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1 LIONEL Z. GLANCY, ESQ. # 134180 8PETER A . BINKOW, ESQ. # 1738482 260,GLANCY & BINKOW LLP CENTRAL DJST T OF CALIFORNIA

3 1801 Avenue of the Stars, S ENTERED BY DFPI

Los Angeles, California 90 '7 cLF- U.S . DjSTRj CT cauRr

4 PriorityPhone : (310) 201-9150 APR 2 g 2003 Send

5 Fax : (310) 201-9160 Enter6 1 pITRI Closed

A torneys for Plaintiffs and t J5-5F ...,. ...z [ ditio al Counsel on Signature Page ] SS-2!J03 ...^,..

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g' UNITED STATES DISTRICT COURT10 CENTRAL DISTRICT OF CALIFORNIA

11 WESTERN DIVISION

12 IN RE REAL ESTATE ASSOCIATES Case No . CV 98-7035 DDP (AJWx)13 LIMITED PARTNERSHIP )

LITIGATION ) CLASS ACTION14 )

15 ) [PROPS B] ORDER AND FINALJUDGMENT

16 )

17 ) Hon. Dean D. Pregerson

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28[PROPOSED] ORDER AND FINAL JUDGMENT

CASE NO . CV98-7035 DDP (AJWx)

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This Court hereby directs entry of this Final Judgment on April 28, 2003

pursuant to Fed. R . Civ. P . 54 on Counts I through VIII of the Corrected Second-

Restated and Supplemental Complaint ("Complaint")

Based on the Jury's verdict on Counts I and II, rendered on November 15 ,

2002 and November 19, 2002, pursuant to the Special Verdict Form entered on

November 20, 2002, the Court's orders and opinions on the parties' post-trial

motions dated April 3, 2003, and the Court having concluded trial on all Counts,

this Court directs entry of this Final Judgment pursuant to Fed . R . Civ. P . 54 as

follows :

(1) On Count I of the Complaint, as to the federal securities law claims

under Section 14(a) of the Securities Exchange Act and Rule 14a-9 promulgated

thereunder ("the Securities Claims"), Defendants Alan 1 . Casden ("A . Casden"),

Henry C . Casden ("H. Casden"), Bruce E. Nelson ("Nelson"), Charles H.

Boxenbaum ("Boxenbaum"), and National Partnership Investments Corp .,

("NAPICO") are found to have knowingly violated Section 14(a) of the Securities

Exchange Act and Rule 14a-9 promulgated thereunder in connection with the

Consent Solicitations sent in August 1998 to the certified Class of limited partners

of Real Estate Associates Ltd. ("REAL I"), Real Estate Associates Limited II

("REAL II"), Real Estate Associates Limited III ("REAL III"), Real Estate

Associates Limited IV ("REAL IV"), Real Estate Associates Limited V ("REAL

V"), Real Estate Associates Limited VI ("REAL VI"), Real Estate Associates

Limited VII ("REAL VII") and Housing Programs Ltd . ("HOUSING

PROGRAMS") . Defendants A. Casden, H. Casden , Nelson , Boxenbaum, and

'OSEDI OR-DER AND FINAL JUDGMENTCASE NO CV98 - 7035 DDP (AJWx )

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is •

NAPICO hereby have judgment entered against them, jointly and severally', and

in favor of the certified Class of limited partners of REAL 1, REAL II, REAL 111,

REAL IV, REAL V, REAL VI, REAL VII and HOUSING PROGRAMS, on

Count I of the Complaint, for the amount of $25,202,714, plus prejudgment

interest owing thereon for the amount of $4,243, 905, for a total judgment o f

1$29,446,619, allocated as follows :

Limited Amount ofPartner Class Amount of Prejudgment InterestMembers in : Damages : as of April 28,003: Total :

REAL I $ 893,959 $ 150,534 $ 1,044,493

REAL II $ 1,153,862 $ 194,301 $ 1,348,163

REAL III $ 2,601,361 $ 438,045 $ 3,039,406

REAL IV $ 2,468,578 $ 415,686 $ 2,884,264

REAL V $ 926,472 $ 156,009 $ 1,082,48 1

REAL VI $ 7,036,777 $1,184,928 $ 8,221,705

REAL VII $ 4,443,175 $ 748,190 $ 5,191,365HOUSINGPROGRAMS $ 5,678,530 $ 956,212 $ 6,634,742

TOTAL $25,202,714 $4,243,905 $29,446,61 9

(2) On Count II of the Complaint, as to the breach of fiduciary duty

claims, defendant National Partnership Investments Corp . ("NAPICO") is found

IBased on the Jury's determination that each Defendant knowingly violated

Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, theDefendants' liability for this judgment on Count I is joint and several . It is notedfor informational purposes only that the Jury made the following determinations ofpercentage of liability under Count I among the Defendants (A. Casden - 35% ; H .Casden - 30%; Nelson - 15%; Boxenbaum - 15%; and NAPICO - 5%) .

[ PROPOSED ] ORDER AND FINAL JUDO!CASE NO CV98-7435 DDP (AJWx)

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have breached its fiduciary duties owed to the certified Class of limited partners of

REAL I, REAL II, REAL III, REAL IV, REAL V, REAL VI, REAL VII and

HOUSING PROGRAMS, and is found , by clear and convincing evidence, to have

acted with oppression , malice or fraud in breaching those duties . Defendant

NAPICO hereby has judgment entered against it and in favor of the certified Class

of limited partners of REAL I, REAL II, REAL III, REAL IV, REAL V, REAL

VI, REAL VII and HOUSING PROGRAMS on Count II of the Complaint for the

amount of $69,955 ,342 ($67,342,342 in compensatory damages and $ 2,613,000 in

punitive damages ) plus prejudgment interest owing in the amount of $ 21,402,445,

for a total judgment of $ 91,357, 787, allocated as follows :

Amount o fLimited Prejudgment Amount of

Partner Class Amount of Interest as of April PunitiveMembers in : Damages : 28, 2003 : Damages : Total :

REAL I $ 2,281,304 S 725,034 $ 88,581 $ 3,094,91 9

REAL II $10,760,227 $ 3,419,768 $ 417,558 $14,597,55 3

REAL III $13,658,451 $ 4,340,868 $ 529,916 $18,529,23 5

REAL IV $11,519,453 $ 3,661,062 $ 447,084 $15,627,59 9

REAL V $ 8,225,236 $ 2,614,108 $ 319,047 $11,158,39 1

REAL VI $14,222,876 $ 4,520,251 $ 551,866 $19,294,993

REAL VII $ 4,443,175 $ 1,412,110 $ 172,458 $ 6 ,027,743HOUSINGPROGRAMS $__2,231,620 $ 709,244 $ 86,490 $ 3,027,354

TOTAL $67,342,342 $21 ,402,445 $2 ,613 ,000 $91 ,357,787

(3) On Count III of the Complaint , the claim that the Consent

Solicitations improperly obtained the authorizations or consents of the Class of

limited partners of REAL 1, REAL II, REAL III, REAL IV, REAL V, REAL VI,

REAL VII and HOUSING PROGRAMS to the sale of the limited partnershi p

]PROPOSED] ORDER AND FINAL JUDG]CASE NO CV98-7035 DDP (AJWx)

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interests in the local partnerships which were not sold in connection with the REI

Transaction , Defendants Alan 1 . Casden , Henry C . Casden , Bruce E. Nelson,

Charles H . Boxenbaum , National Partnership Investments Corp ., Casden

Investment Corporation, National Partnership Investments Associates, National

Partnership Investment Associates 11, Coast Housing Investments Associates, and

Housing Programs II, hereby have judgment entered against them in favor of the

certified Class of limited partners of REAL I, REAL II, REAL III, REAL IV,

REAL V, REAL VI, REAL VII and HOUSING PROGRAMS, declaring that said

Defendants and their affiliates , subsidiaries, successors or assigns , will not base

future transactions , sales or transfers of any of REAL I, REAL II, REAL 111,

REAL IV, REAL V, REAL VI, REAL VII and HOUSING PROGRAMS limited

partnership interests in any partnerships or properties that were not transferred in

the transaction of December 30, 1998 on the basis of the authorizations or

consents obtained as a result of the Consent Solicitations sent to the limited

partners of REAL I, REAL II, REAL III, REAL IV, REAL V, REAL VI, REAL

VII and HOUSING PROGRAMS in August 1998.

(4) On Count V of the Complaint, the indemnification claim, Defendant s

Alan I . Casden , Henry C. Casden , Bruce E. Nelson, Charles H . Boxenbaum,

National Partnership Investments Corp ., Casden Investment Corporation, National

Partnership Investments Associates , National Partnership Investment Associates

II, Coast Housing Investments Associates , and Housing Programs II, hereby have

judgment entered against them in favor of the certified Class of limited partners of

REAL I, REAL II, REAL III, REAL IV, REAL V, REAL VI, REAL VII and

HOUSING PROGRAMS , declaring that said Defendants and their affiliates,

subsidiaries , successors or assigns, are not entitled to be indemnified by REAL I,

REAL II, REAL III, REAL IV, REAL V, REAL VI, REAL VII and/or HOUSING

'OSED] ORDER AND FINAL JUDGMENTCASE NO CV98-7035 DDP (AJWx )

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PROGRAMS for any cost, expense or attorneys fees incurred, or for the Judgmen t

entered , in this Action .

(5) On Count IV of the Complaint , the claim under the doctrine o f

inherent fairness , the certified Class of limited partners of REAL I, REAL II,

REAL III, REAL IV, REAL V, REAL VI, REAL VII and HOUSING

PROGRAMS hereby have judgment rendered against them in favor of Defendants

Alan I. Casden , Henry C. Casden , Bruce E . Nelson, Charles H . Boxenbaum,

National Partnership Investments Corp ., Casden Investment Corporation , National

Partnership Investments Associates , National Partnership Investment Associates

II, Coast Housing Investments Associates , and Housing Programs II, and the Court

is dismissed with prejudice , but without costs , as against all such Defendants .(6 )

On Count VI of the Complaint, the claim for rescission of the REI T

transac ti on against all Defendants , judgment is entered against the certified Class

of limited partners of REAL 1, REAL II, REAL III, REAL IV, REAL V, REAL

VI, REAL VII and HOUSING PROGRAMS and the Count is dismissed with

prejudice , but without costs , as against all Defendants .

(7) On Count VII of the Complaint, for the imposition of a constructiv e

trust against Casden Prope rties Sub LLC, Casden Properties GP I Limited

Partnership and Casden Properties GP II Limited Partnership, judgment is entered

against the certified class of limited partners of REAL I, REAL 11, REAL III,

REAL IV, REAL V, REAL VI, REAL VII and HOUSING PROGRAMS and the

Count is dismissed with prejudice but without costs , as against these Defendants .

(8) On Count VIII of the Complaint, the accounting claim, Plaintiffs'

action for equitable relief in the form of a court supervised accounting based o n

the allegations that support the Jury's verdict on Counts I and II of the Complain t

is dismissed with prejudice, but without costs, as against all Defendants, and in al l

'OSED] ORDER AND FINAL JUDGMENTCASE NO, CV98-7035 DDP (AJWx )

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other respects , Plaintiffs' action for an accounting is dismissed without prejudice .

(9) Pursuant to Federal Rule of Civil Procedure 54 and the Local Rules

of the Central Dist rict of California , U .S .D.C., L.R. 54, generally , and L.R . 58-2, ,

Plaintiffs' costs are taxed against Defendants Alan 1 . Casden, Henry C . Casden ,

I I Bruce E. Nelson, Charles H . Boxenbaum, and National Partnership Investment s

Corp ., jointly and severally, in the amount of $

(10) Pursuant to L .R. 58-7, post judgment interest will accrue on thi s

judgment from the date of entry , as set forth in the Memorandum Accompanying

Order and Final Judgment, attached hereto as Exhibit A .

(11) Jurisdiction is retained by this Court for the purpose of hearing and

ruling upon Plaintiffs' application for the award of counsel fees to Plaintiffs '

counsel and for the purpose of approving and supervising the distribution of the

proceeds of the judgment to the members of the Class in accordance with the

allocations set forth in paragraphs (1) and (2) of this Judgment .

IT IS SO ORDERED.

Dated : V--2Y f Q 3

Submitted By :

GL Y & BINKOW LLP

By:

LIONEL Z . GLANCY, ESQ. # 134180PETER A. BINKOW3 ESQ . #1738481801 Avenue of the Stars, Suite 311Los Angeles, California 90067Phone : (310) 201-9150Fax : (310) 201-9160

Honorable Dean D. PregersonUnited States District Court

'OSED) ORDER AND FINAL JUDGMENTCASE NO CV98-7035 DDP (AJWx )

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NICHOLAS E. CHIMICLES, ESQ.CANDICE L.H . HEGEDUS, ESQ .KIMBERLY M. DONALDSON, ESQ .CHIMICLES & TIKELLIS LLP361 West Lancaster AvenueHaverford, PA 19041Phone : (610) 642-8500Fax: (610) 649-363 3

LAWRENCE A . SUCHAROW, ESQ .JOSEPH STERNBERG, ESQ.CHRISTOPHER KELLER, ESQ .GOODKIND LABATON RUDOFF

& SUCHAROW LLP100 Park Avenu eNew York, New York 10017Phone : (212) 907-070 0Fax: (212) 818-0477

LEIGH R. LASKY, ESQ.LASKY & RIFKIND, LTD .11 South LaSalle StreetSuite 160 0Chicago, IL 60603Phone : (312) 634-0057Fax : (312) 634-005 9

ROBERT I . HARWOOD, ESQ .MATTHEW M . HOUSTON, ESQ .ANDREW D . FRIEDMAN, ESQ .WECHSLER HARWOODHALEBIAN & FEFFER LLP

488 Madison Avenue8th Floo rNew York, NY 10022Phone : (212) 935-7400Fax : (212) 75-3630

0

POSED) ORDER AND FINAL JUDGMENTCASE NO CV98-7035 DDP (AJWx )

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LAWRENCE P . KOLKER, ESQ .WOLF HALDENSTEIN

ADLER FREEMAN & HERZ LLP270 Madison Avenu eNew York, NY 10016Phone : (212) 545-4600Fax: (212) 545-4677

Attorneys for Plaintiffs and the Clas s

'OSED] ORDER AND FINAL JUDGMENTCASE NO . CV98-7035 DDP (AJWx )

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EXHIBIT A

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(MON) 4.26'03 12 :57/ST. 12 :56/NO. 4860130029 P

LIONEL Z. GLANCY, ESQ . #134180PETER A. BINKOW, ESQ . #173848GLANCY & BINKOW LLP1801 Avenue of the Stars , Suite 311Los Angeles , California 90067Phone : (310) 201-915 0Fax: (310) 201-9160

Attorneys for Plaintiffs and the Class[Additional Counsel on Signature Page ]

UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA

WESTERN DIVISION

IN RE REAL ESTATE ASSOCIATESLIMITED PARTNERSHIPLITIGATION

Case No . CV 98-7035 DDP (AJWx)

CLASS ACTION

MEMORANDUM PURSUANT TOLOCAL RULE 58-7ACCOMPANYING [PROPOSED]ORDER AND FINAL JUDGMEN T

Hon . Dean D. Pregerson

MEMORANDUM PURSUANT TO LOCAL RUL E 58-7 ACCOMPANYING [PROPOSkDJ ORDLLRAND FCNAI, JUDGMENT

CASE NO . CV9 -7035 DOP (AJWx)

FROG(, (MON) 4.28'03 12 :57/ST . 12 :56/N0. 4860133029 P 9

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Plaintiffs hereby submit this Memorandum to accompany the [Proposed]

Order and Final Judgment filed concurrently herewith . As set forth in United

States District Court Central District of California Local Rule 58-7, Entry o f

Judgment - Settlement of Interest, "[i]f interest is accruing or will accrue on an y

judgment, decree or order, the party preparing the proposed form of judgment,

decree or order shall indicate by memorandum attached thereto the applicable

interest rate as computed under 28 U .S .C.§ 1961(a) or 26 U .S .C. § 6621 and the

amount of interest to be added for each day the document remains unsigned ."

Pursuant to 28 U .S .C. § 1961, post-judgment interest shall be calculate d

from the date of the entry of the judgment, at a rate equal to the weekly average 1-

year constant maturity Treasury yield, as published by the Board of Governors of

the Federal Reserve System, for the calendar week preceding the date of the

judgment, which rate for a judgment entered on April 28, 2003 is 1 .31 % which

will be computed daily to the date of payment and compounded annually ,

Limited Amount of Damages,Partner Class including prejudgmentmembers in: Interest as of April 28, 2003 :

REAL T $ 4,139,412

REAL II $ 15,945,71 6

REAL III $ 21,568,64 1

REAL IV $ 18,511,863

REAL V $ 12,240,872

Post-JudementInterest per diemfor the first year

following thedate of entry of

Judgment:

$ 148 .1 6

570 .73

$ 771 .99

$ 662 .58

$ 438 .1 3

AND FHNAI, JUDOWNFCASE NO . CV98-7031 DDP (AJWx)

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(MON) 4 .28'03 12 :57/ST. 12 :56/Na . 4860130029 P I

REAL VI $ 27,516,698 S 984.89

REAL VII $ 11,219, 108 $ 401 .56

HOUSINGPROGRAMS $ 9,662 ,09 S 345 .8 3

TOTAL $120,804,407 $ 4,323 .87

Dated : Y"_ U -~ 3Honorable Dean D. PregersonUnited States District Court

Submitted By:

GLANCY & BINKOW LLP

By: LIONEL Z. GLANCY , ESQ . #13418 0

PETER A. BINKOW2 ESQ. #1738481801 Avenue of the StarsSuite 31 1Los Angeles, California 90067Phone: (310) 201-9150Fax: (310) 201-9160

NICHOLAS E. CHIMICLES, ESQ.CANDICE L .H. HEGEDUS, ESQ .KIMBERLY M. DONALDSON, ESQ.CHIMICLES & TIKELLIS LLP361 West Lancaster AvenueHaverford, PA 19041Phone: (610) 642-8500Fax: (610) 649-3633

TO LOCAL RULE 58-7 ACCUMPAAND FINAL JUDGMENT

CASE NO . CV99-7035 DO? (AJWx)

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(MON) 4.28'03 12 :58/ST . 12 :56/N0. 486013U029 P 1

LAWRENCE A. SUCHAROW, ESQ.JOSEPH STERNB.ERG, ESQ .CHRISTOPHER KELLER, ESQ .GOODKIND LABATON RUDOFF& SUCHAROW LLP

100 Park Avenu eNew York, New York 10017Phone: (212) 907-070 0Fax: (212) 818-0477

LEIGH R. LASKY, ESQ.LASKY & RIFKIND, LTD .11 South LaSalle StreetSuite 1600Chicago, IL 60603Phone : (312) 634-0057Fax : (312) 634-0059

ROBERT 1 . HARWOOD, ESQ.MATTHEW M. HOUSTON, ESQ .ANDREW D. FRIEDMAN, ESQ.WECHSLER HARWOOD

HALEBIAN & FEFFER LLP488 Madison Avenue8th Floo rNew York, NY 10022Phone: (212) 935-7400Fax: (212) 75-3630

LAWRENCE P. KOLKER, ESQ .WOLF HALDENSTEIN

ADLER FREEMAN & HERZ LLP270 Madison Avenu eNew York, NY 10016Phone: (212) 545-4600Fax : (212) 545-4677

Attorneys for Plaintiffs and the Class

' TO LQCAL RULL 58-7 AC:COMh'AAND FINALJUDGMI N T

CASE NO . CV 8-7W ptf (A3Wx)