Document:

Exhibit 10.16

Exhibit 10.16

REGISTRATION RIGHTS AGREEMENT

dated as of

March 5, 2010

among

CENTERLINE HOLDING COMPANY

and

THE SHAREHOLDERS PARTY HERETO

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.02. Other Definitional and Interpretative Provisions
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 Registration Rights
	 	 	4	 
	 
	 	 	 	 
	Section 2.01. Demand Registration
	 	 	4	 
	 
	 	 	 	 
	Section 2.02. Piggyback Registration
	 	 	6	 
	 
	 	 	 	 
	Section 2.03. Shelf Registration
	 	 	8	 
	 
	 	 	 	 
	Section 2.04. Registration Procedures
	 	 	9	 
	 
	 	 	 	 
	Section 2.05. Participation In Public Offering
	 	 	12	 
	 
	 	 	 	 
	Section 2.06. Rule 144 Sales; Cooperation By The Company
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3 Indemnification and Contribution
	 	 	12	 
	 
	 	 	 	 
	Section 3.01. Indemnification by the Company
	 	 	12	 
	 
	 	 	 	 
	Section 3.02. Indemnification by Participating Shareholders
	 	 	13	 
	 
	 	 	 	 
	Section 3.03. Conduct of Indemnification Proceedings
	 	 	14	 
	 
	 	 	 	 
	Section 3.04. Contribution
	 	 	14	 
	 
	 	 	 	 
	Section 3.05. Other Indemnification
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 4 Miscellaneous
	 	 	15	 
	 
	 	 	 	 
	Section 4.01. Notices
	 	 	15	 
	 
	 	 	 	 
	Section 4.02. Severability
	 	 	16	 
	 
	 	 	 	 
	Section 4.03. Entire Agreement; No Third Party Beneficiaries
	 	 	16	 
	 
	 	 	 	 
	Section 4.04. Amendment; Waiver
	 	 	16	 
	 
	 	 	 	 
	Section 4.05. Binding Effect; Assignment
	 	 	16	 
	 
	 	 	 	 
	Section 4.06. Governing Law
	 	 	17	 
	 
	 	 	 	 
	Section 4.07. Dispute Resolution; Mediation; Jurisdiction
	 	 	17	 
	 
	 	 	 	 
	Section 4.08. Independent Nature of Shareholders’ Obligations and Rights
	 	 	18	 
	 
	 	 	 	 
	Section 4.09. Construction
	 	 	18	 
	 
	 	 	 	 
	Section 4.10. Time of the Essence
	 	 	18	 
	 
	 	 	 	 
	Section 4.11. Counterparts
	 	 	19	 
	 
	 	 	 	 
	Section 4.12. Other Registration Rights
	 	 	19	 
	 
	 	 	 	 
	Section 4.13. Further Actions
	 	 	19	 

 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 4.14. Availability of Equitable Remedies
	 	 	19	 

 

-ii-

 

REGISTRATION RIGHTS AGREEMENT

This AGREEMENT (this “Agreement”) dated as of March 5, 2010 is entered into by and among
Centerline Holding Company, a Delaware statutory trust (the “Company”), and each Shareholder that
executes the signature pages to this Agreement.

In consideration of the mutual promises made herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

Definitions

Section 1.01. Definitions. The following terms, as used herein, have the following
meanings:

“Affiliate” of a Person means a Person that controls, is controlled by, or is under common
control with, such Person. For the purpose of this definition, the term “control” (including, with
correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as
used with respect to any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

“Agreement” shall have the meaning specified in the preamble to this Agreement.

“Board” means the board of trustees of the Company.

“Business Day” means any day except a Saturday, Sunday or other day on which banks in New York
City are authorized by law to be closed.

“Common Shares” means the common shares of beneficial interest of the Company.

“Company” shall have the meaning specified in the preamble to this Agreement.

“Damages” shall have the meaning specified in Section 3.01 of this Agreement.

“Demand Registration” shall have the meaning specified in Section 2.01(a) of this Agreement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

“FINRA” means the Financial Industry Regulatory Authority, Inc. (formerly, the National
Association of Securities Dealers, Inc.) and any successor thereto.

“Indemnified Party” shall have the meaning specified in Section 3.03 of this Agreement.

 

 

 

“Indemnifying Party” shall have the meaning specified in Section 3.03 of this Agreement.

“Inspectors” shall have the meaning specified in Section 2.04(g) of this Agreement.

“Maximum Offering Size” shall have the meaning specified in Section 2.01(e) of this Agreement.

“Permitted Transferee” means in the case of any Shareholder, a Person to whom Registrable
Securities are Transferred by such Shareholder; provided, however, that (i) such
Transfer does not violate any agreement between such Shareholder and the Company or any of the
Company’s subsidiaries, (ii) such Transfer is not made in a registered offering or pursuant to Rule
144 and (iii) such transferee shall be a Permitted Transferee only if and to the extent the
transferor designates the transferee as a Permitted Transferee entitled to rights hereunder
pursuant to Section 4.05(a).

“Person” means an individual, corporation, partnership, limited liability company,
partnership, association, trust, unincorporated organization or other entity.

“Piggyback Registration” shall have the meaning specified in Section 2.02(a) of this Agreement.

“Public Offering” means an underwritten public offering of Registrable Securities of the
Company pursuant to an effective registration statement under the Securities Act, other than
pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form.

“Records” shall have the meaning specified in Section 2.04(g) of this Agreement.

“Registering Shareholders” shall have the meaning specified in Section 2.01(a)(ii) of this
Agreement.

“Registrable Securities” means, at any time, any Common Shares, any security or instrument
that is, whether or not subject to a condition, convertible into or exercisable for Common Shares
and any other security or instrument issued or issuable by the Company or any of its successors or
assigns in respect of any such Common Shares or security by way of conversion, exchange, exercise,
dividend, split, reverse split, combination, recapitalization, reclassification, merger,
amalgamation, consolidation, sale of assets, other reorganization or otherwise until (i) a
registration statement covering such Common Shares or such other security has been declared
effective by the SEC and such Common Shares or such other security has been disposed of pursuant to
such effective registration statement or (ii) such Common Shares are (or such other security is)
sold under circumstances in which all of the applicable conditions of Rule 144 are met or are
freely transferable by the Shareholder without regard to holding period, volume or manner of sale
volume limitations pursuant to Rule 144(b)(1); provided, that the Company shall have
provided a legal opinion reasonably acceptable to the applicable Shareholder to such effect.

“Registration Expenses” means any and all expenses incident to the performance of, or
compliance with, any registration or marketing of securities, including all (i) registration and

 

2

 

filing fees, and all other fees and expenses payable in connection with the listing of
securities on any securities exchange or automated interdealer quotation system, (ii) fees and
expenses of compliance with any securities or “blue sky” laws (including reasonable fees and
disbursements of counsel in connection with “blue sky” qualifications of the securities
registered), (iii) expenses in connection with the preparation, printing, mailing and delivery of
any registration statements, prospectuses and other documents in connection therewith and any
amendments or supplements thereto, (iv) security engraving and printing expenses, (v) internal
expenses of the Company (including all salaries and expenses of its officers and employees
performing legal or accounting duties), (vi) reasonable fees and disbursements of counsel for the
Company and customary fees and expenses for independent certified public accountants retained by
the Company (including the expenses relating to any comfort letters or costs associated with the
delivery by independent certified public accountants of any comfort letters requested pursuant to
Section 2.04(h)), (vii) reasonable fees and expenses of any special expert retained by the Company
in connection with such registration, (viii) reasonable fees, out-of-pocket costs and expenses of
the Shareholders, including one counsel for all of the Shareholders participating in the offering
selected by the Shareholders holding the majority of the Registrable Securities to be sold for the
account of all Shareholders in the offering, (ix) fees and expenses in connection with any review
by FINRA of the underwriting arrangements or other terms of the offering, and all fees and expenses
of any “qualified independent underwriter,” including the fees and expenses of any counsel thereto,
(x) fees and disbursements of underwriters customarily paid by issuers or sellers of securities,
but excluding any underwriting fees, discounts and commissions attributable to the sale of
Registrable Securities, (xi) costs of printing and producing any agreements among underwriters,
underwriting agreements, any “blue sky” or legal investment memoranda and any selling agreements
and other documents in connection with the offering, sale or delivery of the Registrable
Securities, (xii) transfer agents’ and registrars’ fees and expenses and the fees and expenses of
any other agent or trustee appointed in connection with such offering, (xiii) expenses relating to
any analyst or investor presentations or any “road shows” undertaken in connection with the
registration, marketing or selling of the Registrable Securities, and (xiv) all out-of pocket costs
and expenses incurred by the Company or its appropriate officers in connection with their
compliance with Section 2.04(m).

“Requesting Shareholder” shall have the meaning specified in Section 2.01(a) of this Agreement.

“Rule 144” means Rule 144 (or any successor or similar provisions) under the Securities Act.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended and the rules and regulations
promulgated thereunder.

“Shareholder” means at any time, any Person (other than the Company) who shall then be a party
to or bound by this Agreement, so long as such Person shall “beneficially own” (as such term is
defined in Rule 13d-3 of the Exchange Act) any Registrable Security.

“Shelf Registration” shall have the meaning specified in Section 2.03(a) of this Agreement.

 

3

 

“Shelf
Requesting Shareholder” shall have the meaning specified in
Section 2.03(a) of this
Agreement.

“Transfer” means, with respect to any Registrable Security, (i) when used as a verb, to sell,
assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Registrable
Security or any participation or interest therein, whether directly or indirectly, or agree or
commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale,
assignment, disposition, exchange, pledge, encumbrance, hypothecation or other transfer of such
Registrable Security or any participation or interest therein or any agreement or commitment to do
any of the foregoing.

“Underwritten
Takedown” shall have the meaning specified in
Section 2.03(a) of this Agreement.

Section 1.02. Other Definitional and Interpretative Provisions. When a reference is made
in this Agreement to an Article, Section or Exhibit, such reference is to an Article or a Section
of, or Exhibit to, this Agreement, unless otherwise indicated. The words “include,” “includes” or
“including” and “such as” do not limit the preceding words or terms and shall be deemed to be
followed by the words “without limitation.” The words “hereof,” “herein,” “hereunder,” “hereby”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. All pronouns and any variations thereof refer to the
masculine, feminine or neuter, singular or plural, as the context may require. All terms defined
in this Agreement in their singular or plural forms, have correlative meanings when used in their
plural or singular forms, respectively.

ARTICLE 2

Registration Rights

Section 2.01. Demand Registration. (a) If the Company shall receive a request
from one or more Shareholders (the requesting Shareholder(s) shall be referred to herein as
the “Requesting Shareholder”) that the Company effect the registration under the Securities
Act of all or any portion of the Requesting Shareholder’s Registrable Securities, and
specifying the intended method of disposition thereof, then the Company shall promptly give
notice of such requested registration (each such request shall be referred to herein as a
“Demand Registration”) at least ten (10) Business Days prior to the anticipated filing date
of the registration statement relating to such Demand Registration to the other Shareholders
and thereupon shall use its commercially reasonable efforts to effect, as expeditiously as
possible, the registration under the Securities Act of:

(i) subject to the restrictions set
forth in Section 2.01(e), all Registrable Securities for which the Requesting Shareholder
has requested registration under this Section 2.01, and

(ii) subject to the restrictions set forth in Section 2.01(e) and Section 2.02, all
other Registrable Securities of the same class as those requested to be registered by the
Requesting Shareholder that any Shareholder (all such Shareholders, together with the
Requesting Shareholder, the “Registering Shareholders”) has requested the Company to
register pursuant to Section 2.02, by request received by the Company within seven (7)

 

4

 

Business Days after such Shareholders receive the Company’s notice of the Demand
Registration,

all to the extent necessary to permit the disposition (in accordance with the intended methods
thereof as aforesaid) of the Registrable Securities so to be registered; provided,
however, that the Company shall not be obligated to effect a Demand Registration unless the
aggregate proceeds expected to be received from the sale of the Registrable Securities requested to
be included in such Demand Registration equals or exceeds $10,000,000 or such lesser amount that
constitutes all of the Requesting Shareholder’s Registrable Securities; provided, the
proceeds expected are no less than $1,00,000.00. The Company shall file the initial registration
statement with the SEC as promptly as possible, but in any event within fifteen (15) days for a
Form S-3 and thirty (30) days for any other form. In no event shall the Company be required to
effect more than two (2) Demand Registrations hereunder within any one (1) year period and no more
than six (6) Demand Registrations hereunder in total.

(b) Promptly after the expiration of the seven (7) Business Day period referred to in Section
2.01(a)(ii), the Company will notify all Registering Shareholders of the identities of the other
Registering Shareholders and the number of shares of Registrable Securities requested to be
included therein. At any time prior to the effective date of the registration statement relating
to such registration, the Requesting Shareholder may revoke such request, without liability to any
of the other Registering Shareholders, by providing a notice to the Company revoking such request.
A request, so revoked, shall be considered to be a Demand Registration unless (i) such revocation
arose out of the fault of the Company (in which case the Company shall be obligated to pay all
Registration Expenses in connection with such revoked request) or (ii) the Requesting Shareholder
reimburses the Company for all Registration Expenses of such revoked request.

(c) The Company shall be liable for and shall pay all Registration Expenses in connection with
any Demand Registration, regardless of whether such Registration is effected, and regardless of
whether a Demand Registration shall not be deemed to have occurred, unless the Requesting
Shareholder elects to pay such Registration Expenses as described in the last sentence of Section
2.01(b).

(d) A Demand Registration shall not be deemed to have occurred:

(i) unless the registration statement relating thereto (A) has become effective under
the Securities Act and (B) has remained effective for a period of at least one hundred
eighty (180) days (or such shorter period in which all Registrable Securities of the
Registering Shareholders included in such registration have actually been sold thereunder);
provided, however, that a Demand Registration shall not be deemed to have
occurred if, after such registration statement becomes effective, (x) such registration
statement is interfered with by any stop order, injunction or other order or requirement of
the SEC or other governmental agency or court and (y) less than 90% of the Registrable
Securities included in such registration statement have been sold thereunder;

(ii) if the Maximum Offering Size is reduced in accordance with Section 2.01(e) such
that less than 75% of the Registrable Securities of the Requesting Shareholders sought to be
included in such registration are included;

 

5

 

(iii) if the Requesting Shareholder determines in good faith to withdraw (prior to the
effective date of the registration statement relating to such request) the proposed
registration due to marketing or regulatory reasons;

(iv) if the registration statement relating to such request is not declared effective
within ninety (90) days of the date such registration is first filed with the SEC; or

(v) if the conditions to closing specified in the underwriting agreement or purchase
agreement entered into in connection with the registration relating to such request are not
satisfied (other than as a result of a material default or breach thereunder by the
Requesting Shareholder).

(e) If a Demand Registration involves an underwritten Public Offering and the managing
underwriter advises the Company and the Requesting Shareholder that, in its view, the number of
shares of Registrable Securities requested to be included in such registration (including any
security that the Company proposes to be included that are not Registrable Securities (including
any security for the benefit of any other Person not a party to this Agreement)) exceeds the
largest number of shares that can be sold without having an adverse effect on such offering,
including the price at which such shares can be sold (the “Maximum Offering Size”), the Company
shall include in such registration, in the priority listed below, up to the Maximum Offering Size:

(i) first, all Registrable Securities requested to be included in such registration by
all Registering Shareholders (allocated, if necessary for the offering not to exceed the
Maximum Offering Size, pro rata among such Shareholders on the basis of the relative number
of Registrable Securities held by each such Shareholder); and

(ii) second, any securities proposed to be registered by the Company (including for the
benefit of any other Person not a party to this Agreement).

(f) Upon notice to the Requesting Shareholder, the Company may postpone effecting a
registration pursuant to this Section 2.01 on one occasion during any period of six (6) consecutive
months for a reasonable time specified in the notice but not exceeding sixty (60) days (which
period may not be extended or renewed), if (i) the Company reasonably determines that effecting the
registration would materially and adversely affect an offering of securities of the Company the
preparation of which had then been commenced or (ii) the Company is in possession of material
non-public information the disclosure of which during the period specified in such notice the
Company reasonably believes would not be in the best interests of the Company.

Section 2.02. Piggyback Registration. (a) If the Company proposes to register any
Registrable Security under the Securities Act (other than (i) a Shelf Registration, which will be
subject to the provisions of Section 2.03; provided, however, that any Underwritten
Takedown will be subject
to this Section 2.02, (ii) a registration on Form S-8 or S-4, or any successor or similar forms,
relating to Common Shares issuable upon exercise of employee stock options or in connection with
any employee benefit or similar plan of the Company or in connection with an exchange

 

6

 

offer or a
direct or indirect acquisition by the Company of another Person, (iii) a registration relating to a
rights offering to the Company’s existing security holders or (iv) a shelf registration for a
primary offering by the Company pursuant to Rule 415 under the Securities Act), whether or not for
sale for its own account (a “Piggyback Registration”), the Company each such time shall give prompt
notice at least ten (10) Business Days prior to the anticipated filing date of the registration
statement relating to such registration to each Shareholder, which notice shall set forth such
Shareholder’s rights under this Section 2.02 and shall offer such Shareholder the opportunity to
include in such registration statement the number of Registrable Securities of the same class or
series as those proposed to be registered as each such Shareholder may request subject to the
provisions of Section 2.02(b). Upon the request of any such Shareholder made within seven (7)
Business Days after the receipt of notice from the Company (which request shall specify the number
of Registrable Securities intended to be registered by such Shareholder), the Company shall use all
commercially reasonable efforts to effect the registration under the Securities Act of all
Registrable Securities that the Company has been so requested to register by all such Shareholders,
to the extent required to permit the disposition of the Registrable Securities so to be registered;
provided, however, that (x) if such registration involves an underwritten Public
Offering, all such Shareholders requesting to be included in the Company’s registration must sell
their Registrable Securities to the underwriters selected as provided in Section 2.04(f) on the
same terms and conditions as apply to the Company or the Requesting Shareholder, as applicable, and
(y) if, at any time after giving notice of its intention to register any Registrable Security
pursuant to this Section 2.02(a) and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any reason not to register
such securities, the Company shall give notice to all such Shareholders and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection with such
registration. No registration effected under this Section 2.02 shall relieve the Company of its
obligations to effect a Demand Registration to the extent required by Section 2.01 or a Shelf
Registration to the extent required by Section 2.03. The Company shall pay all Registration
Expenses in connection with each Piggyback Registration.

(b) If a Piggyback Registration involves an underwritten Public Offering (other than any
Demand Registration, in which case the provisions with respect to priority of inclusion in such
offering set forth in Section 2.01(e) shall apply) and the managing underwriter advises the Company
that, in its view, the number of Shares that the Company and such Shareholders intend to include in
such registration exceeds the Maximum Offering Size, the Company shall include in such
registration, in the following priority, up to the Maximum Offering Size:

(i) first, so much of the Registrable Securities proposed to be registered for the
account of the Company as would not cause the offering to exceed the Maximum Offering Size,

(ii) second, all Registrable Securities requested to be included in such registration
by any Shareholder pursuant to this Section 2.02 (allocated, if necessary for the offering
not to exceed the Maximum Offering Size, pro rata among such Shareholders
on the basis of the relative number of shares of Registrable Securities so requested to
be included in such registration by each), and

 

7

 

(iii) third, any securities proposed to be registered for the account of any other
Person with such priorities among them as the Company shall determine.

Section 2.03. Shelf Registration. (a) If the Company is or becomes eligible to use
Form S-3, one or more Shareholders (the “Shelf Requesting Shareholder”) may request the Company to
effect a registration (a “Shelf Registration”) of some or all of the Registrable Securities held by
such Shelf Requesting Shareholder under a registration statement pursuant to Rule 415 under the
Securities Act (or any successor or similar rule). The Company shall be required to effectuate
only one (1) Public Offering from such Shelf Registration (an “Underwritten Takedown”) within any
six (6) month period, which offering shall be deemed a Demand Registration and six (6) Public
Offerings from such Shelf Registration. The provisions of Section 2.01 shall apply mutatis
mutandis to each Underwritten Takedown, with references to “filing of the registration statement”
or “effective date” being deemed references to filing of a prospectus or supplement for such
offering and references to “registration” being deemed references to the Public Offering;
provided, however, that Registering Shareholders shall include only Shareholders
whose Registrable Securities are included in such Shelf Registration or may be included therein
without the need for an amendment to such Shelf Registration (other than an automatically effective
amendment). So long as the Shelf Registration is effective, a Shareholder may request any Demand
Registration pursuant to Section 2.01 only with respect to Registrable Shares that are not
registered on such Shelf Registration.

(b) If the Company shall receive a request from a Shelf Requesting Shareholder that the
Company effect a Shelf Registration, then the Company shall promptly give notice of such requested
registration at least ten (10) Business Days prior to the anticipated filing date of the
registration statement relating to such Shelf Registration to the other Shareholders and thereupon
shall use its commercially reasonable efforts to effect, as expeditiously as possible (but in any
event within fifteen (15) days), the registration under the Securities Act of:

(i) all Registrable Securities for which the Shelf Requesting Shareholder has requested
registration under this Section 2.03 and

(ii) all other Registrable Securities of the same class as those requested to be
registered by the Shelf Requesting Shareholder that any Shareholder has requested the
Company to register by request received by the Company within seven (7) Business Days after
such Shareholders receive the Company’s notice of the Shelf Registration,

all to the extent necessary to permit the registration of the Registrable Securities so to be
registered on such Shelf Registration.

(c) At any time prior to the effective date of the registration statement relating to such
Shelf Registration, the Shelf Requesting Shareholder may revoke such request, without liability to
any of the other Registering Shareholders, by providing a notice to the Company revoking such
request.

(d) The Company shall be liable for and pay all Registration Expenses in connection with any
Shelf Registration.

 

8

 

(e) Upon notice to the Shelf Requesting Shareholder, the Company may postpone effecting a
registration pursuant to this Section 2.03 on one occasion during any period of six (6) consecutive
months for a reasonable time specified in the notice but not exceeding sixty (60) days (which
period may not be extended or renewed), if (i) the Company determines that effecting the
registration would materially and adversely affect an offering of securities of the Company the
preparation of which had then been commenced or (ii) the Company is in possession of material
non-public information the disclosure of which during the period specified in such notice the
Company reasonably believes would not be in the best interests of the Company.

Section 2.04. Registration Procedures. Whenever Shareholders request that any Registrable
Security be registered pursuant to Section 2.01, 2.02 or 2.03 subject to the provisions of such
Sections, the Company shall use all commercially reasonable efforts to effect the registration and
the sale of such Registrable Securities in accordance with the intended method of disposition
thereof as quickly as practicable, and, in connection with any such request:

(a) The Company shall as expeditiously as possible prepare and file with the SEC a
registration statement on any form for which the Company then qualifies or that counsel for the
Company shall deem appropriate and which form shall be available for the sale of the Registrable
Securities to be registered thereunder in accordance with the intended method of distribution
thereof, and use all commercially reasonable efforts to cause such filed registration statement to
become and remain effective for a period of not less than one hundred eighty (180) days, or in the
case of a Shelf Registration, three (3) years (or such shorter period in which all of the
Registrable Securities of the Shareholders included in such registration statement shall have
actually been sold thereunder). Any such registration statement shall be an automatically
effective registration statement to the extent permitted by the SEC’s rules and regulations.

(b) Prior to filing a registration statement or prospectus or any amendment or supplement
thereto (other than any report filed pursuant to the Exchange Act that is incorporated by reference
therein), the Company shall, if requested, furnish to each participating Shareholder and each
underwriter, if any, of the Registrable Securities covered by such registration statement copies of
such registration statement as proposed to be filed, and thereafter the Company shall furnish to
such Shareholder and underwriter, if any, such number of copies of such registration statement,
each amendment and supplement thereto (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such registration statement
(including each preliminary prospectus and any summary prospectus) and any other prospectus filed
under Rule 424, Rule 430A, Rule 430B or Rule 430C under the Securities Act and such other documents
as such Shareholder or underwriter reasonably may request in order to facilitate the disposition of
the Registrable Securities owned by such Shareholder.

(c) After the filing of the registration statement, the Company shall (i) cause the related
prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be
filed pursuant to Rule 424 under the Securities Act, (ii) comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement during the applicable period in accordance with the
intended methods of disposition by the Shareholders thereof set forth in such registration
statement or supplement to such prospectus and (iii) promptly notify each Shareholder holding

 

9

 

Registrable Securities covered by such registration statement of any stop order issued or
threatened by the SEC or any state securities commission and take all reasonable actions required
to prevent the entry of such stop order or to remove it if entered.

(d) The Company shall use all commercially reasonable efforts to (i) register or qualify the
Registrable Securities covered by such registration statement under such other securities or “blue
sky” laws of such jurisdictions in the United States as any Registering Shareholder holding such
Registrable Securities reasonably (in light of such Shareholder’s intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the business and operations
of the Company and do any and all other acts and things that may be reasonably necessary or
advisable to enable such Shareholder to consummate the disposition of the Registrable Securities
owned by such Shareholder, provided, however, that the Company shall not be
required to (x) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 2.04(d), (y) subject itself to taxation in any such
jurisdiction or (z) consent to general service of process in any such jurisdiction.

(e) The Company immediately shall notify each Shareholder holding such Registrable Securities
covered by such registration statement, at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, of the occurrence of an event requiring the preparation
of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading and promptly prepare and make available to each such Shareholder
and file with the SEC any such supplement or amendment.

(f) The Shareholders shall have the right to select an underwriter or underwriters in
connection with any Public Offering resulting from its exercise of a Demand Registration (including
any Underwritten Takedown), if such underwriter or underwriters is reasonably acceptable to the
Company. In connection with any Public Offering, the Company shall enter into customary agreements
(including an underwriting agreement in customary form) and take all other actions as are
reasonably required to expedite or facilitate the disposition of such Registrable Securities in any
such Public Offering, including the engagement of a “qualified independent underwriter” in
connection with the qualification of the underwriting arrangements with FINRA.

(g) The Company shall make available, at the offices where normally kept, during the Company’s
normal business hours, for inspection by any Shareholder who certifies to the Company that it has a
current intention to sell and any underwriter participating or which is considering participating
in any disposition pursuant to a registration statement being filed by the Company pursuant to this
Section 2.04 and any attorney, accountant or other professional retained by any such Shareholder or
underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate
documents and properties of the Company (collectively,
the “Records”) as shall be reasonably necessary or desirable to enable any of the Inspectors
to exercise its due diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information reasonably requested by any Inspector in connection with

 

10

 

such
registration statement. Records that the Company determines, in good faith, to be confidential and
that it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless
(i) the Inspector reasonably believes the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in such registration statement or (ii) the release of such
Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction.
Each Shareholder agrees that information obtained by it as a result of such inspections shall be
deemed confidential and shall not be used by it or its Affiliates as the basis for any market
transactions in the Registrable Securities unless and until such information is made generally
available to the public. Each Shareholder further agrees that, upon learning that disclosure of
such Records is sought in a court of competent jurisdiction, it shall give notice to the Company
and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of the
Records deemed confidential.

(h) The Company shall use commercially reasonable efforts to furnish to each Registering
Shareholder and to each such underwriter, if any, a signed counterpart, addressed to such
Shareholder or underwriter, of (i) an opinion or opinions of counsel to the Company, and (ii) a
comfort letter or comfort letters from the Company’s independent public accountants and (iii) any
opinion of a “qualified independent underwriter”, each in customary form and covering such matters
of the kind customarily covered by opinions or comfort letters, as the case may be, as a majority
of such Shareholders or the managing underwriter therefor reasonably requests.

(i) The Company shall otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the SEC and make available to its security holders, as soon as
reasonably practicable, an earnings statement or such other document covering a period of twelve
(12) months, beginning within three (3) months after the effective date of the registration
statement, which earnings statement satisfies the requirements of Rule 158 under the Securities
Act.

(j) The Company may require each Shareholder promptly to furnish in writing to the Company
such information regarding the distribution of the Registrable Securities as the Company may from
time to time reasonably request and such other information as may be legally required in connection
with such registration.

(k) Each Shareholder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 2.04(e), such Shareholder forthwith shall discontinue
disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such Shareholder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 2.04(e), and, if so directed by the Company, such
Shareholder shall deliver to the Company all copies, other than any permanent file copies then in
such Shareholder’s possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice. If the Company shall give such notice, the Company shall
extend the period during which such registration statement shall be maintained effective (including
the period referred to in Section 2.04(a)) by the number of days during the period from and
including the date of the giving of notice pursuant to Section 2.04(e) to the date
when the Company shall make available to such Shareholder prospectuses supplemented or amended
to conform with the requirements of Section 2.04(e).

 

11

 

(l) The Company shall use commercially reasonable efforts to list all Registrable Securities
covered by such registration statement on any securities exchange or quotation system on which the
Common Shares are then listed or traded.

(m) The Company shall have appropriate officers of the Company (i) prepare and make
presentations at any “road shows” and before analysts and (ii) otherwise use their reasonable
efforts to cooperate as reasonably requested by the underwriters in the offering, marketing or
selling of the Registrable Securities.

(n) The Company shall designate a transfer agent and registrar for the class or classes or
series of securities which includes such Registrable Securities and obtain a CUSIP number for the
same, in each case not later than the date such registration is declared effective by the SEC.

Section 2.05. Participation In Public Offering. No Shareholder may participate in any
Public Offering hereunder unless such Shareholder (a) agrees to sell such Shareholder’s Registrable
Securities on the basis provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably required under the
terms of such underwriting arrangements and the provisions of this Agreement in respect of
registration rights.

Section 2.06. Rule 144 Sales; Cooperation By The Company. If any Shareholder shall
transfer any Registrable Securities pursuant to Rule 144, the Company shall use its commercially
reasonable efforts to cooperate with such Shareholder and shall provide to such Shareholder such
information as such Shareholder shall reasonably request. Without limiting the foregoing, the
Company shall:

(a) make and keep available public information, as those terms are contemplated by Rule 144;

(b) timely file with the SEC all reports and other documents required to be filed under the
Securities Act and the Exchange Act; and

(c) furnish to each Shareholder forthwith upon request a written statement by the Company as
to its compliance with the reporting requirements of the Securities Act and the Exchange Act, a
copy of the most recent annual or quarterly report of the Company and such other information as
such Shareholder may reasonably request in order to avail itself of any rule or regulation of the
SEC allowing such Shareholder to sell any Registrable Securities without registration.

ARTICLE 3

Indemnification and Contribution

Section 3.01. Indemnification by the Company. The Company agrees to indemnify and hold
harmless each Shareholder beneficially owning any Registrable Securities covered by a registration
statement, each Person who controls such Shareholder within the meaning of Section

 

12

 

15 of the
Securities Act and Section 20 of the Exchange Act, and the members, partners, directors, trustees,
managers, officers, equity owners, employees, agents, successors, assigns, personal representatives
of such Shareholder or such controlling Person from and against any and all losses, damages,
injuries, liabilities, claims, demands, settlements, judgments, awards, fines, penalties, taxes,
fees (including reasonable attorneys’ fees and disbursements), charges, costs (including costs of
investigation and defense) or expenses of any nature (collectively, “Damages”) caused by or
relating to any untrue statement or alleged untrue statement of a material fact contained in any
registration statement or prospectus relating to the Registrable Securities (as amended or
supplemented if the Company shall have furnished any amendment or supplement thereto) or any
preliminary prospectus or issuer free-writing prospectus (as defined in Rule 405 under the
Securities Act), or caused by or relating to any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such Damages are caused by or related to any such untrue statement or
omission or alleged untrue statement or omission so made based upon information furnished in
writing to the Company by such Shareholder or on such Shareholder’s behalf expressly for use
therein and expressly for use in connection with such registration; provided, further, that the
indemnity agreement contained in this Section 3.01 shall not apply to any Shareholder to the extent
that any such loss is based on or arises out of an untrue statement or alleged untrue statement of
material fact, or an omission or alleged omission to state a material fact, contained in or omitted
from any preliminary prospectus or issued free-writing prospectus if the final prospectus or issuer
free-writing prospectus shall correct such untrue statement or alleged untrue statement, or such
omission or alleged omission, and a copy of the final prospectus or issuer free-writing prospectus
has not been sent or given to such Person at or prior to the confirmation of sale to such Person
nor to any Shareholder for Damages caused by such Shareholder’s continuing use of a prospectus with
respect to which a notice pursuant to Section 2.04(e) is required to be given and has not received
notice of the amendment or supplement of such prospectus as contemplated in Section 2.04(e). The
Company also agrees to indemnify any underwriter of the Registrable Securities, its officers and
directors and each Person, if any, who controls such underwriter within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of
the indemnification of the Shareholders provided in this Section 3.01.

Section 3.02. Indemnification by Participating Shareholders. Each Shareholder holding
Registrable Securities included in any registration statement agrees, severally but not jointly, to
indemnify and hold harmless the Company, each of its directors, each of its officers who signed the
registration statement and each Person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
indemnity from the Company to such Shareholder provided in Section 3.01, but only with respect to
information furnished in writing by such Shareholder or on such Shareholder’s behalf expressly for
use in any registration statement or prospectus relating to the Registrable Securities, or any
amendment or supplement thereto, or any preliminary prospectus or free-
writing prospectus. Each such Shareholder also agrees to indemnify and hold harmless underwriters
of the Registrable Securities, their officers and directors and each Person, if any, who controls
such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act on substantially the same basis as that of the indemnification of the Company provided
in this Section 3.02. As a condition to including Registrable Securities in any registration
statement filed in accordance with Article 2, the Company may require that it

 

13

 

shall have received
an undertaking reasonably satisfactory to it from any underwriter to indemnify and hold it and each
Shareholder harmless to the extent customarily provided by underwriters with respect to similar
securities. No Shareholder shall be liable under this Section 3.02 for any Damages in excess of
the net proceeds realized by such Shareholder in the sale of Registrable Securities of such
Shareholder to which such Damages relate.

Section 3.03. Conduct of Indemnification Proceedings. If any proceeding (including any
governmental investigation) shall be instituted involving any Person in respect of which indemnity
may be sought pursuant to this Article 3, such Person (an “Indemnified Party”) shall promptly
notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing
and the Indemnifying Party shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and
expenses; provided, however, that the failure of any Indemnified Party so to notify
the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder except
to the extent that the Indemnifying Party is materially prejudiced by such failure to notify or
otherwise. In any such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless (a) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel, (b) in the reasonable judgment of such Indemnified Party representation
of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them, including one or more defenses or counterclaims that are different from or
in addition to those available to the Indemnifying Party or (c) the Indemnifying Party shall have
failed to assume the defense within thirty (30) days of notice pursuant to this Section 3.03 or
such shorter period that may prejudice the Indemnified Party under time periods prescribed by
litigation relating to the indemnifiable claim.. It is understood that, in connection with any
proceeding or related proceedings in the same jurisdiction, the Indemnifying Party shall not be
liable for the reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for all such Indemnified Parties and that all such fees
and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for
the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The
Indemnifying Party shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent, or if there be a final judgment for the
plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from
and against any loss or liability (to the extent stated above) by reason of such settlement or
judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement (i) includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding, and (ii) does not include any injunctive
or other equitable or non-monetary relief applicable to or affecting such Indemnified Person.

Section 3.04. Contribution. If the indemnification provided for in this Article 3 is
unavailable for any reason to the Indemnified Parties in respect of any Damages, then each
Indemnifying Party, in lieu of indemnifying the Indemnified Parties, shall contribute to the amount
paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the actions,
statements

 

14

 

or omissions that resulted in such Damages as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged omission of a material
fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action, statement or omission. The amount paid or payable
by a party as a result of any Damages shall be deemed to include, subject to the limitations set
forth in this Agreement, any reasonable attorneys’ or other reasonable fees or expenses incurred by
such party in connection with any proceeding to the extent such party would have been indemnified
for such fees or expenses if the indemnification provided for in this Article 3 was available to
such party in accordance with its terms. 

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 3.04 were determined by pro rata allocation or
by any other method of allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section
3.04, no Shareholder shall be required to contribute, in the aggregate, any amount in excess of the
amount by which the proceeds actually received by such Shareholder from the sale of the Registrable
Securities subject to the proceeding exceeds the amount of any Damages that such Shareholder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission, except in the case of proven fraud by such Shareholder. Each Shareholder’s
obligation to contribute pursuant to this Section 3.04 is several in the proportion that the
proceeds of the offering received by such Shareholder bears to the total proceeds of the offering
received by all such Shareholders and not joint.

No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

Section 3.05. Other Indemnification. The indemnity and contribution agreements contained
in this Article 3 are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties. Indemnification similar to that provided in this Article 3 (with appropriate
modifications) shall be given by the Company and each Shareholder participating therein with
respect to any required registration or other qualification of securities under any foreign,
federal or state law or regulation or governmental authority other than the Securities Act.

ARTICLE 4

Miscellaneous

Section 4.01. Notices. All notices and other communications given or made pursuant hereto
shall be in writing and delivered personally or by courier, overnight delivery service, or
certified or registered mail with postage prepaid, if such notice is addressed to the party to be
notified at such party’s address as set forth below, or as subsequently modified by written notice
in accordance with this Section 4.01. All such notices shall be duly given and effective upon
receipt (or refusal of receipt).

 

15

 

(a) if to the Company to:

Centerline Holding Company.

625 Madison Avenue

New York, New York 10022

Attention: Mark D. Schnitzer

with a copy to:

Paul Hastings, Janofsky & Walker LLP

75 E. 55th Street

New York, NY 10022

Attention: Michael Zuppone, Esq.

(b) if to any Shareholder, at the address for such Shareholder listed on the signature pages
below or otherwise provided to the Company as set forth below.

Section 4.02. Severability. The provisions of this Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the validity or enforceability
of the other provisions hereof. If any provision of this Agreement or the application thereof to
any Person or circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a
suitable and equitable provision shall be substituted therefor in order to carry out, so far as may
be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b)
the remainder of this Agreement and the application of such provision to other Persons or
circumstances shall not be affected by such invalidity or unenforceability, nor shall such
invalidity or unenforceability affect the validity or enforceability of such provision, or the
application thereof, in any other jurisdiction.

Section 4.03. Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes
the entire agreement of the parties and supersedes any and all other prior agreements and
undertakings, both written and oral, among the parties, or any of them, with respect to the subject
matter hereof. This Agreement does not, and is not, intended to confer upon any other Person any
right, benefit or remedy hereunder (other than as provided expressly in Article 3, which is
intended to be for the benefit of the Persons covered thereby).

Section 4.04. Amendment; Waiver. This Agreement may be amended only by a writing signed by
the Company and the holders of at least 75% of the Registrable Securities held by the parties
hereto at the time of such proposed amendment or modification. Any waiver of rights hereunder
must be set forth in writing and signed by the party against whom the waiver is to be effective. A
waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall
not in any way affect, limit or waive any party’s rights at any time to enforce strict compliance
thereafter with every term or condition of this Agreement.

Section 4.05. Binding Effect; Assignment.

(a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective legal representatives, successors and Permitted Transferees. Notwithstanding the
foregoing, this Agreement shall not be assigned by any party by operation

 

16

 

of law or otherwise,
(except as permitted by Section 4.05(b)), without the prior written consent of each of the other
parties and any such purported assignment shall be void ab initio. Any Shareholder that ceases to
own beneficially any Registrable Security shall cease to be bound by the terms hereof, other than
(i) the provisions of Article 3 applicable to such Shareholder with respect to any offering of
Registrable Securities completed before the date such Shareholder ceased to own any Registrable
Security and (ii) this Article 4.

(b) Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by any party hereto pursuant to any Transfer of Registrable
Securities or otherwise, except that each Shareholder may assign rights hereunder to any Permitted
Transferee of such Shareholder without the prior consent of the Company. Any such Permitted
Transferee shall (unless already bound hereby) execute and deliver to the Company an agreement to
be bound by this Agreement in the form of Exhibit A hereto (a “Joinder
Agreement”) and shall thenceforth be a “Shareholder.”

Section 4.06. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York, without regard to the conflict of
laws provisions thereof.

Section 4.07. Dispute Resolution; Mediation; Jurisdiction.

(a) In the event of any dispute, controversy or claim arising out of or relating to this
Agreement or the breach, termination or validity hereof, or the transactions contemplated hereby
(each a “Dispute”), upon the written notice of any party, the other parties shall attempt in good
faith to negotiate a resolution of the Dispute. If the other parties are unable for any reason to
resolve a Dispute within thirty (30) days after the receipt of such notice, the Dispute shall be
submitted to mediation in accordance with Section 4.07(b).

(b) Any Dispute not resolved pursuant to Section 4.07(a) shall, at the request of any party (a
“Mediation Request”), be submitted to non-binding mediation in accordance with the then current
International Institute for Conflict Prevention and Resolution Mediation Procedure (the
“Procedure”), except as modified herein. The mediation shall be held in New York, New York. The
parties shall have twenty (20) days from receipt by a party of a Mediation Request to agree on a
mediator. If no mediator has been agreed upon by the parties within twenty (20) days of receipt by
a party (or parties) of a Mediation Request, then any party may request (on written notice to the
other parties), that the International Institute for Conflict Prevention and Resolution appoint a
mediator in accordance with the Procedure. All mediation pursuant to this clause shall
be confidential and shall be treated as compromise and settlement negotiations, and no oral or
documentary representations made by the parties during such mediation shall be admissible for any
purpose in any subsequent proceedings. No party shall disclose or permit the disclosure of any
information about the evidence adduced or the documents produced by the other parties in the
mediation proceedings or about the existence, contents or results of the mediation without the
prior written consent of such other parties except in the course of a judicial or regulatory
proceeding or as may be required by law or requested by a governmental authority or securities
exchange. Before making any disclosure permitted by the preceding sentence, the party intending to
make such disclosure shall give the other parties reasonable written notice of the intended
disclosure and afford the other parties a reasonable opportunity to protect its interests.

 

17

 

If the
Dispute has not been resolved within sixty (60) days of the appointment of a mediator, or within
ninety (90) days of receipt by a party of a Mediation Request (whichever occurs sooner), or within
such longer period as the parties may agree to in writing, then any party may file an action on the
Dispute in any court having jurisdiction in accordance with Section 4.07(c).

(c) Each of the parties hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York and the courts of the United States
of America located in the City and County of the State of New York for any litigation arising out
of or relating to this Agreement or any transaction contemplated hereby (and agrees not to commence
any litigation relating hereto except in such courts), and further agrees that service of any
process, summons, notice or document by U.S. registered mail to its respective address set forth in
Section 4.01, shall be effective service of process for any litigation brought against it in any
such court. Each of the parties hereby irrevocably and unconditionally waives any objection to the
laying of venue of any litigation arising out of this Agreement or any transaction contemplated
hereby in the courts of the State of New York or the courts of the United States of America located
in the City and County of the State of New York and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such litigation brought in any
such court has been brought in an inconvenient forum. Each of the parties hereby irrevocably and
unconditionally waives any right it may have to trial by jury in connection with any litigation
arising out of or relating to this Agreement or any transaction contemplated hereby.

Section 4.08. Independent Nature of Shareholders’ Obligations and Rights. The obligations
of each Shareholder hereunder are several and not joint with the obligations of any other
Shareholder hereunder, and no Shareholder shall be responsible in any way for the performance of
the obligations of any other Shareholder hereunder. Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any Shareholder pursuant
hereto or thereto, shall be deemed to constitute the Shareholders as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Shareholders are in
any way acting in concert with respect to such obligations or the transactions contemplated by this
Agreement. Each Shareholder shall be entitled to protect and enforce its rights, including the
rights arising out of this Agreement, and it shall not be necessary for any other Shareholder to be
joined as an additional party in any proceeding for such purpose.

Section 4.09. Construction. The headings of the Articles and Sections in this Agreement
are provided for convenience only, are not part of the agreement of the parties and shall not
affect its construction or interpretation of this Agreement. The language used in this Agreement is
the
language chosen by the parties to express their mutual intent, and no rule of strict construction
shall be applied against any party. This Agreement was negotiated by the parties with the benefit
of legal representation. If an ambiguity or question or intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring and/or disfavoring a party by virtue of the authorship of any of the
provisions this Agreement.

Section 4.10. Time of the Essence. Time is of the essence regarding all dates and time
periods set forth or referred to in this Agreement.

 

18

 

Section 4.11. Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or electronic pdf submission), each of which when executed shall be deemed
to be an original, but all of which shall constitute one and the same instrument.

Section 4.12. Other Registration Rights. The Company hereby represents and warrants that
neither the Company nor any of its subsidiaries has previously entered into any agreement granting
any registration rights with respect to any Registrable Securities to any Person. From and after
the date of this Agreement, the Company shall not enter into any agreement with any holder or
prospective holder of any securities of the Company giving such holder or prospective holder any
registration rights the terms of which are equivalent to or more favorable than the registration
rights granted to Shareholders hereunder, or which would reduce the amount of Registrable
Securities the Shareholders can include in any registration filed pursuant to this Agreement,
unless such rights are subordinate to those of the Shareholders hereunder.

Section 4.13. Further Actions. At any time and from time to time, each party agrees, at
its expense (except as otherwise provided for herein), to take such actions and to execute and
deliver such documents as reasonably may be necessary to effectuate the purposes of this Agreement
and any transaction contemplated hereby.

Section 4.14. Availability of Equitable Remedies. Since a breach of the provisions of this
Agreement or any transaction contemplated hereby could not adequately be compensated by money
damages, a party shall be entitled, in addition to any other right or remedy available to it, to an
injunction restraining such breach or a threatened breach and to specific performance of any such
provision of this Agreement and no bond or other security shall be required in connection
therewith, and the parties hereby consent to the issuance of such an injunction and to the ordering
of specific performance.

[Signature pages follow]

 

19

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement or have caused this
Agreement to be duly executed by their respective authorized officers as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	CENTERLINE HOLDING COMPANY

a Delaware statutory trust
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Marc D. Schnitzer
	 	 	 	 	   
	 

	 	 	 	Name:
	 	Marc D. Schnitzer	 	 
	 

	 	 	 	Title:
	 	President & Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Centerline Holding Company

625 Madison Avenue

New York, New York 10022

Attention: Marc D. Schnitzer
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	With Copies of Notices to:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Paul Hastings, Janofsky & Walker LLP

75 E. 55th Street

New York, NY 10022

Attention: Michael Zuppone, Esq.

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	C-III INITIAL ASSETS LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	C-III CAPITAL PARTNERS LLC,
	 	 	its	 	sole member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	ISLAND C-III MANAGER LLC,
	 	 	its	 	Manager
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jeffrey Cohen
	 	 	 	 	   
	 

	 	 	 	Name:
	 	Jeffrey Cohen	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Island Capital Group LLC

717 Fifth Avenue, 18th Floor

New York, New York 10022

Attention: President
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	With Copies of Notices to:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Proskauer Rose LLP

1585 Broadway

New York, NY 10036-8299

Attention: Allan R. Williams, Esq.

Fax: (212) 969-2900

 

2Exhibit 10.17

Exhibit 10.17

REGISTRATION RIGHTS AGREEMENT

dated as of

March 5, 2010

among

CENTERLINE HOLDING COMPANY

and

THE SHAREHOLDERS PARTY HERETO

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.02. Other Definitional and Interpretative Provisions
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 Registration Rights
	 	 	4	 
	 
	 	 	 	 
	Section 2.01. Demand Registration
	 	 	4	 
	 
	 	 	 	 
	Section 2.02. Piggyback Registration
	 	 	6	 
	 
	 	 	 	 
	Section 2.03. Shelf Registration
	 	 	8	 
	 
	 	 	 	 
	Section 2.04. Registration Procedures
	 	 	9	 
	 
	 	 	 	 
	Section 2.05. Participation In Public Offering
	 	 	12	 
	 
	 	 	 	 
	Section 2.06. Rule 144 Sales; Cooperation By The Company
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3 Indemnification and Contribution
	 	 	12	 
	 
	 	 	 	 
	Section 3.01. Indemnification by the Company
	 	 	12	 
	 
	 	 	 	 
	Section 3.02. Indemnification by Participating Shareholders
	 	 	13	 
	 
	 	 	 	 
	Section 3.03. Conduct of Indemnification Proceedings
	 	 	14	 
	 
	 	 	 	 
	Section 3.04. Contribution
	 	 	14	 
	 
	 	 	 	 
	Section 3.05. Other Indemnification
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 4 Miscellaneous
	 	 	15	 
	 
	 	 	 	 
	Section 4.01. Notices
	 	 	15	 
	 
	 	 	 	 
	Section 4.02. Severability
	 	 	16	 
	 
	 	 	 	 
	Section 4.03. Entire Agreement; No Third Party Beneficiaries
	 	 	16	 
	 
	 	 	 	 
	Section 4.04. Amendment; Waiver
	 	 	16	 
	 
	 	 	 	 
	Section 4.05. Binding Effect; Assignment
	 	 	16	 
	 
	 	 	 	 
	Section 4.06. Governing Law
	 	 	17	 
	 
	 	 	 	 
	Section 4.07. Dispute Resolution; Mediation; Jurisdiction
	 	 	17	 
	 
	 	 	 	 
	Section 4.08. Independent Nature of Shareholders’ Obligations and Rights
	 	 	18	 
	 
	 	 	 	 
	Section 4.09. Construction
	 	 	18	 
	 
	 	 	 	 
	Section 4.10. Time of the Essence
	 	 	18	 
	 
	 	 	 	 
	Section 4.11. Counterparts
	 	 	19	 
	 
	 	 	 	 
	Section 4.12. Other Registration Rights
	 	 	19	 
	 
	 	 	 	 
	Section 4.13. Further Actions
	 	 	19	 

 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 4.14. Availability of Equitable Remedies
	 	 	19	 

 

-ii-

 

REGISTRATION RIGHTS AGREEMENT

This AGREEMENT (this “Agreement”) dated as of March 5, 2010 is entered into by and among
Centerline Holding Company, a Delaware statutory trust (the “Company”), and each Shareholder that
executes the signature pages to this Agreement.

In consideration of the mutual promises made herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

Definitions

Section 1.01. Definitions. The following terms, as used herein, have the following
meanings:

“Affiliate” of a Person means a Person that controls, is controlled by, or is under common
control with, such Person. For the purpose of this definition, the term “control” (including, with
correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as
used with respect to any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

“Agreement” shall have the meaning specified in the preamble to this Agreement.

“Board” means the board of trustees of the Company.

“Business Day” means any day except a Saturday, Sunday or other day on which banks in New York
City are authorized by law to be closed.

“Common Shares” means the common shares of beneficial interest of the Company.

“Company” shall have the meaning specified in the preamble to this Agreement.

“Damages” shall have the meaning specified in Section 3.01 of this Agreement.

“Demand Registration” shall have the meaning specified in Section 2.01(a) of this Agreement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

“FINRA” means the Financial Industry Regulatory Authority, Inc. (formerly, the National
Association of Securities Dealers, Inc.) and any successor thereto.

“Indemnified Party” shall have the meaning specified in Section 3.03 of this Agreement.

 

 

 

“Indemnifying Party” shall have the meaning specified in Section 3.03 of this Agreement.

“Inspectors” shall have the meaning specified in Section 2.04(g) of this Agreement.

“Maximum Offering Size” shall have the meaning specified in Section 2.01(e) of this Agreement.

“Permitted Transferee” means in the case of any Shareholder, a Person to whom Registrable
Securities are Transferred by such Shareholder; provided, however, that (i) such
Transfer does not violate any agreement between such Shareholder and the Company or any of the
Company’s subsidiaries, (ii) such Transfer is not made in a registered offering or pursuant to Rule
144 and (iii) such transferee shall be a Permitted Transferee only if and to the extent the
transferor designates the transferee as a Permitted Transferee entitled to rights hereunder
pursuant to Section 4.05(a).

“Person” means an individual, corporation, partnership, limited liability company,
partnership, association, trust, unincorporated organization or other entity.

“Piggyback
Registration” shall have the meaning specified in
Section 2.02(a) of this Agreement.

“Public Offering” means an underwritten public offering of Registrable Securities of the
Company pursuant to an effective registration statement under the Securities Act, other than
pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form.

“Records” shall have the meaning specified in Section 2.04(g) of this Agreement.

“Registering Shareholders” shall have the meaning specified in Section 2.01(a)(ii) of this
Agreement.

“Registrable Securities” means, at any time, any Common Shares, any security or instrument
that is, whether or not subject to a condition, convertible into or exercisable for Common Shares
and any other security or instrument issued or issuable by the Company or any of its successors or
assigns in respect of any such Common Shares or security by way of conversion, exchange, exercise,
dividend, split, reverse split, combination, recapitalization, reclassification, merger,
amalgamation, consolidation, sale of assets, other reorganization or otherwise until (i) a
registration statement covering such Common Shares or such other security has been declared
effective by the SEC and such Common Shares or such other security has been disposed of pursuant to
such effective registration statement or (ii) such Common Shares are (or such other security is)
sold under circumstances in which all of the applicable conditions of Rule 144 are met or are
freely transferable by the Shareholder without regard to holding period, volume or manner of sale
volume limitations pursuant to Rule 144(b)(1); provided, that the Company shall have
provided a legal opinion reasonably acceptable to the applicable Shareholder to such effect.

“Registration Expenses” means any and all expenses incident to the performance of, or
compliance with, any registration or marketing of securities, including all (i) registration and

 

2

 

filing fees, and all other fees and expenses payable in connection with the listing of
securities on any securities exchange or automated interdealer quotation system, (ii) fees and
expenses of compliance with any securities or “blue sky” laws (including reasonable fees and
disbursements of counsel in connection with “blue sky” qualifications of the securities
registered), (iii) expenses in connection with the preparation, printing, mailing and delivery of
any registration statements, prospectuses and other documents in connection therewith and any
amendments or supplements thereto, (iv) security engraving and printing expenses, (v) internal
expenses of the Company (including all salaries and expenses of its officers and employees
performing legal or accounting duties), (vi) reasonable fees and disbursements of counsel for the
Company and customary fees and expenses for independent certified public accountants retained by
the Company (including the expenses relating to any comfort letters or costs associated with the
delivery by independent certified public accountants of any comfort letters requested pursuant to
Section 2.04(h)), (vii) reasonable fees and expenses of any special expert retained by the Company
in connection with such registration, (viii) reasonable fees, out-of-pocket costs and expenses of
the Shareholders, including one counsel for all of the Shareholders participating in the offering
selected by the Shareholders holding the majority of the Registrable Securities to be sold for the
account of all Shareholders in the offering, (ix) fees and expenses in connection with any review
by FINRA of the underwriting arrangements or other terms of the offering, and all fees and expenses
of any “qualified independent underwriter,” including the fees and expenses of any counsel thereto,
(x) fees and disbursements of underwriters customarily paid by issuers or sellers of securities,
but excluding any underwriting fees, discounts and commissions attributable to the sale of
Registrable Securities, (xi) costs of printing and producing any agreements among underwriters,
underwriting agreements, any “blue sky” or legal investment memoranda and any selling agreements
and other documents in connection with the offering, sale or delivery of the Registrable
Securities, (xii) transfer agents’ and registrars’ fees and expenses and the fees and expenses of
any other agent or trustee appointed in connection with such offering, (xiii) expenses relating to
any analyst or investor presentations or any “road shows” undertaken in connection with the
registration, marketing or selling of the Registrable Securities, and (xiv) all out-of pocket costs
and expenses incurred by the Company or its appropriate officers in connection with their
compliance with Section 2.04(m).

“Requesting Shareholder” shall have the meaning specified in Section 2.01(a) of this Agreement.

“Rule 144” means Rule 144 (or any successor or similar provisions) under the Securities Act.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended and the rules and regulations
promulgated thereunder.

“Shareholder” means at any time, any Person (other than the Company) who shall then be a party
to or bound by this Agreement, so long as such Person shall “beneficially own” (as such term is
defined in Rule 13d-3 of the Exchange Act) any Registrable Security.

“Shelf Registration” shall have the meaning specified in Section 2.03 of this Agreement.

 

3

 

“Shelf Requesting Shareholder” shall have the meaning specified in Section 2.03(a) of this
Agreement.

“Transfer” means, with respect to any Registrable Security, (i) when used as a verb, to sell,
assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Registrable
Security or any participation or interest therein, whether directly or indirectly, or agree or
commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale,
assignment, disposition, exchange, pledge, encumbrance, hypothecation or other transfer of such
Registrable Security or any participation or interest therein or any agreement or commitment to do
any of the foregoing.

“Underwritten Takedown” shall have the meaning specified in Section 2.03(a) of this Agreement.

Section 1.02. Other Definitional and Interpretative Provisions. When a reference is made
in this Agreement to an Article, Section or Exhibit, such reference is to an Article or a Section
of, or Exhibit to, this Agreement, unless otherwise indicated. The words “include,” “includes” or
“including” and “such as” do not limit the preceding words or terms and shall be deemed to be
followed by the words “without limitation.” The words “hereof,” “herein,” “hereunder,” “hereby”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. All pronouns and any variations thereof refer to the
masculine, feminine or neuter, singular or plural, as the context may require. All terms defined
in this Agreement in their singular or plural forms, have correlative meanings when used in their
plural or singular forms, respectively.

ARTICLE 2

Registration Rights

Section 2.01. Demand Registration. (a) If the Company shall receive a request
from one or more Shareholders (the requesting Shareholder(s) shall be referred to herein as
the “Requesting Shareholder”) that the Company effect the registration under the Securities
Act of all or any portion of the Requesting Shareholder’s Registrable Securities, and
specifying the intended method of disposition thereof, then the Company shall promptly give
notice of such requested registration (each such request shall be referred to herein as a
“Demand Registration”) at least ten (10) Business Days prior to the anticipated filing date
of the registration statement relating to such Demand Registration to the other Shareholders
and thereupon shall use its commercially reasonable efforts to effect, as expeditiously as
possible, the registration under the Securities Act of:

(i) subject to the restrictions set
forth in Section 2.01(e), all Registrable Securities for which the Requesting Shareholder
has requested registration under this Section 2.01, and

(ii) subject to the restrictions set forth in Section 2.01(e) and Section 2.02, all
other Registrable Securities of the same class as those requested to be registered by the
Requesting Shareholder that any Shareholder (all such Shareholders, together with the
Requesting Shareholder, the “Registering Shareholders”) has requested the Company to
register pursuant to Section 2.02, by request received by the Company within seven (7)

 

4

 

Business Days after such Shareholders receive the Company’s notice of the Demand
Registration,

all to the extent necessary to permit the disposition (in accordance with the intended methods
thereof as aforesaid) of the Registrable Securities so to be registered; provided,
however, that the Company shall not be obligated to effect a Demand Registration unless the
aggregate proceeds expected to be received from the sale of the Registrable Securities requested to
be included in such Demand Registration equals or exceeds $10,000,000 or such lesser amount that
constitutes all of the Requesting Shareholder’s Registrable Securities; provided, the
proceeds expected are no less than $1,00,000.00. The Company shall file the initial registration
statement with the SEC as promptly as possible, but in any event within fifteen (15) days for a
Form S-3 and thirty (30) days for any other form. In no event shall the Company be required to
effect more than two (2) Demand Registrations hereunder within any one (1) year period and no more
than six (6) Demand Registrations hereunder in total.

(b) Promptly after the expiration of the seven (7) Business Day period referred to in Section
2.01(a)(ii), the Company will notify all Registering Shareholders of the identities of the other
Registering Shareholders and the number of shares of Registrable Securities requested to be
included therein. At any time prior to the effective date of the registration statement relating
to such registration, the Requesting Shareholder may revoke such request, without liability to any
of the other Registering Shareholders, by providing a notice to the Company revoking such request.
A request, so revoked, shall be considered to be a Demand Registration unless (i) such revocation
arose out of the fault of the Company (in which case the Company shall be obligated to pay all
Registration Expenses in connection with such revoked request) or (ii) the Requesting Shareholder
reimburses the Company for all Registration Expenses of such revoked request.

(c) The Company shall be liable for and shall pay all Registration Expenses in connection with
any Demand Registration, regardless of whether such Registration is effected, and regardless of
whether a Demand Registration shall not be deemed to have occurred, unless the Requesting
Shareholder elects to pay such Registration Expenses as described in the last sentence of Section
2.01(b).

(d) A Demand Registration shall not be deemed to have occurred:

(i) unless the registration statement relating thereto (A) has become effective under
the Securities Act and (B) has remained effective for a period of at least one hundred
eighty (180) days (or such shorter period in which all Registrable Securities of the
Registering Shareholders included in such registration have actually been sold thereunder);
provided, however, that a Demand Registration shall not be deemed to have
occurred if, after such registration statement becomes effective, (x) such registration
statement is interfered with by any stop order, injunction or other order or requirement of
the SEC or other governmental agency or court and (y) less than 90% of the Registrable
Securities included in such registration statement have been sold thereunder;

(ii) if the Maximum Offering Size is reduced in accordance with Section 2.01(e) such
that less than 75% of the Registrable Securities of the Requesting Shareholders sought to be
included in such registration are included;

 

5

 

(iii) if the Requesting Shareholder determines in good faith to withdraw (prior to the
effective date of the registration statement relating to such request) the proposed
registration due to marketing or regulatory reasons;

(iv) if the registration statement relating to such request is not declared effective
within ninety (90) days of the date such registration is first filed with the SEC; or

(v) if the conditions to closing specified in the underwriting agreement or purchase
agreement entered into in connection with the registration relating to such request are not
satisfied (other than as a result of a material default or breach thereunder by the
Requesting Shareholder).

(e) If a Demand Registration involves an underwritten Public Offering and the managing
underwriter advises the Company and the Requesting Shareholder that, in its view, the number of
shares of Registrable Securities requested to be included in such registration (including any
security that the Company proposes to be included that are not Registrable Securities (including
any security for the benefit of any other Person not a party to this Agreement)) exceeds the
largest number of shares that can be sold without having an adverse effect on such offering,
including the price at which such shares can be sold (the “Maximum Offering Size”), the Company
shall include in such registration, in the priority listed below, up to the Maximum Offering Size:

(i) first, all Registrable Securities requested to be included in such registration by
all Registering Shareholders (allocated, if necessary for the offering not to exceed the
Maximum Offering Size, pro rata among such Shareholders on the basis of the relative number
of Registrable Securities held by each such Shareholder); and

(ii) second, any securities proposed to be registered by the Company (including for the
benefit of any other Person not a party to this Agreement).

(f) Upon notice to the Requesting Shareholder, the Company may postpone effecting a
registration pursuant to this Section 2.01 on one occasion during any period of six (6) consecutive
months for a reasonable time specified in the notice but not exceeding sixty (60) days (which
period may not be extended or renewed), if (i) the Company reasonably determines that effecting the
registration would materially and adversely affect an offering of securities of the Company the
preparation of which had then been commenced or (ii) the Company is in possession of material
non-public information the disclosure of which during the period specified in such notice the
Company reasonably believes would not be in the best interests of the Company.

Section 2.02. Piggyback Registration. (a) If the Company proposes to register any
Registrable Security under the Securities Act (other than (i) a Shelf Registration, which will be
subject to the provisions of Section 2.03; provided, however, that any Underwritten
Takedown will be subject
to this Section 2.02, (ii) a registration on Form S-8 or S-4, or any successor or similar forms,
relating to Common Shares issuable upon exercise of employee stock options or in connection with
any employee benefit or similar plan of the Company or in connection with an exchange

 

6

 

offer or a
direct or indirect acquisition by the Company of another Person, (iii) a registration relating to a
rights offering to the Company’s existing security holders or (iv) a shelf registration for a
primary offering by the Company pursuant to Rule 415 under the Securities Act), whether or not for
sale for its own account (a “Piggyback Registration”), the Company each such time shall give prompt
notice at least ten (10) Business Days prior to the anticipated filing date of the registration
statement relating to such registration to each Shareholder, which notice shall set forth such
Shareholder’s rights under this Section 2.02 and shall offer such Shareholder the opportunity to
include in such registration statement the number of Registrable Securities of the same class or
series as those proposed to be registered as each such Shareholder may request subject to the
provisions of Section 2.02(b). Upon the request of any such Shareholder made within seven (7)
Business Days after the receipt of notice from the Company (which request shall specify the number
of Registrable Securities intended to be registered by such Shareholder), the Company shall use all
commercially reasonable efforts to effect the registration under the Securities Act of all
Registrable Securities that the Company has been so requested to register by all such Shareholders,
to the extent required to permit the disposition of the Registrable Securities so to be registered;
provided, however, that (x) if such registration involves an underwritten Public
Offering, all such Shareholders requesting to be included in the Company’s registration must sell
their Registrable Securities to the underwriters selected as provided in Section 2.04(f) on the
same terms and conditions as apply to the Company or the Requesting Shareholder, as applicable, and
(y) if, at any time after giving notice of its intention to register any Registrable Security
pursuant to this Section 2.02(a) and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any reason not to register
such securities, the Company shall give notice to all such Shareholders and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection with such
registration. No registration effected under this Section 2.02 shall relieve the Company of its
obligations to effect a Demand Registration to the extent required by Section 2.01 or a Shelf
Registration to the extent required by Section 2.03. The Company shall pay all Registration
Expenses in connection with each Piggyback Registration.

(b) If a Piggyback Registration involves an underwritten Public Offering (other than any
Demand Registration, in which case the provisions with respect to priority of inclusion in such
offering set forth in Section 2.01(e) shall apply) and the managing underwriter advises the Company
that, in its view, the number of Shares that the Company and such Shareholders intend to include in
such registration exceeds the Maximum Offering Size, the Company shall include in such
registration, in the following priority, up to the Maximum Offering Size:

(i) first, so much of the Registrable Securities proposed to be registered for the
account of the Company as would not cause the offering to exceed the Maximum Offering Size,

(ii) second, all Registrable Securities requested to be included in such registration
by any Shareholder pursuant to this Section 2.02 (allocated, if necessary for the offering
not to exceed the Maximum Offering Size, pro rata among such Shareholders
on the basis of the relative number of shares of Registrable Securities so requested to
be included in such registration by each), and

 

7

 

(iii) third, any securities proposed to be registered for the account of any other
Person with such priorities among them as the Company shall determine.

Section 2.03. Shelf Registration. (a) If the Company is or becomes eligible to use
Form S-3, one or more Shareholders (the “Shelf Requesting Shareholder”) may request the Company to
effect a registration (a “Shelf Registration”) of some or all of the Registrable Securities held by
such Shelf Requesting Shareholder under a registration statement pursuant to Rule 415 under the
Securities Act (or any successor or similar rule). The Company shall be required to effectuate
only one (1) Public Offering from such Shelf Registration (an “Underwritten Takedown”) within any
six (6) month period, which offering shall be deemed a Demand Registration and six (6) Public
Offerings from such Shelf Registration. The provisions of Section 2.01 shall apply mutatis
mutandis to each Underwritten Takedown, with references to “filing of the registration statement”
or “effective date” being deemed references to filing of a prospectus or supplement for such
offering and references to “registration” being deemed references to the Public Offering;
provided, however, that Registering Shareholders shall include only Shareholders
whose Registrable Securities are included in such Shelf Registration or may be included therein
without the need for an amendment to such Shelf Registration (other than an automatically effective
amendment). So long as the Shelf Registration is effective, a Shareholder may request any Demand
Registration pursuant to Section 2.01 only with respect to Registrable Shares that are not
registered on such Shelf Registration.

(b) If the Company shall receive a request from a Shelf Requesting Shareholder that the
Company effect a Shelf Registration, then the Company shall promptly give notice of such requested
registration at least ten (10) Business Days prior to the anticipated filing date of the
registration statement relating to such Shelf Registration to the other Shareholders and thereupon
shall use its commercially reasonable efforts to effect, as expeditiously as possible (but in any
event within fifteen (15) days), the registration under the Securities Act of:

(i) all Registrable Securities for which the Shelf Requesting Shareholder has requested
registration under this Section 2.03 and

(ii) all other Registrable Securities of the same class as those requested to be
registered by the Shelf Requesting Shareholder that any Shareholder has requested the
Company to register by request received by the Company within seven (7) Business Days after
such Shareholders receive the Company’s notice of the Shelf Registration,

all to the extent necessary to permit the registration of the Registrable Securities so to be
registered on such Shelf Registration.

(c) At any time prior to the effective date of the registration statement relating to such
Shelf Registration, the Shelf Requesting Shareholder may revoke such request, without liability to
any of the other Registering Shareholders, by providing a notice to the Company revoking such
request.

(d) The Company shall be liable for and pay all Registration Expenses in connection with any
Shelf Registration.

 

8

 

(e) Upon notice to the Shelf Requesting Shareholder, the Company may postpone effecting a
registration pursuant to this Section 2.03 on one occasion during any period of six (6) consecutive
months for a reasonable time specified in the notice but not exceeding sixty (60) days (which
period may not be extended or renewed), if (i) the Company determines that effecting the
registration would materially and adversely affect an offering of securities of the Company the
preparation of which had then been commenced or (ii) the Company is in possession of material
non-public information the disclosure of which during the period specified in such notice the
Company reasonably believes would not be in the best interests of the Company.

Section 2.04. Registration Procedures. Whenever Shareholders request that any Registrable
Security be registered pursuant to Section 2.01, 2.02 or 2.03 subject to the provisions of such
Sections, the Company shall use all commercially reasonable efforts to effect the registration and
the sale of such Registrable Securities in accordance with the intended method of disposition
thereof as quickly as practicable, and, in connection with any such request:

(a) The Company shall as expeditiously as possible prepare and file with the SEC a
registration statement on any form for which the Company then qualifies or that counsel for the
Company shall deem appropriate and which form shall be available for the sale of the Registrable
Securities to be registered thereunder in accordance with the intended method of distribution
thereof, and use all commercially reasonable efforts to cause such filed registration statement to
become and remain effective for a period of not less than one hundred eighty (180) days, or in the
case of a Shelf Registration, three (3) years (or such shorter period in which all of the
Registrable Securities of the Shareholders included in such registration statement shall have
actually been sold thereunder). Any such registration statement shall be an automatically
effective registration statement to the extent permitted by the SEC’s rules and regulations.

(b) Prior to filing a registration statement or prospectus or any amendment or supplement
thereto (other than any report filed pursuant to the Exchange Act that is incorporated by reference
therein), the Company shall, if requested, furnish to each participating Shareholder and each
underwriter, if any, of the Registrable Securities covered by such registration statement copies of
such registration statement as proposed to be filed, and thereafter the Company shall furnish to
such Shareholder and underwriter, if any, such number of copies of such registration statement,
each amendment and supplement thereto (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such registration statement
(including each preliminary prospectus and any summary prospectus) and any other prospectus filed
under Rule 424, Rule 430A, Rule 430B or Rule 430C under the Securities Act and such other documents
as such Shareholder or underwriter reasonably may request in order to facilitate the disposition of
the Registrable Securities owned by such Shareholder.

(c) After the filing of the registration statement, the Company shall (i) cause the related
prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be
filed pursuant to Rule 424 under the Securities Act, (ii) comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement during the applicable period in accordance with the
intended methods of disposition by the Shareholders thereof set forth in such registration
statement or supplement to such prospectus and (iii) promptly notify each Shareholder holding

 

9

 

Registrable Securities covered by such registration statement of any stop order issued or
threatened by the SEC or any state securities commission and take all reasonable actions required
to prevent the entry of such stop order or to remove it if entered.

(d) The Company shall use all commercially reasonable efforts to (i) register or qualify the
Registrable Securities covered by such registration statement under such other securities or “blue
sky” laws of such jurisdictions in the United States as any Registering Shareholder holding such
Registrable Securities reasonably (in light of such Shareholder’s intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the business and operations
of the Company and do any and all other acts and things that may be reasonably necessary or
advisable to enable such Shareholder to consummate the disposition of the Registrable Securities
owned by such Shareholder, provided, however, that the Company shall not be
required to (x) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 2.04(d), (y) subject itself to taxation in any such
jurisdiction or (z) consent to general service of process in any such jurisdiction.

(e) The Company immediately shall notify each Shareholder holding such Registrable Securities
covered by such registration statement, at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, of the occurrence of an event requiring the preparation
of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading and promptly prepare and make available to each such Shareholder
and file with the SEC any such supplement or amendment.

(f) The Shareholders shall have the right to select an underwriter or underwriters in
connection with any Public Offering resulting from its exercise of a Demand Registration (including
any Underwritten Takedown), if such underwriter or underwriters is reasonably acceptable to the
Company. In connection with any Public Offering, the Company shall enter into customary agreements
(including an underwriting agreement in customary form) and take all other actions as are
reasonably required to expedite or facilitate the disposition of such Registrable Securities in any
such Public Offering, including the engagement of a “qualified independent underwriter” in
connection with the qualification of the underwriting arrangements with FINRA.

(g) The Company shall make available, at the offices where normally kept, during the Company’s
normal business hours, for inspection by any Shareholder who certifies to the Company that it has a
current intention to sell and any underwriter participating or which is considering participating
in any disposition pursuant to a registration statement being filed by the Company pursuant to this
Section 2.04 and any attorney, accountant or other professional retained by any such Shareholder or
underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate
documents and properties of the Company (collectively,
the “Records”) as shall be reasonably necessary or desirable to enable any of the Inspectors
to exercise its due diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information reasonably requested by any Inspector in connection with

 

10

 

such
registration statement. Records that the Company determines, in good faith, to be confidential and
that it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless
(i) the Inspector reasonably believes the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in such registration statement or (ii) the release of such
Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction.
Each Shareholder agrees that information obtained by it as a result of such inspections shall be
deemed confidential and shall not be used by it or its Affiliates as the basis for any market
transactions in the Registrable Securities unless and until such information is made generally
available to the public. Each Shareholder further agrees that, upon learning that disclosure of
such Records is sought in a court of competent jurisdiction, it shall give notice to the Company
and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of the
Records deemed confidential.

(h) The Company shall use commercially reasonable efforts to furnish to each Registering
Shareholder and to each such underwriter, if any, a signed counterpart, addressed to such
Shareholder or underwriter, of (i) an opinion or opinions of counsel to the Company, and (ii) a
comfort letter or comfort letters from the Company’s independent public accountants and (iii) any
opinion of a “qualified independent underwriter”, each in customary form and covering such matters
of the kind customarily covered by opinions or comfort letters, as the case may be, as a majority
of such Shareholders or the managing underwriter therefor reasonably requests.

(i) The Company shall otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the SEC and make available to its security holders, as soon as
reasonably practicable, an earnings statement or such other document covering a period of twelve
(12) months, beginning within three (3) months after the effective date of the registration
statement, which earnings statement satisfies the requirements of Rule 158 under the Securities
Act.

(j) The Company may require each Shareholder promptly to furnish in writing to the Company
such information regarding the distribution of the Registrable Securities as the Company may from
time to time reasonably request and such other information as may be legally required in connection
with such registration.

(k) Each Shareholder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 2.04(e), such Shareholder forthwith shall discontinue
disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such Shareholder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 2.04(e), and, if so directed by the Company, such
Shareholder shall deliver to the Company all copies, other than any permanent file copies then in
such Shareholder’s possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice. If the Company shall give such notice, the Company shall
extend the period during which such registration statement shall be maintained effective (including
the period referred to in Section 2.04(a)) by the number of days during the period from and
including the date of the giving of notice pursuant to Section 2.04(e) to the date
when the Company shall make available to such Shareholder prospectuses supplemented or amended
to conform with the requirements of Section 2.04(e).

 

11

 

(l) The Company shall use commercially reasonable efforts to list all Registrable Securities
covered by such registration statement on any securities exchange or quotation system on which the
Common Shares are then listed or traded.

(m) The Company shall have appropriate officers of the Company (i) prepare and make
presentations at any “road shows” and before analysts and (ii) otherwise use their reasonable
efforts to cooperate as reasonably requested by the underwriters in the offering, marketing or
selling of the Registrable Securities.

(n) The Company shall designate a transfer agent and registrar for the class or classes or
series of securities which includes such Registrable Securities and obtain a CUSIP number for the
same, in each case not later than the date such registration is declared effective by the SEC.

Section 2.05. Participation In Public Offering. No Shareholder may participate in any
Public Offering hereunder unless such Shareholder (a) agrees to sell such Shareholder’s Registrable
Securities on the basis provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably required under the
terms of such underwriting arrangements and the provisions of this Agreement in respect of
registration rights.

Section 2.06. Rule 144 Sales; Cooperation By The Company. If any Shareholder shall
transfer any Registrable Securities pursuant to Rule 144, the Company shall use its commercially
reasonable efforts to cooperate with such Shareholder and shall provide to such Shareholder such
information as such Shareholder shall reasonably request. Without limiting the foregoing, the
Company shall:

(a) make and keep available public information, as those terms are contemplated by Rule 144;

(b) timely file with the SEC all reports and other documents required to be filed under the
Securities Act and the Exchange Act; and

(c) furnish to each Shareholder forthwith upon request a written statement by the Company as
to its compliance with the reporting requirements of the Securities Act and the Exchange Act, a
copy of the most recent annual or quarterly report of the Company and such other information as
such Shareholder may reasonably request in order to avail itself of any rule or regulation of the
SEC allowing such Shareholder to sell any Registrable Securities without registration.

ARTICLE 3

Indemnification and Contribution

Section 3.01. Indemnification by the Company. The Company agrees to indemnify and hold
harmless each Shareholder beneficially owning any Registrable Securities covered by a registration
statement, each Person who controls such Shareholder within the meaning of Section

 

12

 

15 of the
Securities Act and Section 20 of the Exchange Act, and the members, partners, directors, trustees,
managers, officers, equity owners, employees, agents, successors, assigns, personal representatives
of such Shareholder or such controlling Person from and against any and all losses, damages,
injuries, liabilities, claims, demands, settlements, judgments, awards, fines, penalties, taxes,
fees (including reasonable attorneys’ fees and disbursements), charges, costs (including costs of
investigation and defense) or expenses of any nature (collectively, “Damages”) caused by or
relating to any untrue statement or alleged untrue statement of a material fact contained in any
registration statement or prospectus relating to the Registrable Securities (as amended or
supplemented if the Company shall have furnished any amendment or supplement thereto) or any
preliminary prospectus or issuer free-writing prospectus (as defined in Rule 405 under the
Securities Act), or caused by or relating to any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such Damages are caused by or related to any such untrue statement or
omission or alleged untrue statement or omission so made based upon information furnished in
writing to the Company by such Shareholder or on such Shareholder’s behalf expressly for use
therein and expressly for use in connection with such registration; provided, further, that the
indemnity agreement contained in this Section 3.01 shall not apply to any Shareholder to the extent
that any such loss is based on or arises out of an untrue statement or alleged untrue statement of
material fact, or an omission or alleged omission to state a material fact, contained in or omitted
from any preliminary prospectus or issued free-writing prospectus if the final prospectus or issuer
free-writing prospectus shall correct such untrue statement or alleged untrue statement, or such
omission or alleged omission, and a copy of the final prospectus or issuer free-writing prospectus
has not been sent or given to such Person at or prior to the confirmation of sale to such Person
nor to any Shareholder for Damages caused by such Shareholder’s continuing use of a prospectus with
respect to which a notice pursuant to Section 2.04(e) is required to be given and has not received
notice of the amendment or supplement of such prospectus as contemplated in Section 2.04(e). The
Company also agrees to indemnify any underwriter of the Registrable Securities, its officers and
directors and each Person, if any, who controls such underwriter within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of
the indemnification of the Shareholders provided in this Section 3.01.

Section 3.02. Indemnification by Participating Shareholders. Each Shareholder holding
Registrable Securities included in any registration statement agrees, severally but not jointly, to
indemnify and hold harmless the Company, each of its directors, each of its officers who signed the
registration statement and each Person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
indemnity from the Company to such Shareholder provided in Section 3.01, but only with respect to
information furnished in writing by such Shareholder or on such Shareholder’s behalf expressly for
use in any registration statement or prospectus relating to the Registrable Securities, or any
amendment or supplement thereto, or any preliminary prospectus or free-
writing prospectus. Each such Shareholder also agrees to indemnify and hold harmless underwriters
of the Registrable Securities, their officers and directors and each Person, if any, who controls
such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act on substantially the same basis as that of the indemnification of the Company provided
in this Section 3.02. As a condition to including Registrable Securities in any registration
statement filed in accordance with Article 2, the Company may require that it

 

13

 

shall have received
an undertaking reasonably satisfactory to it from any underwriter to indemnify and hold it and each
Shareholder harmless to the extent customarily provided by underwriters with respect to similar
securities. No Shareholder shall be liable under this Section 3.02 for any Damages in excess of
the net proceeds realized by such Shareholder in the sale of Registrable Securities of such
Shareholder to which such Damages relate.

Section 3.03. Conduct of Indemnification Proceedings. If any proceeding (including any
governmental investigation) shall be instituted involving any Person in respect of which indemnity
may be sought pursuant to this Article 3, such Person (an “Indemnified Party”) shall promptly
notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing
and the Indemnifying Party shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and
expenses; provided, however, that the failure of any Indemnified Party so to notify
the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder except
to the extent that the Indemnifying Party is materially prejudiced by such failure to notify or
otherwise. In any such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless (a) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel, (b) in the reasonable judgment of such Indemnified Party representation
of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them, including one or more defenses or counterclaims that are different from or
in addition to those available to the Indemnifying Party or (c) the Indemnifying Party shall have
failed to assume the defense within thirty (30) days of notice pursuant to this Section 3.03 or
such shorter period that may prejudice the Indemnified Party under time periods prescribed by
litigation relating to the indemnifiable claim.. It is understood that, in connection with any
proceeding or related proceedings in the same jurisdiction, the Indemnifying Party shall not be
liable for the reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for all such Indemnified Parties and that all such fees
and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for
the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The
Indemnifying Party shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent, or if there be a final judgment for the
plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from
and against any loss or liability (to the extent stated above) by reason of such settlement or
judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement (i) includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding, and (ii) does not include any injunctive
or other equitable or non-monetary relief applicable to or affecting such Indemnified Person.

Section 3.04. Contribution. If the indemnification provided for in this Article 3 is
unavailable for any reason to the Indemnified Parties in respect of any Damages, then each
Indemnifying Party, in lieu of indemnifying the Indemnified Parties, shall contribute to the amount
paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the actions,
statements

 

14

 

or omissions that resulted in such Damages as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged omission of a material
fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action, statement or omission. The amount paid or payable
by a party as a result of any Damages shall be deemed to include, subject to the limitations set
forth in this Agreement, any reasonable attorneys’ or other reasonable fees or expenses incurred by
such party in connection with any proceeding to the extent such party would have been indemnified
for such fees or expenses if the indemnification provided for in this Article 3 was available to
such party in accordance with its terms. 

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 3.04 were determined by pro rata allocation or
by any other method of allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section
3.04, no Shareholder shall be required to contribute, in the aggregate, any amount in excess of the
amount by which the proceeds actually received by such Shareholder from the sale of the Registrable
Securities subject to the proceeding exceeds the amount of any Damages that such Shareholder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission, except in the case of proven fraud by such Shareholder. Each Shareholder’s
obligation to contribute pursuant to this Section 3.04 is several in the proportion that the
proceeds of the offering received by such Shareholder bears to the total proceeds of the offering
received by all such Shareholders and not joint.

No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

Section 3.05. Other Indemnification. The indemnity and contribution agreements contained
in this Article 3 are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties. Indemnification similar to that provided in this Article 3 (with appropriate
modifications) shall be given by the Company and each Shareholder participating therein with
respect to any required registration or other qualification of securities under any foreign,
federal or state law or regulation or governmental authority other than the Securities Act.

ARTICLE 4

Miscellaneous

Section 4.01. Notices. All notices and other communications given or made pursuant hereto
shall be in writing and delivered personally or by courier, overnight delivery service, or
certified or registered mail with postage prepaid, if such notice is addressed to the party to be
notified at such party’s address as set forth below, or as subsequently modified by written notice
in accordance with this Section 4.01. All such notices shall be duly given and effective upon
receipt (or refusal of receipt).

 

15

 

(a) if to the Company to:

Centerline Holding Company.

625 Madison Avenue

New York, New York 10022

Attention: Mark D. Schnitzer

with a copy to:

Paul Hastings, Janofsky & Walker LLP

75 E. 55th Street

New York, NY 10022

Attention: Michael Zuppone, Esq.

(b) if to any Shareholder, at the address for such Shareholder listed on the signature pages
below or otherwise provided to the Company as set forth below.

Section 4.02. Severability. The provisions of this Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the validity or enforceability
of the other provisions hereof. If any provision of this Agreement or the application thereof to
any Person or circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a
suitable and equitable provision shall be substituted therefor in order to carry out, so far as may
be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b)
the remainder of this Agreement and the application of such provision to other Persons or
circumstances shall not be affected by such invalidity or unenforceability, nor shall such
invalidity or unenforceability affect the validity or enforceability of such provision, or the
application thereof, in any other jurisdiction.

Section 4.03. Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes
the entire agreement of the parties and supersedes any and all other prior agreements and
undertakings, both written and oral, among the parties, or any of them, with respect to the subject
matter hereof. This Agreement does not, and is not, intended to confer upon any other Person any
right, benefit or remedy hereunder (other than as provided expressly in Article 3, which is
intended to be for the benefit of the Persons covered thereby).

Section 4.04. Amendment; Waiver. This Agreement may be amended only by a writing signed by
the Company and the holders of at least 75% of the Registrable Securities held by the parties
hereto at the time of such proposed amendment or modification. Any waiver of rights hereunder
must be set forth in writing and signed by the party against whom the waiver is to be effective. A
waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall
not in any way affect, limit or waive any party’s rights at any time to enforce strict compliance
thereafter with every term or condition of this Agreement.

Section 4.05. Binding Effect; Assignment.

(a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective legal representatives, successors and Permitted Transferees. Notwithstanding the
foregoing, this Agreement shall not be assigned by any party by operation

 

16

 

of law or otherwise,
(except as permitted by Section 4.05(b)), without the prior written consent of each of the other
parties and any such purported assignment shall be void ab initio. Any Shareholder that ceases to
own beneficially any Registrable Security shall cease to be bound by the terms hereof, other than
(i) the provisions of Article 3 applicable to such Shareholder with respect to any offering of
Registrable Securities completed before the date such Shareholder ceased to own any Registrable
Security and (ii) this Article 4.

(b) Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by any party hereto pursuant to any Transfer of Registrable
Securities or otherwise, except that each Shareholder may assign rights hereunder to any Permitted
Transferee of such Shareholder without the prior consent of the Company. Any such Permitted
Transferee shall (unless already bound hereby) execute and deliver to the Company an agreement to
be bound by this Agreement in the form of Exhibit A hereto (a “Joinder
Agreement”) and shall thenceforth be a “Shareholder.”

Section 4.06. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York, without regard to the conflict of
laws provisions thereof.

Section 4.07. Dispute Resolution; Mediation; Jurisdiction.

(a) In the event of any dispute, controversy or claim arising out of or relating to this
Agreement or the breach, termination or validity hereof, or the transactions contemplated hereby
(each a “Dispute”), upon the written notice of any party, the other parties shall attempt in good
faith to negotiate a resolution of the Dispute. If the other parties are unable for any reason to
resolve a Dispute within thirty (30) days after the receipt of such notice, the Dispute shall be
submitted to mediation in accordance with Section 4.07(b).

(b) Any Dispute not resolved pursuant to Section 4.07(a) shall, at the request of any party (a
“Mediation Request”), be submitted to non-binding mediation in accordance with the then current
International Institute for Conflict Prevention and Resolution Mediation Procedure (the
“Procedure”), except as modified herein. The mediation shall be held in New York, New York. The
parties shall have twenty (20) days from receipt by a party of a Mediation Request to agree on a
mediator. If no mediator has been agreed upon by the parties within twenty (20) days of receipt by
a party (or parties) of a Mediation Request, then any party may request (on written notice to the
other parties), that the International Institute for Conflict Prevention and Resolution appoint a
mediator in accordance with the Procedure. All mediation pursuant to this clause shall
be confidential and shall be treated as compromise and settlement negotiations, and no oral or
documentary representations made by the parties during such mediation shall be admissible for any
purpose in any subsequent proceedings. No party shall disclose or permit the disclosure of any
information about the evidence adduced or the documents produced by the other parties in the
mediation proceedings or about the existence, contents or results of the mediation without the
prior written consent of such other parties except in the course of a judicial or regulatory
proceeding or as may be required by law or requested by a governmental authority or securities
exchange. Before making any disclosure permitted by the preceding sentence, the party intending to
make such disclosure shall give the other parties reasonable written notice of the intended
disclosure and afford the other parties a reasonable opportunity to protect its interests.

 

17

 

If the
Dispute has not been resolved within sixty (60) days of the appointment of a mediator, or within
ninety (90) days of receipt by a party of a Mediation Request (whichever occurs sooner), or within
such longer period as the parties may agree to in writing, then any party may file an action on the
Dispute in any court having jurisdiction in accordance with Section 4.07(c).

(c) Each of the parties hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York and the courts of the United States
of America located in the City and County of the State of New York for any litigation arising out
of or relating to this Agreement or any transaction contemplated hereby (and agrees not to commence
any litigation relating hereto except in such courts), and further agrees that service of any
process, summons, notice or document by U.S. registered mail to its respective address set forth in
Section 4.01, shall be effective service of process for any litigation brought against it in any
such court. Each of the parties hereby irrevocably and unconditionally waives any objection to the
laying of venue of any litigation arising out of this Agreement or any transaction contemplated
hereby in the courts of the State of New York or the courts of the United States of America located
in the City and County of the State of New York and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such litigation brought in any
such court has been brought in an inconvenient forum. Each of the parties hereby irrevocably and
unconditionally waives any right it may have to trial by jury in connection with any litigation
arising out of or relating to this Agreement or any transaction contemplated hereby.

Section 4.08. Independent Nature of Shareholders’ Obligations and Rights. The obligations
of each Shareholder hereunder are several and not joint with the obligations of any other
Shareholder hereunder, and no Shareholder shall be responsible in any way for the performance of
the obligations of any other Shareholder hereunder. Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any Shareholder pursuant
hereto or thereto, shall be deemed to constitute the Shareholders as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Shareholders are in
any way acting in concert with respect to such obligations or the transactions contemplated by this
Agreement. Each Shareholder shall be entitled to protect and enforce its rights, including the
rights arising out of this Agreement, and it shall not be necessary for any other Shareholder to be
joined as an additional party in any proceeding for such purpose.

Section 4.09. Construction. The headings of the Articles and Sections in this Agreement
are provided for convenience only, are not part of the agreement of the parties and shall not
affect its construction or interpretation of this Agreement. The language used in this Agreement is
the
language chosen by the parties to express their mutual intent, and no rule of strict construction
shall be applied against any party. This Agreement was negotiated by the parties with the benefit
of legal representation. If an ambiguity or question or intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring and/or disfavoring a party by virtue of the authorship of any of the
provisions this Agreement.

Section 4.10. Time of the Essence. Time is of the essence regarding all dates and time
periods set forth or referred to in this Agreement.

 

18

 

Section 4.11. Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or electronic pdf submission), each of which when executed shall be deemed
to be an original, but all of which shall constitute one and the same instrument.

Section 4.12. Other Registration Rights. The Company hereby represents and warrants that
neither the Company nor any of its subsidiaries has previously entered into any agreement granting
any registration rights with respect to any Registrable Securities to any Person. From and after
the date of this Agreement, the Company shall not enter into any agreement with any holder or
prospective holder of any securities of the Company giving such holder or prospective holder any
registration rights the terms of which are equivalent to or more favorable than the registration
rights granted to Shareholders hereunder, or which would reduce the amount of Registrable
Securities the Shareholders can include in any registration filed pursuant to this Agreement,
unless such rights are subordinate to those of the Shareholders hereunder.

Section 4.13. Further Actions. At any time and from time to time, each party agrees, at
its expense (except as otherwise provided for herein), to take such actions and to execute and
deliver such documents as reasonably may be necessary to effectuate the purposes of this Agreement
and any transaction contemplated hereby.

Section 4.14. Availability of Equitable Remedies. Since a breach of the provisions of this
Agreement or any transaction contemplated hereby could not adequately be compensated by money
damages, a party shall be entitled, in addition to any other right or remedy available to it, to an
injunction restraining such breach or a threatened breach and to specific performance of any such
provision of this Agreement and no bond or other security shall be required in connection
therewith, and the parties hereby consent to the issuance of such an injunction and to the ordering
of specific performance.

[Signature pages follow]

 

19

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement or have caused this
Agreement to be duly executed by their respective authorized officers as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	CENTERLINE HOLDING COMPANY

a Delaware statutory trust
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Marc D. Schnitzer
	 	 	 	 	   
	 

	 	 	 	Name:
	 	Marc D. Schnitzer	 	 
	 

	 	 	 	Title:
	 	President & Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Centerline Holding Company

625 Madison Avenue

New York, New York 10022

Attention: Marc D. Schnitzer
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	With Copies of Notices to:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Paul Hastings, Janofsky & Walker LLP

75 E. 55th Street

New York, NY 10022

Attention: Michael Zuppone, Esq.

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	ISLAND CENTERLINE MANAGER LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jeffrey Cohen
	 	 	 	 	   
	 

	 	 	 	Name:
	 	Jeffrey Cohen	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Island Capital Group LLC

717 Fifth Avenue, 18th Floor

New York, New York 10022

Attention: President
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	With Copies of Notices to:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Proskauer Rose LLP

1585 Broadway

New York, NY 10036-8299

Attention: Allan R. Williams, Esq.

Fax: (212) 969-2900

 

2

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