Document:

ex10-1.htm

     

    Exhibit
      10.1

    First
      Amendment To Amended And Restated Revolving

    Credit
      and Term Loan Agreement

    

    This
      FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT
      (this “First Amendment”) is entered into as of August 7, 2007,
      among:  Centerline Holding Company (f/k/a CharterMac) and Centerline
      Capital Group Inc. (f/k/a Charter Mac Corporation) (collectively, the
“Borrowers”); those Persons listed as Guarantors on Schedule 1 hereto
      (each, a “Guarantor,” and, collectively, the “Guarantors”); those Lenders
      constituting the Required Lenders, each as set forth on a counterpart signature
      page hereto, substantially in the form of Schedule 2 hereto (the
“Required Lenders”); and Bank of America, N.A., as Swingline Lender, Issuing
      Bank and Administrative Agent for the Lenders (in such capacity, the
“Administrative Agent”).

     

    RECITALS

     

    Reference
      is made to the following facts that constitute the background of this First
      Amendment:

     

    A.           The
      parties hereto, among others, have entered into that certain Amended and
      Restated Revolving Credit and Term Loan Agreement, dated as of August 24, 2006
      (as further amended and/or restated from time to time, the “Loan
      Agreement”).  Capitalized terms used herein and not otherwise defined
      herein shall have the same meanings herein as ascribed to them in the Loan
      Agreement;

     

    B.           The
      Borrowers have requested that the Administrative Agent and the Required Lenders
      amend certain financial covenants contained in the Loan Agreement and make
      certain other changes to the Loan Agreement ; and

     

    C.           The
      Administrative Agent and the Required Lenders, in accordance with the terms
      of
      Section 23.1 of the Loan Agreement, are willing to grant such requests, solely
      upon the terms and conditions set forth in this First Amendment.

     

    NOW,
      THEREFORE, in consideration of the foregoing recitals and of the
      representations, warranties, covenants and conditions set forth herein and
      in
      the Loan Agreement, and for other valuable consideration the receipt and
      adequacy of which is hereby acknowledged, the parties hereto agree as
      follows:

     

    Section
      1.        The Loan Agreement is
      hereby amended as follows:

     

    Section
      1.1.     Amendment to parties to Loan
      Agreement.  As of February 9, 2007, the names of certain of the
      entities that are parties to, or mentioned in, the Loan Agreement, are hereby
      replaced with the new names for such entities that appear next to such names
      in
Schedule 3, attached hereto.

     

    Section
      1.2.     Amendment to Definition of
      CAD.  The definition of “CAD” in Section 1.1 of the Loan Agreement
      is hereby amended by adding the following sentence at the end of such
      definition:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “For
      each
      four Fiscal Quarter period ending on or before June 30, 2008, there shall be
      added to CAD (solely to the extent any such addition has not already been
      reflected in the calculation of CAD as set forth in CHC’s Filings for such four
      Fiscal Quarter Period) an amount equal to the principal amount of Supplemental
      Loans reflected in CHC’s Filings as having become, or otherwise determined by
      CHC (in accordance with its past practices) to have
      become, impaired between January 1, 2007 through September
      30, 2007, but solely to the extent that such Supplemental Loans remain impaired
      for such four Fiscal Quarter period.”

     

    Section
      1.3.    Amendment to Definition of 4.4% Convertible
      CRA Shares.  The definition of “4.4% Convertible CRA Shares” in
      Section 1.1 of the Loan Agreement is hereby amended by deleting it in its
      entirety and replacing it with the following:

     

    “4.4%
      Convertible CRA
      Shares.  CHC’s 4.4% Convertible Community Reinvestment Act
      Preferred Shares described in CHC’s Filings as filed with the SEC from time to
      time, and any and all shares of capital stock of CHC with similar
      characteristics and terms, including, without limitation, such shares that
      possess different dividend rates.”

     

    Section
      1.4.   Addition of Definition of Supplemental
      Loans.  Section 1.1 of the Loan Agreement is hereby amended by
      adding the following definition in the appropriate alphabetical
      order:

     

    “Supplemental
      Loans.  Loans made, from time to time, by CHC or an Affiliate
      thereof to Persons engaged in the construction or rehabilitation of multi-family
      affordable housing projects intended to qualify for federal low income housing
      tax credits pursuant to Section 42 of the Code for construction or other
      operating costs, so long as one of the following applies to each of such
      projects:  (i) CHC or an Affiliate thereof has sponsored the
      syndication of the low income housing tax credit equity associated with such
      project; or (ii) the returns to investors in the low income housing tax credit
      equity associated with such project have been guaranteed and such guaranty
      is
      directly or indirectly supported by the assets of CHC or an Affiliate
      thereof.”

     

    Section
      1.5.     Amendment to Section
      2.5.  Section 2.5 of the Loan Agreement is hereby amended by
      replacing the phrase “on no more than two occasions” with the phrase “on no more
      than three occasions,” and in furtherance of such amendment, following the date
      of this First Amendment, the Borrowers shall have the right to exercise up
      to
      two more times the Accordion Option pursuant to which they may increase the
      Total Credit Amount by an additional $75,000,000, and the Borrowers’ rights to
      exercise the Accordion Option for a second or third time under Section 2.5
      of
      the Loan Agreement shall expire on the second anniversary of the Loan
      Agreement.

     

    Section
      1.6.     Amendment to Section
      10.6.  Section 10.6 of the Loan Agreement is hereby amended by
      deleting it in its entirety and replacing it with the following:

     

    “10.6    Distributions
      Prior to
      Default.  CHC shall make no Distributions so as to cause
      the aggregate Distributions made by CHC, during the one year period ending
      on
      the date of the most recent Distribution, to exceed CHC’s CAD for the four
      Fiscal

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

    Quarter
      periods most recently ended, except that such aggregate Distributions may be
      less than or equal to the percentages set forth below during the time periods
      set forth below:

     

    
      	
              Measurement
                Period:

               

            	
              Percentage
                of CAD:

               

            
	
              the
                four Fiscal Quarter period ending on September 30, 2007

               

            	
              135%

               

            
	
              the
                four Fiscal Quarter periods ending on December 31, 2007 and March
                31,
                2008

               

            	
              115%

               

            
	
              the
                four Fiscal Quarter period ending on June 30, 2008

               

            	
              105%

            

    

     

     provided,
      however, that portions of the Distributions in an aggregate amount of
      $51,500,000 in excess of CAD made by CHC on or before July 3, 2007 in connection
      with CHC’s equity buy back program described in CHC’s filings as of the date
      hereof may be disregarded for each of the four Fiscal Quarter periods ending
      on
      or before September 30, 2008, but only to the extent that such portions were
      actually made during such four Fiscal Quarter period.  The Borrowers
      and the Guarantors hereby covenant and agree that they shall not make, permit
      or
      suffer any further buy backs of CHC’s equity until after September 30, 2008;
      and, from and after October 1, 2008, such buy backs may be made solely in
      accordance with the terms of, and to the extent permitted by, the Loan Agreement
      and the other Loan Documents.”

     

    Section
      1.7.    Amendment to Section 10.15.  Section
      10.15 of the Loan Agreement is hereby amended by deleting it in its entirety
      and
      replacing it with the following:

     

    “10.15  Adjusted
      CAD to Fixed Charges Ratio.  CHC shall maintain a ratio
      of Adjusted CAD to Fixed Charges as follows for the following
      periods:

     

    
      	
              Measurement
                Period:

               

            	
              Adjusted
                CAD to Fixed Charges Ratio:

               

            
	
              the
                four Fiscal Quarter period ending on September 30, 2007

               

            	
              equal
                to or greater than 2.00 to 1.00

               

            
	
              the
                four Fiscal Quarter periods ending on December 31, 2007 and March
                31,
                2008

               

            	
              equal
                to or greater than 2.25 to 1.00

               

            
	
              each
                four Fiscal Quarter period ending on or after June 30, 2008

               

            	
              equal
                to or greater than 2.75 to 1.00”

               

            

    

    

    Section
      1.8.   Amendment to Section 10.16.  Section
      10.16 of the Loan Agreement is hereby amended by deleting it in its entirety
      and
      replacing it with the following:

     

    
      
        
        

      

      
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          3 -

        
          

        

      

      
        
        

      

    

    “10.16.  Minimum
      CAD.  CHC shall maintain CAD as follows for the following
      periods:

     

    
      	
              Measurement
                Period:

               

            	
              CAD:

            
	
              the
                four Fiscal Quarter period ending on September 30, 2007

               

            	
              equal
                to or greater than $75,000,000

               

            
	
              the
                four Fiscal Quarter periods ending on December 31, 2007 and March
                31,
                2008

               

            	
              equal
                to or greater than $90,000,000

               

            
	
              the
                four Fiscal Quarter period ending on June 30, 2008

               

            	
              equal
                to or greater than $105,000,000

               

            
	
              the
                four Fiscal Quarter periods ending on September 30, 2008, December
                31,
                2008 and March 31, 2009

               

            	
              equal
                to or greater than $110,000,000

               

            
	
              each
                four Fiscal Quarter period ending thereafter

               

            	
              equal
                to or greater than $120,000,000”

               

            

    

    

    Section
      1.9.    Amendment to Section 10.17.  Section
      10.17 of the Loan Agreement is hereby amended by deleting it in its entirety
      and
      replacing it with the following:

     

    “10.17.  Funded
      Debt to Adjusted CAD Ratio.  CHC shall
      maintain a ratio of Funded Debt to Adjusted CAD as follows:

     

    
      	
              Measurement
                Period:

               

            	
              Funded
                Debt to Adjusted CAD Ratio:

            
	
              the
                four Fiscal Quarter period ending on June 30, 2007

               

            	
              equal
                to or less than 4.25 to 1.00

               

            
	
              the
                four Fiscal Quarter period ending on September 30, 2007

               

            	
              equal
                to or less than 5.75 to 1.00

               

            
	
              the
                four Fiscal Quarter period ending on December 31, 2007

               

            	
              equal
                to or less than 4.75 to 1.00

            
	
              the
                four Fiscal Quarter period ending on March 31, 2008

               

            	
              equal
                to or less than 4.25 to 1.00

               

            
	
              each
                four Fiscal Quarter period ending on or after June 30, 2008

               

            	
              equal
                to or less than 4.00 to 1.00”

               

            

    

    

     

    Section
      1.10.    Amendment to Schedule 10.3.1.  Item
      #1 from Schedule 10.3.1 of the Loan Agreement is hereby amended by
      deleting it in its entirety and replacing it with the following:

     

    
      
        
        

      

      
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          4 -

        
          

        

      

      
        
        

      

    

                 
      “1.  CMCC Mortgage Warehouse Line.”

     

    Section
      1.11.   Amendment to Schedule
      8.5.4.  Schedule 8.5.4 of the Loan Agreement is hereby
      amended by adding a new Item #7 in the correct numerical position, which shall
      read as follows:

     

    
      	
               

            	
              “7.  CHC
                may issue, from time to time, additional shares of CHC common stock
                or any
                additional number of 4.4% Convertible CRA Shares, which are convertible
                into additional shares of CHC common
                stock.

            

    

     

    Section
      2.  Equity Buy Backs Prior to September 30,
      2008.  Notwithstanding Section 1.6 of this First Amendment, in the
      event that CHC duly delivers to the Administrative Agent a Compliance
      Certificate with respect to any Fiscal Quarter ending on or after September
      30,
      2007 evidencing full compliance with Sections 10.14 through 10.17 of the Loan
      Agreement as in effect prior to the date hereof, and provided that there is
      not
      then outstanding any Default, then, from and after the delivery of such
      Compliance Certificate, Sections 1.6 through 1.9 of this First Amendment shall
      be of no force or effect and Sections 10.14 through 10.17 of the Loan Agreement,
      as in effect prior to the date hereof, shall be reinstated and shall be fully
      binding upon the Borrowers and Guarantors as if Sections 1.6 through 1.9 of
      this
      First Amendment had not been set forth herein, and Section 10.6 of the Loan
      Agreement shall be further amended by deleting it in its entirety and replacing
      it with the following:

     

    
      	
               

            	
              "10.6 
                Distributions Prior to
                Default.  CHC shall make no
                distributions so as to cause the aggregate Distributions made by
                CHC,
                during the one year period ending on the date of the most recent
                Distribution, to exceed CHC’s CAD for the four consecutive Fiscal Quarter
                period most recently ended; provided, however, that portions
                of the Distributions in an aggregate amount of $51,500,000 in excess
                of
                CAD made by CHC on or before July 3, 2007 in connection with CHC’s equity
                buy back program described in CHC’s filings as of the date hereof may be
                disregarded for each of the four Fiscal Quarter periods ending on
                or
                before September 30, 2008, but only to the extent that such portions
                were
                actually made during such four Fiscal Quarter
                period.”

            

    

     

    Section
      3.   Acknowledgement, Consent or Waiver.  The
      Required Lenders, to the extent applicable, hereby acknowledge or consent to
      the
      following, and waive any Default otherwise arising out of the
      following:

     

    Section
      3.1.   The term “Permitted Businesses” as defined in, and/or
      for purposes of, Section 10.12 of the Loan Agreement shall include CHC’s
      origination and acquisition of corporate loans in the primary and secondary
      markets, both on balance sheet and in fund format, with the anticipated use
      of
      so-called collateralized loan obligation (“CLO”) securitizations and other
      facilities to lever CHC’s portfolio of such corporate loans.

     

    Section
      4.    Commitment Fee.  In consideration
      of the execution and delivery of this Amendment, the Borrowers agree to pay
      a
      commitment fee to the Administrative Agent on the date hereof, for the ratable
      benefit of each Required Lender that agrees to the terms of this

     

    
      
        
        

      

      
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          5 -

        
          

        

      

      
        
        

      

    

    Amendment
      by executing a signature page substantially in the form of Schedule 2
      hereto on or before August 7, 2007, in the amount of 0.075% of each such
      Required Lenders’ Commitment, which shall be deemed fully-earned and
      non-refundable simultaneously with the execution and delivery of this Amendment
      (the “Commitment Fee”).  The Commitment Fee shall be remitted by the
      Agent to the Required Lenders (including itself as a Required Lender) in
      accordance with their respective Commitment Percentages.

     

    Section
      5.   Representations and Warranties.  The
      Borrowers and Guarantors, jointly and severally, represent and warrant to the
      Lenders, the Swingline Lender, the Issuing Bank and the Administrative Agent
      as
      of the date of this First Amendment that, assuming the due execution and
      delivery of this First Amendment: (a) no Default is in existence from and after,
      or will result from, the execution and delivery of this First Amendment, or
      the
      consummation of any transactions contemplated hereby; (b) each of the
      representations and warranties of the Borrowers and the Guarantors in the Loan
      Agreement and the other Loan Documents is true and correct in all material
      respects on the effective date of this First Amendment (except for
      representations and warranties limited as to time or with respect to a specific
      event, which representations and warranties shall continue to be limited to
      such
      time or event); and (c) this First Amendment and the Loan Agreement are legal,
      valid and binding agreements of the Borrowers and the Guarantors and are
      enforceable against them in accordance with their terms.

     

    Section
      6.   Ratification.  Except as hereby amended
      or waived, the Loan Agreement, all other Loan Documents and each provision
      thereof are hereby ratified and confirmed in every respect and shall continue
      in
      full force and effect, and this First Amendment shall not be, and shall not
      be
      deemed to be, a waiver of any Default or of any covenant, term or provision
      of
      the Loan Agreement or the other Loan Documents.  In furtherance of the
      foregoing ratification, by executing this First Amendment in the spaces provided
      below, each of the Guarantors, on a joint and several basis, hereby absolutely
      and unconditionally (a) reaffirms its obligations under the Guaranties, and
      (b)
      absolutely and unconditionally consents to (i) the execution and delivery by
      the
      Borrowers of this First Amendment, (ii) the continued implementation and
      consummation of arrangements and transactions contemplated by the Loan Agreement
      (including, without limitation, as amended or waived hereby) and the other
      Loan
      Documents, and (iii) the performance and observance by each Borrower and each
      Guarantor of all of its respective agreements, covenants, duties and obligations
      under the Loan Agreement (including, without limitation, as amended or waived
      hereby) and the other Loan Documents.

     

    Section
      7.    Conditions Precedent.  The agreements
      set forth in this First Amendment are conditional and this First Amendment
      shall
      not be effective until receipt by the Administrative Agent of a fully-executed
      counterpart original of this First Amendment.

     

    Section
      8.    Counterparts.  This First Amendment
      may be executed and delivered in any number of counterparts with the same effect
      as if the signatures on each counterpart were upon the same
      instrument.

     

    Section
      9.    First Amendment as Credit
      Document.  Each party hereto agrees and acknowledges that this
      First Amendment constitutes a “Loan Document” under and as defined in the Loan
      Agreement.

     

    
      
        
        

      

      
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          6 -

        
          

        

      

      
        
        

      

    

    Section
      10.   GOVERNING LAW.  THIS FIRST AMENDMENT
      SHALL BE DEEMED TO CONSTITUTE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
      NEW
      YORK, INCLUDING ARTICLE 5 OF THE UCC, AND SHALL BE GOVERNED BY AND CONSTRUED
      IN
      ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION
      5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD
      TO ITS CONFLICTS OF LAW RULES).

     

    Section
      11.   Successors and Assigns.  This First
      Amendment shall be binding upon each of the Borrowers, the Guarantors, the
      Lenders, the Swingline Lender, the Issuing Bank, the Administrative Agent,
      the
      Agents and their respective successors and assigns, and shall inure to the
      benefit of each such Person and their permitted successors and
      assigns.

     

    Section
      12.   Headings.  Section headings in this
      First Amendment are included herein for convenience of reference only and shall
      not constitute a part of this First Amendment for any other
      purpose.

     

    Section
      13.   Expenses.  Each Borrower jointly and
      severally agrees to promptly reimburse the Administrative Agent and the
      Arrangers for all expenses, including, without limitation, reasonable fees
      and
      expenses of outside legal counsel, such Person has heretofore or hereafter
      incurred or incurs in connection with the preparation, negotiation and execution
      of this First Amendment and all other instruments, documents and agreements
      executed and delivered in connection with this First Amendment.

     

    Section
      14.   Integration.  This First Amendment
      contains the entire understanding of the parties hereto and with any other
      Lenders and parties to the Loan Agreement with regard to the subject matter
      contained herein.  This First Amendment supersedes all prior or
      contemporaneous negotiations, promises, covenants, agreements and
      representations of every nature whatsoever with respect to the matters referred
      to in this First Amendment, all of which have become merged and finally
      integrated into this First Amendment.  Each of the parties hereto
      understands that in the event of any subsequent litigation, controversy or
      dispute concerning any of the terms, conditions or provisions of this First
      Amendment, no party shall be entitled to offer or introduce into evidence any
      oral promises or oral agreements between the parties relating to the subject
      matter of this First Amendment not included or referred to herein and not
      reflected by a writing included or referred to herein.

     

    Section
      15.    No Course of Dealing.  The
      Administrative Agent, the Agents and the Required Lenders have entered into
      this
      First Amendment on the express understanding with each Borrower and Guarantor
      that in entering into this First Amendment the Administrative Agent, the Agents
      and the Lenders are not establishing any course of dealing with the Borrowers
      or
      the Guarantors.  The Administrative Agent’s, the Agents’ and the
      Lenders’ rights to require strict performance with all of the terms and
      conditions of the Loan Agreement and the other Loan Documents shall not in
      any
      way be impaired by the execution of this First Amendment.  None of the
      Administrative Agent, the Agents or the Lenders shall be  obligated in
      any manner to execute any further amendments or waivers and, if such waivers
      amendments are requested in the future, assuming the terms and conditions
      thereof are satisfactory to them, the Administrative Agent, the Agents and
      the
      Lenders may require the payment of fees in connection therewith.

     

    
      
        
        

      

      
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          7 -

        
          

        

      

      
        
        

      

    

    Each
      of
      the Borrowers and the Guarantors agrees that none of the ratifications and
      reaffirmations set forth herein, nor the Administrative Agent’s, the Agents’ nor
      any Lender’s solicitation of such ratifications and reaffirmations, constitutes
      a course of dealing giving rise to any obligation or condition requiring a
      similar or any other ratification or reaffirmation from the Borrowers or the
      Guarantors with respect to any subsequent modification, consent or waiver with
      respect to the Loan Agreement or any other Loan Document.

     

    Section
      16.   Jury Trial Waiver.  THE BORROWERS,
      GUARANTORS, ADMINISTRATIVE AGENT, AGENTS AND LENDERS BY ACCEPTANCE OF THIS
      FIRST
      AMENDMENT MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE
      RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING
      OUT
      OF, UNDER OR IN CONNECTION WITH THIS FIRST AMENDMENT, THE LOAN AGREEMENT, OR
      ANY
      OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR
      ANY
      COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN)
      OR
      ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF ANY AGENT OR ANY LENDER RELATING
      TO
      THE ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, ARISING
      OUT
      OF TORT, CONTRACT OR ANY OTHER LAW, AND AGREE THAT NO PARTY WILL SEEK TO
      CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT
      BE OR HAS NOT BEEN WAIVED.

     

    

     

    [Remainder
      of page intentionally left blank; signature pages
      follow]

     

    
      
        
        

      

      
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          8 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this First Amendment to be duly
      executed by their duly authorized officers or representatives, all as of the
      date first above written.

     

    
      	
               BORROWERS:            
                

            	
              CENTERLINE
                HOLDING COMPANY

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Robert L.
              Levy	 
	 	 	Name: 
Robert
              L.
              Levy	 
	 	 	Title: 
Chief
              Financial
              Officer 	 
	 	 	 	 

    

    

      	
               

            	
              
                CENTERLINE
                  CAPITAL GROUP INC.

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Robert L.
              Levy	 
	 	 	Name: 
Robert
              L.
              Levy	 
	 	 	Title: 
Vice
              President	 
	 	 	 	 

       

    

     

    

     

    (Signatures
      continued on next page)

     

    
      
        
          S-Borrowers

          Signature
            page to First Amendment to Amended and Restated Revolving Credit and
            Term Loan
            Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              GUARANTORS:       
                 

            	
              
                CENTERLINE
                  CAPITAL COMPANY LLC

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Robert L.
              Levy	 
	 	 	Name: 
Robert
              L.
              Levy	 
	 	 	Title: 
              Secretary 	 
	 	 	 	 

    

     

    
      	
               

            	
              
                CENTERLINE
                  AFFORDABLE HOUSING ADVISORS LLC

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Marc D.
              Schnitzer	 
	 	 	Name: 
Marc
              D.
              Schnitzer	 
	 	 	Title: 
Chief
              Executive
              Officer	 
	 	 	 

    

     

    
      	
               

            	
              
                CENTERLINE/AC
                  INVESTORS LLC

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Marc D.
              Schnitzer	 
	 	 	Name: 
Marc
              D.
              Schnitzer	 
	 	 	Title:  Chief
              Executive
              Officer	 
	 	 	 

    

     

    
      	
               

            	
              
                CENTERLINE
                  HOLDING TRUST

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Marc D.
              Schnitzer	 
	 	 	Name: Marc
              D.
              Schnitzer	 
	 	 	Title: 
Chief
              Executive
              Officer	 
	 	 	 

       

      
        	
                 

              	
                
                  CENTERLINE
                    HOLDING TRUST II

                

              	 
	 
	 	 	 
	
                 

              	
                By:
                  

              	/s/
                Marc D.
                Schnitzer	 
	 	 	Name: 
Marc
                D.
                Schnitzer	 
	 	 	Title: 
Managing
                Trustee	 
	 	 	 

      

    

     

    
      	
               

            	
              
                CENTERLINE
                  INVESTORS I LLC

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Marc D.
              Schnitzer	 
	 	 	Name: 
Marc
              D.
              Schnitzer	 
	 	 	Title: 	 
	 	 	 

    

     

    (Signatures
      continued on next page)

     

    
      
        
          S-Guarantors

          Signature
            page to First Amendment to Amended and Restated Revolving Credit and
            Term Loan
            Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              GUARANTORS
                (CONT.):       
                 

            	
              
                CENTERLINE
                  REIT INC.

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              James L.
              Duggins	 
	 	 	Name: 
James
              L.
              Duggins	 
	 	 	Title: 
Chief
              Executive
              Officer 	 
	 	 	 	 

       

      
        	
                 

              	
                
                  CENTERLINE
                    SERVICING INC.

                

              	 
	 
	 	 	 
	
                 

              	
                By:
                  

              	/s/
                Paul
                Smith	 
	 	 	Name: 
Paul
                Smith 	 
	 	 	Title: 
President
&
                COO	 

      

    

     

    
      	
               

            	
              
                CENTERLINE
                  FINANCE CORPORATION

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	/s/
              Paul
              Smith 	 
	 	 	Name: Paul
              Smith 	 
	 	 	Title: 
President
&
              COO	 

    

     

    (Signatures
      continued on next page)

     

    
      
        
          S-Guarantors

          Signature
            page to First Amendment to Amended and Restated Revolving Credit and
            Term Loan
            Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	ADMINISTRATIVE
              AGENT, SWINGLINE LENDER and ISSUING BANK:	 
	
                      

            	
              
                BANK
                  OF AMERICA, N.A.

              

            	 
	 
	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

    

     

    

     

    

     

    
      
        
          S-Administrative
            Agent/Swingline Lender/Issuing Bank

          Signature
            page to First Amendment to Amended and Restated Revolving Credit and
            Term Loan
            Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Schedule
      1

    

    Guarantors

     

    Centerline
      Capital Company LLC (f/k/a CharterMac Capital Company, LLC)

    Centerline
      Affordable Housing Advisors LLC (f/k/a CharterMac Capital LLC)

    Centerline/AC
      Investors LLC (f/k/a CM ARCap Investors LLC)

    Centerline
      Holding Trust (f/k/a CM Holding Trust)

    Centerline
      Holding Trust II (f/k/a CM Holding Trust II)

    Centerline
      Investors I LLC (f/k/a ARCap Investors, L.L.C.)

    Centerline
      REIT Inc. (f/k/a ARCap REIT, Inc.)

    Centerline
      Servicing Inc. (f/k/a ARCap Servicing, Inc.)

    Centerline
      Finance Corporation (f/k/a ARCap Finance Corporation)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      2

    

    Form
      of Signature Page for Lenders included in Required Lenders for purposes of
      approving FIRST AMENDMENT  TO AMENDED AND RESTATED REVOLVING CREDIT
      AND TERM LOAN AGREEMENT:

    

    

    The
      undersigned hereby evidences its agreement to the terms of the FIRST AMENDMENT
      TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT, and the
      consummation of the transactions contemplated thereby,

    

    
      	 	
              [Name
                of Lender]

            	 
	 	 	 	 
	
              Date

            	
              By:
                

            	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

    

    

    Representing
      _____% of all Term Loans outstanding, all Revolving Exposure, unused Revolving
      Loan Commitments and unused Term Loan Commitments

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      3

    

    Entities  Renamed
      as of February 9, 2007

                                                            

     

    
      
        	Name 	New
                Name
	 	 
	
                CharterMac

              	
                Centerline
                  Holding Company

              
	
                Charter
                  Mac Corporation

              	
                Centerline
                  Capital Group Inc.

              
	
                CharterMac
                  Capital Company, LLC

              	
                Centerline
                  Capital Company LLC

              
	
                CharterMac
                  Capital LLC

              	
                Centerline
                  Affordable Housing Advisors LLC

              
	
                CM
                  ARCap Investors LLC

              	
                Centerline/AC
                  Investors LLC

              
	
                CM
                  Holding Trust

              	
                Centerline
                  Holding Trust

              
	
                CM
                  Holding Trust II

              	
                Centerline
                  Holding Trust II

              
	
                ARCap
                  Investors, L.L.C.

              	
                Centerline
                  Investors I LLC

              
	
                ARCap
                  REIT, Inc.

              	
                Centerline
                  REIT Inc.

              
	
                ARCap
                  Servicing, Inc.

              	
                Centerline
                  Servicing Inc

              
	
                ARCap
                  Finance Corporation

              	
                Centerline
                  Finance Corporation

              
	
                CharterMac
                  Mortgage Capital Corporation

              	
                Centerline
                  Mortgage Capital Inc.

              
	
                CharterMac
                  Residual Holder LLC

              	
                Centerline
                  Residual Holder LLC

              
	
                Centerbrook
                  Financial LLC

              	
                Centerline
                  Financial LLC

              
	
                Charter
                  Mac Equity Issuer Trust

              	
                Centerline
                  Equity Issuer Trust

              
	
                ARCap
                  Servicing, Inc.

              	
                Centerline
                  Servicing Inc.

              
	
                ARCap
                  Finance Corporation

              	
                Centerline
                  Finance Corporationexh4-6_formwarrant.htm

     

    
      

      

    

     

     

     

     

     

     

     

     

     

     

     

    EXHIBIT
      4.6

     

    FORM
      OF REPRESENTATIVE'S PURCHASE WARRANT

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    THIS
      WARRANT HAS NOT BEEN REGISTERED

    UNDER
      THE
      SECURITIES ACT OF 1933

    AND
      IS
      NOT TRANSFERABLE

    EXCEPT
      AS
      PROVIDED HEREIN

    

    Healthy
      Fast Food, Inc.

    

    PURCHASE
      WARRANT

    

    Issued
      to:

    

    PAULSON
      INVESTMENT COMPANY, INC.

    

    Exercisable
      to Purchase

    

    250,000
      Units

    

    

    of

    

    

    HEALTHY
      FAST FOOD, INC.

    

    

    

    

    

    

    

    

    

    

    

    

    Void
      after _________, 2012

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    This
      is
      to certify that, for value received and subject to the terms and conditions
      set
      forth below, the Warrantholder (hereinafter defined) is entitled to purchase,
      and the Company promises and agrees to sell and issue to the Warrantholder,
      at
      any time on or after ________, 2008 and on or before _______, 2012, up to
      250,000 Units (hereinafter defined) at the Exercise Price (hereinafter
      defined).

     

    This
      Warrant Certificate is issued subject to the following terms and
      conditions:

     

    1.  Definitions
      of Certain Terms.  Except as may be otherwise clearly required by
      the context, the following terms have the following meanings:

     

    (a)  “Act”
      means the Securities Act of 1933, as amended.

     

    (b)  “Cashless
      Exercise” means an exercise of Warrants in which, in lieu of payment of the
      Exercise Price, the Holder elects to receive a lesser number of Securities
      such
      that the value of the Securities that such Holder would otherwise have been
      entitled to receive but has agreed not to receive, as determined by the closing
      price of such Securities on the date of exercise or, if such date is not a
      trading day, on the next prior trading day, is equal to the Exercise Price
      with
      respect to such exercise.  A Holder may only elect a Cashless Exercise
      if Securities issuable by the Company on such exercise are publicly traded
      securities.

     

    (c)   “Class
      A Warrant” means a warrant defined as a Class A Warrant in the Warrant
      Agreement.

     

    (d)  “Class
      B
      Warrant” means a warrant defined as a Class B Warrant in the Warrant
      Agreement.

     

    (e)  “Closing
      Date” means the date on which the Offering is closed.

     

    (f)  “Commission”
      means the Securities and Exchange Commission.

     

    (g)  “Common
      Stock” means the common stock, par value $0.001, of the Company.

     

    (h)  “Company”
      means Healthy Fast Food, Inc., a Nevada corporation.

     

    (i)  “Company’s
      Expenses” means any and all expenses payable by the Company or the Warrantholder
      in connection with an offering described in Section 6 hereof, except
      Warrantholder’s Expenses.

     

    (j)  “Corporate
      Financing Rule”  means Rule 2710 of the rules of the Financial
      Industry Regulatory Authority.

     

    (k)  “Effective
      Date” means the date on which the Registration Statement is declared effective
      by the Commission.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (l)  “Exercise
      Price” means the price at which the Warrantholder may purchase one Unit upon
      exercise of Warrants as determined from time to time pursuant to the provisions
      hereof.  The initial Exercise Price is $_____ per Unit.

     

    (m)  “Offering”
      means the public offering of Units made pursuant to the Registration
      Statement.

     

    (n)  “Participating
      Underwriter” means any underwriter participating in the sale of the Securities
      pursuant to a registration under Section 6 of this Warrant
      Certificate.

     

    (o)  “Registration
      Statement” means the Company’s registration statement (File No. 333 - _________)
      as amended on the Closing Date.

     

    (p)  “Rules
      and Regulations” means the rules and regulations of the Commission adopted under
      the Act.

     

    (q)  “Securities”
      means the securities obtained or obtainable upon exercise of the Warrant or
      securities obtained or obtainable upon exercise, exchange, or conversion of
      such
      securities.

     

    (r)  “Unit”
      means one share of Common Stock and one Class A Warrant and two Class B
      Warrants.

     

    (s)  “Unit
      Warrant” means either a Class A Warrant or a Class B Warrant.

     

    (t)  “Warrant
      Agreement” means that certain Warrant Agreement, dated as of ________, 2007, by
      and between the Company and Computershare Trust Company relating to the issuance
      of Unit Warrants.

     

    (u)  “Warrant
      Certificate” means a certificate evidencing the Warrant.

     

    (v)  “Warrantholder”
      means a record holder of the Warrant or Securities.  The initial
      Warrantholder is Paulson Investment Company, Inc.

     

    (w)  “Warrantholder’s
      Expenses” means the sum of (i) the aggregate amount of cash payments made to an
      underwriter, underwriting syndicate, or agent in connection with an offering
      described in Section 6 hereof multiplied by a fraction the numerator of which
      is
      the aggregate sales price of the Securities sold by such underwriter,
      underwriting syndicate, or agent in such offering and the denominator of which
      is the aggregate sales price of all of the securities sold by such underwriter,
      underwriting syndicate, or agent in such offering and (ii) all out-of-pocket
      expenses of the Warrantholder, except for the fees and disbursements of one
      firm
      retained as legal counsel for the Warrantholder that will be paid by the
      Company.

     

    (x)  “Warrant”
      means the warrant evidenced by this certificate, any similar certificate issued
      in connection with the Offering, or any certificate obtained upon transfer
      or
      partial exercise of the Warrant evidenced by any such certificate.

     

    2.  Exercise
      of Warrant.  All or any part of the Warrant represented by this
      Warrant Certificate may be exercised commencing on the first anniversary of
      the
      Effective Date and

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    ending
      at
      5 p.m. Pacific Time on the fifth anniversary of the Effective Date (the
“Expiration Date”) by surrendering this Warrant Certificate, together with
      appropriate instructions, duly executed by the Warrantholder or by its duly
      authorized attorney, at the office of the Company, 1075 American Pacific, Suite
      C, Henderson, Nevada 89074; or at such other office or agency as the Company
      may
      designate.  The date on which such instructions are received by the
      Company shall be the date of exercise.  If the Holder has elected a
      Cashless Exercise, such instructions shall so state.  Subject to the
      provisions below, upon receipt of notice of exercise, the Company shall
      immediately instruct its transfer agent to prepare certificates for the
      Securities to be received by the Warrantholder upon completion of the Warrant
      exercise.  When such certificates are prepared, the Company shall
      notify the Warrantholder and deliver such certificates to the Warrantholder
      or
      as per the Warrantholder’s instructions immediately upon payment in full by the
      Warrantholder, in lawful money of the United States, of the Exercise Price
      payable with respect to the Securities being purchased, if any.  If
      the Warrantholder shall represent and warrant that all applicable registration
      and prospectus delivery requirements for their sale have been complied with
      upon
      sale of the Securities received upon exercise of the Warrant, such certificates
      shall not bear a legend with respect to the Act.

     

    If
      fewer
      than all the Securities purchasable under the Warrant are purchased, the Company
      will, upon such partial exercise, execute and deliver to the Warrantholder
      a new
      Warrant Certificate (dated the date hereof), in form and tenor similar to this
      Warrant Certificate, evidencing that portion of the Warrant not
      exercised.  The Securities to be obtained on exercise of the Warrant
      will be deemed to have been issued, and any person exercising the Warrant will
      be deemed to have become a holder of record of those Securities, as of the
      date
      of the payment of the Exercise Price.

     

    Notwithstanding
      the foregoing, in no event shall such Securities be issued, and the Company
      is
      authorized to refuse to honor the exercise of the Warrant, if such exercise
      would result in the opinion of the Company’s Board of Directors, upon advice of
      counsel, in the violation of any law; and provided further that, if the Warrant
      is exercisable solely for Securities listed on a securities exchange or for
      which there are at least three independent market makers, the Company may elect
      to redeem the Warrant submitted for exercise for a price equal to the difference
      between the aggregate low asked price, or closing price, as the case may be,
      of
      the Securities for which the Warrant is exercisable on the date of exercise
      and
      the Exercise Price; in the event of such redemption, the Company will pay to
      the
      holder of the Warrant the above-described redemption price in cash within 10
      business days after receipt of notice of exercise.

     

    3.  Adjustments
      in Certain Events.  The number, class, and price of Securities for
      which this Warrant Certificate may be exercised are subject to adjustment from
      time to time upon the happening of certain events as follows:

     

    (a)  If
      the
      outstanding shares of the Company’s Common Stock are divided into a greater
      number of shares or a dividend in stock is paid on the Common Stock, the number
      of shares of Common Stock for which the Warrant is then exercisable will be
      proportionately increased and the Exercise Price will be proportionately
      reduced; and, conversely, if the outstanding shares of Common Stock are combined
      into a smaller number of shares of Common Stock, the number of shares of Common
      Stock for which the Warrant is then exercisable will be proportionately reduced
      and the Exercise Price will be proportionately increased. The increases and
      reductions provided for in this Section 3(a) will be made with the intent and,
      as nearly as

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    practicable,
      the effect that neither the percentage of the total equity of the Company
      obtainable on exercise of the Warrants nor the price payable for such percentage
      upon such exercise will be affected by any event described in this Section
      3(a).

     

    (b)  In
      case
      of any change in the Common Stock through merger, consolidation,
      reclassification, reorganization, partial or complete liquidation, purchase
      of
      substantially all the assets of the Company, or other change in the capital
      structure of the Company, then, as a condition of such change, lawful and
      adequate provision will be made so that the holder of this Warrant Certificate
      will have the right thereafter to receive upon the exercise of the Warrant
      the
      kind and amount of shares of stock or other securities or property to which
      he
      would have been entitled if, immediately prior to such event, he had held the
      number of shares of Common Stock obtainable upon the exercise of the
      Warrant.  In any such case, appropriate adjustment will be made in the
      application of the provisions set forth herein with respect to the rights and
      interest thereafter of the Warrantholder, to the end that the provisions set
      forth herein will thereafter be applicable, as nearly as reasonably may be,
      in
      relation to any shares of stock or other property thereafter deliverable upon
      the exercise of the Warrant.  The Company will not permit any change
      in its capital structure to occur unless the issuer of the shares of stock
      or
      other securities to be received by the holder of this Warrant Certificate,
      if
      not the Company, agrees to be bound by and comply with the provisions of this
      Warrant Certificate.

     

    (c)  When
      any
      adjustment is required to be made in the number of shares of Common Stock,
      other
      securities, or the property purchasable upon exercise of the Warrant, the
      Company will promptly determine the new number of such shares or other
      securities or property purchasable upon exercise of the Warrant and (i) prepare
      and retain on file a statement describing in reasonable detail the method used
      in arriving at the new number of such shares or other securities or property
      purchasable upon exercise of the Warrant and (ii) cause a copy of such statement
      to be mailed to the Warrantholder within thirty (30) days after the date of
      the
      event giving rise to the adjustment.

     

    (d)  No
      fractional shares of Common Stock or other securities will be issued in
      connection with the exercise of the Warrant, but the Company will pay, in lieu
      of fractional shares, a cash payment therefor on the basis of the mean between
      the bid and asked prices of the Common Stock in the over-the-counter market
      or
      the last sale price of the Common Stock on the principal exchange or other
      trading facility on which the Common Stock is traded on the day immediately
      prior to exercise.

     

    (e)  If
      securities of the Company or securities of any subsidiary of the Company are
      distributed pro rata to holders of Common Stock, such number of securities
      will
      be distributed to the Warrantholder or its assignee upon exercise of its rights
      hereunder as such Warrantholder or assignee would have been entitled to if
      this
      Warrant Certificate had been exercised prior to the record date for such
      distribution.  The provisions with respect to adjustment of the Common
      Stock provided in this Section 3 will also apply to the securities to which
      the
      Warrantholder or its assignee is entitled under this Section 3(e).

     

    (f)  Notwithstanding
      anything herein to the contrary, there will be no adjustment made hereunder
      on
      account of the sale by the Company of the Common Stock or other Securities
      purchasable upon exercise of the Warrant.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (g)  If,
      immediately prior to any exercise of Warrants, there shall be outstanding no
      securities of a class or series that, but for the provisions of this Section
      3,
      would be issuable upon such exercise (the “Formerly Issuable
      Securities”), then, upon such exercise, and in lieu of the Formerly Issuable
      Securities, the Company shall issue that number and kind of other securities
      or
      property for which the Formerly Issuable Securities were most recently
      exercisable or into which the Formerly Issuable Securities were most recently
      convertible, as the case may be.

     

    4.  Reservation
      of Securities.  The Company agrees that the number of shares of
      Common Stock or other Securities sufficient to provide for the exercise of
      the
      Warrant upon the basis set forth above will at all times during the term of
      the
      Warrant be reserved for exercise.

     

    5.  Validity
      of Securities.  All Securities delivered upon the exercise of the
      Warrant will be duly and validly issued in accordance with their terms, and
      the
      Company will pay all documentary and transfer taxes, if any, in respect of
      the
      original issuance thereof upon exercise of the Warrant.

     

    6.  Registration
      of Securities Issuable on Exercise of Warrant Certificate.

     

    (a)  The
      Company will register the Securities with the Commission pursuant to the Act
      so
      as to allow the unrestricted sale of the Securities to the public from time
      to
      time commencing on the first anniversary of the Effective Date and ending at
      5:00 p.m. Pacific Time on the fifth anniversary of the Effective Date (the
      “Registration Period”).  The Company will also file such
      applications and other documents necessary to permit the sale of the Securities
      to the public during the Registration Period in those states in which the Units
      were qualified for sale in the Offering or such other states as the Company
      and
      the Warrantholder agree to.  In order to comply with the provisions of
      this Section 6(a), the Company is not required to file more than one
      registration statement.  No registration right of any kind,
“piggyback” or otherwise, will last longer than five years from the Effective
      Date.

     

    (b)  The
      Company will pay all of the Company’s Expenses and each Warrantholder will pay
      its pro rata share of the Warrantholder’s Expenses relating to the registration,
      offer, and sale of the Securities.

     

    (c)  Except
      as
      specifically provided herein, the manner and conduct of the registration,
      including the contents of the registration, will be entirely in the control
      and
      at the discretion of the Company.  The Company will file such
      post-effective amendments and supplements as may be necessary to maintain the
      currency of the registration statement during the period of its
      use.  In addition, if the Warrantholder participating in the
      registration is advised by counsel that the registration statement, in their
      opinion, is deficient in any material respect, the Company will use its best
      efforts to cause the registration statement to be amended to eliminate the
      concerns raised.

     

    (d)  The
      Company will furnish to the Warrantholder the number of copies of a prospectus,
      including a preliminary prospectus, in conformity with the requirements of
      the
      Act, and such other documents as it may reasonably request in order to
      facilitate the disposition of Securities owned by it.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (e)  The
      Company will, at the request of Warrantholders holding at least 50 percent
      of
      the then outstanding Warrants, (i) furnish an opinion of the counsel
      representing the Company for the purposes of the registration pursuant to this
      Section 6, addressed to the Warrantholders and any Participating Underwriter,
      (ii) furnish an appropriate letter from the independent public accountants
      of
      the Company, addressed to the Warrantholders and any Participating Underwriter,
      and (iii) make representations and warranties to the Warrantholders and any
      Participating Underwriter.  A request pursuant to this subsection (e)
      may be made on three occasions.  The documents required to be
      delivered pursuant to this subsection (e) will be dated within ten days of
      the
      request and will be, in form and substance, equivalent to similar documents
      furnished to the underwriters in connection with the Offering, with such changes
      as may be appropriate in light of changed circumstances.

     

    7.  Indemnification
      in Connection with Registration.

     

    (a)  If
      any of
      the Securities are registered, the Company will indemnify and hold harmless
      each
      selling Warrantholder, any person who controls any selling Warrantholder within
      the meaning of the Act, and any Participating Underwriter against any losses,
      claims, damages, or liabilities, joint or several, to which any Warrantholder,
      controlling person, or Participating Underwriter may be subject under the Act
      or
      otherwise; and it will reimburse each Warrantholder, each controlling person,
      and each Participating Underwriter for any legal or other expenses reasonably
      incurred by the Warrantholder, controlling person, or Participating Underwriter
      in connection with investigating or defending any such loss, claim, damage,
      liability, or action, insofar as such losses, claims, damages, or liabilities,
      joint or several (or actions in respect thereof), arise out of or are based
      upon
      any untrue statement or alleged untrue statement of any material fact contained,
      on the effective date thereof, in any such registration statement or any
      preliminary prospectus or final prospectus, or any amendment or supplement
      thereto, or arise out of or are based upon the omission or alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading; provided, however, that the Company
      will
      not be liable in any case to the extent that any loss, claim, damage, or
      liability arises out of or is based upon any untrue statement or alleged untrue
      statement or omission or alleged omission made in any registration statement,
      preliminary prospectus, final prospectus, or any amendment or supplement
      thereto, in reliance upon and in conformity with written information furnished
      by a Warrantholder for use in the preparation thereof.  The indemnity
      agreement contained in this subparagraph (a) will not apply to amounts paid
      to
      any claimant in settlement of any suit or claim unless such payment is first
      approved by the Company, such approval not to be unreasonably
      withheld.

     

    (b)  Each
      selling Warrantholder, as a condition of the Company’s registration obligation,
      will indemnify and hold harmless the Company, each of its directors, each of
      its
      officers who have signed any registration statement or other filing or any
      amendment or supplement thereto, and any person who controls the Company within
      the meaning of the Act, against any losses, claims, damages, or liabilities
      to
      which the Company or any such director, officer, or controlling person may
      become subject under the Act or otherwise, and will reimburse any legal or
      other
      expenses reasonably incurred by the Company or any such director, officer,
      or
      controlling person in connection with investigating or defending any such loss,
      claim, damage, liability, or action, insofar as such losses, claims, damages,
      or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      untrue or alleged untrue statement of any material fact

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    contained
      in said registration statement, any preliminary or final prospectus, or other
      filing, or any amendment or supplement thereto, or arise out of or are based
      upon the omission or the alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading, but only to the extent that such untrue statement or alleged untrue
      statement or omission or alleged omission was made in said registration
      statement, preliminary or final prospectus, or other filing, or amendment or
      supplement, in reliance upon and in conformity with written information
      furnished by such Warrantholder for use in the preparation thereof; provided,
      however, that the indemnity agreement contained in this subparagraph (b) will
      not apply to amounts paid to any claimant in settlement of any suit or claim
      unless such payment is first approved by the Warrantholder, such approval not
      to
      be unreasonably withheld.

     

    (c)  Promptly
      after receipt by an indemnified party under subparagraphs (a) or (b) above
      of
      notice of the commencement of any action, such indemnified party will, if a
      claim in respect thereof is to be made against an indemnifying party, notify
      the
      indemnifying party of the commencement thereof; but the omission to notify
      the
      indemnifying party will not relieve it from any liability that it may have
      to
      any indemnified party otherwise than under subparagraphs (a) and
      (b).

     

    (d)  If
      any
      such action is brought against any indemnified party and it notifies an
      indemnifying party of the commencement thereof, the indemnifying party will
      be
      entitled to participate in, and, to the extent that it may wish, jointly with
      any other indemnifying party similarly notified, to assume the defense thereof,
      with counsel satisfactory to such indemnified party; and after notice from
      the
      indemnifying party to such indemnified party of its election to assume the
      defense thereof, the indemnifying party will not be liable to such indemnified
      party for any legal or other expenses subsequently incurred by such indemnified
      party in connection with the defense thereof other than reasonable costs of
      investigation.

     

    8.  Restrictions
      on Transfer.  This Warrant Certificate and the Warrant may not be
      sold, transferred, assigned, pledged, or hypothecated, or be the subject of
      any
      hedging, short sale, derivative, put, or call transaction that would result
      in
      the effective economic disposition of the securities by any person for a period
      of 180 days immediately following the Effective Date, except as permitted in
      subparagraph (g)(2) of the Corporate Financing Rule.  The Warrant may
      be divided or combined, upon request to the Company by the Warrantholder, into
      a
      certificate or certificates evidencing the same aggregate number of
      Warrants.

     

    9.  No
      Rights as a Shareholder.  Except as otherwise provided herein, the
      Warrantholder will not, by virtue of ownership of the Warrant, be entitled
      to
      any rights of a shareholder of the Company but will, upon written request to
      the
      Company, be entitled to receive such quarterly or annual reports as the Company
      distributes to its shareholders.

     

    10.  Notice.  Any
      notices required or permitted to be given hereunder will be in writing and
      may
      be served personally or by mail; and if served will be addressed as
      follows:

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    If
      to the
      Company:

     

                                 
      Healthy Fast Food, Inc.

    1075
      American Pacific, Suite C

    Henderson,
      NV  89074

    Attention:  President

    

    If
      to the Warrantholder:

    

    at
      the address furnished

    by
      the Warrantholder to
      the

    Company
      for the purpose of

    notice.

    

    Any
      notice so given by mail will be
      deemed effectively given 48 hours after mailing when deposited in the United
      States mail, registered or certified mail, return receipt requested, postage
      prepaid and addressed as specified above.  Any party may by written
      notice to the other specify a different address for notice
      purposes.

    

    11.  Applicable
      Law.  This Warrant Certificate will be governed by and construed
      in accordance with the laws of the State of Oregon, without reference to
      conflict of laws principles thereunder.  All disputes relating to this
      Warrant Certificate shall be tried before the courts of Oregon located in
      Multnomah County, Oregon to the exclusion of all other courts that might have
      jurisdiction.

     

    Dated
      as of ____________,
      2007

    

    HEALTHY
      FAST FOOD, INC.

    

    

    By:
      ______________________________________

    Name:   Henry
      E. Cartwright

    Title:     President

    

    

    Agreed
      and Accepted as of __________, 2007

     

    PAULSON
      INVESTMENT COMPANY, INC.

    

    

    By:
      ______________________________________

    Name:

    Title:

    

    #
      4708457_v1

     

    8

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