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<div class=Section1>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Hi YRHC,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Attached and pasted below is the lease Islesboro uses.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Let me know if you need anything,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Alden<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center'><b><font size=4
face="Times New Roman"><span style='font-size:14.0pt;font-weight:bold'>LEASE
AGREEMENT</span></font></b><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> This Lease
Agreement, made and entered into this __________ day of __________, 2007,
between <b><span style='font-weight:bold'>Islesboro Affordable Property</span></b>,
a Maine non-profit corporation, with its principal place of business at
Islesboro, Maine (hereinafter referred to as "IAP") and <b><span
style='font-weight:bold'>__________________</span></b>, whose mailing address
is Post Office Box _____, Islesboro, Maine 04848 (hereinafter referred to as
"Homeowner"), <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>1. <u>Transfer</u>
<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 1.1. IAP
hereby leases to the Homeowner and the Homeowner accepts from IAP, upon the
terms and conditions hereafter set forth, the possession, occupancy and use of
a certain lot or parcel of land, together with any dwelling and improvements
thereon, situated in Islesboro, County of Waldo, State of Maine, and more
particularly described in Exhibit A attached.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Together with
the right to pass and re-pass for all legal purposes over and across the access
road for access to and from the above-referenced lot.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Together with
the right to use, in common with other residents of the Ruthie James
Subdivision, those areas designated as common areas on the "Ruthie James
Subdivision Plan," by Michael Shaffer, RLS, dated July, 1993 and recorded
in the Waldo County Registry of Deeds at File 16, Page 208, excepting that
portion of the common areas conveyed to Marc Schnur by deed from Islesboro
Affordable Property dated May 21, 1997 and recorded in the Waldo County
Registry of Deeds in Book 1694, Page 129. This right is subject to IAP’s
right to further develop common facilities on said common areas. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 1.2. IAP
reserves to itself, its successors and assigns, all minerals and other natural
resources located on the premises, with the following exceptions and
conditions:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>A. Homeowner
may extract and use minerals or other natural resources for their own
reasonable personal use. Such minerals or other natural resources may not be
extracted, sold, or otherwise used or disposed of for any other purpose. Any
extraction which is more than minimal requires prior written approval from IAP.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>B. Homeowner
may harvest and use timber for their own reasonable personal use. Such timber
may not be harvested, sold or otherwise used or disposed of for any other
purpose. Timber harvesting shall be done selectively, leaving a
well-distributed stand of trees. Any clearing in excess of two hundred (200)
square feet requires prior written notice to, and prior written approval by,
IAP.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Under no
circumstances is the Homeowner permitted to commit waste, create any nuisances,
or to surcharge the premises.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>2. Term<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 2.1. The
term of this Lease shall commence on the __________ day of __________, 2007 and
shall expire upon the date of the death of the Homeowner or the survivor of
them, or __________, 20__, whichever occurs first, unless terminated sooner as
provided elsewhere in this Lease. If the premises are subject to a mortgage
pursuant to Section 5 below, the provisions of 5.4 shall apply.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 2.2. In
the event that ownership of and title to the leasehold premises should be
conveyed by IAP to any other person or entity, this Lease Agreement shall not
cease, but shall remain binding and unaffected.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>3. Purpose and
Utilization<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 3.1. IAP,
its successors and assigns, and Homeowner, his/her heirs and assigns,
understand and agree that the purpose of this Lease is to provide housing to
residents who meet affordable housing criteria established by the Maine State
Housing Authority (hereinafter "MSHA"), and the Federal Home Loan
Bank Affordable Housing Program.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 3.2. Homeowner
agrees to the following conditions and restrictions upon their use of the
leasehold premises and interests:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>A. Homeowner
shall share equally in any expense of maintenance of fences, roads, and any
other lands or facilities used by them in common with the other Homeowners of
the Ruthie James Subdivision in accordance with the provisions of the
"Declaration of Restrictive Covenants for Islesboro Affordable Property
Ruthie James Subdivision," recorded in the Waldo County Registry of Deeds
at Book 1398, Page 149, and the “Amended Declaration of
Restrictions,” recorded in said Registry at Book 1673, Page 185, and
shall comply with said documents in all respects.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>B. Homeowner
shall use the leasehold premises in an ecologically sound manner and dispose of
any wastes in a safe and sanitary manner. No more than two (2) unregistered or
uninspected vehicles may be kept on the premises.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>C. Homeowner
shall use the leasehold premises in a socially responsible manner, causing no
real harm and creating no serious nuisance to the neighbors or the premises.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> D. Homeowner
shall take the responsibility for the use of the leasehold premises by members
of their family, friends or visitors, and shall make them aware of the spirit,
intent and appropriate terms of this Lease.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> E. Homeowner
shall use the premises as a year-round principal residence, subject to the
provisions of 5.3 below.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 3.3. Homeowner
agrees to secure consent from IAP for any uses which are doubtfully consistent
with these purposes, conditions and restrictions.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>4. Lease Fees<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 4.1. In
consideration of the possession, occupancy and use of the premises, the
Homeowner shall pay to IAP a monthly lease fee consisting of Homeowner's
prorated share of the following: any and all payments, assessments and charges
assessed upon IAP for the Ruthie James Subdivision; any municipal assessments,
including but not limited to real and personal property taxes; water or sewer
charges; fines; levies, charges and administrative fees arising out of or
related to the ownership and use of the premises as they come due, including
IAP's responsibilities under the "Declaration of Restrictive
Covenants" noted in 3.2 above.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 4.2. However,
IAP may, if it has the financial resources to do so, reduce, delay or waive
entirely the lease fee at any time in consideration of personal hardship or the
incapacity of the Homeowner or their general ability to pay. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 4.3. IAP
shall pay all local and state taxes on its own interests in land and
buildings. Homeowner shall pay all local and state taxes on their dwelling and
improvements.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>5. Sublease/Transfer/Encumbrance<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.1. IAP
hereby consents to Homeowner's grant of an assignable mortgage on all Homeowner
dwellings and improvements located on the leasehold premises. All mortgages
under this section shall provide for notice to IAP of any default, if
practicable, and an opportunity for IAP to cure the default. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.2. IAP
hereby consents to the grant by Homeowner of an assignable mortgage or lien on
any dwelling and improvements located on the premises provided that the
mortgage is given to (a) a so-called "institutional lender" such as,
but not limited to , a federal, state or local housing finance agency, a bank
(including savings and loan association or insured credit union), a mortgage
banking company, an insurance company, a pension and/or profit-sharing fund or
trust, or any combination of the foregoing, the policies and procedures of
which institutional lenders are subject to direct governmental supervision, or
(b) a "community loan fund", or similar non-profit lender to housing
projects for low and moderate income persons (as defined by reference to the
membership criteria for the National Association of Community Development Loan
Funds, a non-profit corporation with its principal office located in
Philadelphia, Pennsylvania) subject to the terms and conditions of this Lease,
or (c) the municipality of Islesboro or IAP or its successors or assigns.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.3. Homeowner
may not assign, sublease, sell or otherwise convey any of Homeowner's rights
under this Lease without the prior written consent of IAP. Homeowner agrees
that IAP shall have broad and full discretion in withholding such consent in
order to further the mutual purposes and goals set forth herein. If permission
is granted, any assignment or sublease shall be subject to the following
conditions:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A. Any
such assignment or sublease shall be subject to the terms and conditions of
this Lease including any future amendments, and the rental or occupancy fees
charged the subleasee shall not be more than the amount charged the Homeowner
by the IAP, plus a pass-through of actual costs to Homeowner for any dwelling
and improvements (such as debt service costs under a permitted mortgage); and <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B. In
the case of an assignment, the total consideration for such assignment and the
related sale or transfer of the dwelling and improvements shall not exceed the
transfer price as calculated in accordance with Article 6.3 herein.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.4 If this
Lease is assigned or terminated for any reason, or a permitted mortgage is
foreclosed upon or a deed is given in lieu of foreclosure, or in the event of
the rejection or disaffirmance of the Lease pursuant to bankruptcy law or other
law affecting creditor's rights, IAP will enter into a new lease of the
premises with terms substantially the same as the terms of this Lease with the
assignee under 6.3(A) below, successor under Article 11 below, the holder of a
mortgage under 5.2 above or with any party designated by such a mortgage
holder. IAP shall execute such lease not more than thirty (30) days after
receiving a request to do so from the assignee, successor or mortgage holder
within sixty (60) days of the applicable assignment, termination, rejection or
disaffirmance. Such new lease shall be for a term no less than the term of any
applicable mortgage. Such lease shall be effective as of the date of the
applicable assignment, termination, rejection or disaffirmance, and shall have
the same priority with respect to other interests in the leased premises and
dwelling and improvements as this Lease. The provisions of this Section shall
survive the assignment, termination, rejection or disaffirmance of this Lease
and shall continue in full force and effect thereafter to the same extent as if
this Section were independent and an independent contract made by IAP,
Homeowner and the mortgage holder.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.5 Any
mortgage holder may assign its mortgage interest in the regular course of
business. The mortgage holder shall give IAP notice of any such assignment.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 5.6 Any mortgage
holder, or designee of a mortgage holder, (hereinafter collectively referred to
as "mortgage holder") who succeeds to the interest of a homeowner
under this Lease shall not be considered to be a homeowner, even if it is a
leaseholder. None of the provisions of this Lease referring to
"Homeowner" shall apply to such a mortgage holder, and the
relationship between such mortgage holder and IAP shall be governed by this
section.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A.
The mortgage holder's obligations with respect to the property shall be
to act reasonably under the circumstances. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B.
The mortgage holder may sublet the premises, but only while attempting
to permanently transfer the premises in a reasonably expeditious manner, and
only for a rental sufficient to cover its ongoing costs.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> C.
The mortgage holder shall not be responsible for past-due charges owed
by the previous homeowner, and shall not be responsible for making payments of
ongoing fees or payments of any kind to IAP while it is in possession.
However, when the mortgage holder sells the improvements to a new homeowner,
any such fees and payments due to IAP during the period of the mortgage
holder's possession of the premises shall be paid at closing to IAP.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> D. When
a mortgage holder takes possession of the premises from a defaulting homeowner,
it shall give IAP 90 days to present a qualified buyer to purchase the
improvements for the transfer price calculated in accordance with Appendix A of
this Lease. If IAP does not do so, the mortgage holder may transfer the premises
to 1) any qualified buyer for the transfer price, which buyer shall execute a
Lease substantially identical to this Lease and become a Homeowner thereunder,
or 2) to any buyer for the transfer price plus an amount equal to the remaining
balance on any debt on the premises or improvements, including any debt which
is deferred by the Federal Home Loan Bank under the Affordable Housing Program
while the premises are occupied by homeowners qualifying under 3.1 above.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>6. Buildings and
Improvements: Ownership and Transfer<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.1. As
between IAP and Homeowner, Homeowner shall own and have title to the dwelling
and improvements to the land made to or on the leasehold premises by them or at
their expense. IAP will give Homeowner a Deed to said dwelling and improvements
upon receiving the purchase price thereof from Homeowner at the closing of a
mortgage loan described in Section 5 above.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.2. The
dollar value of the Homeowner's ownership interest in said dwelling and
improvements (hereinafter referred to as "transfer price") shall be
calculated in accordance with Appendix A to this Lease. Homeowner understands
and agrees that this is an affordable housing lease. Homeowner under such a
lease must come from a qualified pool of applicants who have been pre-approved
by IAP.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.3. In
the event this Lease is terminated, Homeowner shall have the right to sell or
otherwise transfer their title to any dwelling and improvements. They shall
notify IAP accordingly no later than 90 days prior to termination.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A. Homeowner
may transfer his or her title to dwelling and improvements to a qualified
buyer. IAP reserves the right in its sole judgment to determine which
qualified buyer is available to purchase Homeowner's dwelling and improvements
under IAP's guidelines. Any dwelling and improvements being conveyed to the
qualified buyer shall be transferred at not more than the transfer price as
determined in accordance with Article 6.2, and IAP and the qualified buyer
shall enter into a new lease. IAP and Homeowner agree that the dwelling and
improvements should be kept affordable for use by those determined by the IAP's
Board to qualify.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B. If
no qualified buyer is available to purchase Homeowner's dwelling and
improvements and enter into a new lease with IAP, IAP may elect to purchase
Homeowner's dwelling and improvements at the transfer price determined in
accordance with Article 6.2. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> C. If
no transfer of Homeowner's dwelling and improvements has taken place under
6.3(A) or (B) within twelve (12) months of termination of this Lease,
Homeowner may transfer the dwelling and improvements to any buyer for no more
than the maximum transfer price calculated in accordance with Appendix A.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> D. If,
in the circumstance set out in C above, IAP certifies that (1) it has no candidates
for the dwelling and improvements of the Homeowner, after advertising the
availability of an affordable home with due diligence, and (2) all
affordability restrictions placed on the Ruthie James Subdivision required by
any financing have expired by their own terms, then the dwelling and
improvements may be transferred to any Buyer for their fair market value. The
Homeowner shall receive the maximum transfer price, calculated in accordance
with Appendix A, and IAP shall receive any balance.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.4. Any
construction, repair, replacement or improvement to Homeowner's dwelling and
improvements is subject to the following conditions:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A. All
costs shall be borne and paid for by the Homeowner;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B. All
construction shall be performed in a workerlike manner and shall comply with
all applicable laws, ordinances and regulations, including the requirements of
local and state public health authorities;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> C. All
construction must be consistent with the permitted uses set forth in this
Lease;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> D. The
exterior (including height) of any building shall not be increased or expanded
without the prior written consent of IAP;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>E. Homeowner
shall furnish to IAP a copy of any plans therefor and all building permits for
such construction prior to commencing construction for review by IAP. If
Homeowner expects the proposed improvements to be added to Homeowner's basis
for valuation under Appendix A herein, IAP shall determine a preliminary
valuation for such construction and improvements (subject to future
depreciation due to time and damages).<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.5. <u>Qualified
Improvements and Repairs</u>. Improvements and repairs qualified for
consideration in the appendix calculation are ones that increase the usefulness
of the dwelling, or increase the useful lifetime of the dwelling, and may
include:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The dwelling
itself, fixtures and permanently installed equipment in, upon, under or over
the dwelling, including but without limiting the generality of the foregoing,
all furnaces, piping, wiring, connections, conduits, ducts, equipment, partitions,
screens, awnings, windows, doors and blinds, together with any and all repairs,
renewals and replacements thereof or additions thereto or substitutes therefor;
provided, however, that if the particular item of any of the foregoing is of a
luxury quality, IAP may allow only for the usual costs of the non-luxury
version of the item.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The
improvements or repairs not qualified for consideration in determining the
Appendix A calculations shall be housecleaning, yardwork, purely routine
maintenance, cosmetic work and all improvements and repairs for which
reimbursement was, could be, or could have been obtained from insurance or
other third party.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 6.6. <u>Documenting
Costs of Improvements</u><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The Homeowner
shall document costs and expenses of work by means of detailed receipts and
invoices for materials and labor, including receipts for barter goods and
services, or by other documentation reasonably acceptable to IAP. The costs of
labor performed by the Homeowner may not exceed the rate charged by individuals
of comparable skills and experience.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> IAP may
inspect the improvement to verify the quality and state of completion of work.
IAP reserves the right to use an independent appraisal of work where costs are
in excess of the trade or other reasonable standards for similar work in the
local area.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The Homeowner
shall present such documentation to IAP by the close of the year in which the
improvement becomes functional. IAP shall determine by March 1 of the
following year the amount to be allowed as a qualified improvement, and shall
communicate its decision to the Homeowner in writing. Only amounts so allowed
shall be used in the formula set out in Appendix A.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>7. Inspection<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> IAP has the
right to inspect the leasehold premises and the Homeowner's use of them at any
reasonable time and in any reasonable, peaceful manner. In the absence of
exceptional circumstances, the Homeowner should be given 24-hours notice of any
inspection. IAP shall inspect the interior of the dwelling only on the
invitation of the Homeowner or when it has a reasonable basis to believe that
there is a lease violation within the dwelling or that such inspection is
otherwise reasonably related to its rights under this lease. Entry into a
dwelling for inspection shall not be routine.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>8. Termination<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 8.1. The
Homeowner may terminate this Lease at any time and for any reason, provided
they give IAP at least 90 days notice, in writing, of their intent to
terminate.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 8.2. IAP
may terminate this Lease in the event the Homeowner shall have:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A. Violated
any of the provisions of this Lease;<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B. Failed
to pay the lease fee (or request and receive a reduction of the fee from IAP)
within 10 days of notification that it is overdue;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> C. Abused
the leasehold premises by using it in any manner deemed illegal or seriously
detrimental to the land itself, or the potential leaseholders of the future;<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> D. IAP
shall not terminate the Lease without first giving to the Homeowner a 30-day
notice, citing the cause of termination, and an opportunity to correct their
default (or, if the correction cannot reasonably be completed within 30 days,
to begin and then continue promptly to complete such correction). A copy of
any such notice will be sent to any holder of a mortgage pursuant to Article 5
above.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 8.3. If
and when this Lease shall be terminated, the Homeowner shall leave the
household premises peacefully and quietly. The disposition of Homeowner's
improvements shall be handled in accordance with Article 6 herein.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>9. Liabilities
and Responsibilities<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 9.1. From
the date of this Lease, the Homeowner shall assume sole responsibility and
liability, to any and all persons and authorities, related to the possession,
occupancy and use of the leasehold premises. The Homeowner shall obtain and
maintain adequate fire and casualty insurance in an amount equal to the
replacement cost of the structures on the premises. Homeowner shall also
obtain and maintain liability insurance in at least the amount of $300,000.00.
Homeowner shall indemnify and hold IAP harmless from any liability whatsoever
relating to the premises, except any liability arising from the negligent or
intentional act of an employee of IAP. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 9.2. Homeowner
shall pay all service bills, utilities charges, or other governmental
assessments charged against the leasehold premises.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 9.3. Homeowner
shall safeguard the premises against damage, waste or trespass and shall hold
harmless IAP from any liability or loss thus incurred.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 9.4. In
the event IAP shall be required to pay any sum whatsoever in behalf of the
Homeowner's responsibility or liability, the Homeowner shall reimburse IAP for
any sums paid by it, and reasonable expenses related thereto.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 9.5
Homeowner shall provide IAP, in a timely manner, in response to IAP's request,
proof of performance of his or her obligations under this Section.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>10. Forced <st1:City
w:st="on"><st1:place w:st="on">Sale</st1:place></st1:City> or Eminent Domain<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> In the event
that title to the premises shall have been lost by condemnation, forced sale or
eminent domain, the following provisions shall apply:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> A. If
a partial taking is made by a third party, and the taking does not affect the
ability of the premises to be used for the intended purposes under this Lease,
any award or compensation made to IAP shall be used for payment of IAP's
mortgage loan or capital improvement to the premises, including legal costs
relating to the taking, as IAP in its sole discretion shall decide.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-1.0in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> B. If
there is a taking of the entire premises or so much of the premises that they
cannot reasonably be used for the purposes set out in this Lease, IAP shall use
any award proceeds to pay off any outstanding mortgage loans on the premises,
including legal and administrative costs relating to such taking, and may give
any remaining proceeds of such award together with an accounting of same to the
Homeowner, or in its sole judgment, IAP may choose to apply such remaining
proceeds towards the acquisition of a new low-income housing site for the
Homeowner. Homeowner agrees that to the extent it receives any such award
proceeds, they shall be applied and used in a manner consistent with the
purposes set forth in IAP's Articles of Incorporation. Disputes between the
parties to this Lease over the allocation of any award payments shall be
handled in accordance with the terms of Article 12.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>11. Transfer Upon
the Death of Homeowner<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Upon receipt
of notice from the executor of the decedent's estate given within ninety (90)
days of the death of a Homeowner (or the last surviving co-owner of the
dwelling and improvements), IAP shall, unless for good cause shown, consent to
a transfer of the dwelling and improvements to and enter into a new lease with
one or more of the following possible heirs of Homeowner:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>A. the
spouse of the Homeowner; or<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>B. the child or
children of the Homeowner; or<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>C. member(s)
of the Homeowner's household who have resided in the dwelling for at least one
year prior to the Homeowner's death.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Any other
person or persons who are heirs, legatees or devisees of the Homeowner must
demonstrate to IAP's reasonable satisfaction that they meet the affordable
housing income criteria of IAP, and if any such person is unable to do so, then
such person shall not be entitled to possession of the premises but must
transfer the premises in accordance with the provisions of this Lease.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>12. Arbitration<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Should any
disputes or grievances arise between IAP and Homeowner which cannot be resolved
in normal interaction, the following arbitration procedure shall be used:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Either IAP or
Homeowner may, by written notice to the other, appoint one arbitrator. Within
ten days after such notification, the other party shall, by written notice to
the former, appoint a second arbitrator (and in default of such appointment,
the first arbitrator shall be the sole arbitrator). These first two
arbitrators shall appoint a third arbitrator.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The
arbitrator(s) shall meet and give each party an opportunity to present their
cases and witnesses, if any, in the presence of the other. Each arbitrator
shall give a personal statement of his/her vote and the reasons for it.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Arbitration
should begin, if possible, within 30 days of the appointment of the second
arbitrator, and judgment should be rendered within forty-five (45) days of that
date.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> The decisions
and awards of the arbitration panel shall be binding, and judgment may be
entered therein on any court having jurisdiction.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Notwithstanding
the above, Homeowner covenants and agrees to make timely lease fee payments
during such period. Continued payment of Homeowner's pro-rata share of taxes,
insurance and other fees are necessary for the protection of all parties. Such
payments shall not be construed to be a waiver of termination of lease by IAP
even if it has commenced termination on the grounds of nonpayment of lease
payments.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>13. Miscellaneous
Provisions<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.1. Right
to quiet enjoyment: IAP may not interfere with the personal lives,
associations, expressions or actions of the Homeowner, except insofar as they
concern the terms and conditions of this Lease.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.2. If
any clause or provision of this Lease shall be adjudged invalid, such fact
shall not affect the validity of any other clause or provision, or give rise to
any cause of action in favor of either party as against the other.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.3. Future
amendments shall be subject to the approval of any holder of a mortgage under
5.2 above, which approval shall not be unreasonably withheld and shall be
presumed unless the lender makes a written objection within thirty days of
receiving the proposed amendments for review.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.4. IAP
shall have the right, but shall be under no duty, to prosecute or defend, in
its own or the Homeowner's names, any actions or proceedings appropriate or
necessary for the protection of the leasehold premises.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.5. IAP
may, in accordance with its association rules, grant variances in the terms of
this Lease, but notice of such variance must be given in writing before it can
be deemed granted.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.6. The
failure of IAP to insist in any one or more instances, upon a strict
performance of any of the covenants or conditions of this Lease, or to exercise
any right or option herein continued, shall not be construed as a waiver of the
option to do so, but such covenants, rights and options shall continue in full
force and effect.<o:p></o:p></span></font></p>
</div>
<font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-family:
"Times New Roman"'><br clear=all style='page-break-before:always'>
</span></font>
<div class=Section2>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.7. Whenever
this Lease shall require that either party give notice to, or be advised by,
the other, that notice shall be given in writing and delivered in person or
mailed, by registered mail, to the last known address of the party to be
notified. Notice shall be deemed given on the date on which it is delivered or
mailed.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> 13.8. The
parties agree to execute and record a Memorandum of Lease substantially in the
form attached to this Lease as Appendix B.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> IN WITNESS
WHEREOF, the parties hereunto have set their hands and seals effective as of
the day and year first above written.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Islesboro Affordable
Property Homeowner:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>___________________________ ______________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> By: By:<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>STATE OF <st1:State
w:st="on"><st1:place w:st="on">MAINE</st1:place></st1:State><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><st1:place w:st="on"><st1:PlaceName
w:st="on"><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>_______________</span></font></st1:PlaceName>
<st1:PlaceType w:st="on">County</st1:PlaceType></st1:place>. ____________________,
2007<o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Then
personally appeared the above-named ___________________ as __________________
of <b><span style='font-weight:bold'>Islesboro Affordable Property</span></b>
and acknowledged the foregoing instrument to be his/her free act and deed in
said capacity, and the free act and deed of said corporation.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Before
me,<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> ______________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Notary
Public/Attorney at Law<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Printed name of
Notary/Attorney:_________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>My Commission expires
_______________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>STATE OF <st1:State
w:st="on"><st1:place w:st="on">MAINE</st1:place></st1:State><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><st1:place w:st="on"><st1:PlaceName
w:st="on"><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>_______________</span></font></st1:PlaceName>
<st1:PlaceType w:st="on">County</st1:PlaceType></st1:place> ____________________,
2007<o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Then
personally appeared the above-named <b><span style='font-weight:bold'></span></b>and
acknowledged the foregoing instrument to be his free act and deed. <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Before
me,<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> ______________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Notary
Public/Attorney at Law<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Printed name of
Notary/Attorney:_________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>My Commission expires
______________<o:p></o:p></span></font></p>
<font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-family:
"Times New Roman"'><br clear=all style='page-break-before:always'>
</span></font>
<p class=MsoNormal align=center style='text-align:center'><b><font size=4
face="Times New Roman"><span style='font-size:14.0pt;font-weight:bold'>EXHIBIT
A</span></font></b><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center'><st1:place w:st="on"><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>LOT</span></font></st1:place>
DESCRIPTION<o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Lot #1 as
shown on the plan of the Ruthie James Subdivision by Michael P. Shaffer, dated
July, 1993 and recorded in the Waldo County Registry of Deeds at File 16, Page
208, together with a right of way for the ingress and egress of motor vehicles
and foot traffic, and for all purposes for which streets and ways are commonly
used in the Town of Islesboro, by and along the subdivision road and cul-de-sac
as shown on the plan mentioned above, said easement being granted together with
a right to install utility service in, over, and through the same.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:.5in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Reserving,
however, to Islesboro Affordable Property an easement of access to the septic
system located underground on <st1:place w:st="on">Lot</st1:place> #1 for the
purposes of inspection, repair and replacement of the same.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-family:
"Times New Roman"'><br clear=all style='page-break-before:always'>
</span></font>
<p class=MsoNormal style='text-align:justify;line-height:11.35pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>APPENDIX A<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Maximum transfer price
shall not be more than the<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(a) initial
cash down payment contributed towards the purchase price of the dwelling and
other improvements to the land at the time of purchase; plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(b) in-kind
contributions toward the construction of the dwelling in any amount set out in
an in-kind acknowledgment agreement executed by IAP and the initial family
prior to the initial sale of the home. This provision applies to the initial
purchase of the dwelling from IAP only; plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(c) sweat
equity contributed to the construction of the dwelling in the amount of fifteen
percent (15%) of the construction cost of the dwelling if IAP certifies in
writing prior to the initial purchase of the dwelling that all sweat equity
obligations have been met, otherwise in an amount to be agreed to in writing by
IAP and the initial purchaser. This provision applies to the initial purchase
of the dwelling from IAP only; plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(d) (i) the
amount of the principal paid on the mortgage, or (ii) the amount of principal
which would have been paid if payments had been made at the note rate set out
in the applicable promissory note, prior to the application of any interest
credits or similar subsidy or subsidies, whichever is less; plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(e) the
value of improvements to the premises added after purchase and approved in
accordance with Article 6 hereof, less depreciation due to the age of or damage
to such improvements; plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(f) a
price index increase applied to the items in (a), (b) and (c) above measured by
the percent increase in the HUD very low income family median income figure for
Waldo County from the date of payment to the date the Lease was terminated;
plus<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>(g) the
outstanding balance, including any accrued interest and costs of enforcement
(including any attorneys' fees) of any mortgage on the dwelling and other
improvements to the land permitted by this Lease.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> In the event
that the IAP believes the market value of the dwelling and other improvements
to the land is, at the time of the proposed sale, lower than the maximum
transfer price as set out above, the market value of the premises shall be
determined by the averaging two market value appraisals, one done by a licensed
appraiser of Homeowner's choosing at Homeowner's expense, and one done by a
licensed appraiser of IAP's choosing at IAP's expense. The transfer price to
be paid as used in this Lease shall be the lesser of (i) the market value of
the premises as determined according to the appraisal method described in the
preceding sentence, or (ii) the maximum transfer price as calculated in (a) -
(g) above.<o:p></o:p></span></font></p>
<font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-family:
"Times New Roman"'><br clear=all style='page-break-before:always'>
</span></font>
<p class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>APPENDIX B<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal align=center style='text-align:center'><u><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>MEMORANDUM OF LEASE</span></font></u><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Lessor: Islesboro
Affordable Property, <st1:address w:st="on"><st1:Street w:st="on">P.O. Box 206</st1:Street>,
<st1:City w:st="on">Islesboro</st1:City>, <st1:State w:st="on">ME</st1:State> <st1:PostalCode
w:st="on">04848</st1:PostalCode></st1:address><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Homeowner: <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Premises: See attached
Exhibit A<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Term of Lease:
Ninety-nine (99) years unless previously terminated<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-1.5in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Other
Conditions: Subject to limitations on assignability and resale designed
to ensure permanent affordability. (See attached Appendix A for maximum transfer
price.) Lessor must consent to transfer or encumbrances.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> IN WITNESS
WHEREOF the parties hereto have executed this Memorandum of Lease this <u></u>day
of <u></u>, 2007, by their duly authorized representatives.<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <b><span
style='font-weight:bold'>ISLESBORO AFFORDABLE PROPERTY</span></b><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> ___________________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> By:
____________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Its:
____________________, <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> thereunto
duly authorized<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Homeowner<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> ___________________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>STATE OF <st1:State
w:st="on"><st1:place w:st="on">MAINE</st1:place></st1:State><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><st1:place w:st="on"><st1:PlaceName
w:st="on"><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>____________________</span></font></st1:PlaceName>
<st1:PlaceType w:st="on">County</st1:PlaceType></st1:place> _________________________,
2007<o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Personally
appeared before me the above-named ____________________, ____________________
of <b><span style='font-weight:bold'>Islesboro Affordable Property</span></b>
and acknowledged the within instrument to be his/her free act and deed in
his/her said capacity and the free act and deed of said corporation<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Before
me,<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> ______________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'> Notary
Public<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>My commission expires:
_________________________<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Printed or Typed Name of
Notary: _________________________</span></font><font size=1><span
style='font-size:7.0pt'><o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'>C:\ClientFiles\Corporations\IslesboroAffProp\ThomasResale\Lease.wpd<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-align:justify'><font size=1
face="Times New Roman"><span style='font-size:7.0pt'>January 30, 2001<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>________________________________________________</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Alden Robinson</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Island Institute Fellow</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'>Town of Long
Island</span></font></st1:City><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>, <st1:State w:st="on">Maine</st1:State></span></font></st1:place><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>(207) 837-0636</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>arobinson@islandinstitute.org</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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