
              /s/ Eggert
      Dagbjartsson

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson,

            

    

    
      	
               
      

            	
              President

            

    

    

    
      	
               
      

            	
              MANAGING GENERAL
      PARTNER:

            

    

    
      	
               
      

            	
              WINTHROP
      FINANCIAL CO., INC.

            

    

    

    

    
      	
               
      

            	
              By: 

            	
              /s/ Eggert
      Dagbjartsson

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson,

            

    

    
      	
               
      

            	
              President

            

    

    

    

     

    

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

    EXHIBIT A

     

    Articles
of Merger

     

    of

     

    ERI/PRESIDENTIAL
MERGER SUB LIMITED PARTNERSHIP

     

    (a
Maryland limited partnership)

     

    into

     

    PRESIDENTIAL
ASSOCIATES I LIMITED PARTNERSHIP

     

    (a
Maryland limited partnership)

     

    FIRST:  ERI/Presidential
Merger Sub Limited Partnership and Presidential Associates I Limited
Partnership, being the limited partnerships which are parties to these Articles
of Merger, hereby agree to effect a merger (the "Merger") of said limited
partnerships upon the terms and conditions set forth below.

     

    SECOND:  The name of the
limited partnership to be merged into the successor limited partnership is
ERI/Presidential Merger Sub Limited Partnership (the "Merging Partnership"),
which is a limited partnership organized in the State of Maryland under the
provisions of the Maryland Revised Uniform Limited Partnership Act.

     

    THIRD:  The name of the
successor limited partnership is Presidential Associates I Limited Partnership
(the "Surviving Partnership"), which is a limited partnership organized in the
State of Maryland under the provisions of the Maryland Uniform Limited
Partnership Act.

     

    FOURTH:  The principal office
of the Merging Partnership in the State of Maryland is located in Baltimore
City.  The Merging Partnership owns no interest in land in the State
of Maryland.

     

    FIFTH:  The principal office
of the Surviving Partnership in the State of Maryland is located in Baltimore
City.

     

    SIXTH: The percentages of partnership
interest of each class of partnership interest and the class of partners and the
respective percentage of partnership interests in each class of partnership
interest of the Surviving Partnership are as follows:

     

    General
Partnership
Interests                                                                                         1%

     

    Limited
Partnership
Interests                                                                                         99%

     

    SEVENTH:  The percentages of
partnership interest of each class of partnership interest and the class of
partners and the respective percentage of partnership interests in each class of
partnership interest of the Merging Partnership are as follows:

     

    General
Partnership
Interests                                                                                         1%

     

    Limited
Partnership
Interests                                                                                         99%

     

    EIGHTH:  At the effective
time of the Merger, the Merging Partnership shall be merged with and into the
Surviving Partnership, the separate existence of the Merging Partnership shall
cease and the Merger shall have the effects set forth in the Agreement and Plan
of Merger, dated as of November 17, 2009 (the "Merger Agreement"), by and among
ERI/Presidential LLC, a Massachusetts limited liability company ("Parent"), the
Merging Partnership, the Surviving Partnership and its managing general
partnership, and in Section 10-208 of the Maryland Revised Uniform Limited
Partnership Act.  Each limited partnership unit of the Merging
Partnership outstanding immediately prior to the effective time of the Merger
shall be automatically converted into one limited partnership unit of the
Surviving Partnership, subject to the terms of the Merger
Agreement.  Each general partnership unit of the Merging Partnership
outstanding immediately prior to the effective time of the Merger shall remain
outstanding. Each limited partnership unit of the Surviving Partnership
outstanding immediately prior to the effective time of the Merger (other than
units held by holders of limited partnership units who are entitled to
dissenters' rights) shall be cancelled and automatically converted into the
right to receive the Limited Partnership Unit Amount (as defined in the Merger
Agreement).  Each general partnership unit of the Surviving
Partnership outstanding immediately prior to the effective time of the Merger
shall remain outstanding.

     

    NINETH:  The terms and
conditions of the Merger set forth herein were approved by the Merging
Partnership in the manner and by the vote required by its partnership agreement
and the provisions of the Maryland Revised Uniform Limited Partnership Act as
follows:

     

    
      	
               
      

            	
              The
      Merger and the terms and conditions thereof were duly approved by the
      affirmative vote of the sole general partner and the affirmative vote of
      the sole limited partner.

            

    

     

    TENTH:  The Merger and the
terms and conditions thereof were approved by the Surviving Partnership in the
manner and by the vote required by its partnership agreement and the provisions
of the Maryland Revised Uniform Limited Partnership Act as follows:

     

    
      	
               
      

            	
              The
      Merger and the terms and conditions thereof were duly approved by the
      affirmative vote all of the general partners and the affirmative vote of a
      majority in interest of the limited
partners.

            

    

     

    ELEVENTH:  The undersigned
officer of the managing general partner of the Surviving Partnership and the
undersigned managing member of the sole member of the general partner of the
Merging Partnership each acknowledges these Articles of Merger to be the
partnership act of the partnership on whose behalf he has signed, and further,
as to all matters or facts required to be verified under oath, each acknowledges
that, to the best of his knowledge, information and belief, these matters and
facts relating to the partnership on whose behalf he has signed are true in all
material respects and that this statement is made under the penalties for
perjury.

     

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, these Articles of
Merger have been duly executed by the parties this ____ day of ________
__.

     

    
      	
               
      

            	
              Attest:

            

    

     

    
      	
               
      

            	
              SURVIVING
      PARTNERSHIP:

            

    

    
      	
               
      

            	
              PRESIDENTIAL
      ASSOCIATES I LIMITED PARTNERSHIP

            

    

    
      	
               
      

            	
              By:

            	
              Winthrop
      Financial Co., Inc., its Managing General
  Partner

            

    

    

    

    
      	
               
      

            	
              By:

            	
                                                                                                       
      

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson,

            

    

    
      	
               
      

            	
              President

            

    

    

    

    
      	
               
      

            	
              MERGING
      PARTNERSHIP:

            

    

    
      	
               
      

            	
              ERI/PRESIDENTIAL
      MERGER SUB LIMITED PARTNERSHIP

            

    

    
      	
               
      

            	
              By:

            	
              ERF
      Manager LLC, its General Partner

            

    

    
      	
               
      

            	
              By:

            	
              Equity
      Resource Investment, LLC, its Sole
Manager

            

    

    

    

    
      	
               
      

            	
              By: 

            	
                                                                                       
      

            	 

    

    
      	
               
      

            	
              Eggert
      Dagbjartsson

            

    

    
      	
               
      

            	
              Manager

            

    

    
      
         

      

      
        - 14
-

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