Document:

exv4w1

 

Exhibit 4.1

SXC HEALTH SOLUTIONS CORP.

AMENDED AND RESTATED STOCK OPTION PLAN

May 16, 2007

A. Purpose

     The purpose of the Stock Option Plan (the “Plan”) is to provide a means whereby the
Corporation may, through the grant of options to purchase common shares of the Corporation (“common
shares”) to officers, directors, employees and service providers of the Corporation, and of any
affiliate or subsidiary of the Corporation, motivate officers, directors, employees and other
service providers (including officers and directors who are not employees) to exert their best
efforts on behalf of the Corporation, and any affiliate or subsidiary, and closely align the
personal interests of such officers, directors, employees and service providers with those of the
shareholders. Options may be granted by the Corporation from time to time to officers, directors,
key employees and service providers or to a personal holding corporation controlled by such
optionees or to a registered retirement savings plan established by such optionees of the
Corporation, or of any affiliate or subsidiary of the Corporation, to purchase common shares (such
persons, corporations and plans shall be considered to be the class of eligible optionees
hereunder).

B. Number of Shares Available Under Plan

     Common shares to be issued upon exercise of an option granted under the Plan shall be reserved
on the date of the grant of an option for issuance upon exercise of such option.

     (1) Maximum Number. Subject to adjustment as provided in Subparagraph D(8) below, the
aggregate number of common shares which may be issued under the Plan shall not exceed 3,937,500
common shares.

     (2) Insiders. Notwithstanding anything else herein contained:

	 	(a)	 	the number of common shares which may be reserved for issuance
under the Plan and under any other employee stock option plans or other share
compensation arrangements of the Corporation to insiders (as defined in the
Securities Act (Ontario)) of the Corporation (“Insiders”), and of any affiliate
or subsidiary of the Corporation, shall not exceed 10% of the outstanding issue
(as hereinafter defined);
	 
	 	(b)	 	the number of common shares which may be issued within a
one-year period pursuant to the Plan and under any other employee stock option
plans or other share compensation arrangements of the Corporation to Insiders
of the Corporation, and of any affiliate or subsidiary of the Corporation,
shall not exceed 10% of the outstanding issue; and
	 
	 	(c)	 	the number of common shares which may be issued within a
one-year period pursuant to the Plan and under any other employee stock option
plans or other share compensation arrangements of the Corporation to any one
Insider of the Corporation, or of any affiliate or subsidiary of the
Corporation, and such Insider’s associates shall not exceed 5% of the
outstanding issue.

     For the purposes of this Subparagraph B(2)(a), “outstanding issue” means the number of common
shares outstanding on a non-diluted basis, subject to applicable adjustments as provided for in the
by-laws and rules of any stock exchange having jurisdiction. For the purposes of this Subparagraph
B(2)(b) and (c), “outstanding issue” is determined on the basis of the number of common shares that
are outstanding immediately prior to the share issuance in question, excluding common shares issued
pursuant to share compensation arrangements over the preceding one-year period. For the purposes
of this Subparagraph B(2), an entitlement granted prior to the grantee becoming an Insider may be
excluded in determining the number of shares issuable to Insiders.

     (3) Individual. The aggregate number of common shares which may be reserved for
issuance to any one person under the Plan shall not exceed the number of common shares remaining
after:

 

 

	 	(i)	 	the aggregate number of common shares reserved for issuance
under the Plan and under any other employee stock option plans or other share
compensation arrangements of the Corporation held by such person on the date of
the grant of any option;

is subtracted from

	 	(ii)	 	5% of the aggregate number of common shares issued and
outstanding (on a non-diluted basis) on the date of the grant of such option.

     (4) Independent Directors. The aggregate number of common shares which may be
reserved for issuance to all non-employee directors of the Corporation as a group shall not exceed
the lesser of (i) 10% of the aggregate number of all common shares which may then be issued
pursuant to all outstanding options (calculated as at the date of each grant of options to any
non-employee director), and (ii) 1% of the number of common shares then issued and outstanding.

     (5) Termination, Expiry, etc. If any option granted under the Plan shall terminate,
expire or, with the consent of the optionee, be cancelled as to any common shares, new options may
thereafter be granted covering such common shares, subject to applicable regulatory requirements.

C. Administration

     (1) Supervision by Board. The Plan shall be administered under the supervision of the
board of directors of the Corporation or by the compensation committee of the board of directors
which is charged with the responsibility of administering the Plan (both of which are referred to
hereinafter as the “Board”).

     (2) Powers of Board. Subject to the provisions of the Plan, the Board shall have the
power to:

	 	(a)	 	determine and designate from time to time those officers,
directors, employees and service providers of the Corporation, or of any
affiliate or subsidiary of the Corporation, to whom options are to be granted
and the number of common shares to be optioned to each such officer, director,
employee or service provider; and
	 
	 	(b)	 	determine the time or times when, and the manner in which, each
option shall be exercisable and the duration of the exercise period for each
proposed option.

     (3) Other Options and Purchase Plans. An officer, director, employee or service
provider who has been granted an option may, if the person is otherwise eligible, be granted an
additional option or options under this Plan or any other option or purchase plans of the
Corporation if the Board shall so determine.

     (4) Interpretation: Rules and Regulations. The Board may interpret the Plan,
prescribe, amend and rescind any rules and regulations necessary or appropriate for the
administration of the Plan, and make such other determinations and take such other actions as it
deems necessary or advisable. Without limiting the generality of the foregoing, the Board may, in
its discretion, treat all or any portion of any period during which an optionee is on an approved
leave of absence from the Corporation, or an affiliate or subsidiary of the Corporation, as a
period of employment of such optionee by the Corporation, or such affiliate or subsidiary, as the
case may be, for the purpose of accrual of the optionee’s rights under the optionee’s option. Any
interpretation, determination or other action made or taken by the Board shall be final, binding
and conclusive.

     (5) Tax Code Compliance. It is intended that options granted under the Plan shall not
constitute a deferral of compensation within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended (“Code”). In granting such option, the Board will use its best efforts to
exercise its authority under the Plan with respect to the terms of such option in a manner that the
Board determines in good faith will not cause the option to be subject to Section 409A of the Code
and, should the option be subject to Section 409A of the Code, to comply with Section 409A of the
Code and thereby avoid the imposition of penalty taxes and interest upon the holder of the option.

 

 

D. Terms and Conditions

     Each option granted under the Plan shall be evidenced by an agreement, in a form approved by
the Board, which shall be subject to the following express terms and conditions and to such other
terms and conditions as the Board may deem appropriate:

     (1) Option Period. Each option agreement shall specify the period for which the
option thereunder is exercisable (which in no event shall exceed five (5) years from the date of
grant) and shall provide that the option shall expire at the end of such period. Notwithstanding
the expiration date applicable to any option, if an option would otherwise expire during or
immediately after a Black-out Period, then such option shall expire 10 business days following the
expiration of the Black-out Period, provided that the period during which such option shall be
exercisable shall not be extended beyond five (5) years from the date such option is granted to the
optionee. For the purposes of this Section D(1), “Black-out Period” means the period during which
the Corporation has imposed restrictions on its Insiders and certain other persons pursuant to its
insider trading and disclosure policies.

     (3) Option Price. The option price per common share shall be determined by the Board
at the time any option is granted but in no event shall such price be lower than the Market Price
(as hereinafter defined) at the time of the grant.

“Market Price” means:

	 	(a)	 	at any time during which the common shares are listed and
posted for trading on the NASDAQ Global Market (“NASDAQ”) and the Toronto Stock
Exchange (“TSX”), the closing sale price of the common shares on NASDAQ on the
business day immediately prior to the day on which the Market Price is to be
determined, provided that such price shall not be less than the closing sale
price for board lots of common shares on TSX on the business day immediately
prior to the day on which the Market Price is to be determined, or if there is
no sale of board lots of common shares on such day, then the average of the bid
and asked prices on the TSX for the business day immediately prior to the day
on which the Market Price is to be determined, or if there are no bid and asked
prices on the TSX on such day, then the five-day weighted average of the
closing prices for board lots of common shares on TSX based on the five
business days immediately prior to the day on which the Market Price is to be
determined;
	 
	 	(b)	 	at any time during which the common shares are not listed and
posted for trading on NASDAQ, but are quoted on any other stock exchange, the
closing sale price for board lots of common shares on such exchange on the
business day immediately prior to the day on which the Market Price is to be
determined, or if there is no sale of board lots of common shares on such day,
then the average of the bid and asked prices on such exchange for the business
day immediately prior to the day on which the Market Price is to be determined,
or if there are no bid and asked prices on such exchange on such day, then the
five-day weighted average of the closing sale prices for board lots of common
shares on such exchange based on the five business days immediately prior to
the day on which the Market Price is to be determined; and
	 
	 	(c)	 	at any other time, the fair market value of the common shares,
as determined by the Board, with due regard being had to any over-the-counter
sale prices, asked and bid prices, volume quotations, value of assets and
liabilities of the Corporation, and income and prospects of the Corporation, as
the Board shall in its sole discretion determine to be relevant.

     (3) Exercise of Option. Subject to the provisions of Paragraph H below, no part of
any option may be exercised until the optionee shall have remained in the employ or as an officer
or director of or provided services to the Corporation, or of an affiliate or subsidiary of the
Corporation, for such period after the date on which the option is granted as the Board may specify
in the option agreement, provided that such period shall in any event be no less than three months.

     (4) Payment of Purchase Price Upon Exercise. The purchase price of the shares for
which an option shall be exercised shall be paid in cash or by certified cheque to the Corporation
at the time of exercise. Notwithstanding the foregoing, any optionee may elect to effect a
cashless exercise of any or all of such optionee’s right under an option. In connection with any
such cashless exercise, the optionee shall be entitled to receive,

 

 

without any cash payment (other than the taxes required to be paid in connection with the exercise which must be
paid by the optionee to the Corporation in cash at the time of exercise), such number of whole
common shares (rounded down to the nearest whole number) obtained pursuant to the following
formula:

	 	 	 	 	 	 	 	 	 
	 

	 	x
	 	=
	 	[a (b — c)]
 

b
	 	 

	 	 	 	 	 	 	 
	where
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	x
	 	=
	 	the number of whole common shares to be issued
	 
	 	 	 	 	 	 
	 

	 	a
	 	=
	 	the number of common shares under option
	 
	 	 	 	 	 	 
	 

	 	b
	 	=
	 	the market price of the common shares as at the last trading
immediately prior to the cashless exercise
	 
	 	 	 	 	 	 
	 

	 	c
	 	=
	 	the exercise price of the option

In connection with any such cashless exercise, the full number of common shares issuable (item (a)
in the formula) shall be considered to have been issued for the purposes of the reduction in the number of common shares which may be issued under the Plan.

     (5) Exercise in the Event of Death or Termination of Employment.

	 	(a)	 	If an optionee shall die (i) while an employee, officer or
director of or providing services to the Corporation, or of an affiliate or
subsidiary of the Corporation, or (ii) within 30 days after termination of the
optionee’s employment, office or directorship with or service to the
Corporation, or an affiliate or subsidiary of the Corporation, in accordance
with clause (b) or (c) below, the optionee’s option may be exercised, to the
extent that the optionee shall have been entitled to do so at the date of
death, by the person or persons to whom the optionee’s rights under the option
pass by will or applicable law, or if no such person has such right, by the
optionee’s executors or administrators at any time, or from time to time,
within 12 months from the date when the secretary of the Corporation shall have
given notice of this clause to the executors or administrators of the optionee
following the optionee’s death, but in no event later than the expiration date
specified in accordance with Subparagraph D(1) above.
	 
	 	(b)	 	If an optionee’s (or, if the optionee is a personal holding
company controlled by, or a registered retirement savings plan established by,
an officer, director, employee or service provider, then if such person’s)
employment, office or directorship with or services to the Corporation, or an
affiliate or subsidiary of the Corporation, shall terminate because of the
optionee’s permanent disability, the optionee may exercise the optionee’s
option, to the extent the optionee may be entitled to at the date of the
termination of the optionee’s employment, office, directorship or services, at
any time, or from time to time, within 6 months of the date of the termination
of the optionee’s employment, office, directorship or services, but in no event
later than the expiration date specified in accordance with Subparagraph D(1)
above.
	 
	 	(c)	 	If any optionee’s (or, if the optionee is a personal holding
company controlled by, or a registered retirement savings plan established by,
an officer, director, employee or service provider, then if such person’s)
employment, office or directorship with or services to the Corporation, or an
affiliate or subsidiary of the Corporation, shall terminate for any reason
other than the optionee’s death or permanent disability or dismissal for cause,
the optionee may exercise the optionee’s option, to the extent that the
optionee may be entitled to do so at the date of the termination of the
optionee’s employment, office, directorship or services, at any time or from
time to time, within 90 days of the date of termination of the optionee’s
employment, office, directorship or services; but in no event later than the
expiration date specified in accordance with Subparagraph D(1) above.

 

 

	 	(d)	 	If any optionee’s (or, if the optionee is a personal holding
company controlled by, or a registered retirement savings plan established by,
an officer, director, employee or service provider, then if such person’s)
employment, office, directorship with or services to the
Corporation, or an affiliate or subsidiary of the Corporation, shall be
terminated for cause, the optionee may exercise the optionee’s option, to
the extent that the optionee would be entitled to do so at the date of the
termination of his or her employment, office, directorship or services, at
any time or from time to time, within 30 days of the date of termination of
the optionee’s employment, office, directorship or services, but in no event
later than the expiration date specified in accordance with Subparagraph
D(1) above.

     (6) Non-transferability. No option granted under the Plan shall be transferable or
assignable other than by will or by the laws of descent and distribution. During the lifetime of
the optionee, an option shall be exercisable only by such optionee.

     (7) Investment Representation, Listing and Regulation.

	 	(a)	 	No common shares shall be issued under the Plan unless and
until the Plan shall have been approved by the TSX, if such approval is
required under the rules of the TSX. Options may be granted prior to such
approval, but the grant of such options shall be contingent on TSX approval of
the Plan and may not be exercised prior thereto.
	 
	 	(b)	 	Each option shall be subject to the requirement that if at any
time the Board shall determine, in its discretion, that the registration,
qualification or other approval of or in connection with the Plan or
the common shares covered thereby is necessary or desirable under any provincial, state or
federal law, then such option may not be exercised, in whole or in part, unless
and until such registration, qualification or approval shall have been obtained
free of any condition not acceptable to the Board. The optionee shall, to the
extent applicable, cooperate with the Corporation in relation thereto and shall
have no claim or cause of action against the Corporation or any of its
officers, directors or shareholders as the result of any failure by the
Corporation to take any steps to obtain any such registration, qualification or
approval.
	 
	 	(c)	 	The granting of options and the issuance of common shares under
the Plan shall be carried out in compliance with applicable statutes and with
regulations of governmental authorities and applicable stock exchanges.
	 
	 	(d)	 	Notwithstanding any other provision of the Plan, the Board may
impose such conditions on any award, and amend the Plan in any such respects,
as may be required to satisfy the requirements of Rule 16b-3, as amended (or
any successor or similar rule), under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). Any provision of the Plan to the contrary
notwithstanding, and except to the extent that the Board determines otherwise:
(i) transactions by and with respect to officers and directors of the Company
who are subject to Section 16(b) of the Exchange Act shall comply with any
applicable conditions of Rule 16b-3; and (ii) every provision of the Plan shall
be administered, interpreted, and construed to carry out the foregoing
provisions of this paragraph.

     (8) Adjustments in Event of Change of Common Shares. Subject to any required
approvals of applicable regulatory authorities and stock exchanges, in the event of any change in
the common shares by reason of any stock dividend, recapitalization, merger, consolidation,
split-up, combination or exchange of shares, or rights offering to purchase common shares at a
price substantially below fair market value, or of any similar change affecting the common shares,
the number and kind of shares which thereafter may be optioned and sold under the Plan and the
number and kind of shares subject to option in outstanding option agreements and the purchase price
per share thereof shall be appropriately adjusted consistent with such change in such manner as the
Board may deem equitable to prevent substantial dilution or enlargement of the rights granted to,
or available for, participants in the Plan.

 

 

     (9) Liquidation. In the event the Board shall adopt a plan of complete liquidation,
all options shall become immediately exercisable in full, notwithstanding that they may have been
initially granted on an instalment basis.

     (10) No Rights as Shareholder. No optionee shall have any rights as a shareholder
with respect to any common shares subject to the optionee’s option prior to the date of issuance to
such optionee of a certificate or certificates for such shares.

     (11) No Rights to Continued Employment. The Plan and any option granted under the
Plan shall not confer upon any optionee any right with respect to continuance of employment or as
an officer or director with or service provider to the Corporation, or any affiliate or subsidiary
of the Corporation, nor shall they interfere in any way with the right of the Corporation, or any
affiliate or subsidiary of the Corporation, by which an optionee is employed or of which the
optionee is a director or service provider to terminate the optionee’s employment or directorship
or services at any time in accordance with applicable law.

E. Amendment and Discontinuance

     Subject to applicable regulatory requirements and except as provided herein, the Board may, in
its sole and absolute discretion and without shareholder approval, amend, suspend, terminate or
discontinue the Plan and may amend the terms and conditions of options granted pursuant to the
Plan. Provided, however, that if the Board wishes to: (i) increase the aggregate number of common
shares reserved under the Plan, (ii) reduce the exercise price of options or cancel and re-issue
options, (iii) extend the term of an option beyond the original expiry date except in the event of
a Black-out Period, (iv) change the transferability or assignability provisions to permit a
transfer of an option other than by will, for estate planning purposes, or as ordered by a family
court having jurisdiction over the optionee, or (v) change the eligibility under the Plan for
non-employee directors or increase the limits on non-employee director participation under the
Plan, shareholder approval will be required. Notwithstanding any other provision of the Plan, no
amendment or modification shall provide for the option price of an option to be lower than the
closing sale price for board lots of common shares on TSX on the business day immediately prior to
the date of the grant of any such option.

     (1) Amendments to Plan. Without limiting the generality of the foregoing, the Board
may make the following amendments to the Plan, without obtaining shareholder approval:

	 	(a)	 	amendments to the terms and conditions of the Plan necessary to
ensure that the Plan complies with the applicable regulatory requirements,
including without limitation: (i) the rules of the TSX, NASDAQ or any national
securities exchange or system on which the stock is then listed or reported, or
by any regulatory body having jurisdiction with respect thereto, and (ii)
amendments as may be required to satisfy the requirements of Rule 16b-3, as
amended (or any successor or similar rule), under the Exchange Act;
	 
	 	(b)	 	amendments to the provisions of the Plan respecting
administration of the Plan and eligibility for participation under the Plan;
	 
	 	(d)	 	amendments to the provisions of the Plan respecting the terms
and conditions on which options may be granted pursuant to the Plan, including
the provisions relating to the option price, the option period and the vesting
schedule; and
	 
	 	(e)	 	amendments to the Plan that are of a “housekeeping” nature.

     (2) Amendment of Options Granted Pursuant to Plan. Without limiting the generality of
the foregoing and subject to shareholder approval for specified amendments as provided above, the
Board may amend the option price, the option period, the vesting schedule and the termination
provisions of options granted pursuant to the Plan, without shareholder approval.

F. Proceeds from Sales of Shares

     Any cash proceeds from the sale of shares issued upon exercise of the options shall be added
to the general funds of the Corporation.

H. Shareholder Approval

     In the event shareholder approval is required for an amendment to the Plan pursuant to Section
E, the Plan shall be presented to the Corporation’s shareholders within 12 months of its adoption
by the Board for approval by such shareholders. Options may be granted prior to such approval, but such options shall be
contingent upon such approval being obtained and may not be exercised prior to such approval.exv10wxay

 

EXHIBIT-10.A

PURCHASE AND SALE AGREEMENT

     THIS
PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of the 7th day of
May, 2007 (the “Effective Date”) relates to the sale of the interests of the sole general
partner and the limited partners of CRESCENT VILLAGE TOWNHOMES LIMITED PARTNERSHIP, an Ohio limited
partnership (“Crescent Partnership”), EAGLE RIDGE TOWNHOMES LIMITED PARTNERSHIP, an Ohio
limited partnership (“Eagle Partnership”), MEADOWBROOK APARTMENTS LIMITED PARTNERSHIP, an
Ohio limited partnership (“Meadowbrook
Partnership”), POST WOOD TOWNHOMES LIMITED
PARTNERSHIP, an Ohio limited partnership (“PW1
Partnership”), POST WOOD TOWNHOMES II
LIMITED PARTNERSHIP, an Ohio limited partnership (“PW2 Partnership”), and WILLOW BEND
TOWNHOMES LIMITED PARTNERSHIP, an Ohio limited partnership
(“Willow Partnership,” and with
the Crescent Partnership, the Eagle Partnership, the Meadowbrook Partnership, the PW1 Partnership
and the PW2 Partnership, sometimes individually referred to herein as
a “Partnership” and
collectively referred to herein as the “Partnerships”), and is entered into by and among
JOINT DEVELOPMENT & HOUSING CORPORATION, an Ohio corporation (the “GP”), the general
partner of each of the Partnerships, BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS II, A LIMITED
PARTNERSHIP, a Massachusetts limited partnership, in its capacity as the Investor Limited Partner
of the Meadowbrook Partnership and the Willow Partnership (“ITC2”), BOSTON FINANCIAL
INSTITUTIONAL TAX CREDITS III, A LIMITED PARTNERSHIP, a Massachusetts limited partnership, in its
capacity as the Investor Limited Partner of the Crescent Partnership, the Eagle Partnership and the
PW1 Partnership(“ITC3”), BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS IV, A LIMITED
PARTNERSHIP, a Massachusetts limited partnership, in its capacity as the Investor Limited Partner
of the PW2 Partnership, (“ITC4”; and with ITC2 and ITC3, sometimes collectively referred to
herein as the “ILPs”) and SLP, INC., a Massachusetts corporation, in its capacity as the
Special Limited Partner of the Partnerships (the “SLP”) (the GP, the ILPs and the SLP are
sometimes collectively referred to herein as the
“Sellers”), and ATLANTIC DEVELOPMENT GP HOLDING
CORP., a Nebraska corporation (“GP Buyer”), and AMERICA FIRST LP HOLDING CORP., a Nebraska
corporation (“LP Buyer”, and with GP Buyer, sometimes collective referred to herein as the
“Buyers”).

1. Background; Certain Defined Terms.

     (A) Background.

     (1) The Partnerships are the owner of the following apartment developments:

     (i) a 90 unit apartment development commonly known as “Crescent Village Apartments”
located at 5330 Crest Hill Drive in Cincinnati, Ohio and owned by the Crescent Partnership
(the “Crescent Village Apartments”);

     (ii) a 64 unit apartment development commonly known as “Eagle Ridge Apartments”
located at 114 Eagle Creek Drive in Erlanger, Kentucky and owned by the Eagle Partnership
(the “Eagle Ridge Apartments”);

1

 

     (iii) a 118 unit apartment development commonly known as “Meadowview Apartments”
located at 100 Meadow Trail Drive in Highland Heights, Kentucky and owned by the Meadowbrook
Partnership (the “Meadowview Apartments”);

     (iv) a 92 unit apartment development commonly known as “Post Woods Apartments” located
at 423 Post Woods Drive in Reynoldsburg, Ohio and owned by the PW1 Partnership (the
“Post Woods Apartments”);

     (v) a 88 unit apartment development commonly known as “Post Woods II Apartments”
located at 423 Post Woods Drive in Reynoldsburg, Ohio and owned by the PW2 Partnership (the
“Post Woods II Apartments”); and

     (vi) a 92 unit apartment development commonly known as “Willow Bend Apartments”
located at 1531 Whispering Willow Lane in Hilliard, Ohio and owned by the Willow Bend
Partnership (the “Willow Bend Apartments,” and with the Crescent Village
Apartments, Eagle Ridge Apartments, Meadowview Apartments, Post Woods I Apartments and Post
Woods II Apartments sometimes collectively referred to herein as the “Apartments”).

          (2) In connection with their respective ownership of the Apartments, each Partnership
respectively owns the following properties applicable to the Apartment development it owns
(individually a “Property” and collectively, the “Properties”):

     (i) the tract or tracts of land described in Schedule 1 hereto and all related
rights and appurtenances thereto (the “Land”);

     (ii) all buildings (collectively, if more than one, the “Buildings”), and all
structures, parking areas, sidewalks, landscaping and other improvements located on the
Land (collectively, the “Improvements”);

     (iii) all furniture, fixtures, equipment, machinery, building materials, supplies,
inventory and other tangible property owned by the Partnerships and located on the Land
listed in Schedule 2 hereto (collectively, the “Personalty”);

     (iv) all right, title, interest and estate of the Partnerships in, to and under all
leases and rental agreements permitting occupancy or use of any apartment unit or other
space in the Improvements listed in Schedule 3 hereto
(collectively, “Leases”), all
guaranties, if any, of Leases listed in Schedule 3 hereto, and all rents due under
Leases (collectively, the “Rents”) from and after the Closing Date (as defined in
Section 15 below); and

     (v) all right, title, interest and estate of the Partnerships in, to and under (a) all
transferable permits, licenses, approvals, utility rights, development rights and similar
rights related to the Properties, if any, whether granted by governmental authorities or
private persons, (b) all telephone numbers now serving the Apartments, (c) all assignable
warranties and guaranties covering all or any part of the Properties, (d) the name of the
Apartments, excluding warranties and guaranties provided by any affiliate of Seller
(collectively, the “Intangibles”) and (e) all Service Contracts hereto which Buyer
notifies

2

 

Seller that it elects to assume or waives the right to reject, pursuant to the terms
of this Agreement.

     (3) GP desires to cause GP Buyer to be admitted as general partner of each Partnership and to
resign as the general partner of each Partnership, and GP Buyer desires to be admitted as general
partner of each Partnership.

     (4) ITC2 and SLP each desire to cause LP Buyer to be admitted as a limited partner of
Meadowbrook Partnership and Willow Partnership and to resign as the limited partners of such
Partnerships, and LP Buyer desires to be admitted as limited partner of such Partnerships.

     (5) ITC3 and SLP each desire to cause LP Buyer to be admitted as a limited partner of Crescent
Partnership, Eagle Partnership and PW1 Partnership and to resign as the limited partners of such
Partnerships, and LP Buyer desires to be admitted as limited partner of such Partnerships.

     (6) ITC4 and SLP each desire to cause LP Buyer to be admitted as a limited partner of PW2
Partnership and to resign as the limited partners of such Partnership, and LP Buyer desires to be
admitted as limited partner of such Partnership.

     (B) Defined Terms. As may be applicable, terms are defined herein in the first
section of use. In addition, certain other terms used in this Agreement are defined as follows:

     “Business Day” means any day of the week other than a Saturday, Sunday or a
legal holiday in the jurisdiction in which the Land is located, and any time of day for
performance hereunder shall refer to the local time on such day, in the time zone in which
the Land is located.

     “Buyers’ Agent” shall mean America First Real Estate Group, LLC.

     “Designated Employee” shall mean Linda Ekersley, an employee of TPAMC.

     “Environmental Law” means any law relating to the protection of the
environment or, to the extent related to environmental conditions, human health or safety,
including the Comprehensive Environmental Response, Compensation and Liability Act, as
amended; the Hazardous Materials Transportation Act, as amended; the Resource Conservation
and Recovery Act, as amended; the Toxic Substances Control Act, as amended; the Federal
Water Pollution Control Act, as amended; and similar laws of the State.

     “Hazardous Materials” means (a) any substance that constitutes hazardous
materials, hazardous waste or toxic waste within the meaning of any Environmental Law or
that otherwise is subject to regulation under any Environmental Law and (b) regardless of
whether it is so classified, any radioactive material, radon, asbestos, any medical waste,
polychlorinated biphenyls (PCB’s), lead-based paint, urea formaldehyde foam insulation and
petroleum or petroleum derivatives.

     “Sellers’ Agent” shall mean the GP.

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     “Service Contracts” means all contracts to which the Partnerships are a party
relating to the operation, maintenance or management of the Properties, including any
agreements for electric, gas, telephone, cable television, security alarm monitoring,
sewer, trash collection or similar services, supply contracts, and leasing brokerage
agreements as listed in Schedule 4 hereto.

     “State” means the State of Ohio with respect to Crescent Village Apartments, Eagle
Ridge Apartments Post Woods I Apartments, Post Woods II Apartments and Willow Bend
Apartments, and the Commonwealth of Kentucky with respect to Meadowview Apartments.

     “State Agency” means, with respect to Crescent Village Apartments, Eagle Ridge
Apartments Post Woods I Apartments, Post Woods II Apartments and Willow Bend Apartments,
the Ohio Department of Development and, with respect to Meadowview Apartments, the Kentucky
Housing Corporation.

     “TPAMC” means Towne Properties Asset Management Company, Ltd., an Ohio limited
liability company, which is the property manager for each of the Apartments.

     “Transaction” means the transfer of the Partnership Interests contemplated by
this Agreement.

1. Agreement to Purchase and to Sell.

     (A) Admission and Withdrawal; Conveyance of Partnership Interests. In consideration
of the Deposit (as defined in Section 4(B) below) and the Purchase Price (as defined in
Section 3 below), and for $100.00 paid by Buyers to Sellers herewith and other good and
valuable consideration, the sufficiency of which is hereby acknowledged, Buyers and Sellers,
intending to be legally bound, hereby agree as follows:

     (1) Interests in Crescent Partnership. Upon the Closing (as herein defined), subject to
the terms and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be
admitted as the sole general partner of Crescent Partnership and LP Buyer to be admitted as
the sole limited partner of Crescent Partner, and GP Buyer agrees to become the general
partner of Crescent Partnership and LP Buyer agrees to become the limited partner of
Crescent Partnership. In addition, concurrently with GP Buyer’s admission as the general
partner of Crescent Partnership, GP shall resign as the general partner of Crescent
Partnership, which resignation shall be effective on the Closing, and effective upon such
resignation, GP Buyer shall become the sole general partner of Crescent Partnership. (To the
extent legally necessary, GP Buyer and GP may be co-general partners for one instant.) Upon
the Closing, GP shall be deemed to have transferred to GP Buyer 100% of its Percentage
Interest in Crescent Partnership. In addition, concurrently with LP Buyer’s admission as the
limited partner of Crescent Partnership, both ITC3 and the SLP shall resign as the limited
partners of Crescent Partnership, which resignation shall be effective on the Closing, and
effective upon such resignation, LP Buyer shall become the sole limited partner of Crescent
Partnership. (To the extent legally necessary, LP Buyer and ITC3 may be co-limited partners
for one

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instant.) Upon the Closing, ITC3 and SLP shall each be deemed to have transferred to LP Buyer 100%
of their respective Percentage Interests in Crescent Partnership.

     (2) Interests in Eagle Partnership. Upon the Closing (as herein defined), subject to the
terms and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be admitted as
the sole general partner of Eagle Partnership and LP Buyer to be admitted as the sole limited
partner of Eagle Partner, and GP Buyer agrees to become the general partner of Eagle Partnership
and LP Buyer agrees to become the limited partner of Eagle Partnership. In addition, concurrently
with GP Buyer’s admission as the general partner of Eagle Partnership, GP shall resign as the
general partner of Eagle Partnership, which resignation shall be effective on the Closing, and
effective upon such resignation, GP Buyer shall become the sole general partner of Eagle
Partnership. (To the extent legally necessary, GP Buyer and GP may be co-general partners for one
instant.) Upon the Closing, GP shall be deemed to have transferred to GP Buyer 100% of its
Percentage Interest in Eagle Partnership. In addition, concurrently with LP Buyer’s admission as
the limited partner of Eagle Partnership, both ITC3 and the SLP shall resign as the limited
partners of Eagle Partnership, which resignation shall be effective on the Closing, and effective
upon such resignation, LP Buyer shall become the sole limited partner of Eagle Partnership. (To the
extent legally necessary, LP Buyer and ITC3 may be co-limited partners for one instant.) Upon the
Closing, ITC3 and SLP shall each be deemed to have transferred to LP Buyer 100% of their respective
Percentage Interests in Eagle Partnership.

     (3) Interests in Meadowbrook Partnership. Upon the Closing (as herein defined), subject to
the terms and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be admitted
as the sole general partner of Meadowbrook Partnership and LP Buyer to be admitted as the sole
limited partner of Meadowbrook Partner, and GP Buyer agrees to become the general partner of
Meadowbrook Partnership and LP Buyer agrees to become the limited partner of Meadowbrook
Partnership. In addition, concurrently with GP Buyer’s admission as the general partner of
Meadowbrook Partnership, GP shall resign as the general partner of Meadowbrook Partnership, which
resignation shall be effective on the Closing, and effective upon such resignation, GP Buyer shall
become the sole general partner of Meadowbrook Partnership. (To the extent legally necessary, GP
Buyer and GP may be co-general partners for one instant.) Upon the Closing, GP shall be deemed to
have transferred to GP Buyer 100% of its Percentage Interest in Meadowbrook Partnership. In
addition, concurrently with LP Buyer’s admission as the limited partner of Meadowbrook
Partnership, both ITC2 and the SLP shall resign as the limited partners of Meadowbrook Partnership,
which resignation shall be effective on the Closing, and effective upon such resignation, LP Buyer
shall become the sole limited partner of Meadowbrook Partnership. (To the extent legally
necessary, LP Buyer and ITC2 may be co-limited partners for one instant.) Upon the Closing, ITC2
and SLP shall each be deemed to have transferred to LP Buyer 100% of their respective Percentage
Interests in Meadowbrook Partnership.

     (4) Interests in PW1 Partnership. Upon the Closing (as herein defined), subject to the terms
and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be admitted as the
sole general partner of PW1 Partnership and LP Buyer to

5

 

be admitted as the sole limited partner of PW1 Partner, and GP Buyer agrees to become the general
partner of PW1 Partnership and LP Buyer agrees to become the limited partner of PW1 Partnership.
In addition, concurrently with GP Buyer’s admission as the general partner of PW1 Partnership, GP
shall resign as the general partner of PW1 Partnership, which resignation shall be effective on
the Closing, and effective upon such resignation, GP Buyer shall become the sole general partner
of PW1 Partnership, (To the extent legally necessary, GP Buyer and GP may be co-general partners
for one instant.) Upon the Closing, GP shall be deemed to have transferred to GP Buyer 100% of its
Percentage Interest in PW1 Partnership. In addition, concurrently with LP Buyer’s admission as the
limited partner of PW1 Partnership, both ITC3 and the SLP shall resign as the limited partners of
PW1 Partnership, which resignation shall be effective on the Closing, and effective upon such
resignation, LP Buyer shall become the sole limited partner of PW1 Partnership. (To the extent
legally necessary, LP Buyer and ITC3 may be co-limited partners for one instant.) Upon the
Closing, ITC3 and SLP shall each be deemed to have transferred to LP Buyer 100% of their
respective Percentage Interests in PW1 Partnership.

     (5) Interests in PW2 Partnership. Upon the Closing (as herein defined), subject to the terms
and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be admitted as the
sole general partner of PW2 Partnership and LP Buyer to be admitted as the sole limited partner of
PW2 Partner, and GP Buyer agrees to become the general partner of PW2 Partnership and LP Buyer
agrees to become the limited partner of PW2 Partnership. In addition, concurrently with GP Buyer’s
admission as the general partner of PW2 Partnership, GP shall resign as the general partner of PW2
Partnership, which resignation shall be effective on the Closing, and effective upon such
resignation, GP Buyer shall become the sole general partner of PW2 Partnership. (To the extent
legally necessary, GP Buyer and GP may be co-general partners for one instant.) Upon the Closing,
GP shall be deemed to have transferred to GP Buyer 100% of its Percentage Interest in PW2
Partnership. In addition, concurrently with LP Buyer’s admission as the limited partner of PW2
Partnership, both ITC4 and the SLP shall resign as the limited partners of PW2 Partnership, which
resignation shall be effective on the Closing, and effective upon such resignation, LP Buyer shall
become the sole limited partner of PW2 Partnership. (To the extent legally necessary, LP Buyer and
ITC4 may be co-limited partners for one instant.) Upon the Closing, ITC4 and SLP shall each be
deemed to have transferred to LP Buyer 100% of their respective Percentage Interests in PW2
Partnership.

     (6) Interests in Willow Partnership. Upon the Closing (as herein defined), subject to the
terms and conditions herein set forth, GP shall cause GP Buyer (or its assignee) to be admitted as
the sole general partner of Willow Partnership and LP Buyer to be admitted as the sole limited
partner of Willow Partner, and GP Buyer agrees to become the general partner of Willow Partnership
and LP Buyer agrees to become the limited partner of Willow Partnership. In addition,
concurrently with GP Buyer’s admission as the general partner of Willow Partnership, GP shall
resign as the general partner of Willow Partnership, which resignation shall be effective on the
Closing, and effective upon such resignation, GP Buyer shall become the sole general partner of
Willow Partnership. (To the extent legally necessary, GP Buyer and GP may be

6

 

co-general partners for one instant.) Upon the Closing, GP shall be deemed to have transferred to
GP Buyer 100% of its Percentage Interest in Willow Partnership. In addition, concurrently with LP
Buyer’s admission as the limited partner of Willow Partnership, both ITC2 and the SLP shall resign
as the limited partners of Willow Partnership, which resignation shall be effective on the
Closing, and effective upon such resignation, LP Buyer shall become the sole limited partner of
Willow Partnership. (To the extent legally necessary, LP Buyer and ITC2 may be co-limited partners
for one instant.) Upon the Closing, ITC2 and SLP shall each be deemed to have transferred to LP
Buyer 100% of their respective Percentage Interests in Willow Partnership.

     (B) Results of Admission of Buyers into Partnerships.

     (1) Upon Buyers’ respective admission as the partners of the applicable Partnerships, Buyers
shall have:

     (i) all of the respective powers and rights of the general partner and the limited
partner, as the case may be, of each of the Partnerships;

     (ii) all of the rights of the general partner and limited partners of the
Partnerships, respectively, to their respective capital accounts, allocations of profits,
losses, and distributions of cash, including any proceeds from a sale or refinancing of
Partnership assets;

     (iii) all of the rights of the general partner and limited partners of the
Partnerships in and to any other distributions that may be made on account of the partners
therein, from and after the Closing, including, without limitation, distributions relating
to a return of capital, and distributions made after the Closing but declared prior to the
Closing, or from which the proceeds were generated prior to the Closing.

     (2) As a result of its admission of GP Buyer as the general partner of each Partnership, GP
Buyer shall assume all obligations and liabilities of the general partner of the Partnerships
accruing from and after the Closing. GP Buyer shall not, however, be deemed to assume any
obligations of GP in its capacity as general partner of the Partnerships accruing prior to the
Closing.

     (3) The admission as GP Buyer as the general partner of each Partnership, the admission of LP
Buyer as the limited partner of each Partnership, the conveyance of the Partnership Interests and
the withdrawal of Sellers as the partners of the Partnership, shall have no effect on the ownership
of the Apartments and the Properties by the respective Partnerships, each of which shall continue
to own fee simple title to each of the respective Apartments and
Properties as set
forth in Section 1(A) above. Notwithstanding the foregoing, the admission of the
Buyers as the partners of the Partnerships shall not create any right, title or interest in Buyers
with respect to any of the following, all of which will remain or become the exclusive property of
the Sellers:

     (i) “Sellers’ Earned Tax Credits” (as defined in Section 8 below):

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     (ii) non-transferable deposits such as utility deposits;

     (iii) payments made under any insurance policies covering the Properties in
connection with matters occurring, and claims made, prior to the Closing Date,
regardless when paid (subject, however, to the terms of Section 9 below);

     (iv) all reserves established by the Partnerships or their lenders in
connection with the Properties, including without implied limitation, repairs,
capital expenditure reserves and operating deficit reserves, and any guaranties with
respect to same;

     (v) All recoveries derived from the governmental proceedings or lawsuits, if
any, referred to in Schedule 5 hereto, regardless of when made;

     (vi) All of the Partnerships’ cash accounts; and

     (vii) Any other information or materials that are reasonably considered by
Sellers to be proprietary in nature (including, without implied limitation,
operational materials, business plans and reports, computer software of any kind,
training manuals, legal manuals, security and loss prevention materials and the
like).

3. Purchase Price.

     (A) Purchase Price. The purchase price to be paid by Buyers to purchase Sellers’
interest in the Partnerships (the “Partnership Interests”) in cash is Twenty-Four Million Nine
Hundred Thousand and 00/100 Dollars ($24,900,000.00)(the
“Purchase Price”), which shall be
allocated to the Partnership Interests for each Partnership as follows:

     (1) Crescent Village Partnership — Four Million Eight Hundred Thousand and 00/100
Dollars ($4,800,000.00) (the “Crescent Village
Purchase Price”);

     (2) Eagle Ridge Partnership — Two Million Seven Hundred Fifty Thousand and 00/100
Dollars ($2,750,000.00) (the “Eagle Ridge Purchase Price”);

     (3) Meadowview Partnership — Five Million Seven Hundred Fifty Thousand and 00/100
Dollars ($5,750,000.00) (the “Meadowview Purchase Price”);

     (4) Post Woods I Partnership — Three Million Nine Hundred Fifty Thousand and 00/100
Dollars ($3,950,000.00) (the “Post Woods I Purchase Price”);

     (5) Post Woods II Partnership — Three Million Nine Hundred Fifty Thousand and 00/100
Dollars ($3,950,000.00) (the “Post Woods II Purchase Price”); and

     (6) Willow Bend Partnership — Three Million Seven Hundred Thousand and 00/100 Dollars
($3,700,000.00) (the “Willow Bend Purchase
Price”).

8

 

     (B) Adjustments to the Purchase Price. The Purchase Price shall be adjusted by the
following amounts:

     (1) Lease Security Deposits. Buyers will be entitled to a credit against the
Purchase Price, allocable to the Partnership Interests for the applicable Partnership, for
all refundable deposits under Leases paid by tenants (collectively,
“Security
Deposits”) held by the Partnerships in their respective accounts as of the Closing Date.
Nonrefundable deposits by tenants will not be credited against the Purchase Price.

     (2) Prepaid Rent. Buyers shall be entitled to a credit against the Purchase
Price, allocable to the Partnership Interests for the applicable Partnership, for all
prepaid rents as of the Closing Date.

     (3) Past Due Rent. Rents delinquent as of the Closing Date will, upon receipt
after the Closing Date, be applied first against Rents attributable to the period before the
Closing Date, until all of such Rents have been collected, and then to Rents attributable to
the period after the Closing Date. GP Buyer will cause the applicable Partnership to remit
to Sellers’ Agent any Rents collected by such Partnership that are allocable to the period
before the Closing Date. GP Buyer will cause each Partnership to use commercially
reasonable efforts to collect any of its Rents delinquent as of the Closing Date.

     (4) Payables. Amounts of Partnerships’ trade payables, current year property
and other ad valorem taxes and service contracts shall be prorated between Sellers and
Buyers as of the Closing Date and Buyers shall be entitled to a credit for unpaid amounts
for periods prior to the Closing Date and Sellers shall be entitled to a credit for amounts
prepaid for periods beginning with the Closing Date and thereafter.

     (C) Financing. GP Buyer and LP Buyer each assume full responsibility to obtain the
funds required for settlement of the Transaction by it at Closing. All costs and expenses incurred
in connection with any financing of the acquisition of the Partnership Interests by a Buyer
pursuant to this Agreement shall be solely the responsibility of respective Buyer.

4. Independent Contract Consideration; Deposit.

     (A) Independent Contract Consideration. In addition to delivering the Deposit as
specified immediately below, Buyers shall, concurrently with its execution hereof, deliver to
Sellers’ Agent a check in the amount of $100.00, which amount Sellers and Buyers expressly
acknowledge and agree has been bargained for as consideration for Sellers’ execution and delivery
of this Agreement and Buyers’ right to conduct its due diligence investigation of the Partnerships
pursuant to the terms hereof. Such sum is in addition to and independent of any other
consideration or payment provided for in this Agreement and is non-refundable in all events.

     (B) Deposit; Opening of Escrow. The Transaction will be completed through an escrow
(the “Escrow”) to be opened with Chicago Title Insurance Company (“Escrow Agent”).
The Escrow will be opened by 5:00 p.m. no later than the second Business Day following the
Effective Date, by Buyers delivering to Escrow Agent cash in the amount of Three Hundred

9

 

Thousand and 00/100 Dollars ($300,000.00) (the “Deposit”, which term will also included,
as the context requires, any “Extension Deposit” as that term is defined in Section 15(A)
below) and a copy of this Agreement, as fully executed by each Buyer, with the independent
consideration as set forth in Subsection (A) above. If the Deposit is not received by
Escrow Agent in a timely manner as provided herein, Sellers’ Agent shall have the right to
terminate this Agreement upon written notice to Buyers’ Agent thereof, after which no party shall
have any further obligations hereunder, except for those which are specifically provided to
survive the termination of this Agreement.

     (C) Non-Refundable. Except as otherwise expressly provided in this Agreement, the
Deposit shall become non-refundable to Buyer upon the expiration of the Feasibility Period (as
defined in Section 5(B) below).

     (D) Interest. All funds received from or for the account of Buyers shall be deposited
by the Escrow Agent in an interest-bearing account with a federally insured state or national bank.
All interest accrued on the Deposit shall become part of the Deposit. All interest earned on the
Deposit shall be reported by the depository to the IRS, and to any other taxing authority with
jurisdiction (if any) over the interest, as income of the party ultimately entitled to the Deposit.
Sellers and Buyers, as appropriate, shall promptly execute all forms reasonably required by the
other party or the Escrow Agent to effectuate the intent of this
Section 4(D),
including IRS Form W-9. In the case of a termination permitted this Agreement, interest on the
Deposit shall be paid to the party who receives the Deposit. If the Transaction is consummated,
interest on the Deposit shall be applied as a Buyer credit to the Purchase Price.

     (E) Additional Escrow Provisions. The Buyers and Sellers have mutually requested that
the Escrow Agent act as escrow agent for the purpose of holding the Deposit in accordance with the
terms of this Agreement. The Deposit shall be released or delivered to the parties entitled
thereto pursuant to this Agreement with reasonable promptness after the Escrow Agent shall have
received notice: (a) from Sellers’ Agent and Buyers’ Agent authorizing release of the Deposit, (b)
from Buyers’ Agent at any time on or prior to the Feasibility Period expiration, or (c) on the
occurrence of either of the following events: (i) the Closing, at which time the Deposit shall be
paid to Sellers and applied to the Purchase Price; or (ii) the receipt by the Escrow Agent of a
written notice from either Seller’s Agent or Buyers’ Agent stating that an event has occurred under
this Agreement entitling the party delivering such notice to the Deposit, whereupon the Escrow
Agent shall deliver written notice (the “Default Notice”) thereof to the other parry’s
agent and, unless such other party’s agent shall have delivered a written notice of objection to
the Escrow Agent within ten (10) days following receipt by such other party of the Default Notice,
the Escrow Agent shall deliver the Deposit to the party initially requesting the Deposit.

     (1) The Escrow Agent is to be considered as a depository only, shall not be deemed to
be a party to any document other than this Agreement, and shall not be responsible or liable
in any manner whatsoever for the sufficiency, manner of execution, or validity of any
written instructions, certificates or any other documents received by it, nor as to the
identity, authority or rights of any persons executing the same. The Escrow Agent shall be
entitled to rely at all times on instructions given by Sellers’ Agent and/or Buyers’ Agent,
as the case may be and as required hereunder, without any necessity of verifying the
authority therefor.

10

 

     (2) The Escrow Agent shall not at any time be held liable for actions taken or omitted
to be taken in good faith and without negligence. Sellers and Buyers agree to save and hold
the Escrow Agent harmless and indemnity the Escrow Agent from any loss and from any claims
or demands arising out of its actions hereunder other than any claims or demands arising
from the Escrow Agent’s negligence or wilful misconduct.

     (3) It is further understood by Sellers and Buyers that if, as a result of any
disagreement between them or adverse demands and claims being made by any of them upon the
Escrow Agent, or if the Escrow Agent otherwise shall become involved in litigation with
respect to this Agreement, the Escrow Agent may deposit the Deposit with a court of
competent jurisdiction and/or in accordance with the order of a court of competent
jurisdiction and in any such event, Sellers and Buyers agree that they, jointly and
severally, are and shall be liable to the Escrow Agent and shall reimburse the Escrow Agent
on demand for all costs, expenses and reasonable counsel fees it shall incur or be compelled
to pay by reason of any such litigation. Sellers, as a group, and Buyers, as a group, agree
between themselves that each group shall be responsible to advance one-half of all amounts
due the Escrow Agent pursuant to this Section 4, provided that any such advance by
Sellers or Buyers as a result of any dispute or litigation between them shall be without
prejudice to its right to recover such amount as damages from the breaching party.

     (4) In taking or omitting to take any action whatsoever hereunder, the Escrow Agent
shall be protected in relying upon any notice, paper, or other document believed by it to be
genuine, or upon evidence deemed by it to be sufficient, and in no event shall the Escrow
Agent be liable hereunder for any act performed or omitted to be performed by it hereunder
in the absence of negligence or bad faith. The Escrow Agent may consult with counsel in
connection with its duties hereunder and shall be fully protected in any act taken, suffered
or permitted by it in good faith and without negligence in accordance with the advice of
such counsel.

     (5) The Escrow Agent shall have no right or obligation to approve any amendment to this
Agreement unless such amendment purports to affect the Escrow Agent’s rights or obligations
hereunder.

5. Feasibility Period.

     (A) Sellers’ Materials. As an accommodation to Buyers’ due diligence, Sellers’ Agent
shall deliver, within five (5) days after the Effective Date, the following due diligence
materials relating to the Properties or the Partnerships to Buyers’ Agent (or in the case of
certain items such as those under (2) (tenant leases, correspondence and credit information)
below, make available for Buyers’ Agent’s inspection and copying at the Apartments), to the extent
not already delivered, and provided that same are in Sellers’ Agent’s actual possession or
reasonable control:

     (1) Copies of the Partnership Agreements for each of the Partnerships and any
amendments thereto;

11

 

     (2) Copies of the Certificate of Limited Partnership filed with the Ohio Secretary of
State for each of the Partnerships and any amendments thereto;

     (3) Copies of the financial statements for the Partnerships for each of the three years
ended December 31, 2006 and year-to-date financial statements for 2007;

     (4) Copies of the federal tax returns for the Partnerships for the last 10 years;

     (5) Current rent roll. The tenant leases, tenant correspondence, and tenant credit
information will be made available to Buyers for review on-site at each of the Apartments;

     (6) Certificates of occupancy;

     (7) Contracts, service agreements, and files pertaining to the Apartments;

     (8) Real estate tax billings and assessments for the most recent tax year;

     (9) Insurance and claims documentation;

     (10) To the extent in Sellers’ possession, all existing warranties and guarantees from
architects, contractors, and material and equipment suppliers, all of which would be
assigned to Purchaser other than those from affiliates of any Seller;

     (11) To the extent in Sellers’ possession, any existing title information, surveys,
environmental Phase I report, engineering reports, soil, radon, asbestos, hazardous
substance, termite, or other tests, studies, or reports;

     (12) Itemized inventory of all personal property;

     (13) Listing of capital improvements made at the Apartments over the preceding
three years;

     (14) A list of any material structural or mechanical deficiencies with respect to the
Improvements known to Sellers;

     (15) The Form 8609s for each building with respect to the Apartments; any
correspondence to or from the State Agencies with respect to the Apartments, including, but
not limited to, original applications for LIHTC Carryover Allocation and applications for
issuance of Form 8609s and cost certification; any correspondence to or from the IRS with
respect to the Apartments; and the extended low-income housing commitments filed pursuant to
Section 42(h)(6) of the Code with respect to the Apartments;

     (16) A summary of all debts of the Partnerships, whether secured or unsecured, and
copies of all documentation with respect to such debts.

     Within the Feasibility Period, Buyers’ Agent shall have a right to request and obtain from
Sellers’ Agent within a reasonably prompt period following such request, any additional,

12

 

non-proprietary due diligence materials concerning the Properties or the Partnerships which are in
Sellers’ actual possession. Sellers shall also make their employees, and employees of TPAMC,
reasonably available to Buyers for purposes of conducting their due diligence.

     Buyers acknowledges that all materials made available by Sellers and their affiliates or any
officer, director, trustee, agent, employee or other person acting or purporting to act on behalf
of Sellers or any of their affiliates, including the materials described in this Section 5(A),
are provided to Buyers solely as an accommodation to Buyers’ own due diligence and
investigations, and without representation or warranty as to the accuracy or completeness thereof
or sufficiency for the purposes for which Buyer uses such materials, except as otherwise
specifically stated herein.

     (B) Feasibility Period. Buyers shall have until 5:00 p.m. on the sixtieth
(60th)
day after the Effective Date (the “Feasibility Period”) to conduct their
due diligence investigation of the Properties and determine if Buyers wishes to proceed with the
Transaction. Buyers may terminate their obligation to complete the Transaction at any time during
the Feasibility Period if Buyers’ Agent, in its sole discretion, is not satisfied with the
Properties or any matter relating to the Properties or the Partnerships. Buyers may exercise
their right under this Section 5(B) to terminate the Transaction by delivering written
notice enclosing Buyers’ Reports (as defined in Section 5(D)) to Sellers’ Agent at any time
within the Feasibility Period, in which event the Deposit shall be refunded to Buyers. If Buyers
fail to deliver their notice of termination on or before the expiration date of the Feasibility
Period, Buyers shall be deemed to have elected to complete the Transaction, and the Deposit shall
become nonrefundable as provided in Section 4 above. If Buyers fail to deliver the
Buyers’ Reports to Sellers Agent as aforesaid, then the Escrow Agent shall pay the Deposit to
Sellers on the next Business Day.

     (C) Inspections. Buyers’ Agent and its representatives, consultants and contractors
may enter upon the Properties after reasonable advance notice to Sellers’ Agent (which shall be no
less than 48 hours) and make such inspections and tests regarding the Properties as Buyers’ Agent
deems necessary or desirable, subject to rights of tenants to exclude or limit such inspections and
tests. Buyers’ Agent shall obtain the approval of Sellers’ Agent before undertaking any
intrusive, destructive or invasive testing or any soil borings, which approval Sellers’ Agent
agrees not to unreasonably withhold or delay. Damages to the Properties resulting from any
inspection or testing conducted by or at the direction of Buyers’ Agent will be repaired by Buyers
so that the Properties is restored to its condition as of the Effective Date. Buyers shall
indemnify, defend and hold harmless the Partnerships and Sellers and the Partnerships’ property
manager against any claim arising out of activities conducted at the Properties by Buyers’ Agent
and its representatives, consultants and contractors and related damage, liability, obligation,
claim, suit, cause of action, judgment, settlement, penalty, fine or cost or expense (including
reasonable fees and disbursements of attorneys and other professionals and court costs).
If the results of any of Buyers’ Agent investigations trigger a reporting requirement to a
governmental authority pursuant to applicable law, then prior to any such reporting, Buyers’ Agent
shall give advance written notice to Sellers’ Agent and shall allow Sellers and the Partnerships to
participate in any such reporting. The indemnification provision in this subsection shall survive
the termination of this Agreement.

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     (D) Reports. As a condition to receiving a refund of its Deposit upon Sellers
exercising their right to terminate the Transaction under Section 5(B) above or any other
circumstance permitted by this Agreement, Buyers’ Agent shall deliver to Sellers’ Agent a copy of
each third party report or material (e.g., environmental, engineering, survey, market
feasibility) (collectively, the “Buyers’ Reports”) obtained in connection with the
Properties; provided, however, that if there is a material uncured default of Sellers at
the time Buyers exercises their termination right as aforesaid, then Buyers’ Agent shall not have
the obligation to deliver the Buyers’ Reports.

     (E) Buyers’ Approvals: State Agency Approval. Buyers shall have the obligation, at
their cost, to promptly following the Effective Date and within the Feasibility Period, to use
their commercially reasonable efforts to seek the approval of the State Agency for the Transaction.
Sellers shall use commercially reasonable efforts to cooperate with Buyers’ Agent in connection
with obtaining such State Agency approval, and Sellers shall bear their own costs of such
cooperation. Buyers’ Agent shall keep Seller’s Agent apprised of all such efforts and shall
promptly notify Sellers’ Agent upon the approval or disapproval of the State Agency (the time for
such all such approvals or disapprovals may in no event extend beyond the Feasibility Period). All
of the approvals which Buyers intend to seek for the Transaction are set forth on Schedule
6 hereto. In the event any such approval is not obtained, and cannot be obtained, during the
Feasibility Period due to circumstances beyond the control of the Buyers, this Agreement shall
terminate and the Deposit shall be returned to the Buyers unless the parties mutually agree
otherwise. In the event the parties mutually agree to extend the time for obtaining any State
Agency approval, the Deposit shall remain in escrow and, in the event such approval is not
obtained, and cannot be obtained, during the extended period due to circumstances beyond the
control of the Buyers, this Agreement shall terminate and the Deposit shall be returned to the
Buyers.

     (F) Service Contracts. On or before the tenth (10th) day following the
commencement of the Feasibility Period, Buyers’ Agent shall notify Sellers’ Agent in writing as to
which, if any, of the Service Contracts Buyers will want the Partnerships to maintain if the
Closing Date occurs. As to all other Service Contracts, the applicable Partnership shall notify
the applicable vendors that such contracts are terminated as of the Closing Date.

6. Title and Survey.

     (A) Within five (5) days of the Effective Date, Sellers’ Agent shall provide Buyers’ Agent
with a copy of each of the owner’s title insurance policy (the
“Title Policies”) currently
in effect with respect to each of the Partnerships, which reflect the Partnership, as the insured,
and the Land component of each of the Properties, as the insured parcel. Buyers shall obtain, at
Buyers’ cost, an updated title commitment (the “Title Report”) and any update to the
existing survey (the “Survey”) that Buyers desire. Buyers’ Agent shall promptly (i)
examine the Title Report, and (ii) the Survey and notify Sellers’ Agent in writing of its approval
of or its objections to any exceptions in the Title Report or matters reflected in the Survey
which are not Permitted Exceptions (as hereinafter defined). Exceptions which are (a) approved by
Buyers’ Agent, or (b) to which Buyers’ Agent does not object in its notice, or (c) related to the
Tax Credits and the Tax Credits Documents or (d) which do not materially interfere with the use of
the Properties for affordable multi-family housing shall be “Permitted Exceptions.” Any
other exceptions to title

14

 

or Survey matters to which Buyers’ Agent objects shall be “Disapproved Exceptions.” If
Buyers’ Agent fails to so notify Sellers’ Agent of Buyers’ Agent’s objection to or approval of any
exceptions to title set forth in the Title Report or matters shown on the Survey prior to the
expiration of the Feasibility Period, then Buyers shall be deemed to have approved the Title Report
or the Survey, as the case may be, and shall only have title or Survey rights with respect to New
Exceptions (as defined below).

     (B) If Buyers’ Agent delivers its notice of Disapproved Exceptions in accordance with the
foregoing Subsection (A), then Sellers’ Agent shall notify Buyers’ Agent in writing within
three (3) Business Days whether Sellers elect to remove the same from the title to the Properties.
Sellers shall have no obligation to remove any Disapproved Exception, except as provided below
with respect to Monetary Liens (as hereinafter defined). Unless Sellers agree to remove all
Disapproved Exceptions, Buyers’ Agent shall elect, in a written notice delivered to Sellers’ Agent,
within three (3) Business Days of its receipt of Sellers’ notice, either (i) to waive its objection
to all Disapproved Exceptions (except any Disapproved Exception that Sellers have agreed to
remove), in which case those Disapproved Exceptions covered by the waiver shall become Permitted
Exceptions, (ii) terminate Buyers’ obligation to complete the Transaction as to the Partnership
owning the Property which Buyers’ Agent delivered the notice of Disapproved Exceptions or (iii)
terminate Buyers’ obligation to complete the Transaction and recover the Deposit. If Buyers’
Agent fails to deliver such notice, Buyers will be deemed to have waived their objection to such
Disapproved Exceptions, and shall only have title of Survey rights with respect to New Exceptions
(as defined below). If Sellers agree to remove any Disapproved Exception and then are unable or
fail to remove such Disapproved Exceptions prior to the Closing Date, the provisions of
Subsection 5(D) below shall apply. Notwithstanding the foregoing, Sellers shall cause
all monetary liens and encumbrances, including any mortgages, and real estate taxes and assessments
due (“Monetary Liens”) on all or any part of the Properties to be (i) in the case of a
voluntary Monetary Lien, satisfied and, as applicable, discharged of record upon the Closing Date
or pursuant to prior written arrangements with the holder of any such voluntary Monetary Lien for
the discharge to occur following the Close Date in accordance with local real estate practice; and
(ii) in the case of an involuntary Monetary Lien, at Sellers’ Agent’s election, either (a)
satisfied as aforesaid or (b) bonded over to permit the Title Policy to be issued without exception
therefor.

     (C) If any exception to title to the Properties not shown on the Title Report (or any matter
not Survey) originated subsequent to the date of the Title Report or the Survey, respectively, and
is discovered prior to the Closing Date, and is not a Permitted Exception (“New
Exceptions”), then Sellers’ Agent shall immediately give written notice to Buyers’ Agent and
Escrow Agent of each such New Exception. Buyers’ Agent shall, within two (2) Business Days of
receiving such notice, provide written notice to Sellers’ Agent and Escrow Agent of any New
Exceptions which Buyers’ Agent (i) approves, and such approved New Exceptions shall be deemed to be
Permitted Exceptions, and/or (ii) disapproves, and such disapproved New Exceptions shall thereupon
be deemed to be Disapproved Exceptions. Any New Exception which becomes a Disapproved Exception
pursuant to this Section 6 shall be handled in accordance with the notice provisions and
within the number of days in the time frames established in
Section 6(B) above;
provided, however, that if the Closing Date is within five (5) days after the date a New
Exception becomes a Disapproved Exception pursuant to this

15

 

Subsection, then the Closing shall be adjourned for a period not to exceed fifteen (15) days for
the purposes of handling such Disapproved Exceptions in accordance with Section 6(B).

     (D) If, on or prior to the Closing Date, Sellers fail or are unable to cure or remove the
Disapproved Exceptions that pursuant to the terms of this Agreement that Sellers are obligated to
remove from the title to the Properties, then, Sellers shall have no liability under this
Agreement therefor, but Buyers’ Agent may promptly notify Sellers’ Agent that Buyers have elected
to (i) deem all such Disapproved Exceptions to be Permitted Exceptions and proceed with the
Closing Date with no adjustment to the Purchase Price, (ii) or not proceed with the Closing Date
on account of such Disapproved Exceptions in which case the Deposit shall be returned to the
Buyers or (iii) not proceed with the Closing Date on account of such Disapproved Exceptions with
respect to Partnership owning the affected Property in which case the Deposit will be applied to
Purchase Price for the Partnership Interests in the remaining Partnerships.

7. Representations and Warranties; Disclaimer.

     (A) Sellers’ Representations and Warranties. In order to induce Buyers to enter into
this Agreement and to complete the Transaction, Sellers represent and warrant to Buyers that, as
of the Effective Date:

     (1) GP is a corporation duly organized, validly existing and in good standing under
the laws of the State of Ohio. Each ILP is a limited partnership duly organized, validly
existing and in good standing under the laws of Massachusetts. SLP is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Massachusetts.

     (2) Each Partnership is a limited partnership duly organized and validly existing
under the laws of the State of Ohio. Each Partnership has the partnership power and
authority to carry on its business as it is now being conducted and to own all of its
properties and assets, including the Apartments. Each of the Partnerships owning a
property in Kentucky is duly qualified to do business as a foreign limited partnership, and
is in good standing, in Kentucky.

     (3) Each Seller has the authority to enter into this Agreement, to perform its
obligations under this Agreement and to complete the Transaction as contemplated by this
Agreement. Each Seller has taken all partnership or corporate action necessary to
authorize the execution and delivery of this Agreement, the performance by such Seller of
its obligations under this Agreement, and the completion of the Transaction as contemplated
by this Agreement. This Agreement has been duly executed and delivered by each Seller and
constitutes a valid, binding and enforceable obligation of each Seller, subject to
bankruptcy and other debtor relief laws and principles of equity. The entry into this
Agreement by each Seller, and the performance of such Seller’s obligations hereunder does
not violate the organizational documents of such Seller or any agreement to which it is a
party or any governmental or court order or ruling applicable to such Seller.

16

 

     (4) As of the Closing Date, Sellers will own all of the Partnership Interests in the
Partnerships free and clear of any liens, and the Partnership Interests are not subject to any
outstanding agreements to sell or options to purchase.

     (5) The rent roll attached as Schedule 3 hereto is complete and accurate.

     (6) Except as disclosed in Schedule 4, there are no management contracts or Service
Contracts related to the operation of the Apartments.

     (7) Except as disclosed in Schedule 5 hereto, there is no action, suit, proceeding, or
investigation pending or, to the actual knowledge of Sellers, threatened by or before any court or
governmental authority (a) against or affecting the Partnerships or the Apartments or arising out
of the development, construction, financing, operation, leasing, maintenance or management of the
Apartments or in connection with any eminent domain proceeding, or (b) that would prevent or hinder
the performance by any Seller of its obligations under this Agreement or the completion of the
Transaction as contemplated by this Agreement.

     (8) The financial statements of the Partnerships delivered to Buyers pursuant to Section
5(B) of this Agreement are complete and accurate in all material respects.

     (9) No Partnership has any employees;

     (10) Each Partnership has filed or caused to be filed on a timely basis, including any
applicable extensions for filing, all tax returns that are or were required to be filed by it and
has timely paid all taxes that have become due and payable as taxes imposed on it;

     (11) No Seller has received any written notice claiming or asserting that any of the
Apartments have not been operated in conformance with all federal, state and local laws applicable
thereto, including land use, zoning and building codes, Environmental Laws, antidiscrimination and
fair housing laws, health and safety codes.

     (12) Each Apartment is a “qualified low-income housing project,” each building in the
Apartments was a “qualified low-income housing building,” and each residential unit in the
Apartments was a “low income unit” (within the meaning of Section 42(g)(l), Section 42(c)(2), and
Section 42(i)(3), of the Code respectively). Each Apartment has been operated in material
compliance with all regulatory agreements with the State Agencies and each Partnership has complied
in all material respects with all applicable state and federal monitoring and reporting
requirements with respect to Tax Credits and the Apartments, including, without limitation, all
such requirements of the State Agency and of the IRS, whether in regulations, administrative
rulings or other promulgations and each Partnership has fully satisfied all other ownership and
operating restrictions contained in any restrictive covenants of record, loan agreements, or
otherwise, including tenant income and rent restrictions, applicable to the Apartments.

     (13) None of the Sellers’ Earned Tax Credits have been recaptured or challenged by the
State Agency or the IRS at the Partnership level.

17

 

     (14) There has been no change in the ownership of the Apartments, and each of the
Apartments was placed in service by its respective Partnership more than ten (10) years
prior to the Effective Date.

     (15) There has been no change in Sellers’ partnership interests, capital and/or
profits of 50% or more within a 12-month period in the ten (10) years prior to the
Effective Date.

     References herein to the “knowledge” of Sellers shall refer only to the actual knowledge of
the Designated Employee and shall not be construed, by imputation or otherwise, to refer to the
knowledge of any Seller, TPAMC, or any affiliate of or investment advisor or asset manager to any
of them, or any other officer, director, manager, member, employee, agent or representative of any
of the foregoing parties, or to impose upon such Designated Employee any duty to investigate the
matter to which such actual knowledge, or the absence thereof, pertains.

     (B) The representations and warranties of Sellers expressly set forth in this Agreement
shall survive the Closing Date for a period of six (6) months. No claim by Buyers for a breach of
any such representation or warranty of Sellers shall be actionable or payable: (a) if the breach in
question results from or is based on a condition, state of facts or other matter which was actually
known to Buyers prior to the end of the Feasibility Period, and (b) unless the valid claims for all
such breaches collectively aggregate more than $150,000.00; provided, however, that if such claims
aggregate more than $150,000.00, the full amount of such claims shall be actionable and payable,
and (c) unless a written claim for a breach of representation or warranty of Sellers shall have
been given by Buyers’ Agent to Sellers’ Agent prior to the expiration of six (6) months after the
Closing Date. With respect to Buyers’ obligation to make a claim against Sellers, TIME IS OF THE
ESSENCE, and if Buyers fails to do so within the forgoing time period, then such failure shall be
deemed to be a full, complete and irrevocable waiver and release by Buyers of any right to assert
any claim in respect of any matter covered by this Subsection (7). Provided that Buyers
complies with the foregoing covenants and requirements, in no event shall Sellers’ total liability
under this Section 7 exceed $1,000,000 in the aggregate.

     (C) Disclaimer of Sellers Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
IN SECTION 7(A), SELLERS SPECIFICALLY DISCLAIM ALL WARRANTIES OR REPRESENTATIONS OF ANY KIND OR
CHARACTER, EXPRESS, IMPLIED,
STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OR
MERCHANTABILITY AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY
BUYERS) WITH RESPECT TO THE PROPERTIES OR THEIR CONDITION, OR THE CONSTRUCTION, PROSPECTS,
OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTIES, OR THEIR PAST OR FUTURE FINANCIAL
PERFORMANCE IN ANY RESPECT. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING. THE
DISCLAIMERS IN THIS SECTION 7(B), SPECIFICALLY EXTEND TO (1) MATTERS RELATING TO HAZARDOUS
MATERIALS AND COMPLIANCE WITH ENVIRONMENTAL LAWS; (2) GEOLOGICAL CONDITIONS, INCLUDING
SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE, UNDERGROUND STREAMS AND
RESERVOIRS AND OTHER UNDERGROUND WATER CONDITIONS, LIMITATIONS REGARDING THE WITHDRAWAL OF
WATER, EARTHQUAKE FAULTS, AND MATTERS RELATING TO FLOOD PRONE AREAS,

18

 

FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARDS; (3) DRAINAGE; (4) SOIL CONDITIONS, INCLUDING THE
EXISTENCE OF INSTABILITY, CONDITIONS OF SOIL FILL, SUSCEPTIBILITY TO LANDSLIDES, AND THE
SUFFICIENCY OF ANY UNDERSHORING; (5) ZONING AND SUBDIVISION AND COMPLIANCE WITH ZONING AND
SUBDIVISION LAWS; (6) THE VALUE AND PROFIT POTENTIAL OF THE PROPERTIES; (7) DESIGN, QUALITY,
SUITABILITY, STRUCTURAL INTEGRITY AND PHYSICAL CONDITION OF THE PROPERTIES; (8) COMPLIANCE OF THE
PROPERTIES WITH ANY LAWS (INCLUDING BUILDING CODES AND SIMILAR LAWS, THE CODE, THE AMERICANS WITH
DISABILITIES ACT OF 1990 AND THE FAIR HOUSING AMENDMENTS ACT OF 1988; AND (9) THE PAST OR FUTURE
RECEIPT OF ANY FORM OF SUBSIDY OR INCOME RELATED TO THE PROPERTIES INCLUDING, WITHOUT IMPLIED
LIMITATION, THE TAX CREDITS. BUYERS REPRESENT AND WARRANT TO SELLERS THAT BUYERS ARE KNOWLEDGEABLE,
EXPERIENCED AND SOPHISTICATED BUYERS OF REAL ESTATE AND MULTI-FAMILY APARTMENT COMPLEXES IN
PARTICULAR. BUYERS ACKNOWLEDGE THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES MADE BY SELLERS
IN SECTION 7(A), BUYERS HAVE NOT RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY,
ANY STATEMENT OF SELLERS OR ANY OF ITS AFFILIATES OR INVESTMENT ADVISOR OR ASSET MANAGER OR ANY
OFFICER, DIRECTOR, TRUSTEE, AGENT, EMPLOYEE THEREOF OR OTHER PERSON, ACTING OR PURPORTING TO ACT ON
BEHALF OF SELLERS OR ANY OF THEIR AFFILIATES. BUYERS ACKNOWLEDGE THAT THEY HAVE CONDUCTED OR WILL
CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS AS TO THE CONDITION OF THE PROPERTIES AND ALL MATTERS
BEARING UPON THE PROPERTIES AND THE CONSTRUCTION, PROSPECTS, OPERATIONS AND RESULTS OF OPERATIONS
OF THE PROPERTIES AS THEY DEEM NECESSARY TO PROTECT THEIR INTERESTS. BUYERS ARE ACQUIRING THE
PROPERTIES “AS IS” AND “WHERE IS”
AND WITH ALL FAULTS, DEFECTS OR OTHER ADVERSE MATTERS. UPON
CLOSING DATE, BUYERS WILL ACCEPT THE PROPERTIES SUBJECT TO ADVERSE STRUCTURAL, PHYSICAL, ECONOMIC
OR ENVIRONMENTAL CONDITIONS THAT MAY THEN EXIST AND THAT WERE NOT REVEALED BY THE INSPECTIONS AND
INVESTIGATIONS CONDUCTED BY BUYERS, AND, PROVIDED THAT SELLERS ARE NOT IN MATERIAL DEFAULT UNDER
THIS AGREEMENT AS OF THE CLOSING DATE AND BUYERS HAVE NOT PROVIDED A NOTICE OF MATERIAL DEFAULT TO
SELLERS, BUYERS SPECIFICALLY WAIVE AND RELEASE (1) ALL WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS FOR USE OR
ACCEPTABILITY FOR THE PURPOSE INTENDED BY SELLERS) WITH RESPECT TO THE PROPERTIES OR THEIR
CONDITION OR THE CONSTRUCTION, PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTIES AND
(2) ALL RIGHTS, REMEDIES, RECOURSE OR OTHER BASIS FOR RECOVERY (INCLUDING ANY RIGHTS, REMEDIES,
RECOURSE OR BASIS FOR RECOVERY BASED ON NEGLIGENCE OR STRICT LIABILITY) THAT BUYERS WOULD OTHERWISE
HAVE AGAINST SELLERS OR ANY OF THEIR AFFILIATES, INVESTMENT ADVISORS, ASSET MANAGERS OR OTHER
AGENTS, ANY PERSON WHO HOLDS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN SELLERS OR ANY SUCH
AFFILIATE OR AGENT AND THE RESPECTIVE

19

 

OFFICERS, DIRECTORS, TRUSTEES, AGENTS AND EMPLOYEES OF EACH SUCH PERSON IN RESPECT OF THE
CONDITION OF THE PROPERTIES. BUYERS ACKNOWLEDGE AND AGREE THAT THE DISCLAIMERS, WAIVERS AND
RELEASES SET FORTH IN THIS SECTION 7(C) ARE AN INTEGRAL PART OF THIS AGREEMENT AND THAT SELLERS
WOULD NOT HAVE AGREED TO COMPLETE THE SALE ON THE TERMS PROVIDED IN THIS AGREEMENT WITHOUT THE
DISCLAIMERS, WAIVERS AND RELEASES SET FORTH IN THIS SECTION 7(C).

Buyers and Sellers each have separately initialed this provision to indicate its agreement to such
waiver.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Sellers:
	 	 	 	 	 	Buyers:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	GP:
	 	/s/ Philip T. Montanus
	 	 	 	GP Buyer:
	 	DF
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	ITC2:
	 	/s/ [ILLEGIBLE]
	 	 	 	LP Buyer:
	 	CD	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	ITC3:
	 	/s/ [ILLEGIBLE]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	ITC4:
	 	/s/ [ILLEGIBLE]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	SLP:
	 	/s/ [ILLEGIBLE]
	 	 	 	 	 	 	 	 

     (D) Buyers’ Representations and Warranties. In order to induce Sellers to enter
into this Agreement and to complete the Transaction, Buyers represent and warrant to Seller that,
as of the Effective Date and the Closing Date:

     (1) GP Buyer is a corporation duly incorporated and validly existing under the laws of
the State of Nebraska. LP Buyer is a corporation duly incorporated and validly existing
under the laws of the State of Nebraska.

     (2) Each Buyer has the authority to enter into this Agreement, to perform its
obligations under this Agreement and to complete the Transaction as contemplated by this
Agreement. Each Buyer has taken all corporate action necessary to authorize the execution
and delivery of this Agreement, the performance by such Buyer of its obligations under this
Agreement, and the completion of the Transaction as contemplated by this Agreement. This
Agreement has been duly executed and delivered by each Buyer and constitutes a valid,
binding and enforceable obligation of each Buyer, subject to bankruptcy and other debtor
relief laws and principles of equity. The entry into this Agreement by each Buyer, and the
performance of such Buyer’s obligations hereunder does not violate the organizational
documents of such Buyer or any agreement to which it is a party or any governmental or court
order or ruling applicable to such Buyer.

     (3) there is no action, suit, proceeding, or investigation pending or, to the actual
knowledge of Buyers, threatened by or before any court or governmental authority

20

 

that would prevent or hinder the performance by any Buyer of its obligations under this
Agreement or the completion of the Transaction as contemplated by this Agreement.

     (4) except for consents, approvals, authorizations and filings disclosed on
Schedule 6 hereto (none of which, however, beyond the expiration of the Feasibility
Period shall constitute a condition to Buyers’ obligation to close and/or a basis for a
refund of the Deposit to Buyers), Buyers are not required to obtain any consent, approval
of or authorization from, or to make any filing with, any person (including any
governmental authority) in connection with, or as a condition to, the execution and
delivery of this Agreement, the performance by each Buyer of its obligations under this
Agreement, or the completion of the Transaction as contemplated by this Agreement.

     (5) Neither Buyer nor any affiliate of either Buyer (as defined in 24 CFR § 200.215)
has been debarred, suspended, or voluntarily excluded from participation in any program of
a State government or agency, or has been the subject of a limited denial of participation
issued pursuant to 24 CFR Part 24, Subpart G.

     (6) Buyers have not dealt with any broker, agent, finder or similar person or entity
in connection with the Transaction, except for the Broker (defined in Section 10
hereof).

     (7) Buyers represents to Sellers that Buyers collectively have available to them
unrestricted funds which they may use in their sole discretion to pay the full amount of
the Purchase Price and otherwise comply with its other obligations under this Agreement.

     References herein to the “knowledge” of a Buyer shall refer only to the actual knowledge of
the officers of the Buyer but shall not be construed, by imputation or otherwise, to refer to the
knowledge of any other officer, manager, member, employee, agent or representative of the
Burlington Capital Group LLC, America First Tax Exempt Investors, L.P., Atlantic Development LLC
or any of their respective affiliates.

8. Tax Credits.

     (A) Sellers’ Earned Tax Credits. Buyers acknowledge that the Partnerships have
developed, owned and operated the Apartments as projects intended to generate, and that Sellers
have claimed, income tax credits (the “Sellers’ Earned Tax Credits”) under Section 42
(“Section 42”) of the Internal Revenue Code of 1986, as amended, and the United States
Treasury Regulations, official Internal Revenue Service (“IRS”) rulings and guidance
promulgated thereunder or in connection therewith (collectively, the “Code”). Buyers
further acknowledge that the Sellers’ Earned Tax Credits are subject to recapture by the IRS if
the Transaction is consummated failing the posting of a recapture bond pursuant to Section
42(j)(6) of the Code. Buyers, as a material inducement for Sellers to transfer the Partnership
Interests prior to the expiration of the applicable Compliance Period (as defined below), shall
fully comply with all of the terms applicable to Buyers and their successors and assigns and set
forth in this Section 8.

21

 

     (B) Buyers Tax Credit Program Representations, Warranties and Covenants. In
addition to the representations and warranties of Buyers contained elsewhere in this Agreement,
each Buyer hereby represents, warrants and covenants to Sellers that during the period commencing
upon the Closing Date continuing through the remainder of the compliance period described in
Section 42 of the Code with respect to each Apartment (each such period being defined herein as a
“Compliance Period”):

     (1) Buyers shall cause such Apartment to be treated as a “qualified low- income housing
project,” for each building in the Apartment to be treated as a “qualified low-income
housing building,” and for each residential unit in the Apartment to be treated as a “low
income unit” (within the meaning of Section 42(g)(l), Section 42(c)(2), and Section
42(i)(3), of the Code respectively), and shall fully comply with all applicable state and
federal monitoring and reporting requirements including, without limitation, all such
requirements of the State Agency and of the IRS, whether in regulations, administrative
rulings or other promulgations. Buyers shall implement procedures to ensure such
compliance (the “Compliance Procedures”),and shall continue to satisfy (or cause to
be satisfied) all other ownership and operating restrictions contained in any restrictive
covenants of record, loan agreements, or otherwise, including tenant income and rent
restrictions, applicable to the Apartment for the duration of all time periods applicable
thereto;

     (2) Buyers shall continue to operate the Apartment in conformance with all federal,
state and local land use, zoning, building, environmental, health and safety codes and all
other applicable contractual obligations and other governmental laws and regulations;

     (3) Buyers shall take all actions reasonably necessary to ensure that all appropriate
public utilities, including sanitary and storm sewers, water, gas and electricity,
are available to the Apartment and continue to operate properly for all units in the
Apartment;

     (4) Buyers shall operate the Apartment in a manner that complies with the applicable
provisions of all federal, state or local laws prohibiting discrimination in housing on the
grounds of age, race, color, religion, creed, sex, handicap, familial status or national
origin, including any applicable requirements of Title VI of the Civil Rights Act of 1964;
the Fair Housing Act of 1968; the Americans with Disabilities Act; the Age Discrimination
Act of 1975; and all requirements imposed by or pursuant to the regulations implementing
these laws; and

     (5) Buyer shall make timely, accurate and complete submissions of all required reports
to the State Agency, to the IRS, and to other governmental agencies, and any other
reports required to be delivered with respect to the Apartment (the
“Compliance Reports”).

     (C) Tax-Credit Compliance Review. Throughout the Compliance Period relating to an
Apartment, and with respect to any Compliance Report relating to any period during such Compliance
Period, Buyers’ Agent shall do the following:

22

 

          (1) At least ten (10) Business Days prior to the submission of any Compliance Report,
deliver a draft of such report to TPAMC for its review. If TPAMC requests a change or
amendment to such report then, no later than five (5) Business Days thereafter, any such
change TPAMC reasonably requests shall be made; and

          (2) Submit to TPAMC for TPAMC’s review the Buyers’ Compliance Procedures prior to the
Closing Date, including any training or educational classes that it will require persons
charged with implementing the Compliance Procedures to attend, and on each six (6) month
anniversary thereafter, and shall make such changes to the Compliance Procedures and
required training as TPAMC reasonably requests.

     (D) Evidence of Post-Closing Compliance. Throughout the Compliance Period relating to
an Apartment, and with respect to any filing relating to any period during such Compliance Period,
Buyers’ Agent shall cause to be prepared and delivered to Sellers’ Agent the following
documentation:

     (1) To the extent that the following can be reasonably expected to result in the
recapture of any Tax Credits pursuant to Section 42(j) of the Code with respect to the
Apartments, the following shall be supplied within five (5) Business Days of the occurrence
of the following:

(i) On the occurrence of any natural disaster and/or widespread damage to
the Property having an adverse impact on the physical condition of the
Apartment, a report of the extent of the damage to the Apartment, any
expected delay in construction or rehabilitation, and the effect such
damage might have on the operations or leasing activity of the Apartment;

(ii) On learning of any material violation of any health, safety, building
code, or other statute or regulation by Buyers which could reasonably be
expected to affect the availability of a unit for rental, a detailed
statement describing such matters along with any written notices thereof
received by the Buyers from any federal, state, or local government entity;

(iii) On receipt of a notice of any default by the Buyers with respect to
any loan secured by the Apartment, a copy of such notice.

(iv) On receipt of any notice of noncompliance by the State Agency, the IRS,
or IRS Form 8823, or notice of any IRS proceeding involving the Apartment, a
copy of such notice; and

(v) On receipt of any legal proceedings (including, without implied
limitation, eminent domain or compliance proceedings) or notices of alleged
violations of law, and notices of all actions taken, or proposed to be taken,
affecting the Buyers or the Apartment by any governmental or
quasi-governmental agency or other person or entity, a copy of any such
proceeding.

23

 

     (2) Within ten (10) days after receipt by the Buyers, copies of any reports issued by the
State Agency or the IRS with respect to the Apartment.

     (3) No later than twenty (20) days prior to its submission to the State Agency or the IRS,
copies of all reports and information required by such agency or the IRS with respect to the
Apartment, including the annual compliance certification.

     (4) No later than ten (10) Business Days prior to its submission to the IRS, copies of IRS
Form 8609-A and Schedule A to Form 8609 completed and executed by the Buyer for each building in
the Apartment.

     (E) Procurement of Recapture Bond; Indemnity.

     (1) Buyers covenants that they shall reasonably cooperate with Sellers, including the use of
diligent efforts and full cooperation with the underwriter and the surety in connection with the
application, including, without limitation, providing financial statements, to obtain on or before
the Closing Date, and it shall be a condition to Sellers’ obligation to close this Transaction to
so obtain, a surety bond or bonds (individually, or collectively as applicable, the “Recapture
Bond”) in an amount, and from an IRS approved surety, acceptable to Sellers’ Agent and in
accordance with requirements under Section 42(j)(6) of the Code and related IRS regulations,
rulings and procedures, such Recapture Bond to be maintained with respect to each Apartment for a
period ending no sooner than 58 months after the last day of the Compliance Period relating to such
Apartment (the “Recapture Bond Period”), and to secure for each Seller having taken
Sellers’ Earned Tax Credits, the repayment of any recapture of the Sellers’ Earned Tax Credits (and
costs associated therewith, including interest and penalties), and to otherwise permit the sale of
the Partnership Interests hereunder prior to the expiration of the applicable Compliance Period
without a recapture of Tax Credits.

     (2) All arrangements for the issuance of the Recapture Bond shall be made by Sellers’ Agent;
provided, however, that the terms and condition of the Recapture Bond shall be acceptable to
Buyers’ Agent, in its reasonable discretion. On or prior to the Closing Date, Buyers shall
satisfy all of the conditions to the issuance of the Recapture Bond, but for the payment of the
premium, which shall be paid by Sellers, including the provision by Buyers and America First Tax
Exempt Investors, L.P., subject to review and approval of their respective net worth by the surety
and Sellers (the “Additional Indemnitor”) of such guarantees or indemnifications in favor
of the surety as is required by the surety. The Recapture Bond shall be available for issuance
prior to Closing Date in form and substance satisfactory to Sellers’ Agent in its sole discretion.
Sellers’ Agent may elect to have the Recapture Bond issued on the Closing Date, or within the
period following the Closing Date as allowed under the Code, and as may be extended by the IRS.
Buyers acknowledge that the issuance of the Recapture Bond is of material importance and a
condition precedent to Sellers in completing the Transaction.

     (3) Unless the Sellers are in material default hereunder beyond the notice and cure period
provided under Section 16(A) below, or a Properties-based event caused by any Seller has
occurred between the expiration of the Feasibility Period and the Closing

24

 

Date which results in the non-issuance of the Recapture Bond, the failure of Buyers to comply with
(E)(1) and (2) above shall be a material default for which the Sellers shall have its remedies
under Section 16(B) below.

     (4) Notwithstanding the issuance or the status of the Recapture Bond, Buyers and the
Additional Indemnitor (collectively the “Buyer Indemnitors”) hereby agree, jointly and
severally, to indemnify and hold Sellers and each of their respective partners, directors,
officers, affiliates and agents (collectively, the “Seller Indemnified Parties”) free and
harmless from any recapture of any Sellers’ Earned Tax Credits, interest or penalties imposed by
the IRS in connection with the recapture of Sellers’ Earned Tax Credits and any other loss,
liability or damage, including, without implied limitation, reasonable attorneys’ fees,
consultants’ fees, accountants’ fees, court costs and amounts paid in settlement of any claims for
recapture of any Sellers’ Earned Tax Credits, or penalties imposed by the IRS in connection with
the Sellers’ Earned Tax Credits (collectively, “Recapture Losses”) resulting directly or
indirectly from (i) the breach by Buyers of any of the warranties and covenants in this Section
8, or the inaccuracy of any of the representations in this Section 8: (ii) failure of
the Buyer to maintain ownership, use and operation of the Properties in accordance with the
requirements of the Code and the State Agency and as contemplated under the Tax Credit Documents,
including, without implied limitation, the recapture of any Sellers Earned Tax Credits or any
penalties imposed by the IRS or the State Agency in connection with the Sellers Earned Tax Credits;
or (iii) the cancellation of the Recapture Bond by the surety or the insufficiency of the Recapture
Bond to cover the Sellers Indemnified Parties’ costs in connection with recapture of the Sellers
Earned Tax Credits. The Buyer Indemnitors acknowledge and agree that, among the Seller
Indemnified Parties, a primary beneficiary of the foregoing indemnity are the respective direct and
indirect limited partners of the Partnerships and, accordingly, provided that any of the foregoing
(i), (ii) or (iii) has occurred, such limited partners shall have the right to enforce the
indemnity in their own stead, which enforcement shall not be contested in any manner on account
thereof. The Indemnitors shall execute and deliver to the Sellers Indemnified
Parties an indemnification in a separate instrument at the Closing Date in the form of
Exhibit E hereto.

     (5) GP hereby agrees to indemnify and hold Buyers and the Additional Indemnitor, and each of
their respective partners, directors, officers, shareholders, affiliates and agents (collectively,
the “Buyer Indemnified Parties”) free and harmless from any Recapture Losses, which for purposes of
this subsection (5) shall include any payment made by any Buyer Indemnified Party under or pursuant
to any guarantee, indemnity or reimbursement agreement provided to the surety issuing the Recapture
Bond, which are not indemnified by Buyer Idemnitors pursuant to Section 8(E)(4) above. GP
acknowledges and agrees that any Buyer Indemnified Party, whether or not a party to this Agreement,
shall have the right to enforce the foregoing indemnity in its own name and stead and GP will not
contest such enforcement on the grounds of lack of privity of contract. The GP Seller shall
execute and deliver to the Buyers an indemnification agreement at the Closing Date in the form of
Exhibit F hereto.

25

 

     (F) Compliance Period Transfer Covenants. Each Buyer covenants that it shall not, and
that it shall ensure that its successors and/or assigns shall not, subsequent to the Closing Date
and until the expiration of the Compliance Period, transfer or permit the transfer in any manner
all or any portion of the Properties (or majority ownership and/or controlling interest in Buyer or
its successors and/or assigns) (collectively, or either, a “Transfer”) without the advance
written approval of the Sellers’ general partner and any one of the Sellers’ limited partners,
which may be withheld in the sole and absolute discretion of any such partner. Each Buyer
covenants that so long as the Compliance Period remains in effect, any management agent which is a
successor and/or assign of the management agent appointed by Buyers to initially manage the
Apartments following the Closing Date hereunder must be experienced in the management of Tax Credit
projects similar to the Apartments, and its appointment shall be subject to the advance written
consent of Sellers’ Agent, which may be withheld, conditioned or delayed in the sole and absolute
discretion of Sellers’ Agent. Notwithstanding any Transfer, Buyers shall remain fully obligated to
Sellers under this Section 8. Sellers shall be entitled to record a notice of the
Compliance Period Covenants in the appropriate public records following the Closing Date.

     (G) Cancellation of Recapture Bond prior to Bond Recapture Period. Buyers and
Sellers acknowledge that the surety issuing the Recapture Bond may retain the right to cancel the
Recapture Bond, or any replacement thereto, prior to the end of the Recapture Bond Period. Buyers
and Sellers covenant that they shall promptly notify the other party to this Agreement within five
(5) days after receipt of notice of such cancellation, and in any event in advance of the effective
date of any such cancellation, and, prior to the effective date of such cancellation, shall
cooperate, in accordance with the procedures of this Section 8 in obtaining the initial
Recapture Bond (with Sellers paying any required premium and the Indemnitors providing any
necessary guaranty or indemnity to the surety), in obtaining a replacement Recapture Bond for
Sellers’ benefit on terms at least as favorable as those in the cancelled bond and in form and
substance satisfactory to Sellers.

     (H) Survival. All of the provisions of this Section 8 shall survive the Closing
Date.

9. Casualty, Eminent Domain, Condemnation.

     (A) Notice to Buyers. Sellers’ Agent will notify Buyers’ Agent within five (5) days
after receiving notice of, or otherwise becoming aware of, (a) any Casualty Loss (as hereinafter
defined) that, if not repaired by the Closing Date, would allow Buyers to terminate their
obligation to complete the Transaction with respect to the individual Property which has
suffered a Casualty Loss and (b) the commencement of any proceedings for the taking by eminent
domain or condemnation of all or any part of any individual Property.

     (B) Casualty Loss. If, prior to the Closing Date, a Property is damaged by fire,
windstorm, rioting or other civil disturbance, acts of war, earthquake or other casualty (a
“Casualty Loss”) and the cost to repair the related damage is more than $500,000.00, then Buyers’
Agent, at its option, may terminate Buyers’ obligation to complete the Transaction with respect to
the Partnership owning the affected Property. If Buyers elect to complete the Transaction
notwithstanding a Casualty Loss, or if this Agreement requires Buyers to purchase the Partnership
Interest in the Partnership owning the affected Property despite a Casualty Loss, then Sellers will
cause the affected Partnership to deliver to Buyers at the Closing Date, through

26

 

the Closing Date, all insurance proceeds previously received by such Partnership, an amount equal
to the deductible under such Partnership’s insurance in respect of the damage and an assignment of
such Partnership’s rights with respect to all uncollected insurance proceeds (in either case, net
proceeds of rental loss and business interruption insurance allocable to the period through the
Closing Date, amounts expended by such Partnership to stabilize or repair the Property and costs
incurred by such Partnership in making proof of loss or settling claims with insurers), and
Sellers will cooperate with Buyers after the Closing Date in making claim for, and collecting, all
available insurance proceeds.

     (C) Eminent Domain; Condemnation. If, prior to the Closing Date, all or a material
part of an individual Property is taken by eminent domain or condemned or any proceedings for the
taking by eminent domain or condemnation of all or a material part of the affected Property is
commenced, then Buyers’ Agent, at its option, may terminate Buyers’ obligation to complete the
Transaction with respect to the Partnership owning the affected Property. If Buyers elect to
complete the Transaction notwithstanding a taking by eminent domain or proceeding therefor, the
affected Partnership will deliver to Buyers at the Closing Date, through the Closing Date, all
eminent domain or condemnation proceeds previously received by such Partnership and an assignment
of such Partnership’s rights with respect to all uncollected eminent domain or condemnation
proceeds (in either case, net of proceeds allocable to loss of use of the Property for the period
through the Closing Date and costs incurred by such Partnership in connection with such
proceedings) and such documents as Buyers may reasonably request to in connection with any pending
eminent domain or condemnation proceedings.

10. Brokerage.

     At or prior to the Closing the Partnerships will pay Marcus & Millichap (“Broker”) a
commission in accordance with such Partnership’s agreement with Broker. Subject to the preceding
sentence, Sellers and Buyers agree to indemnify and defend the other and hold the other harmless
against any claim for a commission, finder’s fee or similar compensation asserted by any person
retained by or claiming through the indemnifying party in connection with the Transaction or the
execution of this Agreement and all related loss, damage, liability, obligation, claim, suit, cause
of action, judgment, settlement, penalty, fine or cost or expense (including fees and disbursements
of attorneys and other professionals and court costs). All of the provisions of this Section
10 shall survive the delivery of the Closing Date.

11. Closing Costs.

     (A) Closing Costs. At or prior to the Closing:

     (1) Sellers shall pay one-half of any escrow and/or closing fee charged by Escrow Agent
and, as applicable, any instruments required to discharge Disapproved Exceptions from record
title;

     (2) Buyers shall pay one-half of any escrow and/or closing fee charged by Escrow Agent;
the cost for the Title Commitment, the full premium for the Title Policy and any
endorsements to the Title Policy required by Buyers; the full cost of a current

27

 

Survey; and all other closing costs including, without implied limitation, any
costs or taxes in connection with it financing of the Transaction;

     (3) Buyers and Sellers each will pay their own attorneys’ fees. Other costs will be
paid by Sellers or Buyers, as applicable, as specified by other provisions of this
Agreement; and

     (4) Sellers shall pay the premium for the Recapture Bond.

12. Intentionally omitted.

13. Sellers’ Pre-Closing Obligations.

     (A) Maintenance of Insurance. The Partnerships shall maintain all insurance in effect
as of the Effective Date with respect to the Properties (or comparable insurance) until the earlier
of the Closing Date or the termination by Buyers or Sellers of their obligations to complete the
Transaction.

     (B) Service Contracts and Liens. Until the earlier of the Closing Date or the
termination by Buyers or Sellers of their obligations to complete the Transaction, without the
consent of Buyers’ Agent, which consent shall not be unreasonably withheld or delayed, Sellers will
not allow the Partnerships to (a) enter into any new Service Contract that will be binding upon
Buyers or the Properties after the Closing Date, or amend or otherwise modify any existing Service
Contract that will not expire prior to the Closing Date, (b) grant, create, or allow the creation
of any easement, right-of-way, encumbrance, lien, restriction, condition, assessment or other cloud
on title which affects the Properties except for Leases executed in the ordinary course of
business, or (c) amend, extend, or otherwise modify the terms of any existing easement,
right-of-way, encumbrance, lien, restriction, condition, assessment or other cloud on title which
affects the Properties, except for Lease modifications and terminations in the ordinary course of
business.

     (C) Continue to Comply with Section 42 Requirements. Sellers shall continue to
operate the Apartments so that each is treated as a “qualified low-income housing project,” each
building in the Apartments is treated as a “qualified low-income housing building,” and each
residential unit in the Apartments is treated as a “low income unit” (within the meaning of Section
42(g)(l), Section 42(c)(2), and Section 42(i)(3), of the Code respectively), and shall continue to
fully comply with all applicable state and federal monitoring and reporting requirements including,
without limitation, all such requirements of the State Agency and of the IRS, whether in
regulations, administrative rulings or other promulgations. Sellers shall continue to satisfy (or
cause to be satisfied) all other ownership and operating restrictions contained in any restrictive
covenants of record, loan agreements, or otherwise, including tenant income and rent restrictions,
applicable to the Apartments during all time periods prior to the Closing Date.

14. Conditions to the Closing Date.

     (A) Sellers’ Conditions to the Closing Date. Sellers’ obligations to close the
Transaction shall be contingent upon the satisfaction of the following conditions for their
benefit on or before the Closing Date:

28

 

	 	(1)	 	Buyers are not in material default hereunder beyond any applicable notice
and cure period pursuant to Section 16(A) below and have performed
all of their covenants in this Agreement required to be performed by Buyers
upon or before the Closing Date (including without implied imitation,
procuring the Recapture Bond); and
	 
	 	(2)	 	Buyer have arranged for each Partnership to enter into a
management agreement with a property manager effective as of the Closing Date
with a management agent experienced in the operation of affordable multi-family
apartment complexes similar to the Properties and financed in part under Section
42 of the Code, which agent is acceptable to Sellers’ Agent.
	 
	 	(3)	 	The Recapture Bond is available for issue, or will be available
for issue within 30 days of the Closing Date, but for payment of the premium
therefor.

     (B) Buyers’
Conditions to the Closing Date. Buyers’ obligations to close the
Transaction shall be contingent upon the satisfaction of the following conditions for their benefit
on or before the Closing Date:

	 	(1)	 	Sellers are not in material default hereunder beyond any
applicable notice and cure period pursuant to Section 16(A) below and
has performed all of their covenants in this Agreement required to be performed
by Sellers upon or before the Closing Date; and
	 
	 	(2)	 	The Title Company is unconditionally (but for payment of the
premium) prepared to issue, concurrently with the Closing, (i) an endorsement to
“date down” all of the Title Policies, insuring that there are no new liens or
other encumbrances affecting any of the Apartments subsequent to the date of the
applicable Title Policy, (ii) a “fairway” endorsement to each of the Title
Policies, providing that the Title Policy issued with respect to each of the
Apartments shall not be terminated or otherwise impaired by reason of the
admission of Buyers or the withdrawal of Sellers as a partner in the applicable
Partnership, and (iii) a “non-imputation” endorsement to each of the Title
Policies, providing that the Title Policy issued with respect to each of the
Apartments insures the applicable Partnership against loss or damage sustained
by reason of the insurance company denying its liability under the Title Policy
by reason of knowledge imputed to the applicable Partnership through Sellers.

     (C) Non-Satisfaction
of Condition. Either Buyers’ Agent or Sellers’ Agent may waive
in writing the non-satisfaction of a condition which benefits it, or may exercise the rights
applicable to it under Section 16 below.

15. The Closing Date.

     (A) Closing
Date. Subject to any extension allowed by other provisions of
this Agreement, the Closing Date will take place at Noon ninety (90) days after the Effective Date
(as

29

 

may be extended pursuant to this Agreement, the “Closing Date”) at the offices of the Escrow Agent
set forth in Section 16(D) below, time being of the essence. Buyers’ Agent may elect to
extend the Closing Date for an additional thirty (30) days provided Buyers’ Agent gives written
notice of such election to Sellers’ Agent at least five (5) business days prior to the then
scheduled Closing Date and deposits with Escrow Agent an additional Three Hundred Thousand and
00/100 Dollars ($300,000.00) (the “Extension Deposit”). The Extension Deposit shall be
non-refundable (except to the extent the Transaction does not close due to the failure of Sellers
to satisfy any conditions to Buyers’ obligations at Closing), and will credited against the
Purchase Price at the Closing.

     (B) Seller
Documents. Prior to the Closing Date, Sellers will deposit with the
Escrow Agent the following items (collectively, the “Seller Documents”):

	 	(1)	 	An assignment of each Seller’s respective Partnership Interests
executed by the GP, each ILP and the SLP, as applicable (the “Partnership
Assignment”), in the form of Exhibit A hereto or such other form, as may be
mutually and reasonably agreeable to Sellers and Buyers;
	 
	 	(2)	 	An amendment to each of the Partnership Agreements and
Certificates of Limited Partnership reflecting the Sellers withdrawal as the
general partner and limited partner of each of the Partnerships, and the
admission of the Buyers as the general partner and limited partner of
each Partnership, in such form, as may be mutually and reasonably agreeable to
Sellers and Buyers (collectively, the “Partnership
Agreement Amendments”);
	 
	 	(3)	 	the Recapture Bond;
	 
	 	(4)	 	an updated rent roll (updated Schedule 3) dated on a
date within the month of the Closing Date;
	 
	 	(5)	 	a copy of the termination of the current property management
contract effective as of the Closing Date;
	 
	 	(6)	 	a closing certificate, executed by each Seller, which reaffirms
as of the Closing Date each Seller’s representations, warranties, covenants and
indemnity obligations which by the express terms of this Agreement survive the
delivery of the Partnership Assignment and the Closing Date, in the form of
Exhibit B hereto;
	 
	 	(7)	 	counterparts of the Transaction closing statement, executed by
each Seller, reflecting the Purchase Price and adjustments, pro-rations and
credits, if any, cash due from Buyers at the Closing Date and balance of
Sellers’ proceeds due upon the Closing Date (the
“Sellers’ Proceeds”);
	 
	 	(8)	 	counterparts of the affidavit as to debts, liens and possession
required by the Title Company, in the form of Exhibit D hereto; and

30

 

	 	(9)	 	such documents as the Escrow Agent may sufficiently in advance of the
Closing Date reasonably require and as are customary in similar
transactions to establish the authority of Sellers to complete the
Transaction.

     (C) Buyer
Documents; Balance of Purchase Price; Compliance Escrow. Prior to the
Closing Date, Buyers will deposit with the Escrow Agent the following items (collectively, the
“Buyer’s Deliverables”):

	 	(1)	 	cash equal to the Purchase Price minus the Deposit (and any
Extension Deposit) and increased or decreased by the amount of any items
chargeable or any credits due to Buyers under this Agreement;
	 
	 	(2)	 	an acceptance of the Partnership Assignments;
	 
	 	(3)	 	an amendment to each of the Partnership Agreements and
Certificates of Limited Partnership substituting Buyers for Sellers as the
partners of each of the Partnerships;
	 
	 	(4)	 	a closing certificate, executed by each Buyer, which reaffirms
as of the Closing Date each Buyer’s representations, warranties, covenants and
indemnity obligations which by the express terms of this Agreement survive the
delivery of the Partnership Assignment and the Closing Date, in the form of
Exhibit C hereto;
	 
	 	(5)	 	counterparts of the Transaction closing statement, executed by
each Seller, reflecting the Purchase Price and adjustments, pro-rations and
credits, if any, Buyers’ cash due at the Closing Date and balance of Sellers’
Proceeds; and
	 
	 	(6)	 	such documents as the Escrow Agent may sufficiently in advance
of the Closing Date reasonably require and as are customary in similar
transactions to establish the authority of Buyers to complete the
Transaction.

     (D) Delivery. Items required under this Agreement to be delivered into escrow may be
done pursuant to the respective escrow instructions of Sellers’ Agent and Buyers’ Agent, subject,
however to the terms of this Agreement. If consistent with local custom, Sellers, Buyers and Escrow
Agent shall conduct the Closing Date pursuant to a so-called “New York style” closing and Sellers
shall deliver to the Escrow Agent, the Title Company and Buyers the Gap Indemnity Agreement to
permit the disbursement of Sellers Proceeds prior to recordation of title instruments.

     (E) Return
of Documents. Documents and any refundable funds deposited in escrow will
be returned to the person who deposited them if the Sellers or Buyers terminate their obligation to
complete the Transaction under circumstances permitted by this Agreement.

31

 

     (F) The
Closing Date. The Escrow Agent will close escrow on the Closing Date if all of
the conditions to Buyers’ obligation to purchase the Partnership Interests and Sellers’ obligation
to sell the Partnership Interests have been satisfied or waived in writing by the party having the
benefit of the condition by (a) paying to Sellers the Sellers’ Proceeds, and (c) delivering, as
applicable, no less than two (2) original counterparts of each of the Seller Documents to Buyers
and of those of the Buyer Deliverables which are documents to Sellers.

     (G) Contracts, Leases, etc. Simultaneously with the Closing Date, Sellers will deliver
to Buyers, outside of the closing escrow, originals or, if originals are not in Sellers’
possession, copies of (a) documents evidencing other permits, licenses, approvals, utility rights,
development rights, Tax Credits and similar rights related to the Properties, if any, that are
transferred to Buyers, (b) all Leases and all guaranties of Leases, (c) all assignable warranties
and guaranties covering all or any part of the Properties that are transferred to Buyers; (d) all
assignable Service Contracts; (e) keys to the Properties; (e) any other item or thing included in
the Properties and necessary for the operation of the Properties.

     (H) Tenant
Notification. Immediately following the Closing Date, Buyers will deliver
to the Tenant Notice to each tenant and occupant of the Properties, which the applicable
Partnership shall sign along with Buyers, notifying each such tenant or occupant of the new
address for payment of rents.

16. Default; Remedies.

     (A) Right
to Notice and Cure. Neither party shall be in material default hereunder
unless such party (i) has first received a notice from the party claiming the material default
specifying it in reasonable detail and (ii) if such material default exists, has not cured the
material default within ten (10) days from its receipt of the said notice. The foregoing ten (10)
day cure period shall not apply to the time periods established within Section 6 above
concerning the determination of Permitted Exceptions and Disapproved Exceptions. If the Closing
Date occurs within foregoing cure period, then the Closing Date shall automatically be extended to
the first to occur of the next Business Day following (a) notice that the cure has been effected or
(b) the expiration of the Cure Period. If no cure has been effected within the said ten (10) day
cure period, then the party providing notice of the default may waive the default in writing and
proceed to close the Transaction, or exercise the remedies applicable to it in this Section
16.

     (B) Buyers’
Default, Sellers’ Remedies. IF BUYERS FAIL TO PURCHASE THE PARTNERSHIP
INTERESTS IN VIOLATION OF THIS AGREEMENT, THE PARTIES HAVE DETERMINED AND AGREED THAT THE ACTUAL
AMOUNT OF DAMAGES THAT WOULD BE SUSTAINED BY SELLERS AS A RESULT OF SUCH FAILURE IS DIFFICULT OR
IMPOSSIBLE TO ASCERTAIN AND THAT IN SUCH EVENT SELLERS (PROVIDED THAT SELLERS ARE NOT THEN IN A
MATERIAL DEFAULT UNDER THIS AGREEMENT), AS THEIR SOLE AND EXCLUSIVE REMEDY, MAY TERMINATE THEIR
OBLIGATIONS TO COMPLETE THE TRANSACTION AND, UPON SO DOING, WILL BE ENTITLED TO RECEIVE THE DEPOSIT
AS LIQUIDATED DAMAGES. BY PLACING THEIR INITIALS BELOW, BUYERS AND SELLERS
ACKNOWLEDGE THEIR AGREEMENT TO THIS LIQUIDATED DAMAGES PROVISION. IT IS AGREED THAT SELLERS
SHALL NOT HAVE ANY CAUSE OF ACTION OR CLAIM WHATSOEVER

32

 

AGAINST BUYERS BECAUSE OF BUYERS’ FAILURE TO COMPLETE THE TRANSACTION CONTEMPLATED BY THIS
AGREEMENT, AND SELLERS’ SOLE AND EXCLUSIVE REMEDY SHALL BE THE RECEIPT OF THE ABOVE REFERENCED SUM
AS LIQUIDATED DAMAGES.

     Buyers and Sellers each have separately initialed this provision to indicate its agreement thereto.

	 	 	 	 	 	 	 	 	 
	 	 	Sellers:	 	Buyers:	 	 
	 
	 

	 	GP:
	 	/s/ Philip T. Montanus
	 	GP Buyer:
	 	DF
	 
	 

	 	ITC2:
	 	/s/ [ILLEGIBLE]
	 	LP Buyer:
	 	CD
	 
	 

	 	ITC3:
	 	/s/ [ILLEGIBLE]	 	 	 	 
	 
	 

	 	ITC4:
	 	/s/ [ILLEGIBLE]	 	 	 	 
	 
	 

	 	SLP:
	 	/s/ [ILLEGIBLE]	 	 	 	 

     (C) Sellers’ Default, Buyers’ Remedies. If Sellers fail to perform any of
their material obligations under this Agreement, then Buyers (provided that Buyers are not then in
a material default under this Agreement), as their sole and exclusive remedy, may either (a)
terminate their obligations to complete the Transaction, in which case Buyers may recover the
Deposit, subject to delivery to Sellers of the Buyers’ Reports, or (b) enforce specific performance
of Sellers’ obligations to sell the Partnership Interests pursuant to this Agreement. Buyers hereby
expressly waives all remedies for Sellers’ failure in performance (including any right to obtain
any damages from Sellers), except for specific performance as provided for in this Section
16(C).

     (D) Cumulative Remedies. Except as otherwise specifically provided in this
Agreement, all remedies provided for in this Agreement or available as a matter of law (whether at
law, in equity, by statute or otherwise) are cumulative and may be exercised concurrently or
consecutively, in such order as a party may elect. Limitations on remedies apply only to the
obligations specifically referenced to be limited.

     17. Consequences of Termination.

     (A) If Buyers or Sellers terminate their obligations to complete the Transaction under
circumstances permitted by this Agreement, neither Buyers nor Sellers will have any further
obligation under this Agreement, except for obligations which by their terms expressly survive the
termination of this Agreement. Nothing in this Section 17 is intended to limit the
obligations of the Escrow Agent or the provisions of this Agreement dealing with the disposition of
funds or documents held in escrow following termination of the obligations of Buyers or Sellers. If
Buyers terminate their obligation to complete the Transaction (other than as a consequence of
Sellers’ material uncured default), Buyers shall deliver the Buyers’ Reports to Seller with its
notice of termination as a condition to receiving the Deposit, failing which the Deposit shall be
paid to Sellers on the next Business Day.

33

 

18. Miscellaneous.

     (A) Merger. All provisions of this Agreement shall merge into the Partnership
Assignments and Partnership Agreement Amendments, and the delivery of the Partnership Assignments
and Partnership Agreement Amendments to Buyer shall constitute the full performance of Sellers
and Buyers under this Agreement except for the terms of this Agreement applicable to Sellers and
Buyers which expressly survive the Closing Date and the delivery of the Partnership Assignments and
Partnership Agreement Amendments.

     (B) Interpretation. When the context so requires in this Agreement, words of one
gender include one or more other genders, singular words include the plural, and plural words
include the singular. Use of the words “include” and “including” are intended as an introduction to
illustrative matters and not as a limitation. References in this Agreement to “Sections” are to the
numbered subdivisions of this Agreement, unless another document is specifically referenced.
The word “party” when used in this Agreement means either Buyers or Sellers unless another meaning
is required by the context. The word “person” includes individuals, entities and governmental
authorities. The word “governmental authority” is intended to be construed broadly and
includes governmental agencies, instrumentalities, bodies, boards, departments and officers
and individuals acting in any official capacity. The word “laws” is intended to be construed
broadly and includes all codes, statutes, case law, rules, regulations, pronouncements,
requirements, orders, directives, decisions, decrees, judgments and formal or informal guidance or
interpretations of any court or governmental authority.

     (C) Attorneys’ Fees. If litigation is commenced by Buyers or Sellers against the other
party in connection with this Agreement or the Transaction, the party prevailing in the litigation
will be entitled to collect from the other party the expense (including reasonable fees and
disbursements of attorneys, consultants and other professionals and court costs) incurred in
connection with the litigation. Determination of whether a party has prevailed in litigation will
be judged against the final settlement offers before trial.

     (D) Notice. Any notice or other communication to any party given under this
Agreement will be effective only if in writing delivered to whichever of the following addresses is
applicable:

	 	 	 	 	 
	 

	 	If to any Seller:
	 	Joint Development & Housing Corporation
	 

	 	or Sellers’ Agent
	 	1055 St. Paul Place
	 

	 	 	 	Cincinnati, Ohio 45202
	 

	 	 	 	Attn: Adam Bortz
	 

	 	 	 	Fax: 513-345-6975
	 
	 	 	 	 
	 

	 	In each case,
	 	Chernesky, Heyman & Kress P.L.L.
	 

	 	with a copy to:
	 	10 Courthouse Plaza SW, Suite 1 100
	 

	 	 	 	Dayton, Ohio 45402
	 

	 	 	 	Attn: Karen R. Adams, Esq.
	 

	 	 	 	Fax: 937-463-4947
	 
	 	 	 	 

34

 

	 	 	 	 	 
	 

	 	If to either Buyer or
	 	America First Real Estate Group, LLC
	 

	 	Buyers’ Agent:
	 	c/o The Burlington Capital Group, LLC
 1004 Farnam Street
	 

	 	 	 	Suite 400
	 

	 	 	 	Omaha, Nebraska 68102
	 

	 	 	 	Attn: Chad Daffer
	 

	 	 	 	Fax: (402) 930-9066
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Kutak Rock LLP
	 

	 	 	 	1650 Farnam Street
	 

	 	 	 	Omaha, NE 68102
	 

	 	 	 	Attn: Steven P. Amen
	 

	 	 	 	Fax: (402) 346-1148
	 
	 	 	 	 
	 

	 	If to Escrow
Agent:
	 	Chicago Title Insurance Company
	 

	 	 	 	One South Main Street, Suite 300
	 

	 	 	 	Dayton, Ohio 45402
	 

	 	 	 	Attn: William Frapwell, Esq.
	 

	 	 	 	Fax: (937) 223-8366

Any notice or other communication will be deemed received only upon delivery to the address
provided for in this Section 18(D) or rejection of delivery at such address. Notice may be
given by facsimile transmission, and confirmation of transmission generated by the sender’s
equipment will be prima facie evidence of receipt. The addressees to which notice is to be given
may be changed by written notice in the manner specified in this Section 18(D) and
actually received by the addressee.

     (E) Successors and Permitted Assigns. This Agreement will be binding upon and will
inure to the benefit of Buyers and Sellers and their respective successors and permitted assigns.
Any indemnity in favor of a party also will benefit each person who holds a direct or indirect
ownership interest in such party and the respective officers, directors, shareholders, partners,
trustees, agents, employees and affiliates of such party and such owners, and all such persons are
third-party beneficiaries of this Agreement to the extent of their rights to indemnity under the
related provision and may enforce that provision against Buyers or Sellers, as applicable. The
Escrow Agent and the Broker are not third-party beneficiaries of this Agreement, nor may the Escrow
Agent or the Broker enforce this Agreement or any obligation under this Agreement.

     (F) Headings. The Section headings contained in this Agreement are for convenience of
reference only and are not intended to delineate or limit the meaning of any provision of this
Agreement or be considered in construing or interpreting the provisions of this Agreement.

     (G) Counterparts. This Agreement may be executed in any number of counterparts, each
of which will be deemed an original and all of which, taken together, will constitute one
instrument.

     (H) Entire Agreement. This Agreement embodies the entire agreement and understanding
between Buyers and Sellers with respect to its subject matter and supersedes all prior agreements
and understandings, written and oral, between Buyers and Sellers related to that

35

 

subject matter. This Agreement and the obligations of the parties under this Agreement may be
amended, waived and discharged only by an instrument in writing executed by the party against which
enforcement of the amendment, waiver or discharge is sought. Joinder of the Escrow Agent and the
Broker will not be necessary to make any amendment, waiver or discharge effective between Buyers
and Sellers.

     (I) Severability. The determination that any provision of this Agreement is invalid or
unenforceable will not affect the validity or enforceability of the remaining provisions or of that
provision under other circumstances. Any invalid or unenforceable provision will be enforced to the
maximum extent permitted by law.

     (J) Limited Liability. No limited partner, general partner, shareholder, member,
officer, director, employee or agent of any party hereto (including for this purpose the
Additional Indemnitor), shall have any personal liability directly or indirectly, under or in
connection with this Agreement or any agreement made or entered into under or in connection with
this Agreement and each party hereby waives any and all such claims for personal liability.
Furthermore, Buyers shall look solely to Sellers’ interest in the net sales proceeds from the sale
of the Partnership Interests following a transfer thereof, for the payment of any claim or for any
performance hereunder.

     (K) Assignment. None of the Buyers nor Sellers may assign this or their rights under
this Agreement without the prior approval of the other party, which approval may be withheld in
such other party’s sole and absolute discretion, except that Buyers may assign without requiring
Sellers’ approval their rights to a related or affiliated entity upon certifying to Sellers no
later than five (5) days following the expiration of the Feasibility Period: (i) that the assignee
is controlled by the assigning Buyer; and (ii) that the assigning Buyer has a majority ownership
interest in assignee; and (iii) that assignee and/or the principals or partners or members
thereof, as applicable, is experienced in the operation of affordable multi-family apartment
complexes similar to the Properties and financed in part under Section 42 of the Code; and (iv)
for no monetary consideration; provided, however that if a Buyer makes such a permitted
assignment, such Buyer shall, notwithstanding the assignment, remain fully obligated under this
Agreement.

     (L) Confidentiality. Buyers and Sellers will treat this Agreement as confidential and
will not disclose the existence of this Agreement, the terms of this Agreement or the results of
its due diligence under this Agreement without the advance written consent of the other party,
except for (i) disclosure only to the extent necessary to allow a party’s employees,
representatives, consultants and financiers to perform their duties; (ii) disclosure required by
law or by regulators, including in response to a subpoena or similar process or as part of a
filing required to be made under securities laws; and (iii) disclosure in connection with
litigation to enforce the terms of this Agreement.

     (M) Governing Law. This Agreement will be governed by the laws of the State without
giving effect to principles of conflicts of law.

     (N) No Recordation. Neither this Agreement nor any memorandum of the terms hereof
shall be recorded or otherwise placed of public record, and any breach of this covenant

36

 

shall, unless the party not placing same of record is otherwise in default hereunder, entitle the
party not placing same of record to pursue its rights and remedies under Section 16
hereof.

     (O) Calculation of Time Periods. Unless otherwise specified, in computing any period
of time described in this Agreement, the day of the act or event after which the designated period
of time begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State,
in which event the period shall run until the end of the next day which is neither a Saturday,
Sunday or legal holiday. The final day of any such period shall be deemed to end at 5:00 p.m.,
local time.

     (P) Construction of Ambiguities. The parties acknowledge that each of them has been
represented by counsel of their choice in the negotiation of this Agreement and in connection with
the negotiation of the other Transaction Documents and that the terms of this Agreement and the
other Transaction Documents are the product of such negotiations. Accordingly, the parties agree
that this Agreement and the other Transaction Documents shall be construed without regard to any
rule or presumption requiring construction against the party causing same to be drafted.

     (Q) Modifications and Amendments of Agreement. This Agreement may not be modified or
amended except by a writing executed by the party against whom enforcement of such modification or
amendment is sought.

     (R) CONSENT TO JURISDICTION. TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY STATE OR
FEDERAL COURT SITTING IN THE STATE IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM PERTAINING TO
OR ARISING OUT OF TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE
STATE. THE PROVISIONS OF THIS SUBSECTION SHALL SURVIVE THE CLOSING DATE.

     (S) WAIVER OF TRIAL BY JURY. TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, SUIT, PROCEEDING OR COUNTERCLAIM PERTAINING TO OR ARISING OUT OF THIS AGREEMENT. THE
PROVISIONS OF THIS SECTION SHALL SURVIVE THE DELIVERY THE CLOSING DATE.

     (T) Liability Among Sellers. Notwithstanding anything to the contrary contained
herein, the obligations of the Sellers under this Agreement shall not be joint and several, but
instead shall be deemed to be the sole obligations of the GP, and the Purchaser’s sole recourse
resulting from the failure of the GP to perform any such Sellers’ obligations shall be limited to
the GP; provided, however, that each ILP shall be liable only for the representations, as
applicable to it, in Section 7.(A)(1), 7(A)(3) and 7(A)(4) above, and to execute and deliver to the

37

 

     Purchaser the documents described in Section 15(B)(1) above as they relate to the transfer of its ILP interest.

	Purchaser the documents described in Section 15(B)(1) above as they relate to the transfer of its
ILP interest.

     (T) Schedules and Exhibits. The following Schedules and Exhibits are attached
to, and fully incorporated in, this Agreement:

	 	 	 	 	 
	 

	 	Schedule 1:
	 	Legal Description of the Land
	 

	 	Schedule 2:
	 	List of Personalty
	 

	 	Schedule 3:
	 	List of Leases and Guaranties
	 

	 	Schedule 4:
	 	List of Service Contracts
	 

	 	Schedule 5:
	 	List of Actions, Suits, Proceedings, Investigations
	 

	 	Schedule 6:
	 	List of Buyers’ Required Consents, Approvals,
Authorizations and Filings
	 

	 	Exhibit A:
	 	Form of Partnership Assignment
	 

	 	Exhibit B:
	 	Form of Sellers’ Closing Certificate
	 

	 	Exhibit C:
	 	Form of Buyers’ Closing Certificate
	 

	 	Exhibit D:
	 	Form of Title Insurance Affidavit
	 

	 	Exhibit E:
	 	Form of Recapture Indemnity Agreement of Buyers
	 

	 	Exhibit F:
	 	Form of Recapture Indemnity Agreement of GP

[signatures begin on the following page]

38

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on their
respective behalf as of the Effective Date.

	 	 	 	 	 
	 	 	GP BUYER:
	 
	 	 	 	 
	 	 	ATLANTIC DEVELOPMENT GP HOLDING CORP.
	 
	 	 	 	 
	5/7, 2007

	 	By:
	 	/s/ Drew Fitch
	 

	 	 	 	 
	Date Executed

	 	 	 	Drew Fitch, President
	 
	 	 	 	 
	 	 	LP BUYER:
	 
	 	 	 	 
	 	 	AMERICA FIRST LP HOLDING CORP.
	 
	 	 	 	 
	5/7, 2007

	 	By:
	 	/s/ Chad Daffer
	 

	 	 	 	 
	Date Executed

	 	 	 	Chad Daffer, President
	 
	 	 	 	 
	 	 	GP SELLER:
	 
	 	 	 	 
	 	 	JOINT DEVELOPMENT & HOUSING CORPORATION
	 
	 	 	 	 
	MAY 4, 2007

	 	By:
	 	/s/ Philip T. Montanus
	 

	 	 	 	 
	Date Executed

	 	 	 	Philip T. Montanus, President
	 
	 	 	 	 
	 	 	LP SELLERS
	 
	 	 	 	 
	 	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS II, 
A LIMITED
PARTNERSHIP
	 
	 	 	 	 
	 	 	By West Cedar II Limited Partnership, its general
partner
	 
	 	 	 	 
	 	 	By West Cedar Managing, Inc., its general partner
	 
	 	 	 	 
	May 3, 2007

	 	By:
	 	/s/ Jeffrey D. Rahn
	 

	 	 	 	 
	Date Executed

	 	 	 	Jeffrey D. Rahn, Vice President

39

 

	 	 	 	 	 
	 	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS III, A LIMITED
PARTNERSHIP
	 
	 	 	 	 
	 	 	By West Cedar III Limited Partnership, its general
partner
	 
	 	 	 	 
	 	 	By West Cedar Managing, Inc., its general partner
	 
	 	 	 	 
	May 3, 2007

	 	By:
	 	/s/ Jeffrey D. Rahn
	 

	 	 	 	 
	Date Executed

	 	 	 	Jeffrey D. Rahn, Vice President
	 
	 	 	 	 
	 	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS IV, A LIMITED
PARTNERSHIP
	 
	 	 	 	 
	 	 	By West Cedar IV Limited Partnership, its general partner
	 
	 	 	 	 
	 	 	By West Cedar Managing, Inc., its general partner
	 
	 	 	 	 
	May 3, 2007

	 	By:
	 	/s/ Jeffrey D. Rahn
	 

	 	 	 	 
	Date Executed

	 	 	 	Jeffrey D. Rahn, Vice President
	 
	 	 	 	 
	 	 	SLP, INC.
	 
	 	 	 	 
	May 3, 2007

	 	By:
	 	/s/ Jeffrey D. Rahn
	 

	 	 	 	 
	Date Executed

	 	 	 	Jeffry D. Rahn, Vice President

40

 

	 	 	 	 	 
	 	 	JOINDER BY BUYERS’ AGENT, ONLY AS TO ITS OBLIGATIONS
HEREUNDER
	 
	 	 	 	 
	 	 	AMERICA FIRST REAL ESTATE GROUP, LLC
	 
	 	 	 	 
	5/7, 2007

	 	By:
	 	/s/ Mark A. Hiatt
	 

	 	 	 	 
	Date Executed

	 	 	 	Mark A. Hiatt, President
	 
	 	 	 	 
	 	 	JOINDER BY ADDITIONAL INDEMNITOR, ONLY AS TO ITS
OBLIGATIONS UNDER SECTION
8(E)(4):
	 
	 	 	 	 
	 	 	AMERICA FIRST TAX EXEMPT INVESTORS, L.P.
	 
	 	 	 	 
	 	 	By America First Capital Associates Limited Partnership
Two, its general partner
	 
	 	 	 	 
	 	 	By The Burlington Capital Group, LLC, its general partner
	 
	 	 	 	 
	5/7, 2007

	 	By:
	 	/s/ Lisa Roskens
	 

	 	 	 	 
	Date Executed

	 	 	 	Lisa Roskens, President
	 
	 	 	 	 
	 	 	JOINDER BY ESCROW AGENT, ONLY AS TO ITS OBLIGATIONS
HEREUNDER:
	 
	 	 	 	 
	 	 	CHICAGO TITLE INSURANCE COMPANY
	 
	 	 	 	 
	MAY 8, 2007

	 	By:
	 	/s/ William H. Frapwell
	 

	 	 	 	 
	Date Executed

	 	Name:
	 	WILLIAM H. FRAPWELL
	 

	 	Title:
	 	ATTORNEY

41

 

Schedule 1

Parcel I - Crescent Village Townhomes

     Situated and being in Section 2, Town 2, Range 2, Union Township, Butler County, Ohio, and
being a 9.258 acre tract of land and being more particularly described as follows:

     Begin at a point found by measuring from the southeast corner of said Section 2, along the
south section line, said line also being the centerline of Crescentville Road, North 85°23’15”
West, 333.73 feet; thence leaving said section and centerline, North 4°36’45” East, 70.00 feet to a
point in the northerly right-of-way line for Crescentville Road, said point being the TRUE POINT OF
BEGINNING;

thencefrom the point of beginning thus found, and along said northerly right-of-way,

North 85°23’15” West, 327.56 feet;

thenceleaving said right-of-way, North 4°36’45” East, 1087.68 feet;

thenceSouth 85°23’15” East, 566.53 feet to a point in the easterly line of said section;

thencealong said easterly section line, South 0°04’00” East, 191.02 feet;

thenceleaving said easterly section line, North 85°23’15” West, 254.55 feet;

thenceSouth 4°36’45” West, 897.29 feet to the point of beginning; containing 9.258
acres of land and being subject to all easements of record.

1

 

Parcel II – Eagle Ridge Apartments

Being located in the City of Erlanger, Kenton County, Kentucky, on the West side of Riggs Avenue
and South of 1-275 and being more particularly described as follows:

Beginning at an iron pin located in the Northern right-of-way of Riggs Avenue at a point of
curvature, said pin is located approximately 25 feet North of the centerline of Riggs Avenue and
175 feet East of the centerline of Silverlake Avenue; thence South 49°30’00” West, 26.11 feet to a
point; thence North 40°30’00” West, 5.00 feet to a point on the Northern right-of-way of Riggs
Avenue, 30 feet from said centerline, said point also being the TRUE POINT OF BEGINNING.

From said Point of Beginning, North 40°30’00” West, 22.51 feet; Thence North 17°42’41” West, 58.01
feet;

Thence on a concave curve to the right, having a radius of 125.50 feet, arc length 45.45 feet, said
curve being subtended by a chord bearing North 08°52’31” East, 45.20 feet;

Thence North 19°15’00” East, 87.00 feet;

Thence on a concave curve to the left having a radius of 74.50 feet, arc length 39.01 feet, said
curve being subtended by a chord bearing North 04°15’00” East, 38.56 feet;

Thence North 10°45’00” West, 91.74 feet;

Thence South 82°01’18” West, 81.87 feet to a found iron pin;

Thence South 76°26’18 West, 97.51 feet to a found iron pin;

Thence South 64°41’18” West, 463.65 feet to a found iron pin;

Thence South 41°18’42” East, 86.66 feet;

Thence South 48°41’18” West, 69.01 feet;

Thence North 80°59’00” West, 174.54 feet;

Thence North 48°27’00” East, 160.52 feet;

Thence North 40°46’42” West, 265.02 feet;

Thence North 41°42’00” West, 229.09 feet;

Thence North 81°42’04” East, 459.19 feet;

Thence North 84°18’36” East, 397.26 feet;

Thence South 84°08’05” East, 390.67 feet to a found concrete monument;

2

 

Thence South 21°01’49” East, 149.25 feet;

Thence South 63°56’18” West, 138.44 feet to an iron pin;

Thence South 82°01’18” West, 164.05 feet;

Thence South 10°45’00” East, 89.90 feet;

Thence on a concave curve to the right, having a radius of 112.50 feet, arc length 58.90 feet,
said curve being subtended by a chord bearing South 04°15’00” West, 58.23 feet;

Thence South 19°15’00” West, 87.00 feet;

Thence on a concave curve to the left, having a radius of 87.50 feet, arc length 31.69 feet, said
curve being subtended by a chord bearing South 08°52’31” West, 31.52 feet;

Thence South 38°18’43” East, 53.11 feet to a point on the Northern right-of-way of Riggs Avenue;

Thence with said right-of-way on a concave curve to the left, having a radius of 286.19 feet, arc
length 23.89 feet, said curve being subtended by a chord bearing South 51°53’29” West, 23.88 feet;

Thence South 49°30’00” West, 26.11 feet to the POINT OF BEGINNING, containing 8.8910 acres of
land.

The above description was prepared by Jay F. Bayer, Registered Land Surveyor No. 2916 in the State
of Kentucky, November 1992.

3

 

Parcel III – Meadow Apartments

Being situated in Campbell County, Commonwealth of Kentucky, and being the Easterly portion
of the 27 acre tract of land inherited by Charles J. Herbst and George P. Herbst by will of
Phillip Herbst, said will being recorded in Will Book 17, Page 48, of the Records of the
Campbell County Clerk in Newport, Ky. said remaining parcel being more particularly
described as follows:

Beginning at a recovered concrete right-of-way marker in the relocated Johns Hill Road
right-of-way, said marker being located at Centerline Station 39+93, 83 feet left, as shown
on the State Highway Plans;

Thence along the relocated Johns Hill Road right-of-way S 73-14-32 E, a distance of 421.76
feet to a recovered right-of-way marker located at Centerline Station 36+00, 65 feet left;

Thence along the limits of the Johns Hill Road reconstruction N 8-00-56 E, a distance of
45.00 feet to an iron pin set in the Johns Hill Road right-of-way said point being located
2020.00 feet from Centerline Station 36+00;

Thence along the right-of-way S 81-59-04 E, a distance of 212.48 feet to an iron pin set at
the most Easterly property corner;

Thence leaving Johns Hill Road right-of-way along the Southerly property line S 49-00-46 W,
a distance of 1,270.64 feet to an iron pin set in the fence line at the Southernmost corner
of the property;

Thence with the fence line located along the Southwesterly property line N 36-28-55 W, a
distance of 496.84 feet to an iron pin set in the fence line at the Northwesterly properly
corner;

Thence along the Northerly property line N 48-22-53 E, a distance of 830.32 feet to a pin set
at the Northerly property corner, said pin being located in the relocated right-of-way of
Johns Hill Road;

Thence along the right-of-way S 50-42-53 E, a distance of 17.18 feet to the point of
beginning.

Said parcel containing 11.75 acres.

Subject to easements, restrictions, covenants and agreements of record; legal highways; and
zoning regulations

4

 

Parcel IV – Post Woods and Parcel V – Post Woods II

     Situate in the County of Franklin, State of Ohio, City of Reynoldsburg and being located in
Half Section 1 , Township 12, Range 21 , Refugee Lands and bounded and described as follows

Beginning at an iron pin in the southerly right-of-way line of Daugherty Drive at the
northwesterly corner of Reserve C of Indian Creek Section No. 2 of record in Plat Book 65,
Page 72;

     thence along the westerly line of the said Reserve C, South 1° 05’ 50” West, 267.98 feet to an
iron pin at the southwesterly corner of said Reserve C;

     thence along the northerly line of the Gary W. James 13.633 acre tract of record in Official
Record 11251F02, South 89° 46’ 49” West, 692.44 feet to a stone;

     thence along the westerly line of the said James 13.633 acre tract, South 0° 00’ 25” West, 930.87
feet to an iron pin at the southwesterly corner of the said James 13.633 acre tract;

     thence along the northerly line of Treebourne of record in Plat Book 51, Page 78, North 89°
47’ 25” West, 422.44 feet to a stone at the northwesterly corner of said Treebourne

     thence along the easterly line of the City of Reynoldsburg 46.542 acre tract of record in
Official Record 247H20, North 0° 11’ 40” East, 1295.05 feet to an iron pin;

     thence along the southerly right-of-way line of the said Daugherty Drive, south 89° 48’ 20”
East, 666.55 feet to an iron pin at a point of curvature of a curve to the right;

     thence continuing along said right-of-way line and being the arc of said curve to the right
(Radius = 570 feet, Delta = 22° 30’ 35”), a chord bearing and distance of South 78° 33’ 02” East,
222.50 feet to a iron pin at a point of reverse curvature;

     thence continuing along said right-of-way line and being an arc of a curve to the left (Radius
= 630 feet, Delta = 21° 36’ 25”), a chord bearing and distance of South 78° 05’ 58” East, 236.18
feet to the place of beginning and containing 17.805 acres, more or less.

     Subject, however, to all legal rights-of-way and/or easements, if any, of previous record.

     The bearing system on this description is based on the same meridian as Indian Creek
Section No. 2 of record in Plat Book 65, Page 72.

5

 

Parcel VI – Willow Bend Townhomes

     Situate in the State of Ohio, County of Franklin, City of Columbus, being located in Virginia
Military Survey No. 6641 and being part of that tract of land conveyed to John J. Chester, David B.
Roth Richard J. Solove and Bank One of Columbus N.A., Trustee, by deed of record in Official Record
2584H12, all references being to records in the Recorder’s Office, Franklin County, Ohio and
bounded and described as follows:

     Beginning at an angle point in the northerly right-of-way line of Renner Road, the westerly
line of said John J. Chester, et al (4) tract, the easterly line of the 2.00 acre tract, conveyed
to John P. and Helen K. Neff, by deed of record in Deed Book 2006, Page 493, said point also being
the northwesterly corner of the 1.725 acre tract conveyed to The City of Columbus by deed of record
in Official Record 15104D16;

     thence North 0° 19’ 17” East, along said easterly line of the John P. and Helen K. Neff 2.00
acre tract, a distance of 400.84 feet to the northeasterly corner of said tract;

     thence North 86° 16’ 03” West, along the northerly line of said 2.00 acre tract, a distance
of 197.57 feet to the northwesterly corner of said tract and being in the easterly line of
“SWEETWATER ESTATES SECTION ONE”, as the plat of same is of record in Plat Book 67, Page 94;

     thence North 0° 35’ 47” East, along said easterly line of “SWEETWATER ESTATES SECTION ONE”, a
distance of 184.97 feet to a point;

     thence South 86° 16’ 03” East, a distance of 51.33 feet to a point of curvature of a curve to
the left;

     thence along the arc of said curve (Delta = 6° 06’ 41”, Radius = 475.00 feet), a chord
bearing and distance of South 89° 19’ 22” East, 50.64 feet to a point of tangency;

     thence North 87° 37’ 16” East, a distance of 77.44 feet to a point of curvature of a curve to
the right:

     thence along the arc of said curve (Delta 6° 06’ 41”, Radius = 525.00 feet), a chord bearing
and distance of South 89° 19’ 23” East, 55.97 feet to a point of tangency;

thence South 86° 16’ 03” East, 535.23 feet to a point;

     thence South 3° 43’ 57” West, a distance of 598.75 feet to a point in the northerly
right-of-way line of Renner Road;

     thence North 86° 16’ 03” West, along said right-of-way line of Renner Road (being 40 feet
northerly, as measured at right angles to the centerline of Renner Road), a distance of 538.47
feet to the place of beginning, containing 8.500 acres, more or less. Bearings contained herein
are based on the same meridian as bearings in deed of record in Official Record 2584H12.

6

 

Schedule 2

List of Personalty

1

 

Schedule 3

List of Leases and Guaranties*

 

			
	*	 	If any guaranties of Leases.

1

 

Schedule 4

List of Service Contracts

1

 

Schedule 5

Actions, Suits, Proceedings, Investigations

Board of Revision Complaint Against the Valuation of Real Properties, Franklin County Board
of Revisions, Case No.       
              .

1

 

Schedule 6

 Buyers’ Required Consents, Approvals, Authorizations, and Filings

1. State Agency consent as set forth in Section 6(A).

2. [Existing lender consent is not needed since debt will be paid at Closing.]

3. If any of the real estate is leased under a ground lease, or the title documents otherwise
indicate the consent of third parties is required, the consent of such ground lessor(s) or other
third parties.

1

 

Exhibit A

PARTNERSHIP ASSIGNMENT

 ASSIGNMENT

     Pursuant to Article                      of the Amended and Restated Partnership Agreement of
                                        , an Ohio limited partnership (the “Partnership”), the
undersigned hereby assigns to                      , (“Assignee”) all of its right, title and
interest as a general partner in the Partnership.

	 	 	 	 	 
	 	JOINT DEVELOPMENT & HOUSING CORPORATION

 	 
	 	By:  	 	 
	 	 	Philip T. Montanus, President 	 
	 	 	 	 
	 
	 	 	 
	 	Dated as of   	 	 

ACCEPTANCE OF ASSIGNMENT

     Pursuant to the terms of Article ______ of the Amended and Restated Partnership
Agreement of the Partnership (the “Agreement”), the undersigned hereby accepts the foregoing
Assignment and agrees to be bound by all of the terms of the Agreement.

	 	 	 	 	 
	 	[NAME OF GP BUYER]

 	 
	 	By:  	 	 
	 	 	Drew Fitch, President 	 
	 	 	 	 
	 
	 	Dated as of	 	 
	 	 	 
	 	 	 
	 	 	 
	 

[modify as necessary to assign LP interests]

1

 

Exhibit B

 SELLERS’ CLOSING CERTIFICATE

To: [Name of Buyers]

     This Certificate is being delivered in connection with that certain Purchase and Sale
Agreement, dated as of                      , 2007 (the “Purchase and Sale Agreement”), between
                     , a                                                             , as Sellers (“Sellers”), and
                     , a                                          , as buyers (“Buyers”), with
respect to the Partnership Interests in [Name of Partnerships], each an Ohio limited partnership.

     Sellers hereby certify, pursuant to Section                      of the Agreement, that the
representations and warranties of Sellers contained in Section 7 of the Agreement are true and
correct in all material respects as of the date hereof.

     This Certificate incorporates by reference the provisions of Section                      of the
Agreement as if fully set forth herein.

     The undersigned certifies that (he) (she) is an authorized signatory of Sellers and that as
such is authorized to execute this Certificate on behalf of Sellers.

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly
executed as of the                      day of                     , 2007.

	 	 	 	 	 
	 	SELLERS:

JOINT DEVELOPMENT & HOUSING CORPORATION

 	 
	 	By:  	 	 
	 	 	Philip T. Montanus, President 	 
	 	 	 	 
	 
	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS
II, A LIMITED 
PARTNERSHIP

By West Cedar II Limited Partnership, its

general partner

By West Cedar Managing, Inc., its general

partner

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	                  
        , 2007 	By:  	 	 
	Date Executed	 	Jeffrey D. Rahn, Vice President 	 
	 	 	 	 
	 

1

 

	 	 	 	 	 
	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS III, A LIMITED 
PARTNERSHIP 

By West Cedar III Limited Partnership, its general partner

By West Cedar Managing, Inc., its general partner

 	 
	 	By:  	 	 
	 	 	Jeffrey D. Rahn, Vice President 	 
	 	 	 	 
	 
	 	BOSTON FINANCIAL INSTITUTIONAL TAX CREDITS IV, A LIMITED PARTNERSHIP

By West Cedar IV Limited Partnership, its general partner

By West Cedar Managing, Inc., its general partner

 	 
	 	By:  	 	 
	 	 	Jeffrey D. Rahn, Vice President  	 
	 	 	 	 
	 
	 	SLP, INC.

 	 
	 	By:  	 	 
	 	 	Jeffrey D. Rahn, Authorized Signer 	 
	 	 	 	 
	 

2

 

Exhibit C

 BUYERS’ CLOSING CERTIFICATE

To: [Name of Sellers]

     This Certificate is being delivered in connection with that certain Purchase and Sale
Agreement, dated as of             
         , 2007 (the “Purchase and Sale Agreement”), between
                                         , a                                                             , as Sellers (“Sellers”), and
                                         , a                                                             , as buyers (“Buyers”), with
respect to the Partnership Interests in [Name of Partnerships], each an Ohio limited partnership.

     Buyers hereby certify, pursuant to Section _________ of the Agreement, that the
representations and warranties of Buyers contained in Section 7 of the Agreement are true and
correct in all material respects as of the date hereof.

     This Certificate incorporates by reference the provisions of Section ______ of the
Agreement as if fully set forth herein.

     The undersigned certifies that (he) (she) is an authorized signatory of
 Buyers and that as
such is authorized to execute this Certificate on behalf of Buyers.

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly
executed as of the ______ day of _______, 2007.

	 	 	 	 	 
	 	BUYERS:

ATLANTIC DEVELOPMENT GP HOLDING

CORP.

 	 
	 	By:  	 	 
	 	 	Drew Fitch, President 	 
	 	 	 	 
	 
	 	AMERICA FIRST LP HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Chad Daffer, President 	 
	 	 	 	 
	 

1

 

Exhibit D

 AFFIDAVIT

    
             
            
            
             
      

County of  
             
            
              

     I,
              
             
              
               
    of       
             
            
            
             
     (the “Undersigned”) being duly sworn,
depose and say as follows:

	1.	 	The undersigned is the Owner of certain premises known
as
            
             
              
             
         , in the City of   
                
  , County of
                    , and the State of ______ and being more particularly described
in Exhibit A attached hereto and made a part hereof.

	2.	 	There is no person, firm or corporation to whom debt is due for labor, services or
materials in connection with the construction or repair if any building or improvements
on the herein-described premises, during the preceding seventy-five (75) days, which
could give rise to a mechanic’s lien except for:

NONE

	3.	 	There are no present tenants, lessees, or other parties in possession of said premises,
except (if none, state “none”) except as set forth on the rent roll attached as Exhibit B
hereto and made a part hereof.
	 
	 	 	The undersigned make this affidavit for the purposes of inducing third parties to purchase
or lease the premises, and/or for the purpose of inducing third party lenders to grant a
mortgage on said premises, and for the purpose of inducing the Company to issue a policy
(policies) of title insurance.

 

	 	 	Subscribed and sworn to before me, this    
            
           
            
   day of        
            
 , 200       

 

Notary Public

My           Commission           Expires:

1

 

Exhibit E

RECAPTURE INDEMNITY AGREEMENT OF BUYERS

     THIS RECAPTURE INDEMNITY AGREEMENT (“Agreement”) is made as of this            
day of                     , 2007, by Atlantic Development GP Holding Corp., a Nebraska
corporation, America First LP Holding Corp., a Nebraska corporation and America First Tax Exempt
Investors, L.P., a Delaware limited partnership, (collectively, “Indemnitors”) in favor of Joint
Development & Housing Corporation, an Ohio corporation (“GP”), the general partner of each of the
Partnerships, Boston Financial Institutional Tax Credits II, A Limited Partnership, a Massachusetts
limited partnership (“ITC2”), in its capacity as the Investor Limited Partner of the Meadowbrook
Partnership and the Willow Partnership, Boston Financial Institutional Tax Credits III, A Limited
Partnership, a Massachusetts limited partnership (“ITC3”), in its capacity as the Investor Limited
Partner of the Crescent Partnership, the Eagle Partnership and the PW1 Partnership, Boston
Financial Institutional Tax Credits IV, A Limited Partnership, a Massachusetts limited partnership
(“ITC4”; ITC2, ITC3 and ITC4 are sometimes hereinafter collectively referred to as the “ILPs”), in
its capacity as the Investor Limited Partner of the PW2 Partnership, and SLP, INC., a Massachusetts
corporation (the “SLP”), in its capacity as the Special Limited Partner of the Crescent Village
Partnership, the Eagle Partnership, the Meadowbrook Partnership, the PW1 Partnership, the PW2
Partnership and the Willow Partnership (the GP, the ILPs and the SLP are collectively referred to
herein as the “Partners” or “Indemnitee”).

Recitals

     A. The Partners are the partners in the Partnerships.

     B. The Partners are the Sellers under that certain Purchase and Sale Agreement
dated as of                                          , 2007 (the “Purchase Agreement”), and the Indemnitors are the
Buyer and Additional Indemnitor as defined in the Purchase Agreement.

     C. Pursuant to the Purchase Agreement, the Indemnitors shall execute and deliver
this Agreement on the Closing Date (as defined in the Purchase Agreement).

     NOW THEREFORE, in consideration of the mutual promises and covenants contained in the Purchase
and Sale Agreement, the Indemnitors, intending to be legally bound, agree as follows:

Agreement

     1. INDEMNITY. The Indemnitors hereby agree, jointly and severally, to indemnify
and hold the Indemnitee and the owners, partners, officers and directors thereof, and their
respective affiliates and agents (collectively, the “Indemnified Parties”), free and harmless from
any recapture of any Sellers Earned Tax Credits, interest or penalties imposed by the Internal
Revenue Service (the “IRS”) in connection with the recapture of Sellers’ Earned Tax Credits,

1

 

and any other loss, liability or damage, including, without implied limitation, reasonable
attorneys’ fees, consultants’ fees, accountants’ fees, court costs, amounts paid in settlement of
any claims, for recapture of any Sellers’ Earned Tax Credits, or penalties imposed by the IRS in
connection with the Sellers’ Earned Tax Credits, resulting directly or indirectly from , or in any
way connected with (i) the breach by Buyers of any of the warranties or covenants or inaccuracy of
any of the representations expressly made by Buyers in Section 8 the Purchase Agreement, (ii)
failure of Buyers to maintain ownership, use and operation of the Properties in accordance with the
requirements of the Code and the State Agency and as contemplated under the Tax Credit Documents,
including, without implied limitation, the recapture of any Sellers Earned Tax Credits or any
penalties imposed by the IRS or the State Agency in connection with the Sellers Earned Tax Credits;
or (iii) the cancellation of the recapture bond by the surety or the insufficiency of the Recapture
Bond to cover the Sellers Indemnified Parties’ costs in connection with recapture of the Sellers
Earned Tax Credits. The Indemnitors acknowledge and agree that, among the Seller Indemnified
Parties, the primary beneficiaries of the foregoing indemnity are the respective direct and
indirect limited partners of the Partnerships and, accordingly, provided than any of the foregoing
(i), (ii) or (iii) has occurred, such limited partners shall have the right to enforce the
indemnity in their own stead, which enforcement shall not be contested in any manner on account
thereof.

     2. NET WORTH COVENANT. At all times while this Agreement is in effect, the
parties comprising the Indemnitors shall maintain a collective net worth of not less than
$                     , of which $                      shall be in liquid assets, which is ten times the estimated amount of
recapture tax liability and related costs as of the date hereof.

     3. GENERAL PROVISIONS.

          3.1 Binding Effect. This Agreement shall be binding upon the Indemnitors
and their successors, assigns, and personal representatives. The Indemnitor acknowledges and
agrees that the partners of the Indemnitee shall be deemed to be third party beneficiaries of
this Agreement.

          3.2 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio.

          3.3 Attorney’s Fees. The prevailing party in any dispute, regardless of
whether litigation is commenced, shall recover its reasonable attorney’s fees and other costs
incurred in that action or proceeding, in addition to any other relief to which it may be
entitled.

          3.4 Waiver. The waiver by a party of a breach of any provision of this
Agreement by the other party shall not operate or be construed as a waiver of any subsequent
breach by that party. No waiver shall be valid unless in writing and signed by the party
against whom enforcement of the waiver is sought.

2

 

          3.5 Severability. If for any reason any portion of this Agreement shall be held
to be invalid or unenforceable, the holding of invalidity or unenforceability of that portion
shall not effect any other portion of this Agreement and the remaining portions of this Agreement shall remain in full force and effect.

          3.6 Defined Terms. Any term used but not defined herein shall have the
meaning ascribed to it in the Purchase Agreement.

          3.7 Joint and Several Liability. Each of the Indemnitors shall be jointly and
severally liable hereunder.

          3.8 Conflict. In the event of any conflict between the terms of Section 8 of the
Purchase Agreement, all of which expressly survive the delivery of the Deed and the Closing
Date (as those terms are defined in the Purchase Agreement), and this Agreement, then the
terms of the Purchase Agreement shall control.

     IN WITNESS WHEREOF, Indemnitors and Indemnitee have executed and delivered this Agreement as
of the day and year first above written.

3

 

	 	 	 	 	 
	 	INDEMNITORS:

ATLANTIC DEVELOPMENT GP HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Chad Daffer, President 	 
	 	 	 	 
	 
	 	AMERICA FIRST LP HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Chad Daffer, President 	 
	 	 	 	 
	 
	 	AMERICA FIRST TAX EXEMPT INVESTORS, L.P.

By America First Capital Associates Limited

Partnership Two, its general partner

By The Burlington Capital Group, LLC, its general

partner

 	 
	 	 	 
	 	By:  	
 	 
	 	 	Lisa Y. Roskens, President 	 
	 	 	 	 
	 
	 	INDEMNITEES:

JOINT DEVELOPMENT & HOUSING CORPORATION

 	 
	                           , 2007 	By:  	 	 
	Date Executed 	Name:  	 	 
	 	Title:  	 	 
	 

4

 

	 	 	 	 	 
	 	BOSTON FINANCIAL INSTITUTIONAL

TAX CREDITS II, A LIMITED

PARTNERSHIP
 	 
	 	By:  	West Cedar II Limited Partnership, 	 
	 	 	its General Partner	 
	 	 	By:     	  West Cedar Managing, Inc.,	 
	 	 	 	its General Partner	 
	 

	 	 	 	 	 
	 	 	 
	                           , 2007 	By:  	 	 
	Date Executed	 	Jeffrey D. Rahn 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	 	 	BOSTON FINANCIAL INSTITUTIONAL

TAX CREDITS III, A LIMITED

PARTNERSHIP
	 
	 

	 	By:
	 	West Cedar III Limited Partnership,

its General Partner

	 	 	 	 	 
	 

	 	By:
	 	West Cedar Managing, Inc.,

its General Partner
	                           , 2007

Date Executed
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Jeffrey D. Rahn 

Vice President

	 	 	 	 	 
	 	 	BOSTON FINANCIAL INSTITUTIONAL

TAX CREDITS IV, A LIMITED

PARTNERSHIP
	 
	 	 	 	 
	 

	 	By:
	 	West Cedar IV Limited Partnership,

its General Partner

	 	 	 	 	 
	 

	 	By:
	 	West Cedar Managing, Inc.,
	 

	 	 	 	 its General Partner
	                           , 2007

Date Executed
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Jeffrey D. Rahn
	 

	 	 	 	Vice President

	 	 	 	 	 
	 	 	SLP, INC.
	                           , 2007

	 	 	 	 
	Date Executed

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Jeffrey D. Rahn
	 

	 	 	 	Authorized Signer

5

 

Exhibit F

RECAPTURE INDEMNITY AGREEMENT OF GP

(                     Apartments)

     THIS RECAPTURE INDEMNITY AGREEMENT (“Agreement”) is made as of this _______
day of                     , 2007, by Joint Development & Housing Corporation, an Ohio
corporation (“Indemnitor”) in favor of Atlantic Development GP Holding Corp., a Nebraska
corporation (“GP Buyer”), America First LP Holding Corp., a Nebraska corporation (“LP Buyer”)
and America First Tax Exempt Investors, L.P., a Delaware limited partnership (“Additional
Indemnitee”) (collectively referred to herein as “Indemnitees”).

Recitals

     A. Indemnitor is the former general partner of six Ohio limited partnerships known
as Crescent Village Townhomes Limited Partnership, Eagle Ridge Townhomes Limited
Partnership, Meadowbrook Apartments Limited Partnership, Post Wood Townhomes Limited
Partnership, Post Wood Townhomes II Limited Partnership and Willow Bend Townhomes
Limited Partnership (collectively, the “Partnerships”) having sold its general partner
interest in
each of the Partnership to GP Buyer pursuant to that certain Purchase and Sale Agreement dated
as of _______, 2007 (the “Purchase Agreement”) and having taken such steps as are
necessary to admit GP Buyer as the sole general partner of each of the Partnerships;

     B. Under the terms of the Purchase Agreement, LP Buyer acquired all of the limited
partnership interests of the various limited partners of the Partnerships and has been
admitted as the sole limited partner of each of the Partnerships;

     C. Under the terms of the Purchase Agreement, and a separate Recapture Indemnity
Agreement of Buyers, dated as of the date hereof, each of the Indemnitees have agreed, on a
joint and several basis, to provide certain indemnification to GP, the former limited partners of
each of the Partnerships and certain of their respective affiliates, with respect to liabilities
arising from or in connection with the recapture of certain federal income tax credits provided under Section
42 of the Internal Revenue Code with respect to the apartment complexes owned by the Partnerships
which liabilities arise out of, among other things, the failure of Indemnitees to own, use and
operate such apartment complexes in a manner consistent with Section 42 and have, in addition,
provided a bond against such liability from an unaffiliated surety company (the “Bond”).

     D. The Purchase Agreement further provides, however, that GP shall execute and
deliver this Agreement on the Closing Date (as defined in the Purchase Agreement) to provide
indemnity to the Indemnitees in the event they incur liability to the surety company providing
the Bond or otherwise with respect to recapture liability relating to the Partnerships which is
incurred for reasons other than those for which Indemnitees are providing indemnification
under the Recapture Indemnity Agreement of Buyers and the Purchase Agreement.

1

 

     NOW THEREFORE, in consideration of the mutual promises and covenants contained in the
Purchase and Sale Agreement, the Indemnitor, intending to be legally bound, agrees as follows:

Agreement

     1. INDEMNITY. The Indemnitor hereby agrees to indemnify and hold each of the
Indemnitees, and each of their respective partners, directors, officers, shareholders,
affiliates and
agents (collectively, the “Indemnified Parties”) free and harmless from any Recapture Losses
(as defined in the Purchase Agreement), which for purposes hereof shall include any payment made
by any Indemnified Party under or pursuant to any guarantee, indemnity or reimbursement
agreement provided to any surety issuing the Bond or any substitute or replacement therefore
required under the provisions of the Purchase Agreement, which Indemnitor is not indemnified
against by the Indemnitees pursuant to Section 8(E)(4) of the Purchase Agreement and the
Recapture Indemnity Agreement of Buyers. The Indemnitor acknowledges and agrees that any
Indemnified Party, whether or not a party to this Agreement, shall have the right to enforce
the foregoing indemnity in its own name and stead and Indemnitor will not contest such enforcement
on the grounds of lack of privity of contract.

     2. GENERAL PROVISIONS.

     2.1 Binding Effect. This Agreement shall be binding upon the Indemnitor and its
successors, assigns, and personal representatives. The Indemnitor acknowledges and agrees that
all Indemnified Parties shall be deemed to be third party beneficiaries of this Agreement.

     2.2 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio.

     2.3 Attorney’s Fees. The prevailing party in any dispute, regardless of whether
litigation is commenced, shall recover its reasonable attorney’s fees and other costs incurred
in that action or proceeding, in addition to any other relief to which it may be entitled.

     2.4 Waiver. The waiver by a party of a breach of any provision of this Agreement by
the other party shall not operate or be construed as a waiver of any subsequent breach by that
party. No waiver shall be valid unless in writing and signed by the party against whom
enforcement of the waiver is sought.

     2.5 Severability. If for any reason any portion of this Agreement shall be held to be
invalid or unenforceable, the holding of invalidity or unenforceability of that portion shall
not effect any other portion of this Agreement and the remaining portions of this Agreement shall
remain in full force and effect.

     2.6 Defined Terms. Any term used but not defined herein shall have the meaning
ascribed to it in the Purchase Agreement.

     2.7 Conflict. In the event of any conflict between the terms of Section 8 of the
Purchase Agreement, all of which expressly survive the delivery of the Deed and the Closing

2

 

Date (as those terms are defined in the Purchase Agreement), and this Agreement, then the
terms of the Purchase Agreement shall control.

     IN WITNESS WHEREOF, Indemnitor and Indemnitees have executed and delivered this Agreement as
of the day and year first above written.

	 	 	 	 	 
	 	INDEMNITOR:

JOINT DEVELOPMENT & HOUSING CORPORATION

 	 
	                           , 2007 	By:  	 	 
	Date Executed 	Name:  	 	 
	 	Title:  	 	 
	 
	 	INDEMNITEES:

ATLANTIC DEVELOPMENT GP HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Chad Daffer, President  	 
	 	 	 	 
	 
	 	AMERICA FIRST LP HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Chad Daffer, President 	 
	 	 	 	 
	 
	 	AMERICA FIRST TAX EXEMPT INVESTORS, L.P.

By America First Capital Associates Limited

Partnership Two, its general partner

By The Burlington Capital Group, LLC, its general

partner

 	 
	 	By:  	 	 
	 	 	Lisa Y. Roskens, President  	 
	 	 	 	 
	 

3

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