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Exhibit 10.1    
    

EXECUTION
COPY 

SECOND AMENDED AND RESTATED

ADVISORY AGREEMENT  

        THIS SECOND AMENDED AND RESTATED ADVISORY AGREEMENT (this "Agreement") is entered into as of June 3, 2004,
by and between AMERICA FIRST APARTMENT INVESTORS, INC., a Maryland corporation (the "Company"), and AMERICA FIRST
APARTMENT ADVISORY CORPORATION, a Maryland corporation (the "Advisor"). 

W
I T N E S S E T H: 

        WHEREAS,
the Company operates as a real estate investment trust (a "REIT") under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"); and 

        WHEREAS,
the Company, directly or through its Subsidiaries, invests in multifamily apartment complexes, mortgage-backed securities and other real estate related investments meeting the
investment criteria established from time to time by its Board of Directors; and 

        WHEREAS,
the Company has retained the Advisor to manage the operations and investments of the Company and its Subsidiaries and to perform administrative services for the Company and its
Subsidiaries, in the manner and on the terms set forth in the First Amended and Restated Advisory Agreement between the Company and the Advisor, dated October 21, 2003, (the "First Amended
Agreement"); and 

        WHEREAS,
on the date hereof the Company will consummate a merger of America First Real Estate Investment Partners, L.P., a Delaware limited partnership which invests in real estate
assets similar to those of the Company ("AFREZ"), with and into the Company; and 

        WHEREAS,
as a result of the foregoing, the Company (acting with the concurrence of each of its Independent Directors) and the Advisor believe that it is necessary and appropriate to
further amend and restate the terms of the First Amended Agreement as set forth in this Agreement which shall supercede the First Amended Agreement in its entirety; 

        NOW,
THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows: 

        Section 1.    Definitions.    Capitalized terms used herein shall have the respective meanings assigned them in
this Section 1: 

        (a)   "Affiliate" means, with respect to either party hereto, (i) any person who directly or indirectly controls or is
controlled by or is under common control with the specified party, (ii) any person who is (or has the power to designate) an officer of, general partner in or trustee of, or serves (or has the
power to designate a person to serve) in a similar capacity with respect to, the specified party, and (iii) any person who, directly or indirectly, is the beneficial owner of 10% or more of any
class of equity securities of the specified party. 

        (b)   "AFREZ Property Value" means the value of the real property and securities which (i) were held by AFREZ on the
date on which the merger of AFREZ and the Company becomes effective and (ii) continue to be held by the Company, determined in the manner provided in the Amended and Restated Agreement of
Limited Partnership of AFREZ, dated December 31, 2000, for purposes of calculating the administrative fee payable to the general partner of AFREZ under section 5.05(b) of such Agreement
of Limited Partnership. 

        (c)   "Agreement" means this First Amended and Restated Advisory Agreement between the Company and the Advisor, as amended from
time to time. 

        (d)   "Board of Directors" means the board of directors of the Company. 

 

        (e)   "Foreclosed Bonds" means any one or more of the tax-exempt housing bonds which were originally issued by
various state or local authorities to America First Tax Exempt Mortgage Fund 2 Limited Partnership (the predecessor to the Prior Partnership) in order to provide construction and permanent financing
for seven multifamily housing properties that the Prior Partnership acquired through foreclosure or deed in lieu of foreclosure. 

        (f)    "GAAP" means accounting principles generally accepted in the United States of America. 

        (g)   "Governing Instruments" means the articles of incorporation and bylaws, in the case of a corporation, the limited
liability company agreement, in the case of a limited liability company and the partnership agreement, in the case of a partnership, as such instruments may be amended from time to time. 

        (h)   "Independent Directors" means those members of the Board of Directors who are neither executive officers of the Company
nor executive officers or directors of the Advisor and who otherwise qualify as independent directors under the rules of the stock exchange on which the common stock of the Company is listed. 

        (i)    "Investment Assets" means Real Estate Assets, Mezzanine Investments, Mortgage-backed Securities and other real estate
related investments meeting the investment criteria established from time to time by the Company's Board of Directors. 

        (j)    "MBS Gross Asset Value" means the outstanding principal balance, in U.S. dollars of the Mortgage-backed Securities held
by the Company determined quarterly on a marked-to-market basis. 

        (k)   "Mezzanine Investments" means investments in the form of subordinate mortgage loans, preferred equity or similar
arrangements consistent with the underwriting or acquisition criteria established by the Company from time to time made by the Company to unaffiliated owners of multifamily apartment properties. 

        (l)    "Mortgage-backed Securities" means mortgage-backed securities meeting the investment criteria established by the Company
from time to time which have been acquired by the Company. 

        (m)  "NAREIT Index Rate" means the composite dividend yield, expressed in terms of an annual percentage rate, as reported by
the National Association of Real Estate Investment Trusts for equity REITs which invest in residential apartment properties. 

        (n)   "Prior Partnership" means America First Apartment Investors, L.P., a Delaware limited partnership which merged with and
into the Company as of the date of this Agreement. 

        (o)   "Qualified REIT Subsidiary" means a corporation, 100% of the stock of which is held by the Company at all times during
the existence of the corporation, consistent with the definition of Qualified REIT Subsidiary in Section 856(i)(2) of the Code. 

        (p)   "Real Estate Assets" means multifamily apartment complexes and other real property meeting the investment criteria
established by the Company from time to time which is owned in fee, directly or indirectly, by the Company 

        (q)   "Subsidiary" shall mean any corporation, whether now existing or in the future established, of which the Company,
directly or indirectly, owns more than 50% of the outstanding voting securities of any class or classes, or any business trust, partnership or similar noncorporate form in which the Company, directly
or indirectly, owns more than 50% of the beneficial interests. 

        (r)   "Taxable REIT Subsidiary" means a corporation, the stock of which is held by the Company, consistent with the definition
of Taxable REIT Subsidiary in Section 856(l) of the Code. 

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        Section 2.    General Duties of the Advisor.    Subject to the supervision of the Board of Directors, the
Advisor shall provide services to the Company, and to the extent directed by the Board of Directors, shall provide similar services to any Subsidiary of the Company as follows: 

        (a)   administer
the day-to-day operations of the Company and its Subsidiaries and perform or supervise the performance of such administrative
functions necessary in the management of the Company and its Subsidiaries as may be agreed upon by the Advisor and the Board of Directors, including, without limitation, collection of revenues and
payment of expenses, debts and obligations and maintenance of appropriate computer services to provide such administrative functions; 

        (b)   serve
as the Company's consultant with respect to formulation of investment criteria and preparation of policy guidelines by the Board of Directors; 

        (c)   act
as the authorized agent of the Company in connection with the identification, evaluation, purchase, financing, operation and disposition of Investment Assets and, as
such, the officers and designated employees of the Advisor will have the authority to execute documents in connection therewith on behalf of the Company; 

        (d)   furnish
reports and statistical and economic research to the Company regarding the investments, activities and results of operations of the Company and its Subsidiaries
and the services performed for the Company and its Subsidiaries by the Advisor; 

        (e)   monitor
and provide to the Board of Directors on an on-going basis information and other data regarding national and local real estate markets in which the
Company or its Subsidiaries maintain or expect to acquire Investment Assets; 

        (f)    communicate
on behalf of the Company with the holders of equity and debt securities of the Company as required to satisfy the continuous reporting and other requirements
of any governmental or regulatory bodies or agencies and maintain effective relations with such holders of the Company's securities; 

        (g)   to
the extent not otherwise subject to an agreement executed by the Company, designate one or more property managers for the Company's Real Estate Assets, which managers
may be Affiliates of the Advisor, and monitor and administer such managers; 

        (h)   counsel
the Company in connection with policy decisions to be made by the Board of Directors; 

        (i)    upon
request by, and in accordance with the directions of, the Board of Directors, invest or reinvest any money of the Company; 

        (j)    engage
in hedging activities on behalf of the Company or any of its Subsidiaries consistent with the Company's qualification as a REIT and any other directions of the
Board of Directors; 

        (k)   provide
the executive and administrative personnel and services required in rendering the foregoing services to the Company and its Subsidiaries; 

        (l)    supervise
compliance with REIT provisions of the Code and maintain exemption from the Investment Company Act of 1940, as amended; 

        (m)  qualify
and cause the Company to qualify to do business in all applicable jurisdictions; 

        (n)   cause
the Company to retain qualified legal counsel, independent public accountants, tax experts and other professionals; 

        (o)   comply
with and use its best efforts to cause the Company to comply with all applicable laws; and 

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        (p)   as
approved and directed by the Board of Directors, perform such other services as may be required from time to time for management and other activities relating to the
assets of the Company and its Subsidiaries as the Advisor shall deem appropriate under the particular circumstances. 

        Section 3.    Additional Activities of the Advisor.    Nothing herein shall prevent the Advisor or any of its
Affiliates from engaging in other businesses or from rendering services of any kind to any other person or entity, including investment in or advisory service to other entities investing in any type
of real estate investment, including investments which meet the principal investment objectives of the Company and its Subsidiaries. Directors, officers, employees and agents of the Advisor or its
Affiliates may serve as directors, officers, employees, agents, nominees or signatories for the Company or any of its Subsidiaries, to the extent permitted by the Company's Governing Instruments, or
by any resolutions duly adopted by the Board of Directors. When executing documents or otherwise acting in such capacities for the Company, such persons shall use their respective titles in the
Company. 

        Section 4.    Bank Accounts.    At the direction of the Board of Directors, the Advisor may establish and
maintain one or more bank accounts in the name of the Company or any of its Subsidiaries, and may collect and deposit funds into any such account or accounts, and disburse funds from any such account
or accounts, under such terms and conditions as the Board of Directors may approve; and the Advisor shall from time to time render appropriate accounting of such collections and payments to the Board
of Directors and, upon request, to the auditors of the Company or any of its Subsidiaries. 

        Section 5.    Records; Confidentiality.    The Advisor shall maintain appropriate books of account and records
relating to services performed hereunder, and such books of account and records shall be accessible for
inspection by representatives of the Company or any of its Subsidiaries at any time during normal business hours. The Advisor shall keep confidential any and all information it obtains from time to
time in connection with the services it renders under this Agreement and shall not disclose any portion thereof to nonaffiliated third parties except with the prior written consent of the Company or
any of its Subsidiaries. 

        Section 6.    Obligations of the Advisor.    

        (a)   The
Advisor shall establish and maintain a committee consisting of persons who are qualified to evaluate investments in real estate and the financing thereof (the
"Investment Committee") which shall be responsible for the establishment of investment guidelines and criteria relating to the acquisition and disposition of Investment Assets on behalf of the
Company. All acquisitions and dispositions of Real Estate Assets and Mezzanine Investments by the Company must be reviewed and approved in advance by the Investment Committee. 

        (b)   The
Advisor shall require each seller or transferor of Real Estate Assets to the Company, and each property owner in which the Company makes a Mezzanine Investment, to
make such representations and warranties regarding such Real Estate Assets or the real estate or other assets securing such Mezzanine Investment, as may, in the judgment of the Advisor, be necessary
and appropriate. In addition, the Advisor shall take such other action as it deems necessary or appropriate with regard to the protection of the Company's Real Estate Assets and other Investment
Assets. 

        (c)   The
Advisor shall refrain from any action which, in its sole judgment made in good faith, would adversely affect the status of the Company as a REIT or, if applicable,
any of its Subsidiaries as either a Qualified REIT Subsidiary, Taxable REIT Subsidiary or a partnership for federal income tax purposes or which, in its sole judgment made in good faith, would violate
any law, rule or regulation of any governmental or regulatory body or agency having jurisdiction over the Company or any such Subsidiary or which would otherwise not be permitted by the Company's or
any such Subsidiary's Governing Instruments. If the Advisor is ordered to take any such action 

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by
the Board of Directors, the Advisor shall promptly notify the Board of Directors of the Advisor's judgment that such action would adversely affect the status of the Company or any of its
Subsidiaries under the Code or violate any such law, rule or regulation or the Governing Instruments. Notwithstanding the foregoing, the Advisor, its directors, officers, stockholders and employees
shall not be liable to the Company, any Subsidiary of the Company, the Independent Directors or the Company's or any Subsidiary's stockholders for any act or omission by the Advisor, its directors,
officers, stockholders or employees except as provided in Section 10 of this Agreement. 

        Section 7.    Compensation of the Advisor.    The Company shall pay to the Advisor, for ongoing advisory
services rendered under this Agreement: 

        (a)   an
Administrative Fee in an amount equal to 0.55% per annum of the sum of (A) the original principal amount of the Foreclosed Bonds (even if such Foreclosed Bonds
are subsequently reissued in different principal amounts), (B) the gross purchase price of any other Real Estate Assets acquired by the Company or its predecessors, (C) the aggregate
outstanding principal balance of the Mezzanine Investments on the payment date for the Administrative Fee and (D) the AFREZ Property Value on the payment date for the Administrative Fee. Such
Administrative Fee will be payable in arrears on a monthly basis. 

        (b)   An
MBS Administrative Fee at an annual rate equal to 0.25% of the MBS Gross Asset Value. The MBS Administrative Fee will accrue daily and be payable monthly in arrears. 

        (c)   An
MBS Incentive Fee equal to 20% of the amount by which (i)(A) the total revenues realized by the Company from its Mortgage-backed Securities during each calendar month
less (B) the total interest payments made by the Company during such calendar month on borrowings incurred to finance the acquisition of Mortgage-backed Securities exceeds (ii)(A) the average
dollar amount of the Company's shareholders' equity invested in Mortgage-backed Securities during such month times (B) the then current NAREIT Index Rate on the payment date for the MBS
Incentive Fee. The MBS Incentive Fee will be payable in arrears on a monthly basis. 

        (d)   a
Property Acquisition Fee in connection with the identification, evaluation and acquisition of (i) Real Estate Assets (other than the multifamily properties that
had originally been financed by the Foreclosed Bonds or which are include in the assets acquired from AFREZ) and the financing thereof, including through the reissuance of Foreclosed Bonds, and
(ii) the underwriting and making of Mezzanine Investments, which shall be in an amount equal to 1.25% of the gross purchase price paid by the Company for such additional Real Estate Assets or
the original principal amount of such Mezzanine Investments. The Property Acquisition Fee with respect to an acquisition of a Real Estate Asset or making of a Mezzanine Investment will be payable at
the time of the closing of the acquisition of such Real Estate Asset or making of such Mezzanine Investment by the Company. 

        (e)   The
Company may pay an Affiliate of the Advisor a reasonable property management fee in connection with the management of the Company's Real Estate Assets. The property
management fee paid with respect to any Real Estate Asset may not exceed the fees that would be charged for such management services by independent parties in the same geographic location. 

        (f)    If
loans are made to the Company by an Affiliate of the Advisor, the maximum amount of interest that may be charged by such Affiliate shall be the lesser of the interest
rate (i) which would be charged by an unaffiliated lender to the Company or (ii) which the Advisor or its Affiliates paid to obtain the funds to make the loan to the Company. 

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        Section 8.    Reimbursement of Expenses Incurred by the Advisor.    

        (a)   The
Company will reimburse the Advisor and its Affiliates on a monthly basis for the actual out-of-pocket costs of direct telephone and travel
expenses incurred by them on Company business, direct out-of-pocket fees, expenses and charges paid by them to third parties for rendering legal, auditing, accounting,
bookkeeping, computer, printing and public relations services, expenses of preparing and distributing reports to the Company's stockholders, an allocable portion of the salaries and fringe benefits of
the employees of the Advisor or its Affiliates (including the officers of the Advisor except as set forth in paragraph (c) below), insurance premiums (including premiums for liability insurance
which will cover the Company, the Advisor and their respective Affiliates), the cost of compliance with all state and federal regulatory requirements, any stock exchange or NASDAQ listing fees for the
Company's securities, and charges and other payments to third parties for services rendered to the Company. 

        (b)   Expenses
incurred by the Advisor on behalf of the Company shall be reimbursed monthly to the Advisor within 30 days after the end of each month. The Advisor shall
prepare a statement documenting the expenses incurred by the Advisor on behalf of the Company during each month, and shall deliver such statement to the Company within 15 days after the end of
each month. 

        (c)   The
Company will not reimburse the Advisor or its Affiliates for any items of general overhead, including, but not limited to, rent, utilities or the use of computers,
office equipment or other capital items owned by the Advisor or its Affiliates. In addition, the Company will not reimburse the Advisor or its Affiliates for the salaries, fringe benefits or travel
expenses of the officers of the Advisor who are also executive officers of America First Companies L.L.C., the principal owner of the Advisor or for any compensation paid to the Board of
Managers of America First Companies L.L.C. 

        (d)   If,
as a result of a review by the Company's independent accountants of expense reimbursement paid to the Advisor under this Section 8, an adjustment thereto is
recommended by such independent accounts, then the Advisor shall credit any excess reimbursement against any future reimbursements to be paid under this Section 8 or, if such excess
reimbursement is made after the termination of this Agreement, refund such excess reimbursement to the Company. 

        (e)   The
Company and its Subsidiaries shall be responsible for the payment of all of their own expenses. 

        Section 9.    Monitoring Services.    The Advisor will monitor the management of the Company's Real Estate
Assets. Such monitoring will include, but not be limited to, the following activities: serving as the Company's consultant with respect to the on-site management of Real Estate Assets;
performing periodic on-site inspections of Real Estate Assets, review and approval of annual operating budgets for Real Estate Assets, review and approval of capital improvements for Real
Estate Assets, collection of information and submission of reports pertaining to the Real Estate Assets and to moneys remitted to the Advisor or the Company by property managers; periodic review and
evaluation of the performance of each Real Estate Asset; acting as a liaison between property managers and the Company and working with property managers to the extent necessary to improve their
performance; review of and recommendations as to placement of insurance coverage, handling of insurable losses, easement problems and condemnation, delinquency and foreclosure procedures with regard
to the Real Estate Assets; and review of property manager's reports on the Real Estate Assets. The Advisor may enter into subcontracts with other parties, including its Affiliates, to provide any such
services for the Advisor. The Advisor will perform similar services with respect to real properties securing Mezzanine Investments to the extent requested by the Company. 

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        Section 10.    Limits of Advisor Responsibility.    

        (a)   The
Advisor assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith and shall not be responsible for any
action of the Board of Directors in following or declining to follow any advice or recommendations of the Advisor, including as set forth in Section 6(c) of this Agreement. The Advisor and its
directors, officers, stockholders and employees will not be liable to the Company, any of its Subsidiaries, the Independent Directors or the stockholders of the Company or its Subsidiaries for any
acts or omissions by the Advisor, its directors, officers, stockholders or employees under or in connection with this Agreement, except by reason of acts or omissions constituting bad faith, willful
misconduct, gross negligence or reckless disregard of their duties. The Company or its Subsidiaries shall reimburse, indemnify and hold harmless the Advisor and its stockholders, directors, officers
and employees from and against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including, without limitation, reasonable attorneys' fees) in
respect of or arising from any acts or omissions of the Advisor or its stockholders, directors, officers and employees made in good faith in the performance of the Advisor's duties under this
Agreement and not constituting bad faith, willful misconduct, gross negligence or reckless disregard of its duties. 

        (b)   The
Advisor shall reimburse, indemnify and hold harmless the Company, any of its Subsidiaries, or any of their stockholders, directors, officers and employees from any
and all expenses, losses, damages, liabilities, demands, charges and claims (including, without limitation, reasonable attorneys' fees) arising out of any intentional misstatements of fact made by the
Advisor in connection with this Agreement and the services to be rendered hereunder. 

        Section 11.    Relationship of the Parties.    The Advisor shall for all purposes be an independent contractor
with respect to the Company and the services provided to the Company hereunder. The Company and the Advisor are not partners or joint venturers with each other and nothing herein shall be construed to
make them partners or joint venturers or impose any liability as such on either of them. 

        Section 12.    Term.    This Agreement shall commence on the date hereof shall continue in force through
December 31, 2006, which is a period of five years from the effective date of the initially Advisory Agreement between the Company and the Advisor. This Agreement will be automatically extended
for additional one-year terms unless either the Company or the Advisor elects not to renew this Agreement and notifies the other party in writing thereof not less than 60 days prior
to the end of the term of this Agreement or any extension thereof. Any decision by the Company not to renew this Agreement shall be made by a majority of the Independent Directors of the Company. 

        Section 13.    Termination by the Company for Cause.    At the option of the Company, this Agreement or any
extension hereof shall be and become terminated upon 60 days' written notice of termination from the Board of Directors to the Advisor if any of the following events shall occur: 

        (a)   if
the Advisor shall materially breach any provision of this Agreement and, after notice of such breach, shall not cure such breach within 30 days; or 

        (b)   there
is entered an order for relief or similar decree or order with respect to the Advisor by a court having competent jurisdiction in an involuntary case under the
federal bankruptcy laws as now or hereafter constituted or under any applicable federal or state bankruptcy, insolvency or other similar laws; or the Advisor (i) ceases or admits in writing its
inability to pay its debts as they become due and payable, or makes a general assignment for the benefit of, or enters into any composition or arrangement with, creditors, (ii) applies for or
consents (by admission of material allegations of a petition or otherwise) to the appointment of a receiver, trustee, assignee, custodian, liquidator or sequestrator (or other similar official) for
itself or for any substantial part 

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of
its assets or authorizes such an application or consent, (iii) authorizes or files a voluntary petition in bankruptcy, or applies for or consents (by admission of material allegations of a
petition or otherwise) to the application of any bankruptcy, reorganization, arrangement, readjustment of debt, insolvency, dissolution, liquidation or other similar law of any jurisdiction, or
authorizes such application or consent, or (iv) permits or suffers all or any substantial part of its assets to be sequestered or attached by court order and the order remains undismissed for
30 days; or proceedings seeking the appointment of a receiver, trustee, assignee, custodian, liquidator or sequestrator (or other similar official) for the Advisor or for any substantial part
of its assets are commenced without authorization, consent or application against the Advisor and continue undismissed for 30 days; or proceedings to sequester or attach all or any substantial
part of the Advisor's assets are instituted against the Advisor without authorization, consent and application and are approved as properly instituted and remain undismissed for 30 days or
result in adjudication of bankruptcy or insolvency. 

If
any of the events specified in this Section 13 shall occur, the Advisor shall give prompt written notice thereof to the Board of Directors upon the happening of such event. 

        Section 14.    Termination Without Cause.    Either party may terminate this Agreement without cause upon
60 days' prior written notice by, (i) in the case of termination by the Company, a majority vote of the Independent Directors or by a vote of the holders of a majority of the outstanding
shares of the Company's common stock, and (ii) in the case of termination by the Advisor, by a majority vote of the Board of Directors of the Advisor. In the event this Agreement is terminated
by the Company without cause, or in the event this Agreement is not renewed by the Company without cause, the Company, in addition to its obligations under Section 16, shall pay the Advisor a
termination or nonrenewal fee equal to the appraised present value of the amount of Administrative Fees that would have been earned under this Agreement through December 31, 2016. In making
this calculation, the appraiser shall give due consideration to the record of the growth in the Company's Investment Assets through the date of termination or non-renewal. Such appraisal
shall be conducted by an independent nationally-recognized appraisal firm mutually agreed upon by the Independent Directors (on behalf of the Company) and the Advisor and the costs of such appraisal
shall be borne equally by the parties. If the parties are unable to agree upon such appraisal firm within 30 days following notice of termination or, in the event of nonrenewal, the termination
date, then the Independent Directors (on behalf of the Company) and the Advisor shall as soon as reasonably practicable, but in no event more than 45 days following notice of termination or, in
the event of nonrenewal, the termination date, each choose a nationally-recognized independent appraisal firm to conduct an appraisal. In such event, (i) the termination fee shall be deemed to
be the average of the appraisals as conducted by each party' s chosen appraiser and (ii) each party shall pay the costs of its appraiser so chosen. Any appraisal
conducted hereunder shall be performed no later than 45 days following selection of the appraiser or appraisers. 

        Section 15.    Assignments.    

        (a)   Except
as set forth in Section 15(b) of this Agreement, this Agreement shall terminate automatically in the event of its assignment, in whole or in part, by the
Advisor, unless such assignment is consented to in writing by the Company with the approval of a majority of the Independent Directors. Any such assignment shall bind the assignee hereunder in the
same manner as the Advisor is bound. In addition, the assignee shall execute and deliver to the Company a joinder agreement to this Agreement naming such assignee as Advisor. This Agreement shall not
be assigned by the Company without the prior written consent of the Advisor, except in the case of assignment by the Company to a REIT or other organization which is a successor (by merger,
consolidation or purchase of assets) to the Company, in which case such successor organization shall be bound hereunder and by the terms of such assignment in the same manner as the Company is bound
hereunder. 

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        (b)   Notwithstanding
any provision of this Agreement, the Advisor may subcontract and assign any or all of its responsibilities as provided under Section 9 of this
Agreement, and the Company hereby consents to any such assignment and subcontracting. 

        Section 16.    Action Upon Termination.    From and after the effective date of termination of this Agreement,
pursuant to Sections 13, 14 or 15 of this Agreement, the Advisor shall not be entitled to compensation for further services hereunder, but shall be paid all compensation accruing to the date of
termination. Upon such termination, the Advisor shall forthwith: 

        (a)   after
deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the Company or any of its Subsidiaries all money
collected and held for the account of the Company or any of its Subsidiaries pursuant to this Agreement; 

        (b)   deliver
to the Board of Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the
period following the date of the last accounting furnished to the Board of Directors with respect to the Company or any of its Subsidiaries; and 

        (c)   deliver
to the Board of Directors all property and documents of the Company or any of its Subsidiaries then in the custody of the Advisor. 

        Section 17.    Release of Money or Other Property Upon Written Request.    The Advisor agrees that any money or
other property of the Company or any of its Subsidiaries held by the Advisor under this Agreement shall be held by the Advisor as custodian for the Company or any such Subsidiary, and the Advisor's
records shall be appropriately marked clearly to reflect the ownership of such money or other property by the Company or any such Subsidiary. Upon the receipt by the Advisor of a written request
signed by a duly authorized officer of the Company requesting the Advisor to release to the Company or any of its Subsidiaries any money or other property then held by the Advisor for the account of
the Company or any of its Subsidiaries under this Agreement, the Advisor shall release such money or other property to the Company or any of its Subsidiaries within a reasonable period of time, but in
no event later than 60 days following such request. The Advisor shall not be liable to the Company, any Subsidiary of the Company, or any of their respective officers, directors, stockholders,
employees or agents for any acts performed or omissions to act by the Company or any of its Subsidiaries in connection with the money or other property released to the Company or any of its
Subsidiaries in accordance with this Section 17. The Company and any of its Subsidiaries shall indemnify the Advisor, its directors, officers, stockholders and employees against any and all
expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Advisor's release of such money or other property to the Company or any
of its Subsidiaries in accordance with the terms of this Section 17. Indemnification pursuant to this provision shall be in addition to any right of the Advisor to indemnification under
Section 10 of this Agreement. 

        Section 18.    Representations and Warranties.    

        (a)   The
Company hereby represents and warrants to the Advisor as follows: 

        (i)    The
Company is duly incorporated, validly existing and in good standing under the laws of Maryland, has full corporate power and authority to own its assets and to
transact the business in which it is now engaged and is duly qualified or registered as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership or lease of
property or the conduct of its business requires such qualification or registration, except where the failure to be so qualified or registered would not in the aggregate have a material adverse effect
on the business, operations, assets or financial condition of the Company and its Subsidiaries, taken as a whole. The Company does not do business under any fictitious business name. 

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        (ii)   The
Company has the corporate power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary
corporate action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and
performance of this Agreement and all obligations required hereunder. No consent of any other person including, without limitation, stockholders and creditors of the Company, and no license, permit,
approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental or regulatory authority or agency is required by the Company in
connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all obligations required hereunder. This Agreement has been, and each
instrument or document required hereunder will be, executed and delivered by a duly authorized officer of the Company, and this Agreement constitutes, and each instrument or document required
hereunder when executed and delivered hereunder will constitute, the legally valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, moratorium or similar laws now or hereafter in effect relating to the rights and remedies of creditors generally, and general principles of
equity. 

        (iii)  The
execution, delivery and performance of this Agreement, and the documents or instruments required hereunder, will not violate any provision of any existing law or
regulation binding on the Company, or any order, judgment, award or decree of any court, arbitrator or governmental or regulatory authority or agency binding on the Company, or the Governing
Instruments of, or any securities issued by, the Company or any of its subsidiaries, or any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Company or
any of its Subsidiaries is a party or by which the Company, any Subsidiary of the Company or any of their assets may be bound, the violation of which would have a material adverse effect on the
business operations, assets or financial condition of the Company and its Subsidiaries, taken as a whole, and will not result in, or require, the creation or imposition of any lien on any of their
property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 

        (b)   The
Advisor hereby represents and warrants to the Company as follows: 

        (i)    The
Advisor is duly incorporated, validly existing and in good standing under the laws of Maryland, has full corporate power and authority to own its assets and to
transact the business in which it is now engaged and is duly qualified or registered to do business and is in good standing under the laws of each jurisdiction where its ownership or lease of property
or the conduct of its business requires such qualification or registration, except where the failure to be so qualified or registered would not in the aggregate have a material adverse effect on the
business, operations, assets or financial condition of the Advisor and its Subsidiaries, taken as a whole. The Advisor does not do business under any fictitious business name. 

        (ii)   The
Advisor has the corporate power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary
corporate action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any
other person including, without limitation, stockholders and creditors of the Advisor, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing
or declaration with, any governmental or regulatory authority or agency is required by the Advisor in connection with this Agreement or the execution, delivery, performance, validity or enforceability
of this Agreement and all obligations required hereunder. This Agreement has been and each instrument or document required hereunder 

10

 

will
be executed and delivered by a duly authorized agent of the Advisor, and this Agreement constitutes, and each instrument or document required hereunder when executed and delivered hereunder will
constitute, the legally valid and binding obligation of the Advisor enforceable against the Advisor in accordance with its terms. 

        (iii)  The
execution, delivery and performance of this Agreement, and the documents or instruments required hereunder, will not violate any provision of any existing law or
regulation binding on the Advisor, or any order, judgment, award or decree of any court, arbitrator, or governmental or regulatory authority or agency binding on the Advisor, or the Governing
Instruments of, or any securities issued by, the Advisor or any of its Subsidiaries, or any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Advisor or
any of its Subsidiaries is a party or by which the Advisor or any Subsidiary of the Advisor or any of its assets may be bound, the violation of which would have a material adverse effect on the
business operations, assets or financial condition of the Advisor and its Subsidiaries, taken as a whole, and will not result in, or require, the creation or imposition of any lien on any of their
property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 

        Section 19.    Notices.    Unless expressly provided otherwise herein, all notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, made and received when delivered or upon actual receipt of registered or
certified mail, postage prepaid, return receipt requested. The parties may deliver to each other notice by electronically transmitted facsimile copies provided that such facsimile notice is followed
within 24 hours by any type of notice otherwise provided for in this paragraph. Any notice shall be duly addressed to the parties as follows: 

	  	(a)	 	If to the Company:	1004 Farnam Street

Omaha, Nebraska 68102

Attention: Lisa Y. Roskens

Telephone: (402) 444-1630
	

  	

(b)	
 	

If to the Advisor:	

1004 Farnam Street

Omaha, Nebraska 68102

Attention: Lisa Y. Roskens

Telephone: (402) 444-1630
	

In each case with a copy given in the manner prescribed above, to:	

Kutak Rock LLP

1650 Farnam Street

Omaha, Nebraska 68102

Attention: Steven P. Amen

Telephone: (402) 346-6000

Either party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this
Section 19 for the giving of notice. 

        Section 20.    Binding Nature of Agreement; Successors and Assigns.    This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein. 

        Section 21.    Entire Agreement; Amendment.    This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements (including the First Amended Agreement), understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of 

11

 

performance
and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 

        Section 22.    Controlling Law.    This Agreement and all questions relating to its validity, interpretation,
performance and enforcement shall be governed by and construed, interpreted and enforced in accordance with the laws of the State of Nebraska, notwithstanding any Nebraska provisions relating to
conflicts of law to the contrary. 

        Section 23.    No Waiver.    Neither the failure nor any delay on the part of a party to exercise any right,
remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such
right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

        Section 24.    Titles Not To Affect Interpretation.    The titles of paragraphs and subparagraphs contained in
this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 

        Section 25.    Execution in Counterparts.    This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 

        Section 26.    Severability of Provisions.    The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole
or in part. 

        Section 27.    Interpretation.    Words used herein, regardless of the number and gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 

[Signatures on the following page]  

12

 

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

	 	AMERICA FIRST APARTMENT INVESTORS, INC., a Maryland corporation, as Company
	

 	

By	
 	

/s/  JOHN H. CASSIDY      
 John H. Cassidy

President and Chief Executive Officer
	

 	

AMERICA FIRST APARTMENT ADVISORY CORPORATION, a Maryland corporation, as Advisor
	

 	

By	
 	

/s/  JOHN H. CASSIDY      
 John H. Cassidy

President and Chief Executive Officer

13

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Exhibit 4.4  

IBIS TECHNOLOGY CORPORATION  

 
 

AMENDED AND RESTATED*
  1997 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK OPTION PLAN    
    

1.    DEFINITIONS.

        Unless
otherwise specified or unless the context otherwise requires, the following terms, as used in this Ibis Technology Corporation 1997 Employee, Director and Consultant Stock Option
Plan, have the following meanings: 

Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means
the Committee. 

Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect. 

Board of Directors means the Board of Directors of the Company. 

Code means the United States Internal Revenue Code of 1986, as amended. 

Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions
of the Plan. 

Common Stock means shares of the Company's common stock, $.008 par value per share. 

Company means Ibis Technology Corporation, a Massachusetts corporation. 

Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the
Code. 

Fair Market Value of a Share of Common Stock means: 

(1)
If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the
closing or last price of the Common Stock on the Composite Tape or other comparable reporting system for the trading day immediately preceding the applicable date; 

(2)
If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common
Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock
at the close of trading in the over-the-counter market for the trading day on which Common Stock was traded immediately preceding the applicable date; and 

(3)
If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall
determine. 

ISO means an option meant to qualify as an incentive stock option under Section 422 of the Code. 

Key Employee means an employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or
director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Options under the Plan. 

	*
	as
of June 17, 2004 

Non-Qualified Option means an option which is not intended to qualify as an ISO. 

Option means an ISO or Non-Qualified Option granted under the Plan. 

Option Agreement means an agreement between the Company and a Participant delivered pursuant to the Plan, in such form as the Administrator shall
approve. 

Participant means a Key Employee, director or consultant to whom one or more Options are granted under the Plan. As used herein, "Participant" shall
include "Participant's Survivors" where the context requires. 

Plan means this Ibis Technology Corporation 1997 Employee, Director and Consultant Stock Option Plan. 

Shares means shares of the Common Stock as to which Options have been or may be granted under the Plan or any shares of capital stock into which the
Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued upon exercise of Options granted under the Plan may be authorized and
unissued shares or shares held by the Company in its treasury, or both. 

Survivors means a deceased Participant's legal representatives and/or any person or persons who acquired the Participant's rights to an Option by will
or by the laws of descent and distribution. 

2.    PURPOSES OF THE PLAN.

        The
Plan is intended to encourage ownership of Shares by Key Employees and directors of and certain consultants to the Company in order to attract such people, to induce them to work for
the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs and
Non-Qualified Options. 

3.    SHARES SUBJECT TO THE PLAN.

        The
number of Shares which may be issued from time to time pursuant to this Plan shall be 1,650,000, or the equivalent of such number of Shares after the Administrator, in its sole
discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 16 of the Plan. 

        If
an Option ceases to be "outstanding", in whole or in part, the Shares which were subject to such Option shall be available for the granting of other Options under the Plan. Any Option
shall be treated as "outstanding" until such Option is exercised in full, or terminates or expires under the provisions of the Plan, or by agreement of the parties to the pertinent Option Agreement. 

4.    ADMINISTRATION OF THE PLAN.

        The
Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the Committee shall be
the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to: 

	a.
	Interpret
the provisions of the Plan or of any Option or Option Agreement and to make all rules and determinations which it deems necessary or advisable for the administration of the
Plan;

	b.
	Determine
which employees of the Company or of an Affiliate shall be designated as Key Employees and which of the Key Employees, directors and consultants shall be granted Options; 

	c.
	Determine
the number of Shares for which an Option or Options shall be granted, provided, however, that in no event shall Options to purchase more than 500,000 Shares be granted to any
Participant in any fiscal year; and

	d.
	Specify
the terms and conditions upon which an Option or Options may be granted; 

provided,
however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Section 422 of the
Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Option granted under it
shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. 

5.    ELIGIBILITY FOR PARTICIPATION.

        The
Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be a Key Employee, director or consultant of the Company
or of an Affiliate at the time an Option is granted. Notwithstanding the foregoing, the Administrator may authorize the grant of an Option to a person not then an employee, director or consultant of
the Company or of an Affiliate; provided, however, that the actual grant of such Option shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the
delivery of the Option Agreement evidencing such Option. ISOs may be granted only to Key Employees. Non-Qualified Options may be granted to any Key Employee, director or consultant of the
Company or an Affiliate. The granting of any Option to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Options. 

6. TERMS AND CONDITIONS OF OPTIONS.

        Each
Option shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The
Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem
appropriate including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. 

	A.
	Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and
conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option:

	a.
	Option
Price: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price shall be determined by the Administrator but shall
not be less than one hundred percent (100%) of the Fair Market Value per share of the Shares on the date of the grant of the Option.

	b.
	Each
Option Agreement shall state the number of Shares to which it pertains;

	c.
	Each
Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights
accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events; and

	d.
	Exercise
of any Option may be conditioned upon the Participant's execution of a Share purchase agreement in form satisfactory to the Administrator providing for certain protections for
the Company and its other shareholders, including requirements that:

	i.
	The
Participant's or the Participant's Survivors' right to sell or transfer the Shares may be restricted; and 

	ii.
	The
Participant or the Participant's Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting
any applicable restrictions.

	e.
	Directors' Options: Upon the adjournment of each Annual Meeting or Special Meeting in Lieu of an Annual Meeting of the shareholders of
the Company (collectively, the "Annual Meeting"), commencing upon the adjournment of the Annual Meeting to be held in 1998, each person who is not an employee of the Company or of an Affiliate who is
serving as a Director of the Company upon the adjournment of such Annual Meeting shall be granted a Non-Qualified Option to purchase 1,250 Shares, provided, however, a person who is not an
employee of the Company or of an Affiliate who is first elected to serve as a Director of the Company at any meeting of stockholders other than the Annual Meeting or at any meeting of the Board of
Directors (or by the unanimous written consent of the Directors) pursuant to the Company's Restated Articles of Organization and its Restated By-Laws shall be granted a
Non-Qualified Option to purchase 1,250 Shares upon such election. Each such Option shall (i) have an exercise price equal to the Fair Market Value (per share) of the Shares on the
date of grant of the Option, (ii) have a term of ten (10) years, and (iii) become exercisable immediately prior to the occurrence of the Annual Meeting following the date the
Option is granted. Notwithstanding the provisions of Paragraph 23 concerning amendment of the Plan, the provisions of this subparagraph shall not be amended more than once every six months,
other than to comport with changes in the Code, the Employee Retirement Income Security Act, or the rules thereunder.

	B.
	ISOs: Each Option intended to be an ISO shall be issued only to a Key Employee and be subject to the following terms and conditions,
with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the
Internal Revenue Service:

	a.
	Minimum
standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(A) above, except clauses (a) and
(e) thereunder.

	b.
	Option
Price: Immediately before the Option is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

	i.
	Ten
percent (10%) or less of the total combined voting power of all classes of share capital of the Company or an
Affiliate, the Option price per share of the Shares covered by each Option shall not be less than one hundred percent (100%) of the Fair Market Value per share of the Shares on the date of the grant
of the Option.

	ii.
	More
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered
by each Option shall not be less than one hundred ten percent (110%) of the said Fair Market Value on the date of grant.

	c.
	Term
of Option: For Participants who own

	i.
	Ten
percent (10%) or less of the total combined voting power of all classes of share capital of the Company or an
Affiliate, each Option shall terminate not more than ten (10) years from the date of the grant or at such earlier time as the Option Agreement may provide.

	ii.
	More
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, each Option shall terminate not more than five
(5) years from the date of the grant or at such earlier time as the Option Agreement may provide. 

	d.
	Limitation
on Yearly Exercise: The Option Agreements shall restrict the amount of Options which may be exercisable in any calendar year (under this or any other ISO plan of the Company
or an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in
any calendar year does not exceed one hundred thousand dollars ($100,000), provided that this subparagraph (d) shall have no force or effect if its inclusion in the Plan is not necessary for
Options issued as ISOs to qualify as ISOs pursuant to Section 422(d) of the Code. 

7.    EXERCISE OF OPTIONS AND ISSUE OF SHARES.

        An
Option (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal executive office address, together with provision for payment
of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option
Agreement. Such written notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any
representation required by the Plan or the Option Agreement. Payment of the purchase price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars
in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash
exercise price of the Option, or (c) at the discretion of the Administrator, by delivery of the grantee's personal recourse note bearing interest payable not less than annually at no less than
the National Prime Rate as published as of the date of the exercise by the Wall Street Journal or any successor publication (if the Wall Street Journal publishes more than one such rate, the National
Prime Rate for purposes of such note shall be the lowest of the rates so published), or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established
with a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above.
Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code. 

        The
Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant's Survivors, as the case may be). In
determining what constitutes "reasonably promptly," it is expressly understood that the delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or "blue sky" laws) which requires the Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be evidenced
by an appropriate certificate or certificates for fully paid, non-assessable Shares. 

        The
Administrator shall have the right to accelerate the date of exercise of any installment of any Option; provided that the Administrator shall not accelerate the exercise date of any
installment of any Option granted to any Key Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 19) if such acceleration would
violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6.B.d. 

8.    RIGHTS AS A SHAREHOLDER.

        No
Participant to whom an Option has been granted shall have rights as a shareholder with respect to any Shares covered by such Option, except after due exercise of the Option and tender
of the full
purchase price for the Shares being purchased pursuant to such exercise and registration of the Shares in the Company's share register in the name of the Participant. 

9.    ASSIGNABILITY AND TRANSFERABILITY OF OPTIONS.

        By
its terms, an Option granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and distribution, or (ii) as
otherwise determined by the 

Administrator
and set forth in the applicable Option Agreement. The designation of a beneficiary of an Option by a Participant shall not be deemed a transfer prohibited by this Paragraph. Except as
provided above, an Option shall be exercisable, during the Participant's lifetime, only by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated
in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other
disposition of any Option or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon an Option, shall be null and void. 

10.    EFFECT OF TERMINATION OF SERVICE OTHER THAN "FOR CAUSE" OR DEATH OR DISABILITY.

        Except
as otherwise provided in the pertinent Option Agreement, in the event of a termination of service (whether as an employee, director or consultant) with the Company or an Affiliate
before the Participant has exercised all Options, the following rules apply: 

	a.
	A
Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate (for any reason other than termination "for cause", Disability, or death for which
events there are special rules in Paragraphs 11, 12, and 13, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination
of service, but only within such term as the Administrator has designated in the pertinent Option Agreement.

	b.
	Except
as provided in Subparagraph (c) below, or Paragraph 12 or 13, in no event may an Option Agreement provide, if the Option is intended to be an ISO, that the time
for exercise be later than three (3) months after the Participant's termination of employment.

	c.
	The
provisions of this Paragraph, and not the provisions of Paragraph 12 or 13, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of
employment, director status or consultancy, provided, however, in the case of a Participant's Disability or death within three (3) months after the termination of employment, director status or
consultancy, the Participant or the Participant's Survivors may exercise the Option within one (1) year after the date of the Participant's termination of employment, but in no event after the
date of expiration of the term of the Option.

	d.
	Notwithstanding
anything herein to the contrary, if subsequent to a Participant's termination of employment, termination of director status or termination of consultancy, but prior to
the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant's termination, the Participant engaged in conduct which would constitute "cause", then
such Participant shall forthwith cease to have any right to exercise any Option.

	e.
	A
Participant to whom an Option has been granted under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than
a permanent and total Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such
absence alone, to have terminated such Participant's employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.

	f.
	Except
as required by law or as set forth in the pertinent Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant's status within or
among the Company and any Affiliates, so long as the Participant continues to be an employee, director or consultant of the Company or any Affiliate. 

11.    EFFECT OF TERMINATION OF SERVICE "FOR CAUSE".

        Except
as otherwise provided in the pertinent Option Agreement, the following rules apply if the Participant's service (whether as an employee, director or consultant) with the Company
or an Affiliate is terminated "for cause" prior to the time that all his or her outstanding Options have been exercised: 

	a.
	All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated "for cause" will immediately be forfeited.

	b.
	For
purposes of this Plan, "cause" shall include (and is not limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or
non-feasance of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or any Affiliate. The determination of the
Administrator as to the existence of "cause" will be conclusive on the Participant and the Company.

	c.
	"Cause"
is not limited to events which have occurred prior to a Participant's termination of service, nor is it necessary that the Administrator's finding of "cause" occur prior to
termination. If the Administrator determines, subsequent to a Participant's termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant's
termination the Participant engaged in conduct which would constitute "cause," then the right to exercise any Option is forfeited.

	d.
	Any
definition in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of "cause" for termination and which is in effect at the
time of such termination, shall supersede the definition in this Plan with respect to such Participant. 

12.    EFFECT OF TERMINATION OF SERVICE FOR DISABILITY.

        Except
as otherwise provided in the pertinent Option Agreement, a Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate by reason of
Disability may exercise any Option granted to such Participant: 

	a.
	To
the extent exercisable but not exercised on the date of Disability; and

	b.
	In
the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights as would have accrued had the Participant not become
Disabled prior to the end of the accrual period which next ends following the date of Disability. The proration shall be based upon the number of days of such accrual period prior to the date of
Disability. 

        A
Disabled Participant may exercise such rights only within the period ending one (1) year after the date of the Participant's termination of employment, directorship or
consultancy, as the case may be, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become
disabled and had continued to be an employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 

        The
Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another
agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or
approved by the Administrator, the cost of which examination shall be paid for by the Company. 

13.    EFFECT OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

        Except
as otherwise provided in the pertinent Option Agreement, in the event of the death of a Participant while the Participant is an employee, director or consultant of the Company or
of an Affiliate, such Option may be exercised by the Participant's Survivors: 

	a.
	To
the extent exercisable but not exercised on the date of death; and 

	b.
	In
the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights which would have accrued had the Participant not died prior
to the end of the accrual period which next ends following the date of death. The proration shall be based upon the number of days of such accrual period prior to the Participant's death. 

        If
the Participant's Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one (1) year after the date of death of such
Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued to be an
employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 

14.    PURCHASE FOR INVESTMENT.

        Unless
the offering and sale of the Shares to be issued upon the particular exercise of an Option shall have been effectively registered under the Securities Act of 1933, as now in force
or hereafter amended (the "1933 Act"), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled: 

	a.
	The
person(s) who exercise(s) such Option shall warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for their own respective
accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the
provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant: 

"The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a
Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to
it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws." 

	b.
	At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise in compliance with the
1933 Act without registration thereunder. 

15.    DISSOLUTION OR LIQUIDATION OF THE COMPANY.

        Upon
the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised will terminate and become null and void;
provided, however, that if the rights of a Participant or a Participant's Survivors have not otherwise terminated and expired, the Participant or the Participant's Survivors will have the right
immediately prior to such dissolution or liquidation to exercise any Option to the extent that the Option is exercisable as of the date immediately prior to such dissolution or liquidation. 

16.    ADJUSTMENTS.

        Upon
the occurrence of any of the following events, a Participant's rights with respect to any Option granted to him or her hereunder which has not previously been exercised in full
shall be adjusted as hereinafter provided, unless otherwise specifically provided in the pertinent Option Agreement: 

        A.    Stock Dividends and Stock Splits.    If (i) the shares of Common Stock shall be subdivided or combined
into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or
different shares or other securities of the Company or other non-cash assets are distributed with 

respect
to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise of such Option may be appropriately increased or decreased proportionately, and appropriate
adjustments may be made in the purchase price per share to reflect such events. The number of Shares subject to options to be granted to directors pursuant to Paragraph 6(A)(e) shall also be
proportionately adjusted upon the occurrence of such events. 

        B.    Consolidations or Mergers.    If the Company is to be consolidated with or acquired by another entity in a
merger, sale of all or substantially all of the Company's assets or otherwise (an "Acquisition"), the Administrator or the board of directors of any entity assuming the obligations of the Company
hereunder (the "Successor Board"), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the
Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Acquisition or securities of any successor or
acquiring entity; or (ii) upon written notice to the Participants, provide that all Options must be exercised (either to the extent then exercisable or, at the discretion of the Administrator,
all Options being made fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which period the Options shall terminate; or
(iii) terminate all Options in exchange for a cash payment equal to the excess of the Fair Market Value of the shares subject to such Options (either to the extent then exercisable or, at the
discretion of the Administrator, all Options being made fully exercisable for purposes of this Subparagraph) over the exercise price thereof. 

        C.    Recapitalization or Reorganization.    In the event of a recapitalization or reorganization of the Company
(other than a transaction described in Subparagraph B above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a
Participant upon exercising an Option shall be entitled to receive for the purchase price paid upon such exercise the securities which would have been received if such Option had been exercised prior
to such recapitalization or reorganization. 

        D.    Modification of ISOs.    Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph A, B or C
with respect to ISOs shall be made only after the Administrator, after consulting with counsel for the Company, determines whether such adjustments would constitute a "modification" of such ISOs (as
that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines that such adjustments made with
respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments, unless the holder of an ISO specifically requests in writing that such adjustment be made and
such writing indicates that the holder has full knowledge of the consequences of such "modification" on his or her income tax treatment with respect to the ISO. 

17.    ISSUANCES OF SECURITIES.

        Except
as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Options. Except as expressly provided herein, no adjustments shall be made for dividends paid in
cash or in property (including without limitation, securities) of the Company. 

18.    FRACTIONAL SHARES.

        No
fractional shares shall be issued under the Plan and the person exercising such right shall receive from the Company cash in lieu of such fractional shares equal to the Fair Market
Value thereof. 

19.    CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

        The
Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant's ISOs (or any portions thereof)
that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of 

such
ISOs, regardless of whether the Participant is an employee of the Company or an Affiliate at the time of such conversion. Such actions may include, but not be limited to, extending the exercise
period or reducing the exercise price of the appropriate installments of such Options. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such
conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with this
Plan. Nothing in the Plan shall be deemed to give any Participant the right to have such Participant's ISOs converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Administrator takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such
conversion. 

20.    WITHHOLDING.

        In
the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act ("F.I.C.A.") withholdings or other amounts are required by applicable
law or governmental regulation to be withheld from the Participant's salary, wages or other remuneration in connection with the exercise of an Option or a Disqualifying Disposition (as defined in
Paragraph 21), the Company may withhold from the Participant's compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which
employs or employed the Participant, the amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company's Common Stock or a promissory note, is
authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner provided
in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the fair market value of the shares withheld is less than the amount of payroll withholdings
required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise of an Option for
less than the then Fair Market Value on the Participant's payment of such additional withholding. 

21.    NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

        Each
Key Employee who receives an ISO must agree to notify the Company in writing immediately after the Key Employee makes a Disqualifying Disposition of any shares acquired pursuant to
the exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such shares before the later of (a) two years after the date the Key Employee was granted the ISO,
or (b) one year after the date the Key Employee acquired Shares by exercising the ISO. If the Key Employee has died before such stock is sold, these holding period requirements do not apply and
no Disqualifying Disposition can occur thereafter. 

22.    TERMINATION OF THE PLAN.

        The
Plan will terminate on the date which is ten (10) years from the earlier of the date of its adoption and the date of its approval by the shareholders of the Company. The Plan
may be terminated at an earlier date by vote of the shareholders of the Company; provided, however, that any such earlier termination shall not affect any Option Agreements executed prior to the
effective date of such termination. 

23.    AMENDMENT OF THE PLAN AND AGREEMENTS.

        The
Plan may be amended by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the extent necessary to qualify any or
all outstanding Options granted under the Plan or Options to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code, and to the extent necessary to qualify the shares issuable upon exercise of any outstanding Options granted, or Options to be granted,
under the Plan for listing on any national securities exchange or quotation in any national automated quotation system 

of
securities dealers. Any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder
approval. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under an Option previously granted to him or her. With the
consent of the Participant affected, the Administrator may amend outstanding Option Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the
discretion of the Administrator, outstanding Option Agreements may be amended by the Administrator in a manner which is not adverse to the Participant. 

24.    EMPLOYMENT OR OTHER RELATIONSHIP.

        Nothing
in this Plan or any Option Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a Participant, nor
to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or
any Affiliate for any period of time. 

25.    GOVERNING LAW.

        This
Plan shall be construed and enforced in accordance with the law of The Commonwealth of Massachusetts. 

QuickLinks

AMENDED AND RESTATED* 1997 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK OPTION PLAN

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