Document:

ex4-1.htm

     

    
EXHIBIT
4.1

    

    Centerline
Holding Company

    2007
Incentive Share Plan

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    CENTERLINE
HOLDING COMPANY 2007 INCENTIVE SHARE PLAN

    

    

    

    

    

    

    This
document describes Centerline Holding Company’s 2007 Incentive Share
Plan,

    under
which shares of beneficial interest may be issued.

    

    

    

    
      
        

      

    

     

    THIS
DOCUMENT CONCERNS SECURITIES THAT HAVE

    BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933.

    

    

    

    

    

      
 

    

    
 

    The
date of this document is April 10, 2007

    

    

    

    

    

    

    

    

    
      
        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              1.  

            	
              Establishment,
      Purpose, and Types of Awards

            

    

     

    Centerline
Holding Company (the “Company”) hereby
establishes this equity-based incentive compensation plan, to be known as the
“2007 Incentive Share Plan” (the “2007 Plan”), as the
sole plan under which the Company will make future equity-based and incentive
awards primarily to employees and executives of the Company or any of its
Affiliates, including, but not limited to, the employees and executives of its
manager, Centerline Affordable Housing Advisors LLC, and any successor (the
“Manager”), and
Trustees of the Company.  The 2007 Plan permits the granting of the
following types of awards (“Awards”), according
to the Sections of the 2007 Plan listed here:

     

    Section
6                      Options

    Section
7                      Share
Appreciation Rights

    Section
8                      Restricted
Shares, Restricted Share Units, and Unrestricted Shares

    Section
9                      Deferred
Share Units

    Section
10                      Performance
Awards

     

    The 2007
Plan is not intended to affect and shall not affect any share options,
equity-based compensation, or other benefits that the Company or its Affiliates
may have provided, or may separately provide in the future pursuant to any
agreement, plan, or program that is independent of this 2007 Plan.

     

    
      	
              2.  

            	
              Defined
      Terms

            

    

     

    Terms in
the 2007 Plan that begin with an initial capital letter have the defined meaning
set forth in Appendix
A, unless defined elsewhere in this 2007 Plan or the context of their use
clearly indicates a different meaning.

    

    
      	
              3.  

            	
              Shares Subject to the
      2007 Plan

            

    

     

    Subject to the provisions of Section 13
of this 2007 Plan, the maximum number of Shares that the Company may issue
pursuant to all Awards granted under this 2007 Plan (determined at the time each
Award is granted) is the lesser of:

     

    (i) ten (10%)
percent of the number of Total Shares (defined below) outstanding as of the
December 31 preceding any issuance of Shares pursuant to an Award;
and

     

    (ii) the limit
prescribed by the Listing Standards, Policies and Requirements of the New York
Stock Exchange, as amended from time to time, or any other applicable policies
and requirements of any other national securities exchange or national quotation
system on which the Shares are then listed.

     

    The term “Total Shares” shall
mean (i) Shares and (ii) other securities, issued by the Company or any
Affiliate, that have similar economic attributes as Common Shares regardless of
how denominated, including, without limitation, the Special Common Units,
Special Membership Units, and Special Common Interests (as defined in the
operating agreement of each of Centerline Capital Company LLC, CM Investor LLC
and Centerline Investors I LLC respectively).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The 2007 Plan will serve as the sole
source for future equity-based awards to Eligible Persons, including, but not
limited to, such awards as may be made pursuant to long-term incentive plans,
outperformance plans, and annual or other bonus plans as may be established from
time to time by the Company.  For all Awards, the Shares issued
pursuant to the 2007 Plan may be authorized but unissued Shares, Shares that the
Company has reacquired or otherwise holds in treasury, or Shares held in a
trust; provided that Common Shares shall be awarded unless an Award Agreement
expressly provides otherwise. If the 2007 Plan receives shareholder approval in
accordance with Section 20 below, then no future awards of any kind will occur
under any other Company-sponsored share award or grant plan, including but not
limited to the Company’s Incentive Share Plan, as adopted by the Board on
September 30, 1997.

     

    Shares
that are subject to an Award that for any reason expires, is forfeited, is
cancelled, or becomes unexercisable, and Shares that are for any other reason
not paid or delivered under this 2007 Plan or the 1997 Plan shall again, except
to the extent prohibited by Applicable Law, be available for subsequent Awards
under the 2007 Plan.  In addition, the Committee may make future
Awards with respect to Shares that the Company retains from otherwise delivering
pursuant to an Award under this 2007 Plan or the 1997 Plan either (i) as payment
of the exercise price of an Award, or (ii) in order to satisfy the withholding
or employment taxes due upon grant, exercise, vesting or distribution of an
Award.

     

    
      	
              4.  

            	
              Administration

            

    

     

    (a) General.  The
Committee shall administer the 2007 Plan in accordance with its terms, provided
that the Board may act in lieu of the Committee on any matter.  The
Committee shall hold meetings at such times and places as it may determine and
shall make such rules and regulations for the conduct of its business as it
deems advisable.  In the absence of a duly appointed Committee, the
Board shall function as the Committee for all purposes of the 2007
Plan.

    

    (b) Committee
Composition.  The Board shall appoint the members of the
Committee. If and to the extent permitted by Applicable Law, the Committee may
authorize one or more Reporting Persons (or other officers) to make Awards to
Eligible Persons who are not Reporting Persons (or other officers whom the
Committee has specifically authorized to make Awards).  The Board may
at any time appoint additional members to the Committee, remove and replace
members of the Committee with or without Cause, and fill vacancies on the
Committee however caused.

     

    (c) Powers of the
Committee.  Subject to the provisions of the 2007 Plan and to
Section 15(a) in particular, the Committee shall have the authority, in its sole
discretion:

     

    (i) to
determine Eligible Persons to whom Awards shall be granted from time to time and
the number of Shares, units, or dollars to be covered by each
Award;

     

    (ii) to
determine, from time to time, the Fair Market Value of Shares;

     

    (iii) to
determine, and to set forth in Award Agreements, the terms and conditions of all
Awards, including any applicable exercise or purchase price, the installments
and conditions under which an Award shall become vested (which may be based on
performance), terminated, expired, cancelled, or replaced, and the circumstances
for vesting acceleration or waiver of forfeiture restrictions, and other
restrictions and limitations;

     

     

    
      
        
        

      

      
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    (iv) to
approve the forms of Award Agreements and all other documents, notices and
certificates in connection therewith which need not be identical either as to
type of Award or among Participants;

     

    (v) to
construe and interpret the terms of the 2007 Plan and any Award Agreement, to
determine the meaning of their terms, and to prescribe, amend, and rescind rules
and procedures relating to the 2007 Plan and its administration;

     

    (vi) in order
to fulfill the purposes of the 2007 Plan and without amending the 2007 Plan, to
modify, to cancel, or to waive the Company’s rights with respect to any Awards,
to adjust or to modify Award Agreements for changes in Applicable Law, and to
recognize differences in foreign law, tax policies, or customs; and

     

    (vii) to make
all other interpretations and to take all other actions that the Committee may
consider necessary or advisable to administer the 2007 Plan or to effectuate its
purposes.

     

    Subject
to Applicable Law and the restrictions set forth in the 2007 Plan, the Committee
may delegate administrative functions to individuals who are Reporting Persons,
officers, or Employees.

     

    (d) Deference to Committee
Determinations.  The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any
fashion it deems to be appropriate in its sole discretion, to make any findings
of fact needed in the administration of the 2007 Plan or Award Agreements, and
to take any other actions and make any other determinations or decisions that it
deems necessary or appropriate in connection with the Plan or the administration
or interpretation thereof.  The Committee’s prior exercise of its
discretionary authority shall not obligate it to exercise its authority in a
like fashion thereafter.  The Committee’s interpretation and
construction of any provision of the 2007 Plan, or of any Award or Award
Agreement, and any Committee determinations or decisions relating to the Plan’s
administration shall be final, binding, and conclusive on all persons and
otherwise accorded the maximum deference permitted by law, provided that the
Committee’s interpretations, determinations, and decisions shall not be entitled
to deference on and after a Change in Control except to the extent that such
interpretations, determinations, or decisions are made exclusively by members of
the Committee who are individuals who served as Committee members before the
Change in Control.   The validity of any such interpretation,
construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly made in bad faith or materially affected by fraud.

     

    (e) No Liability;
Indemnification.  Neither the Board nor any Committee member,
nor any Person acting at the direction of the Board or the Committee, shall be
liable for any act, omission, interpretation, construction or determination made
in good faith with respect to the 2007 Plan, any Award or any Award
Agreement.  The Company and its Affiliates shall pay or reimburse any
member of the Committee, as well as any Trustee, Employee, or Consultant who
takes action on behalf of the 2007 Plan, for all expenses incurred with respect
to the 2007 Plan, and to the full extent allowable under Applicable Law shall
indemnify each and every one of them for any claims, liabilities, and costs
(including reasonable attorney’s fees) arising out of their good faith
performance 

     

    
      
        
        

      

      
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    of duties on behalf of the 2007 Plan.  The Company and
its Affiliates may, but shall not be required to, obtain liability insurance for
this purpose.

     

    
      	
              5.  

            	
              Eligibility

            

    

     

    (a) General Rule.  The
Committee shall determine from the class of Eligible Persons those individuals
to whom Awards under the 2007 Plan may be granted, the number of Shares subject
to each Award, the price (if any) to be paid for the Shares or the Award, any
terms for vesting of Awards, and, in the case of Performance Awards, in addition
to the matters addressed in Section 10 below, the specific objectives, goals and
performance criteria that further define the Performance Award.  A
Participant who has been granted an Award may be granted an additional Award or
Awards pursuant to the terms of the 2007 Plan if the Committee shall so
determine, if such person is otherwise an Eligible Person and if otherwise in
accordance with the terms of the 2007 Plan.

     

    (b) Documentation  of
Awards.  Each Award shall be evidenced by an Award Agreement
signed by the Company and, if required by the Committee, the
Participant.  The Award Agreement shall set forth the material terms
and conditions of the Award established by the Committee, and each Award shall
be subject to all of the terms and conditions of the 2007 Plan unless otherwise
specifically provided in an Award Agreement.

     

    (c) Limits on
Awards.  During the term of the 2007 Plan, no Participant may
receive Options and SARs that relate to more than 500,000 Shares per calendar
year during the term of the 2007 Plan, pursuant to Section 3 above, and as
adjusted pursuant to Section 13 below.

     

    (d) Replacement
Awards.  Subject to Applicable Laws (including any associated
Shareholder approval requirements) and the provisions of Section 15 below, the
Committee may, in its sole discretion and upon such terms as it deems
appropriate, require as a condition of the grant of an Award to a Participant
that the Participant surrender for cancellation some or all of the Awards that
have previously been granted to the Participant under this 2007 Plan or
otherwise.  An Award that is conditioned upon such surrender may or
may not be the same type of Award, may cover the same (or a lesser or greater)
number of Shares as such surrendered Award, may have other terms that are
determined without regard to the terms or conditions of such surrendered Award,
and may contain any other terms that the Committee deems
appropriate.   In the case of Options and SARs, these other terms
may not involve an Exercise Price that is lower than the exercise price of the
surrendered Option or SAR unless the Company’s shareholders approve the grant
itself or the program under which the grant is made pursuant to the 2007
Plan.

     

    
      	
              6.  

            	
              Option
      Awards

            

    

     

    (a) Types;
Documentation.  Subject to Section 5(a), the Committee may in
its discretion grant Options pursuant to Award Agreements that are delivered to
Participants.  Each Option shall be designated in the Award Agreement
as a Non-ISO.  At the sole discretion of the Committee, any Option may
be exercisable, in whole or in part, immediately upon the grant thereof, or only
after the occurrence of a specified event, or only in installments, which
installments may vary.  Options granted under the 2007 Plan may
contain such terms and provisions not inconsistent with the 2007 Plan that the
Committee shall deem advisable in its sole and absolute discretion.

     

    
      
        
        

      

      
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    (b) Term of
Options.  Each Award Agreement shall specify a term at the end
of which the Option automatically expires, subject to earlier termination
provisions contained in Section 6(h) hereof; provided, that, the term of any
Option may not exceed ten years from the Grant Date.

     

    (c) Exercise
Price.  The exercise price of an Option shall be determined by
the Committee in its sole discretion and shall be set forth in the Award
Agreement, provided that for all Options, such per Share exercise price shall
not be less than 100% of the Fair Market Value per Share on the Grant
Date.

     

    (d) Exercise of
Option.  The times, circumstances and conditions under which an
Option shall be exercisable shall be determined by the Committee in its sole
discretion and set forth in the Award Agreement.  The Committee shall
have the discretion to determine whether and to what extent the vesting of
Options shall be tolled during any unpaid leave of absence; provided, however,
that in the absence of such determination, vesting of Options shall be tolled
during any such leave approved by the Company.

     

    (e) Minimum Exercise
Requirements.  An Option may not be exercised for a fraction of
a Share.  The Committee may require in an Award Agreement that an
Option be exercised as to a minimum number of Shares, provided that such
requirement shall not prevent a Participant from purchasing the full number of
Shares as to which the Option is then exercisable.

     

    (f) Methods of
Exercise.  Prior to its expiration pursuant to the terms of the
applicable Award Agreement, and subject to the times, circumstances and
conditions for exercise contained in the applicable Award Agreement, each Option
may be exercised, in whole or in part (provided that the Company shall not be
required to issue fractional shares), by delivery of written notice of exercise
to the secretary of the Company accompanied by the full exercise price of the
Shares being purchased.  The methods of payment that the Committee may
in its discretion accept or commit to accept in an Award Agreement
include:

     

    (i) cash or
check payable to the Company (in U.S. dollars);

     

    (ii) other
Shares that (A) are owned by the Participant who is purchasing Shares pursuant
to an Option, (B) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares as to which the Option is being
exercised, (C) were not acquired by such Participant pursuant to the exercise of
an Option, unless such Shares have been owned by such Participant for at least
six months or such other period as the Committee may determine, (D) are all, at
the time of such surrender, free and clear of any and all claims, pledges, liens
and encumbrances, or any restrictions which would in any manner restrict the
transfer of such shares to or by the Company (other than such restrictions as
may have existed prior to an issuance of such Shares by the Company to such
Participant), and (E) are duly endorsed for transfer to the
Company;

     

    (iii) a
cashless exercise program that the Committee may approve, from time to time in
its discretion, pursuant to which a Participant may concurrently provide
irrevocable instructions (A) to such Participant’s broker or dealer to effect
the immediate sale of the purchased Shares and remit to the Company, out of the
sale proceeds available on the settlement date, sufficient funds to cover the
exercise price of the Option plus all applicable taxes required to be withheld
by the Company by reason of such exercise, and (B) to the 

     

    
      
        
        

      

      
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    Company to deliver the certificates for the purchased Shares
directly to such broker or dealer in order to complete the sale; or

     

    (iv) any
combination of the foregoing methods of payment.

     

    The
Company shall not be required to deliver Shares pursuant to the exercise of an
Option until payment of the full exercise price therefore is received by the
Company.

     

    (g) Termination of Continuous
Service.  The Committee may establish and set forth in the
applicable Award Agreement the terms and conditions on which an Option shall
remain exercisable, if at all, following termination of a Participant’s
Continuous Service.  The Committee may waive or modify these
provisions at any time.  To the extent that a Participant is not
entitled to exercise an Option at the date of his or her termination of
Continuous Service, or if the Participant (or other person entitled to exercise
the Option) does not exercise the Option to the extent so entitled within the
time specified in the Award Agreement or below (as applicable), the Option shall
terminate and the Shares underlying the unexercised portion of the Option shall
revert to the 2007 Plan and become available for future Awards.  In no
event may any Option be exercised after the expiration of the Option term as set
forth in the Award Agreement.

     

    The
following provisions shall apply to the extent an Award Agreement does not
specify the terms and conditions upon which an Option shall terminate when there
is a termination of a Participant’s Continuous Service:

     

    (i) Termination other than Upon
Disability or Death or for Cause.  In the event of termination
of a Participant’s Continuous Service (other than as a result of Participant’s
death, being Disabled, or termination for Cause), the Participant shall have the
right to exercise an Option at any time within 180 days following such
termination to the extent the Participant was entitled to exercise such Option
at the date of such termination.

     

    (ii) Disability.  In
the event of termination of a Participant’s Continuous Service as a result of
his or her being Disabled, the Participant shall have the right to exercise an
Option at any time within one year following such termination to the extent the
Participant was entitled to exercise such Option at the date of such
termination.

     

    (iii) Death.  In
the event of the death of a Participant either during the period of Continuous
Service since the Grant Date of an Option, or within 180 days following
termination of the Participant’s Continuous Service (other than for Cause), the
Option may be exercised, at any time within 1 year following the date of the
Participant’s death, by the Participant’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
the right to exercise the Option had vested at the date of death or, if earlier,
the date the Participant’s Continuous Service terminated.

     

    (iv) Cause.  If
the Committee determines that a Participant’s Continuous Service terminated due
to Cause, the Participant shall immediately forfeit the right to exercise any
Option, and it shall be considered immediately null and void.

     

    (h)           Extension for Black-out Periods;
Expiration.  If there is a blackout period imposed by the
Securities and Exchange Commission or the Company that, in either case,
prohibits the buying or selling or Shares during any part of the ten (10) day
period before the expiration of any Option based on the 

     

    
      
        
        

      

      
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    termination of a Participant’s Continuous Service (as described
above), the period for exercising the Options shall be extended until ten (10)
days beyond when such blackout period ends. Notwithstanding any provision hereof
or within an Award Agreement, no Option shall ever be exercisable after the
expiration date of its original term as set forth in the Award Agreement.

     

    (i)           Reverse
Vesting.  The Committee in its sole discretion may allow a
Participant to exercise unvested Options according to such terms and conditions
as the Committee may authorize in its discretion.

     

    
      	
              7.  

            	
              Share Appreciation
      Rights (SARs)

            

    

     

    (a) Grants.  The
Committee may in its discretion grant Share Appreciation Rights to any Eligible
Person in any of the following forms:

     

    (i) SARs related to
Options.  The Committee may grant SARs either concurrently with
the grant of an Option or with respect to an outstanding Option, in which case
the SAR shall extend to all or a portion of the Shares covered by the related
Option.  A SAR shall entitle the Participant who holds the related
Option, upon exercise of the SAR and surrender of the related Option, or portion
thereof, to the extent the SAR and related Option each were previously
unexercised, to receive payment of an amount determined pursuant to Section 7(e)
below.  Any SAR will contain such terms as may be required to comply
with the provisions of Section 422 of the Code and the regulations promulgated
thereunder.

     

    (ii) SARs Independent of
Options.  The Committee may grant SARs which are independent of
any Option subject to such conditions as the Committee may in its discretion
determine and set forth in the applicable Award Agreement.

     

    (iii) Limited
SARs.  The Committee may grant SARs exercisable only upon or in
respect of a Change in Control or any other specified event, and such limited
SARs may relate to or operate in tandem or combination with or substitution for
Options or other SARs, or on a stand-alone basis, and may be payable in cash or
Shares based on the spread between the exercise price of the SAR, and (A) a
price based upon or equal to the Fair Market Value of the Shares during a
specified period, at a specified time within a specified period before, after or
including the date of such event, or (B) a price related to consideration
payable to Company’s shareholders generally in connection with the
event.

     

    (b) Exercise
Price.  The per Share exercise price of a SAR shall be
determined in the sole discretion of the Committee, shall be set forth in the
applicable Award Agreement, and shall be no less than 100% of the Fair Market
Value of one Share on the Grant Date, subject to adjustments by the Committee in
accordance with Code Section 409A) after its delivery to the
Company.  The exercise price of a SAR related to an Option shall be
the same as the exercise price of the related Option.

     

    (c) Exercise of
SARs.  A SAR may not have a term exceeding ten years from its
Grant Date.  Unless the Award Agreement otherwise provides, a SAR
related to an Option will be exercisable at such time or times, and to the
extent, that the related Option will be exercisable; provided that the Award
Agreement shall not, without the approval of the Committee, provide for a
vesting period for the exercise of the SAR that is more favorable to the
Participant than the exercise 

     

    
      
        
        

      

      
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    period for the related Option.  A SAR granted
independently of any other Award will be exercisable pursuant to the terms of
the Award Agreement.  Whether a SAR is related to an Option or is
granted independently, the SAR may only be exercised when the Fair Market Value
of the Shares underlying the SAR exceeds the exercise price of the SAR.

     

    (d) Effect on Available
Shares.  All SARs that may be settled in Shares shall be
counted in full against the number of Shares available for awards under the 2007
Plan, regardless of the number of Shares actually issued upon settlement of the
SARs.

     

    (e) Payment.   Upon
exercise of a SAR related to an Option and the attendant surrender of an
exercisable portion of any related Award, the Participant will be entitled to
receive payment of an amount determined by multiplying –

     

    (i) the
excess of the Fair Market Value of a Share on the date of exercise of the SAR
over the exercise price per Share of the SAR, by

     

    (ii) the
number of Shares with respect to which the SAR has been exercised.

     

    (iii) Notwithstanding
the foregoing, a SAR granted independently of an Option (i) may limit the amount
payable to the Participant to a percentage, specified in the Award Agreement but
not exceeding one-hundred percent (100%), of the amount determined pursuant to
the preceding sentence, and (ii) shall be subject to any payment or other
restrictions that the Committee may at any time impose in its discretion,
including restrictions intended to conform the SARs with Section 409A of the
Code.

     

    (f) Form and Terms of
Payment.  Unless otherwise provided in an Award Agreement, all
SARs shall be settled in Shares as soon as practicable after
exercise.  Subject to Applicable Law, the Committee may, in its sole
discretion, provide in an Award Agreement that the amount determined under
Section 7(e) above shall be settled solely in cash, solely in Shares (valued at
their Fair Market Value on the date of exercise of the SAR), or partly in cash
and partly in Shares, with cash paid in lieu of fractional shares.

     

    (g) Termination of Employment or
Consulting Relationship.  The Committee shall establish and set
forth in the applicable Award Agreement the terms and conditions under which a
SAR shall remain exercisable, if at all, following termination of a
Participant’s Continuous Service.  The provisions of Section 6(h)
above shall apply to the extent an Award Agreement does not specify the terms
and conditions upon which a SAR shall terminate when there is a termination of a
Participant’s Continuous Service.

     

    
      	
              8.  

            	
              Restricted Shares,
      Restricted Share Units, and Unrestricted
  Shares

            

    

     

    (a) Grants.  The
Committee may in its sole discretion grant restricted shares (“Restricted Shares”)
to any Eligible Person and shall evidence such grant in an Award Agreement that
is delivered to the Participant and that sets forth the number of Restricted
Shares, the purchase price for such Restricted Shares (if any), and the terms
upon which the Restricted Shares may become vested.  In addition, the
Company may in its discretion grant to any Eligible Person the right to receive
Shares after certain vesting requirements are met (“Restricted Share
Units”), and shall evidence such grant in an Award Agreement that is
delivered to the Participant which sets forth the number of Shares (or formula,
that may be based on future performance or conditions, for 

     

    
      
        
        

      

      
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    determining the number of Shares) that the Participant shall be
entitled to receive upon vesting and the terms upon which the Shares subject to
a Restricted Share Unit may become vested.  The Committee may
condition any Award of Restricted Shares or Restricted Share Units to a
Participant on receiving from the Participant such further assurances and
documents as the Committee may require to enforce the
restrictions.  In addition, the Committee may grant Awards hereunder
in the form of unrestricted shares (“Unrestricted Shares”)
that (i) shall vest in full upon the Grant Date or (ii) the Committee may issue
pursuant to any program that the Committee may approve under which one or more
Eligible Persons (selected by the Committee in its sole discretion)
may  elect to pay for such Shares or to receive Unrestricted Shares in
lieu of cash bonuses that would otherwise be paid.

     

    (b) Vesting and
Forfeiture.  The Committee shall set forth in an Award
Agreement granting Restricted Shares or Restricted Share Units, the terms and
conditions under which the Participant’s interest in the Restricted Shares or
the Shares subject to Restricted Share Units will become vested and
non-forfeitable.  Except as set forth in the applicable Award
Agreement or as the Committee otherwise determines, upon termination of a
Participant’s Continuous Service for any reason, the Participant shall forfeit
his or her Restricted Shares and Restricted Share Units to the extent the
Participant’s interest therein has not vested on or before such termination
date; provided that (i) unless otherwise provided in an Award Agreement, full
vesting shall occur if the Participant’s Continuous Service ends due to the
Participant’s death, being Disabled, or Retirement, and (ii) if a Participant
purchases the Restricted Shares and forfeits them for any reason, the Company
shall return the purchase price to the Participant only if and to the extent set
forth in an Award Agreement.

     

    (c) Book Entry of Restricted Shares
Prior to Vesting; Voting Rights.  Restricted Shares will be
evidenced  by a book entry in the Company's records.  Upon
vesting, a Participant may request a physical certificate for vested Shares, and
the Committee may in its discretion direct the Company to issue such certificate
at any time after vesting, provided  that the Company may issue the
Shares to an account maintained in the Participant’s name by a transfer agent if
the Participant has not provided contrary instructions.  After the
book entry of a Restricted Share, the Participant shall possess voting rights,
without regard to whether such Restricted Share has then vested, except as
otherwise set forth herein.

     

    (d) Issuance of Shares upon
Vesting.  As soon as practicable after vesting of a
Participant’s Restricted Shares (or of the right to receive Shares underlying
Restricted Share Units) and the Participant’s satisfaction of applicable tax
withholding requirements, the Company shall release to the Participant, free
from the vesting restrictions, one Share for each vested Restricted Share (or
issue one Share free of the vesting restriction for each vested Restricted Share
Unit), unless an Award Agreement provides otherwise.  No fractional
shares shall be distributed, and cash shall be paid in lieu
thereof.

     

    (e) Dividends Payable on Restricted
Shares or Restricted Share Units.  Unless otherwise provided in
an Award Agreement, the number of Shares subject to any Restricted Share or
Restricted Share Unit Award shall be adjusted to reflect any Share dividends
which are declared and paid to the holders of Shares between the Grant Date and
the date such Share is released from the vesting restrictions in the case of
Restricted Shares or issued in the case of Restricted Share Units.  To
the extent that the Company pays any cash dividends on the Shares subject to any
Restricted Share or Restricted Share Unit Award, the Participant shall be
entitled (unless an Award Agreement provides 

     

     

    
      
        
        

      

      
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    otherwise) to
receive a cash payment from the Company, when such cash dividend is paid to
holders of such Shares,  with the payment to the Participant being
equal to the product of the per Share cash dividend paid and the number of
Shares subject to the Participant’s Award.

     

    (f) Section 83(b)
Elections.  A Participant may make an election under Section
83(b) of the Code (the “Section 83(b)
Election”) with respect to Restricted Shares.  If a Participant
who has received Restricted Share Units promptly provides the Committee with
written notice of his or her intention to make a Section 83(b) Election with
respect to the Shares subject to such Restricted Share Units, the Committee may
in its discretion convert the Participant’s Restricted Share Units into
Restricted Shares, on a one-for-one basis, in full satisfaction of the
Participant’s Restricted Share Unit Award.  The Participant may then
make a Section 83(b) Election with respect to those Restricted
Shares.  Shares with respect to which a Participant makes a Section
83(b) Election shall not be eligible for deferral pursuant to Section 9
below.

     

    (g) Deferral
Elections.  At any time within the thirty-day period (or other
shorter or longer period that the Committee selects in its sole discretion) in
which a Participant who is a member of a select group of management or highly
compensated employees (within the meaning of the ERISA) receives an initial
Award of either Restricted Shares or Restricted Share Units that has a vesting
condition tied to the Participant’s Continued Service, the Committee may permit
the Participant to irrevocably elect, on a form provided by and acceptable to
the Committee, to defer the receipt of all or a percentage of the Shares that
would otherwise be transferred to the Participant upon the vesting of such Award
provided that the election is made at least 12 months in advance of the elrliest
date that the Restricted Shares or Restricted Share Units may
vest.  If the Participant makes this election, the Shares subject to
the election, and any associated dividends and interest, shall be credited to an
account established pursuant to Section 9 hereof on the date such Shares would
otherwise have been released or issued to the Participant pursuant to Section
8(d) above, and no vesting shall occur (other than for death, being Disabled, or
Retirement if provided pursuant to the Award Agreement) within the 12-month
period following the date of the Participant’s election.

     

    
      	
              9.  

            	
              Deferred Share
      Units

            

    

     

    (a) Elections to
Defer.  The Committee may permit any Eligible Person who is a
Trustee, Consultant or member of a select group of management or highly
compensated Employees (within the meaning of the Code) to irrevocably elect, on
a form provided by and acceptable to the Committee (the “Election Form”), to
forego the receipt of cash or other compensation (including the Shares
deliverable pursuant to any Award other than Restricted Shares for which a
Section 83(b) Election has been made), and in lieu thereof to have the Company
credit to an internal 2007 Plan account (the “Account”) a number of
deferred share units (“Deferred Share
Units”) having a Fair Market Value equal to the Shares and other
compensation deferred.  These credits will be made at the end of each
calendar month during which compensation is deferred.  Each Election
Form shall take effect on the first day of the next calendar year (or on the
first day of the next calendar month in the case of an initial election by a
Participant who first receives an Award, subject to adjustments by the Committee
in accordance with Code Section 409A) after its delivery to the Company, subject
to Section 8(g) regarding deferral of Restricted Shares and Restricted Share
Units and to Section 10(e) regarding deferral of Performance Awards, unless the
Company sends the Participant a written notice explaining why the Election Form
is invalid within five business days after the Company receives
it.  Notwithstanding the foregoing sentence: (i) Election Forms shall
be ineffective with respect to any compensation that a Participant earns before
the date on which the Company receives 

     

     

    
      
        
        

      

      
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    the
Election Form, and (ii) Election Forms must be submitted to the Committee no
later than December 31st of the calendar year preceding the calendar year in
which the Eligible Person first performs the services that are attributable to
the compensation being deferred.  Notwithstanding the foregoing, any
Eligible Person who first becomes eligible to defer compensation under the Plan
and is not eligible to defer or otherwise accrue an amount of deferred
compensation under any other plan or arrangement that (i) is maintained by the
Company or any other Affiliate that would be considered a single employer with
the Company pursuant to Code Sections 414(b) or 414(c) and (ii) constitutes a
single plan under Treasury Regulation §1.409A-1(c)(2)(A), may submit his or her
Election Form to the Committee no later than 30 days after the date the Eligible
Person first becomes eligible to defer compensation under the Plan; however, the
Election Form may relate only to compensation that is to be paid for services
performed after the date the Election Form is submitted to the
Committee.  The Committee may reject any Election Form that it
determines in its sole discretion does not satisfy the requirements of this
paragraph.  The Committee may unilaterally make Awards in the form of
Deferred Share Units, regardless of whether or not the Participant foregoes
other compensation.

     

    (b) Vesting.  Unless an
Award Agreement expressly provides otherwise, each Participant shall be 100%
vested at all times in any Shares subject to Deferred Share Units.

     

    (c) Issuances of
Shares.  The Company shall provide a Participant with one Share
for each Deferred Share Unit in five substantially equal annual installments
that are issued before the last day of each of the five calendar years that end
after the date on which the Participant incurs a “separation form service”
within the meaning of Treasury Regulations §1.409A-1(h) (“Separation from
Service”),, unless –

     

    (i) the
Participant has properly elected a different form of distribution, on a form
approved by the Committee, that permits the Participant to select any
combination of a lump sum and annual installments that are triggered by and
completed within ten years following the Participant’s Separation
from  Service, and

     

    (ii) the
Company received the Participant’s distribution election form at the time the
Participant elects to defer the receipt of cash or other compensation pursuant
to Section 9(a), provided that such election may be changed through any
subsequent election that (i) is delivered to the Company at least one year
before the date on which distributions are otherwise scheduled to commence
pursuant to the Participant’s election, and (ii) defers the commencement of
distributions by at least five years from the originally scheduled commencement
date.

     

    Fractional
shares shall not be issued, and instead shall be paid out in cash.

     

    (d) Crediting of
Dividends.  Unless otherwise provided in an Award Agreement or
in a Participant’s deferral election agreement, whenever Shares are issued to a
Participant pursuant to Section 9(c) above, such Participant shall also be
entitled to receive, with respect to each Share issued, a number of Shares equal
to the sum of (i) any share dividends, which were declared and paid to the
holders of Shares between the Grant Date and the date such Share is issued, and
(ii) a number of Shares equal to the Shares that the Participant could have
purchased at Fair Market Value on the payment date of any cash dividends for
Shares if the Participant had received such cash dividends between the Grant
Date and the settlement date for the Deferred Share Units.

     

     

    
      
        
        

      

      
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    (e) Emergency
Withdrawals.  In the event a Participant suffers an
unforeseeable emergency within the contemplation of this Section and Section
409A of the Code, the Participant may apply to the Company for an immediate
distribution of all or a portion of the Participant’s Deferred Share
Units.  The unforeseeable emergency must result from a sudden and
unexpected illness or accident of the Participant, the Participant’s spouse, or
a dependent (within the meaning of Section 152(a) of the Code) of the
Participant, casualty loss of the Participant’s property, or other similar
extraordinary and unforeseeable conditions beyond the control of the
Participant.  Examples of purposes which are not considered
unforeseeable emergencies include post-secondary school expenses or the desire
to purchase a residence.  In no event will a distribution be made to
the extent the unforeseeable emergency could be relieved through reimbursement
or compensation by insurance or otherwise, or by liquidation of the
Participant’s nonessential assets to the extent such liquidation would not
itself cause a severe financial hardship.  The amount of any
distribution hereunder shall be limited to the amount necessary to relieve the
Participant’s unforeseeable emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution.  The Committee
shall determine whether a Participant has a qualifying unforeseeable emergency
and the amount which qualifies for distribution, if any.  The
Committee may require evidence of the purpose and amount of the need, and may
establish such application or other procedures as it deems
appropriate.

     

    (f) Unsecured Rights to Deferred
Compensation.  A Participant’s right to Deferred Share Units
shall at all times constitute an unsecured promise of the Company to pay
benefits as they come due.  The right of the Participant or the
Participant’s duly-authorized transferee to receive benefits hereunder shall be
solely an unsecured claim against the general assets of the
Company.  Neither the Participant nor the Participant’s
duly-authorized transferee shall have any claim against or rights in any
specific assets, shares, or other funds of the Company.

     

    
      	
              10.  

            	
              Performance
      Awards

            

    

     

    (a) Performance
Units.  Subject to the limitations set forth in paragraph (c)
hereof, the Committee may in its discretion grant Performance Units to any
Eligible Person and shall evidence such grant in an Award Agreement that is
delivered to the Participant which sets forth the terms and conditions of the
Award which may be paid in cash, in Shares, or such combination of cash and
Shares as the Committee in its sole discretion shall determine.

     

    (b) Performance Compensation
Awards.  Subject to the limitations set forth in paragraph (c)
hereof, the Committee may, at the time of grant of a Performance Unit, designate
such Award as a “Performance Compensation Award” (payable in cash or Shares) in
order that such Award constitutes “qualified performance-based compensation”
under Code Section 162(m), in which event the Committee shall have the power to
grant such Performance Compensation Award upon terms and conditions that qualify
it as “qualified performance-based compensation” within the meaning of Code
Section 162(m).  With respect to each such Performance Compensation
Award, the Committee shall establish, in writing within the time required under
Code Section 162(m), a “Performance Period,” “Performance Measure(s)”, and
“Performance Formula(e)” (each such term being hereinafter
defined).  Once established for a Performance Period, the Performance
Measure(s) and Performance Formula(e) shall not be amended or otherwise modified
to the extent such amendment or modification would cause the compensation
payable pursuant to the Award to fail to constitute qualified performance-based
compensation under Code Section 162(m).

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    A
Participant shall be eligible to receive payment in respect of a Performance
Compensation Award only to the extent that the Performance Measure(s) for such
Award is achieved and the Performance Formula(e) as applied against such
Performance Measure(s) determines that all or some portion of such Participant’s
Award has been earned for the Performance Period.  As soon as
practicable after the close of each Performance Period, the Committee shall
review and certify in writing whether, and to what extent, the Performance
Measure(s) for the Performance Period have been achieved and, if so, determine
and certify in writing the amount of the Performance Compensation Award to be
paid to the Participant and, in so doing, may use negative discretion to
decrease, but not increase, the amount of the Award otherwise payable to the
Participant based upon such performance.

     

    (c) Limitations on
Awards.  The maximum Performance Unit Award and the maximum
Performance Compensation Award that any one Participant may receive for any one
Performance Period shall not together exceed 250,000 shares (or, for Performance
Units to be settled in cash, $5,000,000).  The Committee shall have
the discretion to provide in any Award Agreement that any amounts earned in
excess of these limitations will either be credited as Deferred Share Units, or
as deferred cash compensation under a separate plan of the Company (provided in
the latter case that such deferred compensation either bears a reasonable rate
of interest or has a value based on one or more predetermined actual
investments).  Any amounts for which payment to the Participant is
deferred pursuant to the preceding sentence shall be paid to the Participant in
a future year or years not earlier than, and only to the extent that, the
Participant is either not receiving compensation in excess of these limits for a
Performance Period, or is not subject to the restrictions set forth under
Section 162(b) of the Code.

     

    (d) Definitions.

     

    (i) “Performance Formula”
means, for a Performance Period, one or more objective formulae or standards
established by the Committee for purposes of determining whether or the extent
to which an Award has been earned based on the level of performance attained or
to be attained with respect to one or more Performance
Measure(s).  Performance Formulae may vary from Performance Period to
Performance Period and from Participant to Participant and may be established on
a stand-alone basis, in tandem or in the alternative.

     

    (ii) “Performance Measure”
means one or more of the following selected by the Committee to measure Company,
Affiliate, and/or business unit performance for a Performance Period, whether in
absolute or relative terms (including, without limitation, terms relative to a
peer group or index): cash available for distribution; basic, diluted, or
adjusted earnings per share; sales or revenue; earnings before interest, taxes,
and other adjustments (in total or on a per share basis); basic or adjusted net
income; returns on equity, assets, capital, revenue or similar measure; economic
value added; working capital; total shareholder return; and product development,
product market share, research, licensing, litigation, human resources,
information services, mergers, acquisitions, sales of assets of Affiliates or
business units.  Each such measure shall be, to the extent applicable,
determined in accordance with generally accepted accounting principles as
consistently applied by the Company (or such other standard applied by the
Committee) and, if so determined by the Committee, and in the case of a
Performance Compensation Award, to the extent permitted under Code Section
162(m), adjusted to omit the effects of extraordinary items, gain or loss on the
disposal of a business segment, unusual or infrequently occurring events and
transactions and cumulative effects of changes in accounting
principles.  Performance 

     

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    Measures
may vary from Performance Period to Performance Period and from Participant to
Participant, and may be established on a stand-alone basis, in tandem or in the
alternative.

     

    (iii) “Performance Period”
means one or more periods of time (of not less than one fiscal year of the
Company), as the Committee may designate, over which the attainment of one or
more Performance Measure(s) will be measured for the purpose of determining a
Participant’s rights in respect of an Award.

     

    (e) Deferral Elections. At any
time prior to the date that is at least six months before the close of a
Performance Period (or shorter or longer period that the Committee selects) with
respect to an Award of either Performance Units or Performance Compensation, the
Committee may permit a Participant who is a member of a select group of
management or highly compensated employees (within the meaning of the Code) to
irrevocably elect, on a form provided by and acceptable to the Committee, to
defer the receipt of all or a percentage of the cash or Shares that would
otherwise be transferred to the Participant upon the vesting of such
Award.  If the Participant makes this election, the cash or Shares
subject to the election, and any associated interest and dividends, shall be
credited to an Account established pursuant to Section 9 hereof on the date such
cash or Shares would otherwise have been released or issued to the Participant
pursuant to Section 10(a) or Section 10(b) above.

     

    
      	
              11.  

            	
              Taxes

            

    

     

    (a) General. As a condition to
the issuance or distribution of Shares pursuant to the 2007 Plan, the
Participant (or in the case of the Participant’s death, the person who succeeds
to the Participant’s rights) shall make such arrangements as the Company may
require for the satisfaction of any applicable federal, state, local or foreign
withholding tax obligations that may arise in connection with the Award and the
issuance of Shares.  The Company shall not be required to issue any
Shares until such obligations are satisfied, and may unilaterally withhold
Shares for this purpose.  If the Committee allows or effectuates the
withholding or surrender of Shares to satisfy a Participant’s tax withholding
obligations, the Committee shall not allow Shares to be withheld in an amount
that exceeds the minimum statutory withholding rates for federal and state tax
purposes, including payroll taxes.

     

    (b) Default Rule for Employees.
In the absence of any other arrangement authorized by the Committee or set forth
in the Award Agreement, and to the extent permitted under Applicable Law, each
Participant shall be deemed to have elected to have the Company withhold from
the Shares or cash to be issued pursuant to an Award that number of Shares
having a Fair Market Value determined as of the applicable Tax Date (as defined
below) or cash equal to the minimum applicable tax withholding and employment
tax obligations associated with an Award.  If such withholding of
Shares is not permitted for any reason, the Company shall satisfy any required
withholding through withholding from cash compensation otherwise payable to the
Participant.  For purposes of this Section 11, the Fair Market Value
of the Shares to be withheld shall be determined on the date that the amount of
tax to be withheld is to be determined under the Applicable Law (the “Tax
Date”).

     

    (c) Surrender of Shares. If
permitted by the Committee, in its discretion, a Participant may satisfy the
minimum applicable tax withholding and employment tax obligations associated
with an Award by surrendering Shares to the Company (including Shares that would
otherwise be issued

     

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    pursuant
to the Award) that have a Fair Market Value determined as of the applicable Tax
Date equal to the amount required to be withheld.  In the case of
Shares previously acquired from the Company that are surrendered under this
Section 11, such Shares must have been owned by the Participant for more than
six months on the date of surrender (or such longer period of time the Company
may in its discretion require).

     

    (d) Income Taxes and Deferred
Compensation.  Participants are solely responsible and liable
for the satisfaction of all taxes and penalties that may arise in connection
with Awards (including any taxes arising under Section 409A of the Code), and
the Company shall not have any obligation to indemnify or otherwise hold any
Participant harmless from any or all of such taxes.  The Committee
shall have the discretion to organize any deferral program, to require deferral
election forms, and to grant or to unilaterally modify any Award in a manner
that (i) conforms with the requirements of Section 409A of the Code with respect
to compensation that is deferred and that vests after December 31, 2004, (ii)
that voids any Participant election to the extent it would violate Section 409A
of the Code, and (iii) for any distribution election that would violate Section
409A of the Code, to make distributions pursuant to the Award at the earliest to
occur of a distribution event that is allowable under Section 409A of the Code
or any distribution event that is both allowable under Section 409A of the Code
and is elected by the Participant, subject to any valid second election to
defer, provided that the Committee permits second elections to defer in
accordance with Section 409A(a)(4)(C).  The Committee shall have the
sole discretion to interpret the requirements of the Code, including Section
409A, for purposes of the 2007 Plan and all Awards.

     

    
      	
              12.  

            	
              Non-Transferability of
      Awards

            

    

     

    (a) General.  Except as
set forth in this Section 12 or in an Award Agreement, or as otherwise approved
by the Committee, Awards may not be sold, pledged, assigned, hypothecated,
mortgaged, or otherwise encumbered, transferred, alienated, conveyed or disposed
of in any manner other than by will or by the laws of descent or
distribution.  The designation of a death beneficiary by a Participant
shall be permissible and shall not constitute a transfer.  An Award
may be exercised, during the lifetime of the holder of an Award, only by such
holder, the duly-authorized legal representative of a Participant who is
Disabled, or a transferee permitted by this Section 12.  Except to the
extent required by law or as authorized under the 2007 Plan or as provided in an
Award Agreement, no part of any Participant’s Award shall (i) be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by the Participant or any other
person, (ii) be transferable by operation of law in the event of the
Participant’s or any other person’s bankruptcy or insolvency, or (iii) be
transferable to a spouse as a result of a property settlement or otherwise, and
any attempt to cause any benefit to be so subject under clauses (i), (ii), or
(iii) hereof shall be void.

     

    (b) Limited Transferability
Rights.  Notwithstanding anything else in this Section 12, a
Participant may transfer, on such terms and conditions as the Committee deems
appropriate, any Award in the form of a Non-ISO, Share-settled SAR, Restricted
Shares, Unrestricted Shares, or Performance Shares, either (i) by instrument to
the Participant’s “Immediate Family” (as defined below), (ii) by instrument to
an inter vivos or testamentary trust (or other entity) in which the Award is to
be passed to the Participant’s designated beneficiaries, or (iii) by gift to
charitable institutions.  Any transferee of the Participant’s rights
shall succeed and be subject to all of the terms of the applicable Award
Agreement and the 2007 Plan. “Immediate Family”
means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, domestic partner, sibling, niece,

     

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

     

     nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, and shall include adoptive relationships.

     

    
      	
              13.  

            	
              Adjustments Upon
      Changes in Capitalization, Merger or Certain Other
      Transactions

            

    

     

    (a) Changes in
Capitalization.  The Committee shall equitably adjust both the
number of Shares covered by each outstanding Award and the number of Shares that
have been authorized for issuance under the 2007 Plan but as to which no Awards
have yet been granted or that have been returned to the 2007 Plan, upon
cancellation, forfeiture, or expiration of an Award, as well as the price per
Share covered by each such outstanding Award, to reflect any increase or
decrease in the number of issued Shares resulting from a share-split, reverse
share-split, share dividend, combination, recapitalization or reclassification
of the Shares, or any other increase, decrease, or change in the number or kind
of issued Shares effected either (i) through a merger, consolidation, or other
similar combination in which the Company is not the surviving entity, or (ii)
without receipt of consideration by the Company.  In the event of any
such transaction or event, the Committee may provide in substitution for any or
all outstanding Awards under the 2007 Plan such alternative consideration
(including securities of any surviving entity) as it may in good faith determine
to be equitable under the circumstances and may require in connection therewith
the surrender of all Awards so replaced.  In any case, such
substitution of securities shall not require the consent of any person who is
granted Awards pursuant to the 2007 Plan.  Except as expressly
provided herein, or in an Award Agreement, if the Company issues for
consideration shares of any class or securities convertible into shares of any
class, the issuance shall not affect, and no adjustment by reason thereof shall
be required to be made with respect to the number or price of Shares subject to
any Award.

     

    (b) Dissolution or
Liquidation.  In the event of the dissolution or liquidation of
the Company other than as part of a Change of Control, each Award will terminate
immediately prior to the consummation of such action, subject to the ability of
the Committee to exercise any discretion authorized in the case of a Change in
Control.

     

    (c) Change in
Control.  Except to the extent provided otherwise in an Award
Agreement or in an unexpired Employment Agreement, in the event of a Change in
Control, the Committee may in its sole and absolute discretion and authority,
without obtaining the approval or consent of the Company’s shareholders or any
Participant with respect to his or her outstanding Awards, take one or more of
the following actions:

     

    (i) arrange
for or otherwise provide that each outstanding Award shall be assumed or a
substantially similar award shall be substituted by a successor corporation or a
parent or subsidiary of such successor corporation (the “Successor
Corporation”);

     

    (ii) accelerate
the vesting of Awards so that Awards shall vest (and, to the extent applicable,
become exercisable) as to the Shares that otherwise would have been unvested and
provide that repurchase rights of the Company with respect to Shares issued upon
exercise of an Award shall lapse as to the Shares subject to such repurchase
right;

     

    (iii) arrange
or otherwise provide for the payment of cash or other consideration to
Participants in exchange for the satisfaction and cancellation of outstanding
Awards; or

     

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

     

    (iv) make such
other modifications, adjustments or amendments to outstanding Awards or this
2007 Plan as the Committee deems necessary or appropriate, subject however to
the terms of Section 15(a) below.

     

    To the
extent that an Award is not being assumed or substituted in a Change in Control
transaction, the vesting of such Award shall accelerate to 100%, and the Award
shall terminate upon consummation of the Change in Control (but only if, in the
case of Options and SARs, the Participant shall have had at least three business
days in which to exercise the Award before its termination).

     

    Notwithstanding
the above, unless otherwise provided in an Award Agreement, in the event a
Participant holding an Award assumed or substituted by the Successor Corporation
in a Change in Control incurs an Involuntary Termination by the Successor
Corporation in connection with, or within 12 months (or other period either set
forth in an Award Agreement, or as increased thereafter by the Committee to a
period longer than 12 months) following consummation of, the Change in Control,
then any assumed or substituted Award held by the terminated Participant at the
time of termination shall accelerate and become fully vested (and exercisable in
full in the case of Options and SARs), and any repurchase right applicable to
any Shares shall lapse in full, unless an Award Agreement provides for a more
restrictive acceleration or vesting schedule or more restrictive limitations on
the lapse of repurchase rights or otherwise places additional restrictions,
limitations and conditions on an Award.  The acceleration of vesting
and lapse of repurchase rights provided for in the previous sentence shall occur
immediately prior to the effective date of the Participant’s termination, unless
an Award Agreement provides otherwise.

     

    (d) Certain
Distributions.  In the event of any distribution to the
Company’s shareholders of securities of any other entity or other assets (other
than dividends payable in cash or shares of the Company) without receipt of
consideration by the Company, the Committee may, in its discretion,
appropriately adjust the price per Share covered by each outstanding Award to
reflect the effect of such distribution.

     

    
      	
              14.  

            	
              Time of Granting
      Awards.

            

    

     

    The date
of grant (“Grant
Date”) of an Award shall be the date on which the Committee makes the
determination granting such Award or such other date as is determined by the
Committee.

     

    
      	
              15.  

            	
              Modification of Awards
      and Substitution of Options.

            

    

     

    (a) Modification, Extension, and Renewal
of Awards.  Within the limitations of the 2007 Plan, the
Committee may modify an Award to accelerate the rate at which an Option or SAR
may be exercised (including without limitation permitting an Option or SAR to be
exercised in full without regard to the installment or vesting provisions of the
applicable Award Agreement or whether the Option or SAR is at the time
exercisable, to the extent it has not previously been exercised), to accelerate
the vesting of any Award, to extend or renew outstanding Awards or to accept the
cancellation of outstanding Awards to the extent not previously
exercised.  However,  the Committee may not cancel an
outstanding Option whose exercise price is greater than Fair Market Value at the
time of cancellation for the purpose of reissuing the Option to the Participant
at a lower exercise price or granting a replacement award of a different
type.  Notwithstanding the

     

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    foregoing
provision, no modification of an outstanding Award shall materially and
adversely affect such Participant’s rights thereunder (with such an affect being
presumed to arise from a modification that would trigger a violation of Section
409A of the Code), unless either (i) the Participant provides written consent,
or (ii) before a Change in Control, the Committee determines in good faith that
the modification is not materially adverse to the
Participant.   Furthermore, neither the Company nor the Committee
shall, without shareholder approval, allow for a “repricing” within the meaning
of federal securities laws applicable to proxy statement
disclosures.

     

    (b) Substitution of
Options.  Notwithstanding any inconsistent provisions or limits
under the 2007 Plan, in the event the Company or an Affiliate acquires (whether
by purchase, merger or otherwise) all or substantially all of outstanding
capital shares or assets of another corporation or in the event of any
reorganization or other transaction qualifying under Section 424 of the Code,
the Committee may, in accordance with the provisions of that Section, substitute
Options for options under the plan of the acquired company provided (i) the
excess of the aggregate fair market value of the shares subject to an option
immediately after the substitution over the aggregate option price of such
shares is not more than the similar excess immediately before such substitution
and (ii) the new option does not give persons additional benefits, including any
extension of the exercise period.

     

    
      	
              16.  

            	
              Term of 2007
      Plan.

            

    

     

    The 2007
Plan shall continue in effect for a term of ten (10) years from its effective
date as determined under Section 20 below, unless the 2007 Plan is sooner
terminated under Section 17 below.

     

    
      	
              17.  

            	
              Amendment and
      Termination of the 2007
Plan.

            

    

     

    (a) Authority to Amend or
Terminate.  Subject to Applicable Laws and subsection (b)
hereof, the Board may from time to time amend, alter, suspend, discontinue, or
terminate the 2007 Plan.

     

    (b) Effect of Amendment or
Termination.  No amendment, suspension, or termination of the
2007 Plan shall materially and adversely affect Awards already granted (with
such an affect being presumed to arise from a modification that would trigger a
violation of Section 409A of the Code) unless either it relates to an adjustment
pursuant to Section 13 or modification pursuant to Section 15(a) above, or it is
otherwise mutually agreed between the Participant and the Committee, which
agreement must be in writing and signed by the Participant and the
Company.  Notwithstanding the foregoing, the Committee may amend the
2007 Plan to eliminate provisions which are no longer necessary as a result of
changes in tax or securities laws or regulations, or in the interpretation
thereof.

     

    (c) Special Code Section
409A.  Notwithstanding the foregoing provisions of this Section
17, with respect to any Award that constitutes a "nonqualified deferred
compensation plan" within the meaning of Code Section 409A, termination of this
Plan shall not result in an acceleration or deferral of income taxation except
to the extent permissible within Code Section 409A’s rules and regulations
relating to plan terminations.

     

     

    
      
        
        

      

      
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              18.  

            	
              Conditions
      Upon Issuance of Shares.

            

    

     

    Notwithstanding any other provision of
the 2007 Plan or any agreement entered into by the Company pursuant to the 2007
Plan, the Company shall not be obligated, and shall have no liability for
failure, to issue or deliver any Shares under the 2007 Plan unless such issuance
or delivery would comply with Applicable Law, with such compliance determined by
the Company in consultation with its legal counsel.

     

    
      	
              19.  

            	
              Reservation of
      Shares.

            

    

     

    The
Company, during the term of this 2007 Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the
requirements of the 2007 Plan.

     

    
      	
              20.  

            	
              Effective
      Date.

            

    

     

    This 2007 Plan shall become effective
on the date which it has received approval by a vote of a majority of the votes
cast at a duly held meeting of the Company’s shareholders (or by such other
shareholder vote that the Committee determines to be sufficient for the issuance
of Awards according to the Company’s governing documents and applicable state
law).

     

    
      	
              21.  

            	
              Controlling Law;
      Jurisdiction.

            

    

     

    The 2007 Plan shall be construed,
administered, and enforced in accordance with the laws of the State of Delaware,
without giving effect to the conflict of laws principles
thereof.  Centerline Holding Company and each Participant agree that
the state and federal courts of New York shall have jurisdiction over any suit,
action or proceeding arising out of, or in any way related to, the 2007
Plan.  The parties waive, to the fullest extent permitted by law, any
objection which any of them may have to the venue of any such suit, action or
proceeding brought in such courts, and any claim that such suit, action or
proceeding brought in such courts has been brought in an inconvenient forum. In
the event that any party shall not have appointed an agent for service of
process in New York, the party agrees that it may be served with process by
registered or certified mail, return receipt requested, to the party at its
respective address as reflected on the records of Centerline Holding Company.
All notices shall be deemed to have been given as of the date so delivered or
mailed.

     

    
      	
              22.  

            	
              Laws And
      Regulations.

            

    

     

    (a) U.S. Securities
Laws.  This 2007 Plan, the grant of Awards, and the exercise of
Options and SARs under this 2007 Plan, and the obligation of the Company to sell
or deliver any of its securities (including, without limitation, Options,
Restricted Shares, Restricted Share Units, Unrestricted Shares, Deferred Share
Units, and Shares) under this 2007 Plan shall be subject to all Applicable
Law.  In the event that the Shares are not registered under the
Securities Act of 1933, as amended (the “Act”), or any
applicable state securities laws prior to the delivery of such Shares, the
Company may require, as a condition to the issuance thereof, that the persons to
whom Shares are to be issued represent and warrant in writing to the Company
that such Shares are being acquired by him or her for investment for his or her
own account and not with a view to, for resale in connection with, or with an
intent of participating directly or indirectly in, any distribution of such
Shares within the meaning of the Act, and a legend to that effect may be placed
on the certificates representing the Shares.

     

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (b) Other
Jurisdictions.  To facilitate the making of any grant of an
Award under this 2007 Plan, the Committee may provide for such special terms for
Awards to Participants who are foreign nationals or who are employed by the
Company or any Affiliate outside of the United States of America as the
Committee may consider necessary or appropriate to accommodate differences in
local law, tax policy or custom.  The Company may adopt rules and
procedures relating to the operation and administration of this 2007 Plan to
accommodate the specific requirements of local laws and procedures of particular
countries.  Without limiting the foregoing, the Company is
specifically authorized to adopt rules and procedures regarding the conversion
of local currency, taxes, withholding procedures and handling of share
certificates which vary with the customs and requirements of particular
countries.  The Company may adopt sub-plans and establish escrow
accounts and trusts as may be appropriate or applicable to particular locations
and countries.

     

    23.   No
Shareholder Rights.  Other than as set forth in this 2007 Plan
or an Award Agreement, (i) neither a Participant nor any transferee of a
Participant shall have any rights as a shareholder of the Company with respect
to any Shares underlying any Award until the date of issuance of a share
certificate to a Participant or a transferee of a Participant for such Shares in
accordance with the Company’s governing instruments and Applicable Law; (ii)
prior to the issuance of Shares pursuant to an Award, a Participant shall not
have the right to vote or to receive dividends or any other rights as a
shareholder with respect to the Shares underlying the Award, notwithstanding its
exercise in the case of Options and SARs; and (iii) no adjustment will be made
for a dividend or other right that is determined based on a record date prior to
the date the share certificate is issued, except as otherwise specifically
provided for in this 2007 Plan.

     

    24.   No
Employment Rights.  The 2007 Plan shall not confer upon any
Participant any right to continue an employment, service or consulting
relationship with the Company or the Manager, nor shall it affect in any way a
Participant’s right or the Company’s or Manager’s right to terminate the
Participant’s employment, service, or consulting relationship at any time, with
or without Cause.

     

    25.   Termination,
Rescission and Recapture of Awards.

     

    (a) Each
Award under the 2007 Plan is intended to align the Participant’s long-term
interest with those of the Company.  If the Participant engages in
certain activities discussed below, either during employment or after employment
with the Company terminates for any reason, the Participant is acting contrary
to the long-term interests of the Company.  Accordingly, and except to
the extent expressly provided otherwise in an Award Agreement, the Company may
terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards
(“Termination”),
rescind any exercise, payment or delivery pursuant to the Award (“Rescission”), or
recapture any unvested Awards (“Recapture”), if the
Participant does not comply with the conditions of subsections (b) and (c)
hereof (collectively, the “Conditions”).

     

    (b) A
Participant shall not, without the Company’s prior written authorization,
disclose to anyone outside the Company, or use in other than the Company’s
business, any proprietary or confidential information or material, as those or
other similar terms are used in any applicable patent, confidentiality,
inventions, secrecy, or other agreement between the Participant and the Company
with regard to any such proprietary or confidential information or
material.

     

    (c) Pursuant
to any agreement between the Participant and the Company with regard to
intellectual property (including but not limited to patents, trademarks,
copyrights, trade secrets, 

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    inventions, developments, improvements, proprietary information,
confidential business and personnel information), a Participant shall promptly
disclose and assign to the Company or its designee all right, title, and
interest in such intellectual property, and shall take all reasonable steps
necessary to enable the Company to secure all right, title and interest in such
intellectual property in the United States and in any foreign country.

     

    (d) Upon
exercise, payment, or delivery of cash or Shares pursuant to an Award, the
Participant shall certify on a form acceptable to the Company that he or she is
in compliance with the terms and conditions of the 2007 Plan and, if a severance
of Continuous Service has occurred for any reason, shall state the name and
address of the Participant’s then-current employer or any entity for which the
Participant performs business services and the Participant’s title, and shall
identify any organization or business in which the Participant owns a
greater-than-five-percent equity interest.

     

    (e) If the
Company determines, in its sole and absolute discretion, that (i) a Participant
has violated any of the Conditions or (ii) during his or her Continuous Service,
or within one year after its termination for any reason, a Participant (a) has
rendered services to or otherwise directly or indirectly engaged in or assisted,
any organization or business that, in the judgment of the Company in its sole
and absolute discretion, is or is working to become competitive with the
Company; (b) has solicited any non-administrative Employee to terminate
employment with the Company; or (c) has engaged in activities which are
materially prejudicial to or in conflict with the interests of the Company,
including any breaches of fiduciary duty or the duty of loyalty, then the
Company may, in its sole and absolute discretion, impose a Termination,
Rescission, and/or Recapture with respect to any or all of the Participant’s
relevant Awards, Shares, and the proceeds thereof.

     

    (f) Within
ten days after receiving notice from the Company of any such activity described
in Section 25(e) above, the Participant shall deliver to the Company the Shares
acquired pursuant to the Award, or, if Participant has sold the Shares, the gain
realized, or payment received as a result of the rescinded exercise, payment, or
delivery; provided, that if the Participant returns Shares that the Participant
purchased pursuant to the exercise of an Option (or the gains realized from the
sale of such Shares), the Company shall promptly refund the exercise price,
without earnings, that the Participant paid for the Shares.  Any
payment by the Participant to the Company pursuant to this Section 21 shall be
made either in cash or by returning to the Company the number of Shares that the
Participant received in connection with the rescinded exercise, payment, or
delivery.  It shall not be a basis for Termination, Rescission or
Recapture if after termination of a Participant’s Continuous Service, the
Participant purchases, as an investment or otherwise, shares or other securities
of such an organization or business, so long as (i) such shares or other
securities are listed upon a recognized securities exchange or traded
over-the-counter, and (ii) such investment does not represent more than a five
percent (5%) equity interest in the organization or business.

     

    (g) Notwithstanding
the foregoing provisions of this Section, the Company has sole and absolute
discretion not to require Termination, Rescission and/or Recapture, and its
determination not to require Termination, Rescission and/or Recapture with
respect to any particular act by a particular Participant or Award shall not in
any way reduce or eliminate the Company’s authority to require Termination,
Rescission and/or Recapture with respect to any other act or Participant or
Award.  Nothing in this Section shall be construed to impose
obligations on the Participant to refrain from engaging in lawful competition
with the Company after the termination of employment 

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    that does not violate subsections (b) or (c) of this Section,
other than any obligations that are part of any separate agreement between the
Company and the Participant or that arise under applicable law.

     

    (h) All
administrative and discretionary authority given to the Company under this
Section shall be exercised by the most senior human resources executive of the
Company or such other person or committee (including without limitation the
Committee) as the Committee may designate from time to time.

     

    (i) Notwithstanding
any provision of this Section, if any provision of this Section is determined to
be unenforceable or invalid under any applicable law, such provision will be
applied to the maximum extent permitted by applicable law, and shall
automatically be deemed amended in a manner consistent with its objectives to
the extent necessary to conform to any limitations required under applicable
law.  Furthermore, if any provision of this Section is illegal under
any applicable law, such provision shall be null and void to the extent
necessary to comply with applicable law.

     

    Notwithstanding
the foregoing, but subject to any contrary terms set forth in any Award
Agreement,  this Section shall not be applicable:  (i) to
any Participant who is not, on the Award Date, an Employee; and (ii) to any
Participant from and after his or her termination of Continuous Service after a
Change in Control.

     

    26.           Recoupment
of Awards.  Unless specifically provided or otherwise
addressed in an Award Agreement, and to the extent permitted by Applicable Law,
the Committee may in its sole and absolute discretion, without obtaining the
approval or consent of the Company’s shareholders or any Participant with
respect to his or her outstanding Awards, require that the Participant
reimburse the Company for all or any portion of any Awards (“Reimbursement”), or
the Committee may require the Termination or Rescission of, or the Recapture of,
any Award, if—

     

    (a)           the
granting, vesting, or payment of such Award was predicated upon the achievement
of certain financial results that were subsequently the subject of a material
financial restatement;

     

    (b)            in the Committee’s view
the Participant engaged in fraud or misconduct that caused or partially caused
the need for a material financial restatement by the Company or any Affiliate;
and

     

    (c)            a lower granting, vesting,
or payment of such Award would have occurred based upon the restated financial
results.

     

    In each
instance, the Committee will, to the extent practicable and allowable under
applicable laws, require Reimbursement, Termination, or Rescission of, and/or
Recapture relating to, any such Award granted to a Participant, including
reimbursement for any  gains realized on the exercise of Options or
SARs attributable to such Awards, plus a reasonable rate of interest, effecting
the cancellation of Restricted Shares, Restricted Share Units, Unrestricted
Shares, Deferred Share Units, Performance Awards, and outstanding Options and
SARs; provided that the Company will not seek Reimbursement, Termination or
Rescission of, or Recapture relating to, any such Awards that were paid or
vested more than three years prior to the date the applicable restatement is
disclosed.  Notwithstanding the foregoing, this provision shall not
apply to any Awards or other rights granted 

    

    

    

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    pursuant to the Outperformance
Plan, Annual Incentive Compensation Program “A”, or Annual Incentive Program “B”
associated with the 2007 Plan.

     

     

     

     

     

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    
 

    CENTERLINE
HOLING COMPANY 2007 INCENTIVE SHARE PLAN

    
 

    _______________________

    

    Appendix
A: Definitions

    ______________________

     

    As used
in the 2007 Plan, the following definitions shall apply:

     

    “1997
Plan” shall mean the CharterMac Amended and Restated Incentive Share Plan
adopted by the Company in 1997, as amended.

     

    “2007
Plan” shall mean the Centerline Holding Company 2007 Incentive Share Plan
(as amended, restated and supplemented from time to time).

     

    “Account” shall have the meaning set
forth in Section 9(a).

     

    “Act” shall have the meaning set
forth in Section 22(a).

     

    “Affiliate”
means, with respect to any Person (as defined below), any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person.  For the purposes of this definition, “control,” when
used with respect to any Person, means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of
such Person or the power to elect Trustee, whether through the ownership of
voting securities, by contract or otherwise; and the terms “affiliated,”
“controlling” and “controlled” have meanings correlative to the
foregoing.

     

    “Applicable
Law” means the legal requirements relating to the administration of
options and share-based plans under applicable U.S. federal and state laws, the
Code, any applicable stock exchange or automated quotation system rules or
regulations (to the extent the Committee determines in its discretion that
compliance with such rules or regulations) and the applicable laws of any other
country or jurisdiction where Awards are granted, as such laws, rules,
regulations and requirements shall be in place from time to time.

     

    “Award”
means any award made pursuant to the 2007 Plan, including awards made in the
form of an Option, a SAR, a Restricted Share, a Restricted Share Unit, an
Unrestricted Share, a Deferred Share Unit, and a Performance Award, or any
combination thereof, whether alternative or cumulative, authorized by and
granted under this 2007 Plan.

     

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    “Award
Agreement” means any written document setting forth the terms of an Award
that has been authorized by the Committee. The Committee shall determine the
form or forms of documents to be used, and may change them from time to time for
any reason.

     

    “Beneficial
Owner” means any Person who is treated as a beneficial owner of Shares
for purposes of Rule 13d-3 promulgated under the Exchange Act, as amended from
time to time, or any successor provision.

     

     “Board”
means the Board of Trustees of the Company.

     

    “Cause” for
termination of a Participant’s Continuous Service will have the meaning set
forth in any unexpired Employment Agreement between the Company and the
Participant. In the absence of such an agreement, “Cause” will exist if the
Participant is terminated from employment or other service with the Company or
an Affiliate for any of the following reasons: (i) the Participant’s willful
failure to substantially perform his or her duties and responsibilities to the
Company or deliberate violation of a material Company policy; (ii) the
Participant’s commission of any material act or acts of fraud, embezzlement,
dishonesty, or other willful misconduct; (iii) the Participant’s material
unauthorized use or disclosure of any proprietary information or trade secrets
of the Company or any other party to whom the Participant owes an obligation of
nondisclosure as a result of his or her relationship with the Company; or (iv)
Participant’s willful and material breach of any of his or her obligations under
any written agreement or covenant with the Company.

     

    The
Committee shall in its discretion determine whether or not a Participant is
being terminated for Cause.  The Committee’s determination shall,
unless arbitrary and capricious, be final and binding on the Participant, the
Company, and all other affected persons.  The foregoing definition
does not in any way limit the Company’s ability to terminate a Participant’s
employment or consulting relationship at any time, and the term “Company” will
be interpreted herein to include any Affiliate or successor thereto, if
appropriate.

     

    “Change in
Control” means any of the following:

     

    (i) Acquisition of Controlling
Interest.  Any Person (other than Persons who are
Employees at any time more than one year before a transaction) becomes
the Beneficial Owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then
outstanding securities.  In applying the preceding sentence, (i)
securities acquired directly from the Company or its Affiliates by or for the
Person shall not be taken into account, and (ii) an agreement to vote securities
shall be disregarded unless its ultimate purpose is to cause what would
otherwise be Change of Control, as reasonably determined by the
Board.

     

    (ii) Change in Board
Control.  During a consecutive 2-year period commencing after
the date of adoption of this 2007 Plan, individuals who constituted the Board at
the beginning of the period (or their approved replacements, as defined in the
next sentence) cease for any reason to constitute a majority of the
Board.  A new Trustee shall be considered an “approved replacement”
Trustee if his or her election (or nomination for election) was approved by a
vote of at least a majority of the Trustees then still in office who either were
Trustees at the beginning of the period or were themselves approved replacement
Trustees, but in either case excluding any Trustee whose initial assumption of

     

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    office occurred as a result of an actual or threatened
solicitation of proxies or consents by or on behalf of any Person other than the
Board.

     

    (iii) Merger.  The
Company consummates a merger, or consolidation of the Company with any other
corporation unless: (a) the voting securities of the Company outstanding
immediately before the merger or consolidation would continue to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation; and (b) no Person (other than Persons who are
Employees at any time more than one year before a transaction) becomes the
Beneficial Owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then
outstanding securities.

     

    (iv) Sale of
Assets.  The shareholders of the Company approve an agreement
for the sale or disposition by the Company of all, or substantially all, of the
Company’s assets.

     

    (v) Liquidation or
Dissolution.  The shareholders of the Company approve a plan or
proposal for liquidation or dissolution of the Company.

     

    Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the Shares of the
Company immediately prior to such transaction or series of transactions continue
to have substantially the same proportionate ownership in an entity which owns
all or substantially all of the assets of the Company immediately following such
transaction or series of transactions.

     

    “Code”
means the U.S. Internal Revenue Code of 1986, as amended.

     

    “Committee”
means (i) one or more committees or subcommittees of the Board appointed by the
Board to administer the 2007 Plan in accordance with Section 4 above, and (ii)
any officer or officers to whom the Committee has delegated any discretion to
act pursuant to the Plan, provided that any such limitation on delegated
authority shall be absolutely binding on the delegate.  With respect
to any decision involving an Award intended to satisfy the requirements of
Section 162(m) of the Code, the Committee shall consist of two or more Trustees
of the Company who are “outside Trustees” within the meaning of Section 162(m)
of the Code.  With respect to any decision relating to a Reporting
Person, the Committee shall consist of two or more Trustees who are
disinterested within the meaning of Rule 16b-3.  For these purposes,
“Committee” shall initially refer to the Company’s Compensation
Committee.

     

    “Common
Shares” has the meaning set forth in the Trust Agreement.

     

    “Company”
means Centerline Holding Company, a Delaware statutory trust; provided, however,
that in the event the Company reincorporates to another jurisdiction, all
references to the term “Company” shall refer to the Company in such new
jurisdiction.

     

    “Conditions”
shall have the meaning set forth in Section 25(a).

     

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    “Consultant”
means any person, including an advisor, who is engaged by the Company or any
Affiliate to render services and is compensated for such services.

     

    “Continuous
Service” means the absence of any interruption or termination of service
as an Employee, Trustee, or Consultant.  Continuous Service shall not
be considered interrupted in the case of:  (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Committee,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; (iv) changes in status from Trustee to advisory Trustee or
emeritus status; or (iv) in the case of transfers between locations of the
Company or between the Company, its Affiliates or their respective
successors.  Changes in status between service as an Employee,
Trustee, and a Consultant will not constitute an interruption of Continuous
Service.

     

    “Deferred
Share Units” mean Awards pursuant to Section 9.

     

    “Disabled”
(or “Disability”)
will have the meaning set forth in any unexpired Employment Agreement between
the Company and the Participant.  In the absence of such an agreement,
“Disabled” or “Disability” means a condition under which a
Participant  --

     

    (a)           is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, or

     

    (b)           is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, received income replacement benefits for a
period of not less than 3 months under an accident or health plan covering
employees of the Company.

     

    “Election
Form” shall have
the meaning set forth in Section 9(a).

     

    “Eligible
Person” means any Consultant, Trustee or Employee and includes
non-Employees to whom an offer of employment has been or is being
extended.

     

    “Employee”
means any person whom the Manager or any Affiliate classifies as an employee
(including an officer of the Manager or such affiliate) for employment tax
purposes, whether or not that classification is correct.  The payment
by the Company of a Trustee’s fee to a Trustee shall not be sufficient to
constitute “employment” of such Trustee by the Company.

     

    “Employment
Agreement” means any written agreement setting forth terms and conditions
of employment between an Employee and any Affiliate of the Company.

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

     

    “Fair
Market Value” means, as of any date (the “Determination Date”)
means: (i) the closing price of a Share on the New York Stock Exchange or the
American Stock Exchange (collectively, the “Exchange”), on the
Determination Date, or, if Shares were not traded on the Determination Date,
then on the nearest preceding trading day during which a sale occurred; or (ii)
if such Share is not traded on the Exchange but is quoted on NASDAQ or a
successor quotation system, (A) the last sales price (if the Shares are then
listed as a National Market Issue under The Nasdaq National Market System) or
(B) the mean between the closing representative bid and asked prices (in all
other cases) for the Shares on the Determination Date as reported by NASDAQ or
such successor quotation 

    
      
        
        

      

      
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    system; or (iii) if such Shares are not traded on the Exchange or
quoted on NASDAQ but is otherwise traded in the over-the-counter, the mean
between the representative bid and asked prices on the Determination Date; or
(iv) if subsections (i)-(iii) do not apply, the fair market value established in
good faith by the Board.

       

    

    “Grant
Date” has the meaning set forth in Section 14 of the 2007
Plan.

     

    “Immediate
Family” shall have the meaning set forth in Section 12(b).

     

    “Involuntary
Termination” means termination of a Participant’s Continuous Service
under the following circumstances occurring on or after a Change in
Control:  (i) termination without Cause by the Company or an Affiliate
or successor thereto, as appropriate; or (ii) voluntary termination by the
Participant within 60 days following (A) a material reduction in the
Participant’s job responsibilities, provided that neither a mere change in title
alone nor reassignment to a substantially similar position shall constitute a
material reduction in job responsibilities; (B) an involuntary relocation of the
Participant’s work site to a facility or location more than 50 miles from the
Participant’s principal work site at the time of the Change in Control; or (C) a
material reduction in Participant’s  total compensation other than as
part of an reduction by the same percentage amount in the compensation of all
other similarly-situated Employees, Trustees or Consultants.

     

    “Manager”
shall have the meaning set forth in Section 1.

     

    “Non-ISO”
means an Option not intended to qualify as an “incentive share option” within
the meaning of Section 422 of the Code, as designated in the applicable Award
Agreement.

     

    “Option”
means any share option granted pursuant to Section 6.

     

    “Participant”
means any holder of one or more Awards, or the Shares issuable or issued upon
exercise of such Awards, under the 2007 Plan.

     

    “Performance
Awards” mean Performance Units and Performance Compensation Awards
granted pursuant to Section 10.

     

    “Performance
Compensation Awards” mean Awards granted pursuant to Section
10(b).

     

    “Performance
Formula” shall have the meaning set forth in Section 10(d).

     

    “Performance
Measure” shall have the meaning set forth in Section 10(d).

     

    “Performance
Period” shall have the meaning set forth in Section 10(d).

     

    “Performance
Unit” means Awards granted pursuant to Section 10(a).

     

    “Person”
means any natural person, association, trust, business trust, cooperative,
corporation, general partnership, joint venture, joint-stock company, limited
partnership, limited 

     

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    liability company, real estate investment trust, regulatory body,
governmental agency or instrumentality, unincorporated organization or
organizational entity.

     

    “2007
Plan” means this 2007 Incentive Share Plan.

     

    “Recapture” shall have the meaning set
forth in Section 25(a).

     

    “Reimbursement” shall have the meaning set
forth in Section 26.

     

    “Rescission” shall have the meaning set
forth in Section 25(a).

     

    “Reporting
Person” means an officer, Trustee, or greater than ten percent
shareholder of the Company within the meaning of Rule 16a-2 under the Exchange
Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange
Act.

     

    “Restricted
Shares” mean Shares subject to restrictions imposed pursuant to Section
8.

     

    “Restricted
Share Units” mean Awards pursuant to Section 8.

     

    “Retirement”
will have the meaning set forth in any unexpired Employment Agreement between
the Company and the Participant.  In the absence of such an agreement,
“Retirement” means the Participant’s voluntary termination of Continuous Service
under circumstances not involving Cause for termination if the Participant has
attained age 62 and completed at least 10 consecutive years of Continuous
Service immediately before ending Continuous Service.   Except to
the extent otherwise provided in an Award Agreement, a Participant’s Continuous
Service for this purpose shall include any service with the Company or any of
its Affiliates, as well as the Participant’s service (i) with any predecessor to
the Company or its Affiliates, and (ii) with any company acquired by the Company
or any Affiliate.

     

    “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended
from time to time, or any successor provision.

     

    “SAR” or
“Share Appreciation Right” means Awards granted pursuant to Section
7.

     

    “Section
83(b) Election” shall have the meaning set forth in Section
8(f).

     

    “Separation from Service” has
the meaning set forth in Section 9 of the Plan.

     

    “Shares”
shall have the meaning set forth in the Trust Agreement, as adjusted in
accordance with Section 13.

     

    “Successor
Corporation”
shall have the meaning set forth in Section 13(c)(i).

     

    “Tax
Date” shall have
the meaning set forth in Section 11(b).

     

    “Termination” shall have the meaning set
forth in Section 25(a).

     

    “Total
Shares” shall have the meaning set forth in Section 3.

     

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    “Trust
Agreement” means the Company’s Second Amended and Restated Trust
Agreement dated as of November 17, 2003, as amended

     

    “Trustee”
means a member of the Board, or a member of the board of trustees of an
Affiliate.

     

    “Unrestricted
Shares” mean Shares awarded pursuant to Section 8.

     

     

     

     

     

    -31-ex4-2.htm

    
    

    EXHIBIT
4.2

    

    Form
of Share Option Award Agreement

    under
the

    Centerline
Holding Company 2007 Incentive Share Plan

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

     

    _________________________

     

    Non-Incentive
Share Option Award Agreement

    _________________________

     

    

     

    You are
hereby awarded share options (the “Options”) to purchase
Shares of Centerline Holding Company (the “Company”), subject to
the terms and conditions set forth in this Share Option Award Agreement (the
“Award
Agreement” or “Award”) and in the
Centerline Holding Company 2007 Incentive Share Plan (the “2007
Plan”).  A copy of the 2007 Plan is attached hereto as Exhibit A, and a
summary of the 2007 Plan appears in the 2007 Plan Prospectus attached as Exhibit
B.  You should carefully review these documents and consult
with your personal financial advisor, in order to fully understand the
implications of this Award Agreement, including your tax consequences upon
exercise of the Options.

     

    By
executing this Award Agreement, you agree to be bound by all of the 2007 Plan’s
terms and conditions as if they had been set out verbatim below.  In
addition, you recognize and agree that all determinations, interpretations, or
other actions respecting the 2007 Plan and this Award Agreement will be made by
the Company’s Board of Directors (the “Board”) or a
committee appointed by the Board to administer the 2007 Plan, and shall be
final, conclusive and binding on all parties, including you, your heirs, and
representatives.  Capitalized terms are defined in the 2007 Plan or in
this Award Agreement.

     

    
    

     

    
      	1.	Specific Terms.  Your
      Options have the following terms:

    

          

    
      	
              Name
      of Participant

            	 
      
	
              Type
      of Share Option

            	
              Non-Incentive
      Stock Option

            
	
              Number
      of Shares Subject to Award

            	 
      
	
              Option
      Exercise Price per Share: 1

            	 
      
	
              Grant
      Date

            	 
      
	
              Vesting

            	
               ̈ ___%
      on Grant Date.

               

               ̈ ___%
      on each of the next ______ (#) annual anniversary dates of your Continuous
      Service after the Grant Date.

               

              (subject
      to any employment agreement between you and the Manager); and provided
      further that you will become 100% vested in this Award if your Continuous
      Service ends due to your Retirement, your death, or your
      Disability.

            

    

     

    ___________________________

    1 The exercise price of a non-ISO must be
at least 100% of the Fair Market Value of the underlying Shares.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Expiration
      Date

            	
               ̈ ____
      years after Grant Date; or

               

               ̈ 10
      years after Grant Date

               

              (at
      5:00 p.m. (E.D.T. or E.S.T., as applicable) on the Expiration
      Date)

            
	
              Lifetime
      Transfers

            	
               ̈ Allowed in
      accordance with Section 12(b) of the 2007 Plan.

               ̈ Not
      allowed.

            

    

     

    2.       Manner of
Exercise.  The Options shall be exercised in the manner set
forth in the 2007 Plan, using the exercise form attached hereto as Exhibit
C.  The amount of Shares for which the Options may be exercised
is cumulative; that is, if you fail to exercise the Options for all of the
Shares vested under the Options during any period set forth above, then any
Shares subject to the Options that are not exercised during such period may be
exercised during any subsequent period, until the expiration or termination of
the Options pursuant to Sections 1 and 3 of this Award Agreement and the terms
of the 2007 Plan.  Fractional Shares may not be
purchased.

     

    3.      
Termination
of Continuous Service.  Subject to the
terms of any Employment Agreement between you and the Company and/or its
subsidiaries then in effect, this Award shall be canceled and become
automatically null and void immediately after termination of your Continuous
Service for any reason, but only to the extent you have not become vested,
pursuant to the foregoing terms, on or at the time your Continuous Service
ends.

     

    4.      
Designation
of Death Beneficiary.  Notwithstanding anything to the contrary
contained herein or in the 2007 Plan, following the execution of this Award
Agreement, you may expressly designate a death beneficiary (the “Beneficiary”) to your
interest, if any, in this Award and any underlying Shares.  You shall
designate the Beneficiary by completing and executing a designation of
beneficiary agreement substantially in the form attached hereto as Exhibit D (the “Designation of Death
Beneficiary”) and delivering an executed copy of the Designation of
Beneficiary to the Company.  To the extent you do not duly designate a
beneficiary who survives you, your estate will automatically be your
beneficiary.

     

    5.      
Restrictions
on Transfer of Award.  Your rights under this Award Agreement
may not be sold, pledged, or otherwise transferred without the prior written
consent of the Committee, except as hereinafter provided.  If Section
1 allows you to make a transfer of the Restricted Shares subject to this Award,
you may transfer the Restricted Shares as follows:

     

    
      	
              (i)     
       

            	
              by
      instrument to an inter vivos or testamentary trust (or other entity) in
      which each beneficiary is a Permitted Transferee, as defined  in
      subsection (ii) of this Section, or

            

    

     

    
      	
              (ii)    
       

            	
              by
      gift to charitable institutions or by gift or transfer for consideration
      to any of the following relatives of yours: any child, stepchild,
      grandchild, parent, stepparent, grandparent, spouse, former spouse,
      domestic partner, sibling, niece, nephew, mother-in-law, father-in-law,
      son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall
      include adoptive relationships (each a “Permitted
      Transferee”).

            

    

     

     

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

    

     

    Any
Permitted Transferee of your rights shall succeed and be subject to all of the
terms of this Award Agreement and the 2007 Plan.

     

    6.       Taxes.  Except
to the extent otherwise specifically provided in an employment agreement between
you and the Manager, by signing this Award Agreement, you acknowledge that you
shall be solely responsible for the satisfaction of any taxes that may arise
pursuant to this Award (including taxes arising under Code Sections 409A
(regarding deferred compensation) or 4999 (regarding golden parachute excise
taxes), and that neither the Company nor the Administrator shall have any
obligation whatsoever to pay such taxes or to otherwise indemnify or hold you
harmless from any or all of such taxes.  The Committee shall have the
sole discretion to interpret the requirements of the Code, including Section
409A, for purposes of the 2007 Plan and this Award Agreement.

     

    7.      
Notices.  Any
notice or communication required or permitted by any provision of this Award
Agreement to be given to you shall be in writing and shall be delivered
electronically, personally, or sent by certified mail, return receipt requested,
addressed to you at the last address that the Company had for you on its
records.  Each party may, from time to time, by notice to the other
party hereto, specify a new address for delivery of notices relating to this
Award Agreement.  Any such notice shall be deemed to be given as of
the date such notice is personally or electronically delivered or properly
mailed.

     

    8.      
Binding
Effect.  Except as otherwise provided in this Award Agreement
or in the 2007 Plan, every covenant, term, and provision of this Award Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, legatees, legal representatives, successors, transferees, and
assigns.

     

    9.                             
 Modifications.  This
Award Agreement may be modified or amended at any time, in accordance with
Section 15 of the 2007 Plan and provided that you must consent in writing to any
modification that adversely and materially affects any rights or obligations
under this Award Agreement (with such an affect being presumed to arise from a
modification that would trigger a violation of Section 409A of the
Code).

     

    10.                            
Headings.  Section
and other headings contained in this Award Agreement are for reference purposes
only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

     

    11.                           
 Severability.  Every
provision of this Award Agreement and of the 2007 Plan is intended to be
severable.  If any term hereof is illegal or invalid for any reason,
such illegality or invalidity shall not affect the validity or legality of the
remaining terms of this Award Agreement.

     

    12.                           
 Counterparts.  This
Award Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

     

    13.                           
 2007 Plan
Governs.  By signing this Award Agreement, you acknowledge that
you have received a copy of the 2007 Plan and that your Award Agreement is
subject to all the provisions contained in the 2007 Plan, the provisions of
which are made a part of this Award Agreement and your Award is subject to all
interpretations, amendments, rules and regulations which from time to time may
be promulgated and adopted pursuant to the 2007 Plan.  In the event of
a conflict between 

     

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

    

     

    the provisions of this Award Agreement and those of the 2007 Plan,
the provisions of the 2007 Plan shall control.

     

    14.                           
 Investment
Purposes.  By executing this Award, you acknowledge that you
are receiving and will be holding your Restricted Shares for investment purposes
only for your own account, and not with a view to your resale in connection
with, or with your intent to participate directly or indirectly in, any
distribution of such Shares within the meaning of the Securities Act of 1933, as
amended

     

    15.                           
 Not a
Contract of Employment.  By executing this Award Agreement, you
acknowledge and agree that (i) any person who is terminated before full vesting
of an award, such as the one granted to you by this Award, could claim that he
or she was terminated to preclude vesting; (ii) you promise never to make such a
claim; (iii) nothing in this Award Agreement or the 2007 Plan confers on you any
right to continue an employment, service or consulting relationship with the
Company, nor shall it affect in any way your right or the Company’s right to
terminate your employment, service, or consulting relationship at any time, with
or without Cause; and (iv) the Company would not have granted this Award to you
but for these acknowledgements and agreements.

     

    16.                           
 Employment
Agreement Provision  [INCLUDE IF EMPLOYEE HAS
AN EMPLOYMENT AGREEMENT THAT ADDRESSES AWARD VESTING]  By
executing this Award, you acknowledge and agree that your rights upon a
termination of employment before full vesting of this Award will be determined
under Section _____ of your employment agreement with the Company and
________________________, dated as of ______________ _____, 20__. If there is a
conflict between this Award Agreement and your employment agreement, the terms
of your employment agreement will control.

     

    17.                           
 Securities
Law Restrictions.  Regardless of whether the offering and sale
of Options or Shares under the 2007 Plan have been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or
have been registered or qualified under the securities laws of any state, the
Company at its discretion may impose restrictions upon the sale, pledge or other
transfer of such Shares (including the placement of appropriate legends on stock
certificates or the imposition of stop-transfer instructions) if, in the
judgment of the Company, such restrictions are necessary or desirable in order
to achieve compliance with the Securities Act or the securities laws of any
state or any other law or to enforce the intent of this Award.

     

    18.                           
 Governing
Law.  The laws of the State of Delaware shall govern the
validity of this Award Agreement, the construction of its terms, and the
interpretation of the rights and duties of the parties hereto.

     

    BY YOUR
SIGNATURE BELOW, along with the signature of the Company’s representative, you
and the Company agree that the Options are awarded under and governed by the
terms and conditions of this Award Agreement and the 2007 Plan.

     

    

     

    CENTERLINE
HOLDING COMPANY

    

    

    By:          _______________________________ 

    Name:

     

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

    

     

    Title:

    

    

    PARTICIPANT

    

    

    The
undersigned Participant hereby accepts the terms of this Award Agreement and the
2007 Plan.

    

    By:           _______________________________ 

    

    Name of
Participant:         ___________________                                  

    

    
 

    
      
        
        

      

      
        - 5 -

        
          

        

      

      
        
        

      

    

      
       

    

    EXHIBIT
A

     

    CENTERLINE
HOLDING COMPANY

     

    2007
INCENTIVE SHARE PLAN

     

    ____________________________

     

    Plan
Document

     

    ____________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _______________________________

     

    Plan
Prospectus

    ______________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

     

    ___________________________________________________

     

    Form
of Exercise of Share Option Award Agreement

     

    ___________________________________________________

     

    Centerline
Holding Company

     

    Attention:              _______________________

    _______________________

     

    Dear Sir
or Madam:

     

    The
undersigned elects to exercise his/her Incentive Share Option to purchase _____
shares of Common Stock of Centerline Holding Company (the “Company”) under and
pursuant to a Share Option Agreement dated as of ______________.

     

    1.           |_|
Delivered herewith is a certified or bank cashier’s or teller’s check and/or
shares of Common Stock held by the undersigned for at least six months*, valued
at the closing sale price of the stock on the business day prior to the date of
exercise, as follows:

    
    

     

    
      	 	 $	 	  in cash or
      check
	 	 $	 	  in the form
      of ____ shares of Common Stock,
	 	 	 	                   
      valued at $___________ per share
	 	 $	 	  Total

    

    
       

       

    

    2.           |_|
Delivered herewith are irrevocable instructions to a broker approved by the
Company to deliver promptly to the Company the amount of sale or loan proceeds
to pay the exercise price.**

     

    If method
1 is chosen, the name or names to be on the stock certificate or certificates
and the address and Social Security Number of such person(s) is as
follows:

     

    
       

      
        	Name:	 
	 	 
	Address: 	 
	 	 
	Social Security
      Number	 

      

       

    

    
    

     

    
      	 	 	Very truly
      yours,
	Date 	 	 
	 	 	 Optionee

    

     

    *The
Committee may waive the six months’ requirement in its discretion.

    **The
Committee must approve this method in writing before your election

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
D

     

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _________________________________

    

    Designation
of Death Beneficiary

    _________________________________

     

    In
connection with the Awards designated below that I have received pursuant to the
Centerline Holding Company 2007 Incentive Share Plan (the “2007 Plan”), I hereby
designate the person specified below as the beneficiary upon my death of my
interest in such Awards.  This designation shall remain in effect
until revoked in writing by me.

     

    
    

     

    
      	 	Name of
      Beneficiary:  	 	 
	 	 	 	 
	 	Address: 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Social Security
      No.:  	 	 

    

     

                                             

    This
beneficiary designation relates to any and all of my rights under the following
Award or Awards:

     

     ̈           any
Award that I have received or ever receive under the 2007 Plan.

     

    
      	
               
      

            	
               ̈

            	
              the
      _________________ Award that I received pursuant to an award agreement
      dated _________ __, ____ between myself and the
  Company.

            

    

     

    I
understand that this designation operates to entitle the above named
beneficiary, in the event of my death, to any and all of my rights under the
Award(s) designated above from the date this form is delivered to the Company
until such date as this designation is revoked in writing by me, including by
delivery to the Company of a written designation of beneficiary executed by me
on a later date.

     

    
    

     

    
      	 	Date: 	 
	 	By: 	 
	 	 	Name of
      Participant

    

     

    Sworn to
before me this

    ____day
of ____________, 200_

    ___________________________

    Notary
Public

    County
of        _________________

    State
of     __________________

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
4.3

    

    Form
of Restricted Share Units Award Agreement

    under
the

    Centerline
Holding Company 2007 Incentive Share Plan

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _________________________________

    

    Restricted
Share Unit Award Agreement

    __________________________________

     

    You are
hereby awarded Restricted Share Units (the “RSUs”) subject to the
terms and conditions set forth in this Restricted Share Unit Award Agreement
(the “Award
Agreement” or “Award”), and in the
Centerline Holding Company 2007 Incentive Share Plan (the “2007 Plan”) sponsored
by Centerline Holding Company (the “Company”).  A
copy of the 2007 Plan is attached as Exhibit A, and a
summary of the 2007 Plan appears in the Plan Prospectus attached as Exhibit
B.  You should carefully review these documents and consult
with your personal financial advisor, in order to fully understand the
implications of this Award Agreement, including your tax
consequences.

     

    By
executing this Award Agreement, you agree to be bound by all of the 2007 Plan’s
terms and conditions as if they had been set out verbatim below.  In
addition, you recognize and agree that all determinations, interpretations, or
other actions respecting the 2007 Plan and this Award Agreement will be made by
the Company’s Board of Directors (the “Board”) or a
committee appointed by the Board to administer the 2007 Plan, and shall be
final, conclusive and binding on all parties, including you, your heirs and
representatives.  Capitalized terms are defined in the 2007 Plan or in
this Award Agreement.

     

    1.                             
 Specific
Terms.  Your RSUs have the following terms:

     

    
      	
              Name
      of Participant

            	 
      
	
              Number  of
      RSUs
Subject to Award

            	 
      
	
              Purchase
      Price per 
Share (if applicable)

            	
              Not
      applicable.

            
	
              Grant
      Date

            	 
      
	
              Vesting

            	
              Your
      Award will vest at the rate of ____% on each of the next ____annual
      anniversaries of the Grant Date, provided that your Continuous Service has
      not ended before the vesting date (subject to any employment agreement
      between you and the Manager); and provided further that you will become
      100% vested in this Award if your Continuous Service ends due to your
      Retirement, your death, or your Disability.

            
	
              Deferral
      Elections

            	
              □
      Allowed in accordance with Section 8(g) and 9 of the 2007
      Plan.

              □
      Not allowed.

            

    

    

    2.                             
 Termination
of Continuous Service.  Subject to the terms of any Employment
Agreement between you and the Company and/or its subsidiaries then in effect,
this Award shall be canceled 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted Share Unit Award Agreement

          Page 3

        

      

    

     

    and become automatically null and void immediately after
termination of your Continuous Service for any reason, but only to the extent
you have not become vested, pursuant to the foregoing terms, on or at the time
your Continuous Service ends.

     

    3.                             
 Satisfaction
of Vesting Restrictions; Tax Withholding.  No Shares will be
issued before you complete the requirements that are necessary for you to vest
in the Shares underlying your RSUs.  As soon as practicable after the
later of (i) the date on which your RSUs vest in whole or in part or (ii) the
date or dates set forth in your deferral and distribution election forms (if
allowed under Section 1 and made by you), the Company will issue to you or your
duly-authorized transferee, free from vesting restrictions (but subject to such
legends as the Company determines to be appropriate), one Share for each vested
RSU with such number of Shares issued to you being reduced by a number of Shares
having a fair market value equal to the minimum statutory tax withholding
required in connection with the vesting of your RSUs, and with cash being
withheld from your pay for any additional withholding and employment taxes that
applicable tax laws may require.  Certificates shall not be delivered
to you unless all applicable employment and tax-withholding obligations have
been satisfied.  Fractional shares will not be issued, and cash will
be paid in lieu thereof.

     

    4.                               Dividends.  With
respect to each Common Share underlying an RSU granted through this Award, you
will be entitled to receive cash dividends which were declared and paid to the
holders of Common Shares between the Grant Date and the date such Common Share
is issued to you after your interest vests; subject to the treatment of the
Award upon termination of your Continuous Service before the particular record
date for determining shareholders of record entitled to the payment of the cash
or Share-based dividends. When Shares are delivered to you or your
duly-authorized transferee pursuant to the vesting of the RSUs, you or your
duly-authorized transferee shall also be entitled to receive, with respect to
each Common Share delivered, a number of Common Shares equal to the Share-based
dividends which were declared and paid to the holders of Common Shares between
the Grant Date and the date such Common Share is issued to you, after your
interest vests.  To the extent that either (i) your Continuous Service
ends before vesting of the RSUs subject to this Award or (ii) your Continuous
Service does not result in full vesting of this Award, you will forfeit all
Share-based dividends (but not cash dividends) attributable to all such
non-vested RSUs.

     

    5.                             
 Designation
of Death Beneficiary.  Notwithstanding anything to the contrary
contained herein or in the 2007 Plan, following the execution of this Award
Agreement, you may expressly designate a death beneficiary (the “Beneficiary”)
to your interest, if any, in this Award and any underlying
Shares.  You shall designate the Beneficiary by completing and
executing a designation of beneficiary agreement substantially in the form
attached hereto as Exhibit C (the “Designation of Death
Beneficiary”) and delivering an executed copy of the Designation of
Beneficiary to the Company. To the extent you do not duly designate a
beneficiary who survives you, your estate will automatically be your
beneficiary.

     

    6.                             
 Restrictions
on Transfer of Award. Your rights under this Award Agreement may not be
sold, pledged, or otherwise transferred without the prior written consent of the
Committee.

     

    7.                             
 Taxes.  Except
to the extent otherwise specifically provided in an employment agreement between
you and the Manager, by signing this Award Agreement, you acknowledge that you
shall be 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted Share Unit
Award Agreement

          Page
4

        

      

    

     

    solely responsible for the satisfaction of any taxes that may
arise pursuant to this Award (including taxes arising under Code Sections 409A
(regarding deferred compensation) or 4999 (regarding golden parachute excise
taxes), and that neither the Company nor the Administrator shall have any
obligation whatsoever to pay such taxes or to otherwise indemnify or hold you
harmless from any or all of such taxes.  The Committee shall have the
sole discretion to interpret the requirements of the Code, including Section
409A, for purposes of the 2007 Plan and this Award Agreement.

     

    8.                             
 Notices.  Any
notice or communication required or permitted by any provision of this Award
Agreement to be given to you shall be in writing and shall be delivered
electronically,  personally, or sent by certified mail, return receipt
requested, addressed to you at the last address that the Company had for you on
its records.  Each party may, from time to time, by notice to the
other party hereto, specify a new address for delivery of notices relating to
this Award Agreement.  Any such notice shall be deemed to be given as
of the date such notice is personally or electronically delivered or properly
mailed.

     

    9.                             
 Binding
Effect.  Except as otherwise provided in this Award Agreement
or in the 2007 Plan, every covenant, term, and provision of this Award Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, legatees, legal representatives, successors, transferees, and
assigns.

     

    10.                           
 Modifications.  This
Award Agreement may be modified or amended at any time, in accordance with
Section 15 of the 2007 Plan and provided that you must consent in writing to any
modification that adversely and materially affects any rights or obligations
under this Award Agreement (with such an affect being presumed to arise from a
modification that would trigger a violation of Section 409A of the
Code).

     

    11.                           
 Headings.  Section
and other headings contained in this Award Agreement are for reference purposes
only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

     

    12.                           
 Severability.  Every
provision of this Award Agreement and of the 2007 Plan is intended to be
severable.  If any term hereof is illegal or invalid for any reason,
such illegality or invalidity shall not affect the validity or legality of the
remaining terms of this Award Agreement.

     

    13.                           
 Counterparts.  This
Award Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

     

    14.                           
 Plan
Governs.  By signing this Award Agreement, you acknowledge that
you have received a copy of the 2007 Plan and that your Award Agreement is
subject to all the provisions contained in the 2007 Plan, the provisions of
which are made a part of this Award Agreement and your Award is subject to all
interpretations, amendments, rules and regulations which from time to time may
be promulgated and adopted pursuant to the 2007 Plan.  In the event of
a conflict between the provisions of this Award Agreement and those of the 2007
Plan, the provisions of the 2007 Plan shall control.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Unit Award Agreement

          Page
5

        

      

    

     

    15.                           
 Investment
Purposes. By executing this Award, you represent and warrant to the
Company that any Shares issued to you pursuant to your RSUs will be for
investment for your own account and not with a view to, for resale in connection
with, or with an intent of your participating directly or indirectly in, any
distribution of such Shares within the meaning of the Securities Act of 1933, as
amended.

     

    16.                           
 Not a
Contract of Employment.  By executing this Award Agreement you
acknowledge and agree that (i) any person who is terminated before full vesting
of an award, such as the one granted to you by this Award, could claim that he
or she was terminated to preclude vesting; (ii) you promise never to make such a
claim; (iii) nothing in this Award Agreement or the 2007 Plan confers on you any
right to continue an employment, service or consulting relationship with the
Company, nor shall it affect in any way your right or the Company’s right to
terminate your employment, service, or consulting relationship at any time, with
or without Cause; and (iv) the Company would not have granted this Award to you
but for these acknowledgements and agreements.

     

    17.                             Employment
Agreement Provision  [INCLUDE IF EMPLOYEE HAS
AN EMPLOYMENT AGREEMENT THAT ADDRESSES AWARD VESTING]  By
executing this Award, you acknowledge and agree that your rights upon a
termination of employment before full vesting of this Award will be determined
under Section _____ of your employment agreement with the Company and
________________________, dated as of ______________ _____, 20__.  If
there is a conflict between this Award Agreement and your employment agreement,
the terms of your employment agreement will control.

     

    18.                           
 Securities
Law Restrictions.  Regardless of whether the offering and sale
of Shares under the 2007 Plan have been registered under the Securities Act of
1933, as amended (the “Securities Act”), or
have been registered or qualified under the securities laws of any state, the
Company at its discretion may impose restrictions upon the sale, pledge or other
transfer of such Shares (including the placement of appropriate legends on stock
certificates or the imposition of stop-transfer instructions) if, in the
judgment of the Company, such restrictions are necessary or desirable in order
to achieve compliance with the Securities Act or the securities laws of any
state or any other law or to enforce the intent of this Award.

     

    19.                           
 Governing
Law.  The laws of the State of Delaware shall govern the
validity of this Award Agreement, the construction of its terms, and the
interpretation of the rights and duties of the parties hereto.

     

    BY YOUR SIGNATURE BELOW, along with the
signature of the Company’s representative, you and the Company agree that the
RSUs are awarded under and governed by the terms and conditions of this Award
Agreement and the 2007 Plan.

     

    

    CENTERLINE
HOLDING COMPANY

    

    

    By:          _______________________________ 

    Name:

    Title:

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Unit Award Agreement

          Page
6

        

      

    

    

    PARTICIPANT

    

    

    The
undersigned Participant hereby accepts the terms of this Award Agreement and the
2007 Plan.

    

    By:           _______________________________

    

    Name of
Participant:    _______________________________                              

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
A

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    

    _______________________________

    

    Plan
Document

    ______________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT B

    

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    

    _______________________________

    

    Plan
Prospectus

    ______________________________

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

    

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _________________________________

    .

    Designation
of Death Beneficiary

    _________________________________

     

    In
connection with the Awards designated below that I have received pursuant to the
Centerline Holding Company 2007 Incentive Share Plan (the “2007 Plan”), I hereby
designate the person specified below as the beneficiary upon my death of my
interest in such Awards.  This designation shall remain in effect
until revoked in writing by me.

     

    
      	Name of
      Beneficiary: 	 
	 	 
	Address: 	 
	 	 
	Social Security
      No.:	 

    

     

     

    This
beneficiary designation relates to any and all of my rights under the following
Award or Awards:

     

     ̈           any
Award that I have received or ever receive under the 2007 Plan.

     

    
      	
               
      

            	
               ̈

            	
              the
      _________________ Award that I received pursuant to an award agreement
      dated _________ __, ____ between myself and the
  Company.

            

    

     

    I
understand that this designation operates to entitle the above named
beneficiary, in the event of my death, to any and all of my rights under the
Award(s) designated above from the date this form is delivered to the Company
until such date as this designation is revoked in writing by me, including by
delivery to the Company of a written designation of beneficiary executed by me
on a later date.

     

    
       

      
        	 	Date: 	 
	 	By: 	 
	 	 	Name of
      Participant

      

       

      Sworn to
before me this

      ____day
of ____________, 200_

      ___________________________

      Notary
Public

      County
of        _________________

      State
of     __________________

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
4.4

    

    Form
of Restricted Share Award Agreement

    under
the

    Centerline
Holding Company 2007 Incentive Share Plan

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    __________________________________

    

    Restricted
Share Award Agreement

    __________________________________

    

    You are
hereby awarded Restricted Shares subject to the terms and conditions set forth
in this  Award Agreement (the “Award Agreement” or
“Award”) and in
the Centerline Holding Company 2007 Incentive Share Plan (“2007 Plan”) sponsored
by Centerline Holding Company (the “Company”).  A
copy of the 2007 Plan is attached as Exhibit A, and a
summary of the 2007 Plan appears in the Plan Prospectus attached as Exhibit
B.  You should carefully review these documents and consult
with your personal financial advisor, in order to fully understand the
implications of this Award Agreement, including your tax
consequences.

     

    By
executing this Award Agreement, you agree to be bound by all of the 2007 Plan’s
terms and conditions as if they had been set out verbatim below.  In
addition, you recognize and agree that all determinations, interpretations, or
other actions respecting the 2007 Plan and this Award Agreement will be made by
the Company’s Board of Directors (the “Board”)  or
a committee appointed by the Board to administer the 2007 Plan, and
shall  be final, conclusive and binding on all parties, including you,
your heirs and representatives.  Capitalized terms are defined in the
2007 Plan or in this Award Agreement.

     

    1.                             
 Specific
Terms.  Your Restricted Shares have the following
terms:

     

    
      	
              Name
      of Participant

            	 
      
	
              Number
      of Shares
Subject to Award

            	 
      
	
              Purchase
      Price per 
Share (if applicable)

            	
              Not
      applicable.

            
	
              Grant
      Date

            	 
      
	
              Vesting

            	
              Your
      Award will vest at the rate of __% on each of the next ___ annual
      anniversaries of the Grant Date, provided that your Continuous Service has
      not ended before the vesting date (subject to any employment agreement
      between you and the Manager); and provided further that you will become
      100% vested in this Award if your Continuous Service ends due to your
      Retirement, your death, or your Disability.

            
	
              Deferral
      Elections

            	
               ̈ Allowed in
      accordance with Section 8(g) of the 2007 Plan.   ̈ Not
      allowed.

            
	
              Lifetime
      Transfers

            	
               ̈ Allowed in
      accordance with Section 12(b) of the 2007 Plan.   ̈ Not
      allowed.

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Award Agreement

          Page
12

        

      

    

     

    2.                             
 Termination
of Continuous Service.  Subject to the terms of any Employment
Agreement between you and the Company and/or its subsidiaries then in effect,
this Award shall be canceled and become automatically null and void immediately
after termination of your Continuous Service for any reason, but only to the
extent you have not become vested, pursuant to the foregoing terms, on or at the
time your Continuous Service ends.

     

    3.                             
 Dividends;
Voting Rights.   As the owner of record of any Restricted
Shares you qualify to receive pursuant to this Award Agreement, you will be
entitled to receive cash dividends and to vote such Restricted Shares; subject
to the treatment of the Award upon termination of your Continuous Service before
the particular record date for determining shareholders of record entitled to
the payment of the cash or Share-based dividends or to vote.

     

                                    
With respect to any dividends that are paid in Shares between the date of this
Award and your receipt of Common Shares pursuant to a vesting event, such Shares
shall be subject to the same vesting restrictions contained in Section 1 as the
Restricted Shares with respect to which the dividend is paid.  When
Shares are delivered to you or your duly-authorized transferee pursuant to the
vesting of the Restricted Shares, you or your duly-authorized transferee shall
also be entitled to receive, with respect to each Common Share delivered, a
number of Common Shares equal to the Share-based dividends which were declared
and paid to the holders of Common Shares between the Grant Date and the date
such Common Share is issued to you, after your interest vests.  To the
extent that either (i) your Continuous Service ends before vesting of the
Restricted Shares subject to this Award or (ii) your Continuous Service does not
result in full vesting of this Award, you will forfeit all Share-based dividends
(but not cash dividends) attributable to all such non-vested Restricted
Shares.

     

    4.                               Issuance
and Vesting of Restricted Shares.  The Company will hold all
Restricted Shares in escrow, in book entry form, until vesting
occurs.  You will be reflected as the owner of record on the Company’s
books and records of any Restricted Shares credited to you pursuant to this
Award Agreement.  If you forfeit any Restricted Shares, they will be
transferred back to the Company.  If the Restricted Shares vest, upon
satisfaction of any tax withholding requirements, your Restricted Shares will be
reflected on the Company’s books and records as vested Common
Shares.  You may request a physical certificate for your vested Common
Shares, and the Committee, in its discretion, may honor such
request.

     

    5.                             
 Section
83(b) Election Notice.  If you make an election under Section
83(b) of the Internal Revenue Code of 1986 (the “Code”), as amended,
with respect to the Shares underlying your Restricted Shares (a “Section 83(b)
election”), you agree to provide a copy of such election to the Company
within 10 days after filing that election with the Internal Revenue
Service.  Exhibit C contains a
suggested form of Section 83(b) election.

     

    6.                             
 Designation
of Death Beneficiary.  Notwithstanding anything to the contrary
contained herein or in the 2007 Plan, following the execution of this Award
Agreement, you may expressly designate a death beneficiary (the “Beneficiary”) to your
interest, if any, in this Award and any underlying Shares.  You shall
designate the Beneficiary by completing and executing a designation of
beneficiary agreement substantially in the form attached hereto as Exhibit D (the “Designation of Death
Beneficiary”) and delivering an executed copy of the Designation of
Beneficiary to the 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Award Agreement

          Page
13

        

      

    

     

    Company.  To the extent you do not duly designate a
beneficiary who survives you, your estate will automatically be your
beneficiary.

     

    7.                             
 Restrictions
on Transfer of Award.  Your rights under this Award Agreement
may not be sold, pledged, or otherwise transferred without the prior written
consent of the Committee, except as hereinafter provided.  If Section
1 allows you to make a transfer of the Restricted Shares subject to this Award,
you may transfer the Restricted Shares as follows:

     

    
      	
              (i)  

            	
              by
      instrument to an inter vivos or testamentary trust (or other entity) in
      which each beneficiary is a Permitted Transferee, as defined  in
      subsection (ii) of this Section, or

            

    

     

    
      	
              (ii)  

            	
              by
      gift to charitable institutions or by gift or transfer for consideration
      to any of the following relatives of yours: any child, stepchild,
      grandchild, parent, stepparent, grandparent, spouse, former spouse,
      domestic partner, sibling, niece, nephew, mother-in-law, father-in-law,
      son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall
      include adoptive relationships (each a “Permitted
      Transferee”).

            

    

     

    Any
Permitted Transferee of your rights shall succeed and be subject to all of the
terms of this Award Agreement and the 2007 Plan.

     

    8.                             
 Taxes.  Except
to the extent otherwise specifically provided in an employment agreement between
you and the Manager, by signing this Award Agreement, you acknowledge that you
shall be solely responsible for the satisfaction of any taxes that may arise
pursuant to this Award (including taxes arising under Code Sections 409A
(regarding deferred compensation) or 4999 (regarding golden parachute excise
taxes), and that neither the Company nor the Administrator shall have any
obligation whatsoever to pay such taxes or to otherwise indemnify or hold you
harmless from any or all of such taxes.  The Committee shall have the
sole discretion to interpret the requirements of the Code, including Section
409A, for purposes of the 2007 Plan and this Award Agreement.

     

    9.                             
 Notices.  Any
notice or communication required or permitted by any provision of this Award
Agreement to be given to you shall be in writing and shall be delivered
electronically, personally, or sent by certified mail, return receipt requested,
addressed to you at the last address that the Company had for you on its
records.  Each party may, from time to time, by notice to the other
party hereto, specify a new address for delivery of notices relating to this
Award Agreement.  Any such notice shall be deemed to be given as of
the date such notice is personally or electronically delivered or properly
mailed.

     

    10.                           
 Binding
Effect.  Except as otherwise provided in this Award Agreement
or in the 2007 Plan, every covenant, term, and provision of this Award Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, legatees, legal representatives, successors, transferees, and
assigns.

     

    11.                           
 Modifications.  This
Award Agreement may be modified or amended at any time, in accordance with
Section 15 of the 2007 Plan and provided that you must consent in writing to any
modification that adversely and materially affects any rights or obligations
under this Award 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Award Agreement

          Page
14

        

      

    

     

    Agreement (with such an affect being presumed to arise from a
modification that would trigger a violation of Section 409A of the Code).

     

    12.                           
 Headings.  Section
and other headings contained in this Award Agreement are for reference purposes
only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

     

    13.                             Severability.  Every
provision of this Award Agreement and of the 2007 Plan is intended to be
severable.  If any term hereof is illegal or invalid for any reason,
such illegality or invalidity shall not affect the validity or legality of the
remaining terms of this Award Agreement.

     

    14.                           
 Counterparts.  This
Award Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

     

    15.                           
 Plan
Governs.  By signing this Award Agreement, you acknowledge that
you have received a copy of the 2007 Plan and that your Award Agreement is
subject to all the provisions contained in the 2007 Plan, the provisions of
which are made a part of this Award Agreement and your Award is subject to all
interpretations, amendments, rules and regulations which from time to time may
be promulgated and adopted pursuant to the 2007 Plan.  In the event of
a conflict between the provisions of this Award Agreement and those of the 2007
Plan, the provisions of the 2007 Plan shall control.

     

    16.                             Investment
Purposes.  By executing this Award, you acknowledge that you
are receiving and will be holding your Restricted Shares for investment purposes
only for your own account, and not with a view to your resale in connection
with, or with your intent to participate directly or indirectly in, any
distribution of such Shares within the meaning of the Securities Act of 1933, as
amended

     

    17.                             Not a
Contract of Employment.  By executing this Award Agreement you
acknowledge and agree that (i) any person who is terminated before full vesting
of an award, such as the one granted to you by this Award, could claim that he
or she was terminated to preclude vesting; (ii) you promise never to make such a
claim; (iii) nothing in this Award Agreement or the 2007 Plan confers on you any
right to continue an employment, service or consulting relationship with the
Company, nor shall it affect in any way your right or the Company’s right to
terminate your employment, service, or consulting relationship at any time, with
or without Cause; and (iv) the Company would not have granted this Award to you
but for these acknowledgements and agreements.

     

    18.                           
 Employment
Agreement Provision  [INCLUDE IF EMPLOYEE HAS
AN EMPLOYMENT AGREEMENT THAT ADDRESSES AWARD VESTING]  By
executing this Award, you acknowledge and agree that your rights upon a
termination of employment before full vesting of this Award will be determined
under Section _____ of your employment agreement with the Company and
________________________, dated as of ______________ _____,
20__.   If there is a conflict between this Award Agreement and
your employment agreement, the terms of your employment agreement will
control.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
         Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Award Agreement

          Page
15

        

      

    

     

    19.                           
 Securities
Law Restrictions.  Regardless of whether the offering and sale
of Shares under the 2007 Plan have been registered under the Securities Act of
1933, as amended (the “Securities Act”), or
have been registered or qualified under the securities laws of any state, the
Company at its discretion may impose restrictions upon the sale, pledge or other
transfer of such Shares (including the placement of appropriate legends on stock
certificates or the imposition of stop-transfer instructions) if, in the
judgment of the Company, such restrictions are necessary or desirable in order
to achieve compliance with the Securities Act or the securities laws of any
state or any other law or to enforce the intent of this Award.

     

    20.                           
 Governing
Law.  The laws of the State of Delaware shall govern the
validity of this Award Agreement, the construction of its terms, and the
interpretation of the rights and duties of the parties hereto.

     

    

     

    [SIGNATURE
PAGE FOLLOWS]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Centerline
Holding Company 2007 Incentive Share Plan

          Restricted
Share Award Agreement

          Page
16

        

      

    

     

     

    BY YOUR
SIGNATURE BELOW, along with the signature of the Company’s representative, you
and the Company agree that the Restricted Shares are awarded under and governed
by the terms and conditions of this Award Agreement and the 2007
Plan.

     

    CENTERLINE
HOLDING COMPANY

    

    

    By:          _______________________________ 

    Name:

    Title:

    

    PARTICIPANT

    

    The
undersigned Participant hereby accepts the terms of this Award Agreement and the
2007 Plan.

    

    By:           _______________________________ 

    

    Name of
Participant:     _______________________________ 

     

                                          

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _______________________________

     

    Plan
Document

    ______________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _______________________________

     

    Plan
Prospectus

    ______________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

    CENTERLINE
HOLDING COMPANY

     2007
INCENTIVE SHARE PLAN

    _______________________________

     

    Section
83(b) Election Form

    ______________________________

     

    Attached
is an Internal Revenue Code Section 83(b) Election Form.  IF YOU WISH TO MAKE A SECTION 83(B)
ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE RESTRICTED SHARES
COVERED BY THE ELECTION WERE TRANSFERRED TO YOU.  In order to
make the election, you must completely fill out the attached form and file one
copy with the Internal Revenue Service office where you file your tax
return.  In addition, one copy of the statement also must be submitted
with your income tax return for the taxable year in which you make this
election.  Finally, you also must submit a copy of the election form
to the Company within 10 days after filing that election with the Internal
Revenue Service.  A Section 83(b) election normally cannot be
revoked.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CENTERLINE
HOLDING COMPANY

     

    2007
INCENTIVE SHARE PLAN

     

    ________________________________________________________

     

    Election
to Include Value of Restricted Shares in Gross Income

    in
Year of Transfer Under Internal Revenue Code Section 83(b)

    _________________________________________________________

     

    Pursuant
to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days
after receiving the property described herein to be taxed immediately on its
value specified in item 5 below.

     

    1.           My
General Information:

    
    

     

    
      	 	Name:  	 	 
	 	Address:	 	 
	 	 	 	 
	 	S.S.N.	 	 
	 	or
      T.I.N.: 	 	 

    

     

    2.           Description
of the property with respect to which I am making this election:

    

    ____________________
shares of ___________ stock of Centerline Holding Company (the “Restricted
Shares”).

    

    
      	
              3.

            	
              The
      Restricted Shares were transferred to me on ______________ ___,
      20__.  This election relates to the 20____ calendar taxable
      year.

            

    

    

    4.           The
Restricted Shares are subject to the following restrictions:

    

    The
Restricted Shares are forfeitable until they are earned in accordance with the
Restricted Share Award Agreement (“Award Agreement”)
made under the Centerline Holding Company 2007 Incentive Share Plan (“2007
Plan”).  The Restricted Shares generally are not transferable
until my interest becomes vested and nonforfeitable, pursuant to the Award
Agreement and the 2007 Plan.

    

    5.           Fair
market value:

    

    The fair
market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms never will lapse) of
the Restricted Shares with respect to which I am making this election is $_____
per share.

    

    6.           Amount
paid for Restricted Shares:

    

    The
amount I paid for the Restricted Shares is $____ per share.

    

    7.           Furnishing
statement to employer:

    

    A copy of
this statement has been furnished to my employer, ______________.  If
the transferor of the Restricted Shares is not my employer, that entity also has
been furnished with a copy of this statement.

    

    8.           Award
Agreement or 2007 Plan not affected:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Nothing
contained herein shall be held to change any of the terms or conditions of the
Award Agreement or the 2007 Plan.

    

    

    Dated:
____________ __, 200_.

    

    

    

     

    ______________________________

    Taxpayer

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
D

     

    CENTERLINE
HOLDING COMPANY

    2007
INCENTIVE SHARE PLAN

    _________________________________

    

    Designation
of Death Beneficiary

    _________________________________

     

    In
connection with the Awards designated below that I have received pursuant to the
Centerline Holding Company 2007 Incentive Share Plan (the “2007 Plan”), I hereby
designate the person specified below as the beneficiary upon my death of my
interest in such Awards.  This designation shall remain in effect
until revoked in writing by me.

     

    
       

      
        	Name of
      Beneficiary: 	 
	 	 
	Address: 	 
	 	 
	Social Security
      No.:	 

      

                                     

    

     

    This
beneficiary designation relates to any and all of my rights under the following
Award or Awards:

     

     ̈           any
Award that I have received or ever receive under the 2007 Plan.

     

    
      	
               
      

            	
               ̈

            	
              the
      _________________ Award that I received pursuant to an award agreement
      dated _________ __, ____ between myself and the
  Company.

            

    

     

    I
understand that this designation operates to entitle the above named
beneficiary, in the event of my death, to any and all of my rights under the
Award(s) designated above from the date this form is delivered to the Company
until such date as this designation is revoked in writing by me, including by
delivery to the Company of a written designation of beneficiary executed by me
on a later date.

     

    
       

      
        	 	Date: 	 
	 	By: 	 
	 	 	Name of
      Participant

      

       

      Sworn to
before me this

      ____day
of ____________, 200_

      ___________________________

      Notary
Public

      County
of        _________________

                                                                    
STATE
OF                                ____________

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