Document:

ex10-1.htm

    Exhibit
      10.1

     

    
      

      EXECUTIVE
        EMPLOYMENT AGREEMENT

      

      THIS
        EXECUTIVE EMPLOYMENT
        AGREEMENT (“Agreement”) is entered into effective as
        of January 1, 2007 (the “Effective Date”) by and between
Centerline Capital Group, Inc., a Delaware corporation
        (“Company”), and Leonard W. Cotton
        (“Executive”).  In addition, this Agreement is being
        executed by the Company’s ultimate parent company, Centerline Holding
        Company, a Delaware statutory trust (“Centerline”),
        for purposes of guaranteeing performance by the Company as set forth in Section
        10(k) herein. Certain capitalized terms used in this Agreement are used with
        the
        definitions ascribed to them on the attached Exhibit A,
        which is incorporated into this Agreement by this reference.

      

      WHEREAS,
        the parties
        desire to enter into an employment relationship on the terms and conditions
        set
        forth below:

      

      THEREFORE,
        the
        parties, intending to be legally bound, agree as follows:

      

      1.      Employment.  The
        Company will employ Executive, and Executive will be employed by the Company,
        during the Employment Period on and subject to the terms and conditions
        contained in this Agreement.  The “Employment Period”
is the period commencing on the Effective Date and continuing
        for a period of
        three (3) years (the “Initial Term”) with automatic renewals thereafter for
        successive one (1) year periods unless terminated as provided in this
        Agreement.

      

      2.      Duties.  During
        the Employment Period, Executive will work for the Company in the capacity
        of
        Vice Chairman.  During the Employment Period, Executive shall report
        to the Chief Executive Officer of the Company and Executive shall perform
        the
        types of duties and functions as shall be reasonably assigned to Executive
        from
        time to time by the Chief Executive Officer of the Company and shall be
        consistent with Executive’s position.  Executive will devote
        substantially all of his business time, best efforts and ability to the business
        of the Company and its affiliates, will faithfully and diligently perform
        Executive’s duties pursuant to this Agreement, will comply with the overall
        policies established by the board of trustees of Centerline and will do all
        things reasonably in Executive’s power to promote, develop and extend
        Centerline’s business and that of its subsidiaries.  In determining
        whether Executive is devoting substantially all his business time, best efforts
        and ability to the business of the Company and its affiliates, Executive
        may
        only engage in those business activities aside from his duties hereunder
        which
        are either (i) set forth in the attached Exhibit B, or
        (ii) are disclosed to Centerline’s board of trustees and approved by
        it.

      

      3.      Compensation
        and Benefits.  During the Employment Period, the Company
        will pay and provide Executive as compensation for Executive's services pursuant
        to this Agreement the consideration specified and determined in accordance
        with
        this Section 3, in each case subject to all withholdings
        required by applicable law.

      

      
        	
                 

              	
                a.

              	
                The
                  Company will pay Executive a base salary (the “Salary”)
                  of $ 500,000.00 per annum payable in equal bi-weekly installments,
                  which
                  amount shall be subject to increase at the end of the Initial Term
                  and
                  every third year thereafter so long
                  as

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                this
                  Agreement shall be in effect.  In
                  addition, the Company will pay Executive bonus compensation
                  (“Annual Bonus”) to the extent it is awarded to him under
                  and subject to the terms of an annual incentive bonus compensation
                  plan or
                  program sponsored by the Company (the “Bonus
                  Plan”).

              

      

      

      
        	
                 

              	
                b.

              	
                Executive
                  may also be awarded long term deferred compensation under one or
                  more
                  plans or programs established by the Company (including but not
                  limited to
                  Out-Performance Programs) or Centerline and its affiliates from
                  time to
                  time (the “Deferred Compensation Plans”) and may be
                  offered an opportunity to co-invest with Centerline and/or its
                  subsidiaries in funds sponsored by them on such terms and conditions
                  as
                  shall be determined by Centerline.  Amounts, if any, payable to
                  Executive under the terms of the Deferred Compensation Plans shall
                  be
                  governed solely by the terms of the Deferred Compensation Plans
                  and awards
                  made thereunder and the terms and conditions of any co-investment
                  opportunity provided to Executive shall be established by Centerline
                  and
                  communicated to Executive.  Executive shall be under no
                  obligation to participate in any co-investment opportunity and
                  such
                  participation shall not be a condition of nor affect in any manner
                  Executive’s continued employment by the
                  Company.

              

      

      

      
        	
                 

              	
                c.

              	
                The
                  Company will pay Executive an automobile allowance of $ 1,500.00
                  per
                  month, for each month Executive is employed by the Company pursuant
                  to
                  this Agreement.

              

      

      

      
        	
                 

              	
                d.

              	
                Executive
                  shall be entitled to twenty (20) days vacation per year for each
                  year this
                  Agreement is in effect.  All vacation shall be taken at such
                  times as shall be agreed upon by the Chief Executive Officer of
                  the
                  Company.  In the event of a termination of this Agreement, no
                  amount shall be payable to the Executive for any accrued but not
                  yet taken
                  vacation time.  Executive’s right to carry over unused vacation
                  days to subsequent years shall be subject to and limited by Centerline’s
                  policy regarding the carry over of unused vacation days in effect
                  for
                  similarly situated executives.

              

      

      

      
        	
                 

              	
                e.

              	
                Executive
                  will be entitled to participate in any fringe benefit and other
                  employee
                  benefit plans and programs available to salaried employees
                  of  the Company as in effect from time to time, to the extent
                  that Executive may be eligible to do so under the applicable provisions
                  of
                  the plans and programs (“Benefit
                  Rights”).

              

      

      

      
        	
                 

              	
                f.

              	
                Executive
                  shall be entitled to reimbursement of amounts incurred by him in
                  connection with the performance by him of his duties and obligations
                  hereunder in accordance with the Company’s expense reimbursement policy
                  (“Reimbursable Amounts”).  Executive shall
                  apply for all reimbursements for a particular calendar year not
                  later than
                  forty-five (45) days after it ends, and payment shall occur not
                  later than
                  two and one-half months after the end of the calendar year to which
                  the
                  Reimbursable Amounts relate.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                g.

              	
                Provided
                  Executive is insurable at normal risk rates, the Company shall
                  provide
                  Executive with a term life insurance policy in the amount of
                  $ 3,000,000.00 and Executive
                  or his designee shall be the owner of such policy and shall be
                  entitled to
                  name the beneficiary of any insurance proceeds payable
                  thereunder.

              

      

      

      
        	
                 

              	
                h.

              	
                The
                  Company shall also provide Executive with supplemental long term
                  disability insurance which will provide Executive with a full disability
                  benefit of Fifteen Thousand Dollars ($15,000.00) per month after
                  an
                  exclusion period of ninety (90) days and otherwise on substantially
                  the
                  same terms as are set forth on the attached Exhibit
                  C (the “Disability Coverage”).  During the ninety
                  (90) day exclusion period, the Company will pay Executive his full
                  Salary.  Disability Coverage shall be provided in a manner which
                  is most tax advantageous to the Executive, provided Executive cooperates
                  fully in the implementation of any reasonable plan proposed by
                  the Company
                  to achieve such results.

              

      

      

      4.      Termination;
        Severance Benefits.  The Employment Period and
        Executive’s employment with the Company will terminate upon the first to occur
        of the following and the Company shall make the following payments and no
        other
        payments upon the occurrence of such event, subject in all cases to the terms
        and conditions of subsection 10(e) hereof:

      

      
        	
                 

              	
                a.

              	
                Death. If
                  Executive dies during the Employment Period, the Termination Date
                  will be
                  the date of Executive’s death.  In such event, the Company shall
                  pay Executive’s estate within two and one-half months of the date of
                  Executive’s death a death benefit equal to: (i) severance compensation
                  equal to one year of Executive’s then current Salary and 100% of the
                  amount of the Executive’s most recently declared and
                  paid  Annual Bonus (“Severance Pay”); (ii)
                  Executive’s earned but unpaid Salary, any Reimbursement Amounts for the
                  period prior to termination, any accrued but unused vacation, and
                  any
                  declared but unpaid  Annual Bonus (collectively
                  “Entitlements”); (iii) Benefit Rights; (iv) additional
                  benefits (if any) in accordance with the applicable Company plans,
                  programs and arrangements (“Company Arrangements”); and
                  (v) the Company shall pay the COBRA premiums for Executive’s dependents
                  for the lesser of (A) one (1) year or (B) until Executive’s dependents
                  cease to be eligible for such COBRA benefits (including, without
                  limitation, by reason of any such dependents becoming eligible
                  for
                  substantially similar coverage from another employer).  Upon a
                  termination of the Executive by reason of Executive’s death, any unvested
                  options and restricted stock awarded to Executive under any compensation
                  plan sponsored by the Company and any promote shares under a co-investment
                  made by the Executive with the Company or its affiliates shall
                  fully vest
                  upon the date of his death.  Furthermore, the Executive shall be
                  eligible for consideration for an Annual Bonus for the year in
                  which the
                  Executive dies; provided, however, nothing herein shall entitle
                  the
                  Executive to an Annual Bonus and any award of an Annual Bonus shall
                  be
                  subject to the terms and provisions of the Bonus
                  Plan.

              

      

      

      
        	
                 

              	
                b.

              	
                Total
                  Disability.  If Executive incurs a Total
                  Disability, the Termination Date will be the date Executive (or
                  Executive’s beneficiary or representative)
                  first

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                becomes
                  entitled to receive benefits under the Disability Coverage unless
                  deferred
                  or extended by Centerline’s Compensation Committee, in which case it will
                  be the extended or deferred date (the "Disability Payment
                  Date"). In such event the Company shall pay to or on behalf
                  of
                  the Executive (or Executive’s beneficiary or representative) (i) on each
                  regular pay day the pro rata portion of any Salary which accrues
                  from the
                  date Executive incurs the Total Disability to the Disability Payment
                  Date,
                  (ii)  within two and one-half months of the Disability Payment
                  Date, a disability benefit equal to (A) Severance Pay; (B) the
                  Entitlements; (C) Benefit Rights; and (D) Company Arrangements;
                  (iii)
                  subsequent to the Disability Payment Date, any payments due on
                  account of
                  the Disability Coverage and (iv) the COBRA premiums for Executive
                  and his
                  dependents for the lesser of (A) one (1) year or (B) until Executive
                  and
                  his dependents cease to be eligible for such COBRA benefits (including,
                  without limitation, by reason of Executive becoming eligible for
                  substantially similar coverage from a subsequent employer).  For
                  these purposes, a “Total Disability” is a physical and/or
                  mental condition giving rise to Executive (or Executive’s beneficiary or
                  representative) receiving benefits on account of Executive’s being totally
                  disabled under any Disability Coverage.  Upon a termination of
                  the Executive by reason of Total Disability, any unvested options
                  and
                  restricted stock awarded to Executive under any compensation plan
                  sponsored by the Company and any promote shares under a co-investment
                  made
                  by the Executive with the Company or its affiliates shall fully
                  vest upon
                  the Termination Date.  Furthermore, the Executive shall be
                  eligible for consideration for an Annual Bonus for the year in
                  which the
                  Executive incurs a Total Disability; provided, however, nothing
                  herein
                  shall entitle the Executive to an Annual Bonus and any award of
                  an Annual
                  Bonus shall be subject to the terms and provisions of the Bonus
                  Plan.

              

      

      

      
        	
                 

              	
                c.

              	
                Termination
                  for Cause; Resignation without Good Reason.  Executive's
                  employment may be terminated by the Company for Cause at any time
                  upon
                  written notice from the Company to Executive. The Company’s notice must
                  set forth the facts or circumstances constituting Cause and specify
                  the
                  Termination Date.  Executive may resign without the existence of
                  Good Reason at any time upon not less than ninety (90) days written
                  notice
                  to the Company. Executive’s notice must specify the Termination
                  Date.  Upon the occurrence of either such event, the Company
                  shall only be obligated to pay Executive any amounts due under
                  Section 4(g) below. Upon a termination of the Executive
                  by the Company with Cause or a termination by the Executive without
                  Good
                  Reason, any unvested options and restricted stock awarded to Executive
                  under any compensation plan sponsored by the Company shall be forfeited
                  as
                  of the Termination Date.  Vested options shall continue to be
                  exercisable in accordance with the compensation plan pursuant to
                  which
                  they were issued.

              

      

      

      
        	
                 

              	
                d.

              	
                Failure
                  to Renew, Retirement, Termination Without Cause or Resignation
                  for Good
                  Reason.  In the event the Company shall determine
                  that Executive’s Employment Period will not be renewed pursuant to Section
                  1 of this Employment Agreement, the Company shall so notify Executive
                  not
                  less than

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                sixty
                  (60) days and not more than ninety (90) days prior to the expiration
                  of
                  the Employment Period, in which case the Termination Date shall
                  be the
                  expiration of the Employment Period and the Executive’s employment shall
                  be deemed to have been terminated by the Company without
                  Cause.  In addition, Executive may be terminated by the Company
                  without Cause at any time upon not less than thirty (30) days written
                  notice to Executive, in which case the Company’s notice must specify the
                  Termination Date.  Executive may resign if Good Reason exists
                  upon not less than ten (10) days written notice to the
                  Company.  Executive’s notice must set forth the facts and
                  circumstances constituting Good Reason and specify the Termination
                  Date.

              

      

      

      In
        the
        event of Executive’s Retirement, (i) any unvested options and restricted stock
        awarded to Executive under any compensation plan sponsored by the Company
        and
        any promote shares under a co-investment made by the Executive with the Company
        or its affiliates shall fully vest upon the Termination Date and (ii) the
        terms
        and provisions of Sections 5, 6, 7 and 8 of this Agreement shall continue
        in
        full force and effect.

      

      
        	
                 

              	
                If
                  Executive’s employment is terminated by the Company without Cause or
                  Executive terminates his employment with the Company for Good Reason,
                  Executive shall have no further rights or claims hereunder or with
                  regard
                  hereto except that, subject to his execution of a release running
                  to the
                  Company and its related entities and their respective partners,
                  shareholders, officers, directors and employees of all claims relating
                  to
                  his employment and termination substantially in the form of
                  Exhibit D (with such reasonable changes therein
                  as
                  may be deemed by counsel to the Company to be required or desirable
                  to
                  reflect applicable law at the time of delivery of such release)
                  (the
                  “Release”), (i) the Company will pay Executive a
                  separation payment equal to the Entitlements and Severance Pay
                  within two
                  and one-half months after terminating employment, (ii) Executive
                  will be
                  entitled to the Benefit Rights and Company Arrangements, and (iii)
                  the
                  Company will pay the COBRA premiums for Executive and his dependents
                  for
                  the lesser of (A) one (1) year or (B) until Executive and his dependents
                  cease to be eligible for such COBRA benefits (including, without
                  limitation, by reason of Executive becoming eligible for substantially
                  similar coverage from a subsequent employer).  If Executive
                  elects not to deliver the Release, then the Company shall have
                  no
                  obligation to pay Executive the severance provided for in clause
                  (i)
                  above, but shall be obligated to pay to Executive the amounts provided
                  for
                  in clause (ii) above at the times provided therein.  Any
                  payments to be made to Executive pursuant to this Section
                  4(d) are in addition to any benefits that may be payable under
                  any life insurance, disability insurance or similar policies of
                  insurance
                  that the Company may maintain on Executive’s behalf and to which Executive
                  contributes all or any portion of the premiums to maintain. If
                  Executive’s
                  employment is terminated hereunder, Executive shall be under no
                  obligation
                  to seek other employment and there shall be no offset against any
                  amounts
                  due to Executive under this Agreement on account of any remuneration
                  attributable to any subsequent employment that Executive may
                  obtain.  Upon a

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                termination
                  of the Executive by the Company without Cause or, a termination
                  by the
                  Executive with Good Reason, any unvested options and restricted
                  stock
                  awarded to Executive under any compensation plan sponsored by the
                  Company
                  and any promote shares under a co-investment made by the Executive
                  with
                  the Company or its affiliates shall fully vest upon the end of
                  any
                  rescission period allowed with respect to the release provided
                  as Exhibit
                  D.  Furthermore, the Executive shall be eligible for
                  consideration for an Annual Bonus for the year in which the Executive
                  terminates with Good Reason or is Terminated without Cause; provided,
                  however, nothing herein shall entitle the Executive to an Annual
                  Bonus and
                  any award of an Annual Bonus shall be subject to the terms and
                  provisions
                  of the Bonus Plan.

              

      

      

      
        	
                 

              	
                e.

              	
                Change
                  of Control.  In the event that Executive’s
                  employment is terminated by the Company either in anticipation
                  of,  or within three months before, or within one (1) year
                  after, a Change in Control (other than as a result of Cause, death
                  or
                  Total Disability), or by the Executive for Good Reason within one
                  (1) year
                  after a Change of Control, the Company shall have no liability
                  or further
                  obligation to the Executive and the Executive shall have no further
                  rights
                  or claims hereunder or with regard hereto except that, subject
                  to his
                  execution (within 30 days after delivery to Executive) of the Release:
                  (i)
                  the Company will, within two and one-half months of the Executive’s
                  employment termination date, pay Executive the Entitlements and
                  a
                  separation payment equal to twenty-four months of Executive’s then current
                  Salary and  150% of the amount of the Executive’s most recently
                  declared and paid Annual Bonus; (ii) Executive will be entitled
                  to the
                  Benefits Rights and the Company Arrangements; and (iii) all medical
                  and
                  dental, disability and life insurance then provided to senior executives
                  of the Company shall be continued at no cost to the Executive or
                  his
                  dependents following the Termination Date for a period of twenty-four
                  (24)
                  months, or at the discretion of the Company, a cash payment shall
                  be made
                  in lieu of such benefits.  If Executive elects not to sign and
                  deliver the Release, then the Company shall have no obligation
                  to pay
                  Executive the monies and benefits described in the prior
                  sentence.  Upon a termination of Executive’s employment governed
                  by this Section 4(e), any unvested options and restricted stock
                  awarded to
                  Executive under any compensation plan sponsored by the Company
                  and any
                  promote shares under a co-investment made by the Executive with
                  the
                  Company or its affiliates shall fully vest upon the Termination
                  Date.  Furthermore, the Executive shall be eligible for
                  consideration for an Annual Bonus for the year in which the Executive’s
                  employment is terminated under the terms of this Section 4(e);
                  provided,
                  however, nothing herein shall entitle the Executive to an Annual
                  Bonus and
                  any award of an Annual Bonus shall be subject to the terms and
                  provisions
                  of the Bonus Plan.  For purposes of this Section 4(e), the
                  Termination Date shall be Executive’s last day of employment with the
                  Company.

              

      

      

      
        	
                 

              	
                f.

              	
                Immediate
                  Cessation of Employment.  If the Company gives
                  notice to Executive pursuant to subsection (c) above, or
                  Executive gives notice to the Company pursuant to subsection (c)
                  above, the Company may further direct

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                Executive
                  to immediately cease Executive’s activities on behalf of the Company, to
                  remove Executive’s personal belongings from the premises of the Company
                  and/or to discontinue using any of the Company’s­
                  facilities.

              

      

      

      
        	
                 

              	
                g.

              	
                Arrearages.  In
                  connection with the Executive’s termination of employment for any reason,
                  the Company shall pay Executive (or Executive’s estate or legal
                  representative, as the case may be) on the Termination Date his
                  (a)
                  accrued but unpaid Salary, if any, as of the Termination Date,
                  (b) accrued
                  but unpaid Annual Bonus for the Fiscal Year prior to the Fiscal
                  Year in
                  which Executive’s employment is terminated as of the Termination Date and
                  (c) unpaid Reimbursable Amounts, if any, as of the Termination
                  Date
                  (collectively, the “Arrearages”). If termination is
                  pursuant to subsection (c) above, the payments under this
                  subsection (g) will be in complete fulfillment of the
                  Company’s obligations to Executive under this
                  Agreement.  Otherwise, the Company shall be obligated to make
                  the additional payments required pursuant to this Section
                  4 in addition to the
                  Arrearages.

              

      

      

      
        	
                 

              	
                h.

              	
                Cooperation. The
                  Executive agrees
                  to cooperate with the Company, during the Employment Period and
                  thereafter
                  (including following the Executive’s termination of employment for any
                  reason), consistent with Executive’s duties, responsibilities and
                  availability under the terms of this Agreement,  by making
                  himself reasonably available to testify on behalf of the Company
                  or any of
                  its Affiliates in any action, suit, or proceeding, whether civil,
                  criminal, administrative, or investigative, and to assist the Company,
                  or
                  any Affiliate, in any such action, suit, or proceeding, by providing
                  information and meeting and consulting with: (i) the Board or its
                  representatives or counsel, (ii) representatives or counsel to
                  the
                  Company, and/or (iii) any Affiliate as reasonably
                  requested.  The Company agrees to reimburse the Executive, for
                  all reasonable expenses actually incurred in connection with his
                  provision
                  of testimony or assistance.

              

      

      

      5.      Non-Competition
        Agreement.

      

      
        	
                 

              	
                a.

              	
                Executive
                  absolutely and unconditionally covenants and agrees with the Company
                  that,
                  from the period commencing on the date of this Agreement and continuing
                  for a period of ninety (90) days following the termination of his
                  employment by Executive without Good Reason and for a period of
                  one (1)
                  year following the end of his employment for any other reason (the
                  “Noncompete Period”), Executive will not, either directly
                  or indirectly, solely or jointly with any other person or persons,
                  as an
                  employee, consultant, or advisor (whether or not engaged in business
                  for
                  profit), or as an individual proprietor, partner, shareholder,
                  director,
                  officer, joint venturer, investor or lender, render services in
                  or
                  directed into any state within the United States of an executive,
                  advertising, marketing, sales, supervisory, technical, research,
                  purchasing or consulting nature to any person or entity that engages
                  in or
                  intends to engage in a Competitive Business (as defined in
                  Exhibit A) (i) as conducted as of the date of
                  execution of this Agreement;  (ii) as conducted during the term
                  of this Agreement; or (iii) as

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                proposed
                  to be conducted by the Company Group as of the Termination Date
                  (collectively,
“Competition”).

              

      

      

      
        	
                 

              	
                b.

              	
                If
                  a court or arbitration panel concludes through appropriate proceedings
                  that the Executive has breached the covenant set forth in this
                  Section 5, the term of the covenant shall be extended
                  for
                  a term equal to the period for which the Executive is determined
                  to have
                  breached the covenant.

              

      

      

      6.      Covenant
        Not to Disclose.  Executive acknowledges and agrees that,
        by virtue of the performance of the normal duties of his position with the
        Company and by virtue of the relationship of trust and confidence between
        the
        Executive and the Company, the Company will permit Executive to have access
        to
        and Executive will become familiar with, acquire knowledge of and develop
        or
        maintain the Company’s Confidential Information (as defined below), whether
        currently existing or to be developed in the future, which Executive recognizes
        permits the Company to enjoy a competitive advantage and the premature
        disclosure of which would irreparably injure the Company.  The
        Executive covenants and agrees that he will not, at any time, whether during
        the
        term of this Agreement or otherwise, directly or indirectly use, disclose
        (in
        any manner, including transmitting via or posting on the Internet), reproduce,
        distribute, reverse engineer or otherwise provide, in whole or in part, to
        or on
        behalf of any person (other than the Company Group) or use for his own account,
        any data or knowledge of operations of the Company Group which are proprietary
        in nature and/or confidential, whether in writing, in computer or other form
        or
        conveyed orally, including but not limited to confidential or proprietary
        records, data, trade secret, pricing policy, bid amount, bid strategy, rate
        structure, personnel policy, method or practice of obtaining or doing business
        by the Company Group, or any other confidential or proprietary information
        whatsoever (the “Confidential Information”), whether or not
        obtained with the knowledge and permission of the Company and whether or
        not
        developed, devised or otherwise created in whole or in part by the efforts
        of
        the Executive and shall take no action that threatens to do so.  The
        Executive further covenants and agrees that he shall retain all such knowledge
        and information which he shall acquire or develop respecting such Confidential
        Information in trust for the sole benefit of the Company and its successors
        and
        assigns.  Executive shall not, without the prior written consent of
        the Company, unless compelled pursuant to the order of a court or other
        governmental or legal body having jurisdiction over such matter, communicate
        or
        divulge any such Confidential Information to anyone other than the Company
        and
        those designated by it.  In the event Executive is compelled by order
        of a court or other governmental or legal body to communicate or divulge
        any
        Confidential Information to anyone other than the Company and those designated
        by it, Executive shall promptly notify the Company of any such order and
        shall
        cooperate fully with the Company (and the owner of such Confidential
        Information) in protecting such information to the extent possible under
        applicable law.

      

      7.      Non-Interference
        Covenant.  To protect the Company’s legitimate business
        interests, including the Company’s Confidential Information and business
        relationships, Executive covenants and agrees that he will not, at any time,
        whether during the term of this Agreement or during the Non-Compete Period,
        directly or indirectly, for whatever reason, whether for his own account
        or for
        the account of any other person, firm, company or other
        organization:  (i) solicit for employment, employ, or otherwise deal
        with in a manner which interferes with the Company

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Group’s
        relationship with any person or entity who is an employee, officer, director
        or
        independent contractor of the Company Group at any time or who constitutes
        a
        bona fide prospective employee, officer, trustee, director or independent
        contractor of the Company Group, unless such person or entity shall no longer
        be
        actively employed, or engaged by the Company Group and shall no longer
        constitute a bona fide prospective employee, officer, director or independent
        contractor of the Company Group; provided, however, Executive will not be
        deemed
        to be in violation of this clause (i) if an employee of the Company Group
        is
        hired by Executive’s future employer provided that Executive did not otherwise
        violate this provision; (ii) interfere in any manner with any of the Company
        Group's contracts or relationships with any investor, customer, client or
        supplier (of services or tangible or intangible property) of the Company
        Group,
        or any person or entity who is a bona fide prospective, investor customer,
        client or supplier of the Company Group; (iii) solicit or otherwise interfere
        with any existing or proposed contract or relationship between the Company
        Group
        and any other party or (iv) speak or write in any manner which is disparaging
        of
        the Company Group, its business practices, employees, officers, trustees
        or
        directors.

      

      8.      Business
        Materials and Property Disclosure.  All written
        materials, records and documents made by the Executive or coming into his
        possession concerning the business or affairs of the Company Group shall
        be the
        sole property of the Company Group and, upon termination of his employment
        with
        the Company or upon request by the Company, the Executive shall return the
        same
        to the Company and shall retain no copies in any form or media.  The
        Executive shall also return to the Company all other property in his possession
        owned by the Company upon termination of his employment.

      

      9.      Breach
        by Executive.  It is expressly understood, acknowledged
        and agreed by the Executive that (i) the restrictions contained in
Sections 5, 6, 7 and 8 of this Agreement
        represent a reasonable and necessary protection of the legitimate interests
        of
        the Company and that his failure to observe and comply with his covenants
        and
        agreements in Sections 5, 6, 7, or 8 will cause irreparable harm to the Company;
        (ii) it is and will continue to be difficult to ascertain the nature, scope
        and
        extent of the harm; and (iii) a remedy at law for such failure by Executive
        will
        be inadequate.  Accordingly, it is the intention of the parties that,
        in addition to any other rights and remedies which the Company may have in
        the
        event of any breach of said Sections, the Company shall be entitled, and
        is
        expressly and irrevocably authorized by Executive, to demand and obtain specific
        performance, including without limitation temporary and permanent injunctive
        relief, and all other appropriate equitable relief against Executive in order
        to
        enforce against Executive, or in order to prevent any breach or any threatened
        breach by Executive, of the covenants and agreements contained in Sections
        5, 6,
        7 or 8 in any court of competent jurisdiction without the need to post any
        bond
        or undertaking.  Any action, suit or other legal proceeding to resolve
        any matter arising as a result of a breach of the restrictions contained
        in
        Sections 5, 6, 7, or 8 or an action to enforce any award rendered pursuant
        to
        the arbitration provisions in Section 10(g), may be commenced in a court
        of the
        State of New York and the parties hereby consent to the jurisdiction of such
        a
        court.  The parties hereto unconditionally waive their respective
        right to demand a jury trial in any dispute relating to this
        Agreement.  If any restriction with regard to Competition is found by
        any court of competent jurisdiction, or an arbitrator, to be unenforceable
        because it extends for too long a period of time or over too great a range
        of
        activities, or in too broad a geographic area, it shall be interpreted to
        extend
        over the

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      maximum
        period of time, range of activities or geographic area to which it may be
        enforceable and the Company shall have no further obligations
        hereunder.

      

      10.  General
        Provisions.

      

      
        	
                 

              	
                a.

              	
                Except
                  insofar as Executive may be subject to general policies adopted
                  by the
                  Company from time to time, this Agreement contains the entire agreement
                  between the parties with respect to its subject matter, and all
                  prior
                  other representations, warranties, conditions or agreements relating
                  to
                  the subject matter of this Agree­ment, whether or not reduced to
                  writing in whole or part, are hereby revoked, terminated and declared
                  to
                  be null and void.  The preceding sentence notwithstanding, this
                  Agreement is in furtherance of, and does not affect or modify,
                  any
                  Deferred Compensation Plan in which the Executive may participate
                  or
                  Executive’s participation in any benefit plan or program provided by the
                  Company Group.

              

      

      

      
        	
                 

              	
                b.

              	
                The
                  waiver by any party of any breach or default of any provision of
                  this
                  Agreement will not operate or be construed as a waiver of any subsequent
                  breach or default of the same or any other provision of this
                  Agreement.  This Agreement may not be changed orally, but only
                  by an instrument in writing duly executed on behalf of the party
                  against
                  which enforcement of any waiver, change, modification, consent
                  or
                  discharge is sought.

              

      

      

      
        	
                 

              	
                c.

              	
                This
                  Agreement is binding upon and will inure to the benefit of the
                  Company and
                  Centerline, Executive and their respective successors, assigns,
                  heirs and
                  legal representatives.  Insofar as Executive is concerned, this
                  Agreement is personal and Executive's duties under it may not be
                  assigned
                  or delegated.  The Company may assign or delegate its rights or
                  obligations under this Agreement to any successor owner of the
                  Company’s
                  business, and, if ownership of the Company’s business is transferred or
                  the Company is merged with or consolidated into another entity,
                  the
                  Company will cause the successor to assume all of the Company’s
                  obligations under this Agreement.

              

      

      

      
        	
                 

              	
                d.

              	
                The
                  existence, terms, and conditions of this Agreement are and shall
                  be deemed
                  to be fully confidential and shall not be disclosed by Executive
                  or the
                  Company to any person or entity, except: (i) as may be required
                  by law;
                  (ii) by Executive to his accountant to the extent necessary to
                  prepare his
                  tax returns; (iii) by Executive to his family and attorney; (iv)
                  by the
                  Company or any affiliate of the Company to their attorneys and
                  human
                  resources personnel or to any entity which shall have executed
                  a
                  confidentiality agreement with the Company or any affiliate of
                  the
                  Company; and (v) by Executive to any lender, condominium or cooperative
                  board, or other entity or person that may require employment or
                  other
                  financial information for bona fide reasons that are not competitive
                  with
                  the Company, provided that the financial terms of this Agreement
                  may not
                  be disclosed to any potential employer that is a competitor of
                  the
                  Company, and that Executive gives each such person to whom disclosure
                  is
                  made notice of the confidentiality

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                provisions
                  of this Agreement.  Notwithstanding the foregoing Executive
                  shall not be prohibited from disclosing the general terms of his
                  compensation to prospective
                  Employers.

              

      

      

      
        	
                 

              	
                e.

              	
                The
                  Company may withhold from any and all amounts payable to Executive
                  hereunder pursuant to such federal, state and local taxes as may
                  be
                  required to be withheld pursuant to any applicable laws or
                  regulation.  The Executive is solely responsible for the payment
                  of any tax liability (including any taxes and penalties arising
                  under
                  Section 409A of the Internal Revenue Code of 1986, as amended (the
                  “Code”)) that Executive incurs as a result of any payments or benefits
                  that the Executive receives pursuant to this Agreement.  The
                  Company shall not have any obligation to pay the Executive for
                  any such
                  tax liabilities.  Nevertheless, if the Company reasonably
                  determines that any payments or benefits pursuant to Section 4
                  above would
                  cause the Executive to incur liability for additional tax under
                  Section
                  409A of the Code, then the Company (of its own initiative or upon
                  request
                  of the Executive) may suspend such payments or benefits until the
                  end of
                  the six-month period immediately following termination of the Executive’s
                  employment (the “409A Suspension Period”).  As soon as
                  reasonably practical after the end of the 409A Suspension Period
                  (and in
                  no event more than two and one-half months thereafter), the Company
                  will
                  make a lump-sum payment to the Executive, in cash, in an amount
                  equal to
                  any payments and benefits that the Company does not make on account
                  of the
                  409A Suspension Period.  At the close of the 409A Suspension
                  Period, the Executive will receive any remaining payments and benefits
                  due
                  pursuant to Section 4 in accordance with the terms of that Section
                  (as if
                  there had not been any suspension beforehand).  Notwithstanding
                  the foregoing, in the event that this Agreement or any payment
                  or benefit
                  paid to the Executive hereunder is deemed to be subject to Section
                  409A of
                  the Code, Executive and the Company agree to negotiate in good
                  faith to
                  adopt such amendments that are necessary to comply with Section
                  409A of
                  the Code or to exempt such payments or benefits from Section 409A
                  of the
                  Code.

              

      

      

      
        	
                 

              	
                f.

              	
                In
                  the event that any dispute shall arise between Executive and the
                  Company
                  relating to Executive’s rights under this Agreement, the Company shall pay
                  to Executive all reasonable legal fees and expenses incurred in
                  connection
                  with such dispute, if the Company is not the prevailing party in
                  an action
                  for injunctive relief or if it is finally determined by the arbitration
                  referred to in Section 10(g) hereof or by a court of
                  competent jurisdiction that Executive is the prevailing party in
                  all or
                  substantially all material respects with respect to any
                  dispute.

              

      

      

      
        	
                 

              	
                g.

              	
                In
                  the event of any dispute between the Company and Executive with
                  regard to
                  this Agreement or his employment or termination thereof with the
                  Company,
                  other than for injunctive relief pursuant to Sections 5, 6, 7 and
                  8 hereof, such dispute shall be resolved pursuant to the
                  rules of
                  the American Arbitration Association (“AAA”) by
                  arbitration conducted in New York City, New York.  The decision
                  of the arbitrator or arbitrators shall be final and binding on
                  the parties
                  hereto and may be entered in any court having
                  jurisdiction.  Each party

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                shall
                  bear its own costs of arbitration and shall equally divide the
                  charges of
                  the arbitrators and the AAA, except as provided in Section
                  10(f).

              

      

      

      
        	
                 

              	
                h.

              	
                All
                  notices hereunder shall be given in writing and shall be either
                  delivered
                  personally, or sent by certified or registered mail, return receipt
                  requested, addressed to the other party at such party’s address on the
                  books of the Company or at the Company's executive offices (to
                  the
                  attention of the General Counsel), as the case may be.  Notices
                  shall be deemed given when received, or two (2) business days after
                  mailing, whichever is earlier.

              

      

      

      
        	
                 

              	
                i.

              	
                The
                  parties have entered into this Agreement in the belief that its
                  provisions
                  are valid, reasonable and enforceable.  If any one or more of
                  the provisions shall be held to be invalid, illegal or unenforceable
                  in
                  any respect, such invalidity, illegality or unenforceability shall
                  not
                  affect any other provision in this Agreement, but this Agreement
                  shall be
                  construed as if such invalid, illegal or unenforceable provision
                  had never
                  been contained therein.

              

      

      

      
        	
                 

              	
                j.

              	
                Executive
                  acknowledges that the prohibitions and restrictions set forth in
                  this
                  Agreement are reasonable and necessary for the protection of the
                  business
                  of the Company, that the restrictions and prohibitions here will
                  not
                  prevent him from earning a livelihood after the termination of
                  Executive’s
                  employment and that part of the compensation paid and benefits
                  provided to
                  Executive are in consideration for entering into this
                  Agreement.

              

      

      

      
        	
                 

              	
                k.

              	
                Centerline
                  hereby agrees that all obligations with respect to compensation
                  owed to
                  Executive under this Agreement by the Company shall be fully and
                  unconditionally guaranteed by Centerline and Centerline agrees
                  to take
                  such actions as are necessary to ensure compliance with any provision
                  hereof requiring action on the part of Centerline. Centerline's
                  obligations hereunder shall be binding on its successors and assigns
                  (including, without limitation, any entity that succeeds to all
                  or a
                  substantial portion of Centerline's business or
                  assets).

              

      

       

      
        	
                 

              	
                l.

              	
                
                  This
                    Agreement is governed by, and is to be construed in accordance
                    with, the
                    law of the State of New York without reference to the conflicts
                    of laws
                    principles thereof.

                

              

        	
                 

              	
                m.

              	
                
                  
                    The
                      provisions of Sections 4(h), 5, 6, 7, 8, 9, 10(f), 10(g)
                      and 11 of this Agreement shall survive and shall
                      continue
                      to be binding upon the Executive and the Company notwithstanding
                      the
                      termination of this Agreement for any reason
                      whatsoever.

                  

                

              

      

       

      
        	
                 

              	
                n.

              	
                
                  
                    
                      The
                        parties warrant and represent that each has the legal capacity
                        and
                        authority to enter into this
                        Agreement.

                    

                  

                

              

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                o.

              	
                
                  
                    
                      In
                        the event of a conflict between the terms and provisions
                        of any Bonus Plan
                        or Deferred Compensation Plan and this Agreement, the terms
                        of this
                        Agreement shall
                        prevail.

                    

                  

                

              

      

      

      
        	
                 

              	
                p.

              	
                
                  
                    
                      
                        Nothing
                          in this Agreement shall affect in any way any prior awards
                          to Executive of
                          stock options or restricted stock which shall continue
                          to be governed by
                          the terms of the award and the Deferred Compensation Program
                          governing
                          such award.

                      

                    

                  

                

              

      

       

      11.  Indemnification.  The
        Company shall indemnify and hold the Executive harmless from and against
        any and
        all liabilities to which he may be subject as a result of his employment
        hereunder (including as a result of service by him at the request of the
        Company
        as an officer or director of the Company or as an officer or director of
        any of
        its subsidiaries or affiliates) and shall provide Executive with the advancement
        of expenses with respect to such indemnification to the fullest extent that
        may
        be provided for laws applicable to the Company, its subsidiaries and
        affiliates.  During the Employment Period and for a period of six (6) years
        thereafter, the Company shall maintain directors’ and officers’ insurance
        coverage which shall include Executive as a covered person in amounts maintained
        by comparable companies. 

      

      [The
        next
        page is the signature page.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        the parties have executed this Agreement, Centerline Capital Group, Inc.
        and
        Centerline Holding Company acting by their respective duly authorized officers,
        effective as of the Effective Date.

       

       

      
        	 CENTERLINE
                CAPITAL GROUP, INC. 	 	  EXECUTIVE:
	 	 	 
	 	 	 
	By  
/s/
Marc
                D.
                Schnitzer                                       	 	 
/s/ Leonard
                W.
                Cotton                                       
	      Name:  Marc
                D.
                Schnitzer	 	 
                Name: Leonard W. Cotton
	     
                Title:    Chief Executive Officer
                and President	 	 

      

       

      
 

      CENTERLINE
        HOLDING COMPANY

      

      

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

           Title:    Chief
        Executive Officer and President

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      DEFINITIONS

      

      When
        used
        in the Executive Employment Agreement to which this EXHIBIT
        A is appended (the “Agreement”), the following
        terms have the following meanings.  Any capitalized terms used below
        which are defined in the Agreement are used with the meanings ascribed to
        them
        in the Agreement.

      

      “Cause”
        means:  (a) Executive's having been found or pleading guilty or
nolo contendre to committing any felony involving fraud, embezzlement,
        theft or moral turpitude, or any misdemeanor involving the same and materially
        damaging the Company’s reputation or financial interests; (b) any
        substantial and repeated failure, inability or refusal to perform, or breach
        of,
        Executive's material duties reasonably assigned to him and consistent with
        his
        duties and responsibilities as an officer of the Company, or a trustee, director
        or officer, as applicable, of Centerline or any member of the Company Group;
        (c)
        Executive’s repeated failure to follow reasonable material directions consistent
        with his duties and responsibilities under this Agreement from the Chief
        Executive Officer of Centerline, the board of directors of the Company or
        the
        board of directors of Centerline; (d) Executive’s willful and material breach of
        this Agreement; (e) Executive’s willful and repeated failure to substantially
        perform his duties and responsibilities consistent with his duties and
        responsibilities under this Agreement with regard to a material matter, (f)
        Executive’s fraud or breach of fiduciary duty to the Company or its affiliates,
        embezzlement, dishonesty or other dishonest act, in all cases of a material
        nature; (g) any material violation of a provision of the written Code of
        Conduct
        of the Company or other similar written policies of the Company (or failure
        to
        agree to observe the code of conduct) as in effect from time to time, which
        violation has a material adverse effect on the Company or its affiliates
        or (h)
        Executive’s material unauthorized use or disclosure of any proprietary
        information or trade secrets of Centerline.

      

       “Change
        in Control” means any of the following:

       

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

       

      (ii)  Change
        in Board Control.  Individuals who, as of the Effective Date, are
        members of the Board of Centerline (“Incumbent Board”), cease for any reason to
        constitute a majority of the Board of Centerline, provided, however, that
        if the
        election of a trustee is approved by vote of at least a majority of the
        Incumbent Board, such new trustee shall, for purposes of this Agreement,
        be
        considered as a member of the Incumbent Board.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

      “Company
        Group” means Centerline or its affiliates, including, without
        limitation, American Mortgage Acceptance Company, Centerline Capital Group,
        Inc., Centerline Capital Company LLC, Centerline Affordable Housing Advisors,
        LLC, Centerline Mortgage Capital Inc., Centerline Mortgage Partners Inc.,
        Centerline Financial Holdings LLC, Centerline Investors I, LLC and Centerline
        REIT, Inc.

      

      “Competitive
        Business” means any of the businesses of the Company Group, including,
        without limitation:

      

      (A)
        engaging, participating, or being
        involved directly or indirectly in any respect in the business of analyzing,
        investing in, purchasing or assisting any person or entity in the analysis,
        investment in or purchase of non-investment grade Commercial Mortgage Backed
        Securities (including servicing loans or originating loans) other than for
        Executive’s own account or by way of investment by Executive in less than five
        percent (5%) of the outstanding stock or other securities or a publicly traded
        entity;

      

      (B)
        arranging for or providing,
        directly or indirectly, debt and/or equity financing products or services
        to
        developers or owners of real property other than for Executive’s own account or
        by way of investment by Executive in less than five percent (5%) of the
        outstanding stock or other securities or a publicly traded entity;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (C)
        engaging, participating, or being
        involved directly or indirectly in any respect in the business of the
        syndication and sale of housing tax credits, historic rehabilitation tax
        credits, new markets tax credits or home ownership tax credits other than
        for
        Executive’s own account or by way of investment by Executive in less than five
        percent (5%) of the outstanding stock or other securities or a publicly traded
        entity; or

      

      (D)
        providing credit intermediation
        relating to debt or equity interests in real property other than for Executive’s
        own account or by way of investment by Executive in less than five percent
        (5%)
        of the outstanding stock or other securities or a publicly traded
        entity.

      

      “Continuous
        Service” means the absence of any interruption or termination of
        service as an Centerline employee or consultant.  Continuous Service
        shall not be considered interrupted in the case of:  (i) sick leave;
        (ii) military leave; (iii) any other leave of absence approved by the
        Centerline, provided that such leave is for a period of not more than 90
        days,
        unless reemployment upon the expiration of such leave is guaranteed by contract
        or statute, or unless provided otherwise pursuant to Centerline policy adopted
        from time to time. Changes in status between service as an employee and a
        consultant will not constitute an interruption of Continuous
        Service.

      

      “Fiscal
        Year” means the fiscal year of the Company which is the period
        commencing January 1 and ending December 31 of each calendar year.

      

      “Good
        Reason”
means any of the following events that the Company does not reasonably
        cure
        within ten (10) days after receiving written notice thereof from the Executive
        (with Good Reason being established only at the end of such ten (10) day
        period): (a) a material adverse change or diminution in Executive’s duties,
        responsibilities or title as an employee of the Company or Centerline; (b)
        a
        reduction of more than five percent (5%) in Executive’s Salary, (c) a failure on
        the part of the Company to increase Executive’s Salary by at least ten percent
        (10%) over the then current Salary level at the end of the Initial Term and
        at
        the end of each three (3) year period thereafter; (d) for a period commencing
        with a Change of Control and ending the close of the Fiscal Year following
        the
        Fiscal Year in which a Change of Control occurs, a reduction in Executive’s
        total compensation (Salary plus Annual Bonus on an annualized basis) of more
        than ten (10%) of the average total compensation paid to Executive for two
        (2)
        Fiscal Years immediately preceding the Fiscal Year in which the Change of
        Control occurs, (e) an amendment, modification or termination of the Bonus
        Plan,
        which would result on a prospective basis in a reduction of greater than
        ten
        percent (10%) of the bonus pool which would otherwise be available under
        the
        Bonus Plan, if such amendment, modification or termination of the Bonus Plan
        had
        not been made and/or (f) the forced relocation of Executive to a location
        which
        is more than fifty (50) miles from his place of work as of the date of execution
        of this Agreement, which is 625 Madison Ave., New York, New
        York.  Notwithstanding the foregoing, a decrease in all, or any part
        of, Executive’s compensation if such decrease is in accordance with an
        across-the-board decrease applying generally to similarly situated executives
        of
        the Company (other than such a decrease upon a Change of Control) shall not
        constitute “Good Reason”.

       

      “Retirement”
        means the Executive’s voluntary termination of employment upon not less than
        sixty (60) days prior written notice (unless waived by the Company), under
        circumstances not involving Termination for Cause if the Participant has
        attained age 62 and completed at least 10

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      consecutive
        years of Continuous Service immediately before ending Continuous
        Service.  A Participant’s Continuous Service for this purpose shall
        include any service with the Company or any of its Affiliates, as well as
        the
        Participant’s service (i) with any predecessor to the Company or its Affiliates,
        and (ii) with any company acquired by the Company or any
        Affiliate.

       

      “Termination
        Date” means the effective date of termination of the Employment Period
        and Executive’s employment with the Company, regardless of the cause of such
        termination.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      OTHER
        BUSINESS ACTIVITIES OF EXECUTIVE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        C

      

      SUMMARY
        - DISABILITY INSURANCE TERMS

      

      
        	
                Total
                  Monthly Benefit (with COLA):    

              	
                $15,000.00

              

      

      

      
        	
                Beginning
                  Date:  

              	
                91st
                  Day

              

      

      

      
        	
                Benefit
                  Paid:    

              	
                to
                  age 65

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D

      

      FORM
        OF GENERAL RELEASE

      

      

      It
        hereby is agreed, by and among
        Centerline Capital Group, Inc. ("Employer"), and ____________
        ("Employee"), as follows:

      

      1.           [The
        Employee submits, and the Employer accepts, his permanent resignation from
        employment effective ___________][The Employer requests and the Employee
        submits
        to his termination from employment effective ___________].  Employee
        hereby waives any and all rights or claims to reinstatement or reemployment
        by
        the Employer.  Employer reaffirms it obligation to make the payments
        required pursuant to Section ___ of that certain agreement dated as of
        ___________, 2007 between the Employer and the Employee (the "Employment
        Agreement").

      

      2.           In
        consideration of the foregoing and for other good and valuable consideration,
        the receipt of which is hereby acknowledged by the Employee, Employee, for
        his
        self, his heirs, executors, administrators, successors and assigns, hereby
        releases and forever discharges the Employer, including any and all of
        Employer's subsidiaries, affiliates or related business entities (including,
        without limitation, American Mortgage Acceptance Company, Centerline Capital
        Group, Inc., Centerline Capital Company LLC, Centerline Affordable Housing
        Advisors, LLC, Centerline Mortgage Capital Inc., Centerline Mortgage Partners
        Inc., Centerline Financial Holdings LLC, Centerline Investors I, LLC and
        Centerline REIT, Inc.), its or their past, present and future owners, partners,
        directors, officers, agents, representatives, and employees or any of its
        or
        their subsidiaries, affiliates, parents, or related business entities, and
        its
        or their respective heirs, executors, administrators, successors and assigns,
        of, from and/or for all manner of actions, proceedings, causes of action,
        suits,
        debts, sums of money, accounts, contracts, controversies, agreements, promises,
        damages, judgments, claims, and demands whatsoever, known or unknown, whether
        arising in law or equity, out of any federal, state or city constitution,
        statute, ordinance, bylaw or regulation, or under the Employment Agreement,
        arising out of or relating to Employee's employment by the Employer, including
        but not limited to the termination of such employment, all claims of
        discrimination on the basis of age, alienage, citizenship, creed, disability,
        gender, handicap, marital status, national origin, race, religion sex or
        sexual
        orientation, and, without limitation, any claims arising under Title VII
        of the
        Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Equal
        Pay Act, the Rehabilitation Act, the Americans With Disabilities Act, the
        WARN
        Act, Sections 1981 and 1983 of the Civil Rights Act of 1866, the New York
        State
        Human Rights Law, New York Labor Law,  the New York City Human Rights
        Law, New York Labor Law and any other federal, state or local statute,
        ordinance, rule, regulation or order (collectively, “Claims” or “Damages”),
        which Employee ever had, now has, or which he, or his heirs, executors,
        administrators, successors or assigns can or may have for, or by reason of,
        any
        matter, cause, event, act, omission, transaction or occurrence up to and
        including the date of the execution of this Release, arising out of or relating
        to Employee's employment by the Employer, including but not limited to the
        termination of such employment.

      

      3.           The
        Employer, for itself, its successors, assigns and legal representatives,
        hereby
        releases and forever discharges the Employee, and the Employee’s heirs,
        executors, administrators, legal representatives and assigns, from and against
        any and all Claims or Damages which the Employer ever had, now has for, or
        by
        reason of, any matter, cause, event, act, omission, transaction or occurrence
        up
        to and including the date of the execution of this Release, arising out of
        or
        relating to Employee’s employment by the Employer; provided, however, that the
        Employer is not releasing any claims (“Retained Claims”) with respect to any act
        or failure to act by the Employee that constitutes Employee’s bad faith, gross
        negligence or willful misconduct or any fraudulent, intentionally improper,
        unauthorized or unlawful acts by the Employee, [with the understanding that
        the
        Employer is not currently aware of any such acts] 1; and
        provided
        further that any Retained Claims that are not brought in a legal proceeding
        against the Employee within eighteen (18) months following the date of this
        Release shall be deemed released and forever discharged from and after the
        date
        which is eighteen (18) months following the date of this Release.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.           (a)           Except
        with respect to amounts owed pursuant to the Employment Agreement and any
        vested
        benefits under the Employer’s employee benefit plans or those of its
        subsidiaries or affiliates, Employee covenants not to in any way cause to
        be
        commenced or prosecuted, or to commence, maintain or prosecute any action,
        charge, complaint or proceeding of any kind, on his own behalf or as a member
        of
        any alleged class of persons, in any court or before any administrative or
        investigative body or agency (whether public, quasi-public or private), against
        the Employer, or any of its subsidiaries, parents, affiliates, related business
        entities, or their respective successors or assigns, or any individual now
        or
        previously employed by the Employer, or by any of its subsidiaries, parents,
        affiliates, or related business entities and their successors and assigns,
        with
        respect to any act, omission, transaction or occurrence up to and including
        the
        date of this Agreement.

      

      (b)           Employee
        further represents that he has not commenced, maintained, prosecuted or
        participated in any action, charge, complaint or proceeding of any kind (on
        his
        own behalf and/or on behalf of any other person and/or on behalf of or as
        a
        member of any alleged class of persons) that is presently pending in any
        court,
        or before any administrative or investigative body or agency (whether public,
        quasi-public, or private), against or involving the Employer, or any of the
        Employer's subsidiaries, parents, affiliates, or related business entities,
        or
        their successors or assigns or any individual now or previously employed
        by the
        Employer, or by any of its subsidiaries, parents, affiliates, or related
        business entities or their successors and assigns.

      

      (c)           The
        Employer covenants not to in any way cause to be commenced or prosecuted,
        or to
        commence, maintain or prosecute any action, charge, complaint or proceeding
        of
        any kind in any court or before any administrative or investigative body
        or
        agency (whether public, quasi-public or private), against the Employee with
        respect to any act, omission, transaction or occurrence up to an including
        the
        date of this Release relating to the Employer's employment of the Employee
        or
        the termination of his employment; provided, however, that the Employer is
        not
        waiving and shall not waive such right with respect to any act or failure
        to act
        by the Employee that constitutes Employee’s bad faith, gross negligence or
        willful misconduct or any fraudulent, intentionally improper, unauthorized
        or
        unlawful acts by the Employee.  [As of the date of this Release, the
        Employer is not aware of any act or failure to act by the Employee that would
        give rise to any action, charge, complaint or proceeding of any kind in any
        court or before any administrative or investigative body or agency (whether
        public, quasi-public or private), against the Employee.] 1

      

      (d)           The
        Employer represents that it has not commenced, maintained, prosecuted or
        participated in any action, charge, complaint or proceeding of any kind that
        is
        presently pending in any court, or before any administrative or investigative
        body or agency (whether public, quasi-public, or private), against or involving
        the Employee or relating to the Employee’s employment with the Employer or the
        termination of his employment.

      

      5.           Employee
        acknowledges that he has been fully and fairly represented by counsel in
        connection with the execution and delivery of this Release, the terms of
        which
        have been explained to him.

      

      6.           Employee
        acknowledges that he has considered fully the terms of this Agreement before
        signing; that he has read this Agreement in its entirety and understands
        its
        terms; that he agrees to all terms and conditions contained herein; that
        he is
        signing this Agreement knowingly and voluntarily; and, that he intends to
        abide
        by its terms in all respects.

      

      7.           This
        Agreement shall be construed and enforced in accordance with the laws of
        the
        State of New York without regard to New York's choice of law
        provisions.  Any action to enforce this Agreement shall be brought in
        the New York State Supreme Court, County of New York.  The parties
        hereby consent to such jurisdiction.

      

        

      
        1
          This bracketed
          sentence will be included in the Release if at the time of the execution
          of the
          Release, the Employer is able to make such statement.  If at that time
          the Employer is not able to make such statement, the Release must be executed
          without such sentence.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      8.           This
        Agreement may be executed in more than one counterpart, each of which shall
        be
        deemed an original, but all of which shall constitute one and the same
        instrument.

      

      ________________________                         ______________________________

           Date                                                                   [Employee]

      

      Signed
        before me this

      ____
        day
        of _____, [Year]

      

      __________________________

           Notary
        Public

      CENTERLINE
        CAPITAL GROUP,
        INC.

      

      ________________________                         By:______________________________

           Date                                                 Name:

       Title:

      

      
        Signed
          before me this

        ____
          day
          of _____, [Year]

        

        __________________________

             Notary
          Public

        
 

      

      [If
        at
        time of execution the Employee is 40 years of age or older, this General
        Release
        is to be modified to comply with the provisions of the Older Workers Benefit
        Protection Act or similar legislation]ex10-2.htm

    Exhibit
      10.2

     

    
      

      EXECUTIVE
        EMPLOYMENT AGREEMENT

      

      THIS
        EXECUTIVE EMPLOYMENT
        AGREEMENT (“Agreement”) is entered into effective as
        of January 1, 2007 (the “Effective Date”) by and between
Centerline Capital Group, Inc., a Delaware corporation
        (“Company”), and James L. Duggins
        (“Executive”).  In addition, this Agreement is being
        executed by the Company’s ultimate parent company, Centerline Holding
        Company, a Delaware statutory trust (“Centerline”),
        for purposes of guaranteeing performance by the Company as set forth in Section
        10(k) herein. Certain capitalized terms used in this Agreement are used with
        the
        definitions ascribed to them on the attached Exhibit A,
        which is incorporated into this Agreement by this reference.

      

      WHEREAS,
        the parties
        desire to enter into an employment relationship on the terms and conditions
        set
        forth below:

      

      THEREFORE,
        the
        parties, intending to be legally bound, agree as follows:

      

      1.      Employment.  The
        Company will employ Executive, and Executive will be employed by the Company,
        during the Employment Period on and subject to the terms and conditions
        contained in this Agreement.  The “Employment Period”
is the period commencing on the Effective Date and continuing
        for a period of
        three (3) years (the “Initial Term”) with automatic renewals thereafter for
        successive one (1) year periods unless terminated as provided in this
        Agreement.

      

      2.      Duties.  During
        the Employment Period, Executive will work for the Company in the capacity
        of
        Executive Managing Director and Group Head of the Commercial Real Estate
        Group.  During the Employment Period, Executive shall report to the
        Chief Executive Officer of the Company and Executive shall perform the types
        of
        duties and functions as shall be reasonably assigned to Executive from time
        to
        time by the Chief Executive Officer of the Company and shall be consistent
        with
        Executive’s position.  Executive will devote substantially all of his
        business time, best efforts and ability to the business of the Company and
        its
        affiliates, will faithfully and diligently perform Executive’s duties pursuant
        to this Agreement, will comply with the overall policies established by the
        board of trustees of Centerline and will do all things reasonably in Executive’s
        power to promote, develop and extend Centerline’s business and that of its
        subsidiaries.  In determining whether Executive is devoting
        substantially all his business time, best efforts and ability to the business
        of
        the Company and its affiliates, Executive may only engage in those business
        activities aside from his duties hereunder which are either (i) set forth
        in the
        attached Exhibit B, or (ii) are disclosed to
        Centerline’s board of trustees and approved by it.

      

      3.      Compensation
        and Benefits.  During the Employment Period, the Company
        will pay and provide Executive as compensation for Executive's services pursuant
        to this Agreement the consideration specified and determined in accordance
        with
        this Section 3, in each case subject to all withholdings
        required by applicable law.

      

      
        	
                 

              	
                a.

              	
                The
                  Company will pay Executive a base salary (the “Salary”)
                  of $ 400,000.00 per annum payable in equal bi-weekly installments,
                  which
                  amount shall be subject to

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                increase
                  at the end of the Initial Term and every third year thereafter
                  so long as
                  this Agreement shall be in effect.  In
                  addition, the Company will pay Executive bonus compensation
                  (“Annual Bonus”) to the extent it is awarded to him under
                  and subject to the terms of an annual incentive bonus compensation
                  plan or
                  program sponsored by the Company (the “Bonus
                  Plan”).

              

      

      

      
        	
                 

              	
                b.

              	
                Executive
                  may also be awarded long term deferred compensation under one or
                  more
                  plans or programs established by the Company (including but not
                  limited to
                  Out-Performance Programs) or Centerline and its affiliates from
                  time to
                  time (the “Deferred Compensation Plans”) and may be
                  offered an opportunity to co-invest with Centerline and/or its
                  subsidiaries in funds sponsored by them on such terms and conditions
                  as
                  shall be determined by Centerline.  Amounts, if any, payable to
                  Executive under the terms of the Deferred Compensation Plans shall
                  be
                  governed solely by the terms of the Deferred Compensation Plans
                  and awards
                  made thereunder and the terms and conditions of any co-investment
                  opportunity provided to Executive shall be established by Centerline
                  and
                  communicated to Executive.  Executive shall be under no
                  obligation to participate in any co-investment opportunity and
                  such
                  participation shall not be a condition of nor affect in any manner
                  Executive’s continued employment by the
                  Company.

              

      

      

      
        	
                 

              	
                c.

              	
                The
                  Company will pay Executive an automobile allowance of $ 1,500.00
                  per
                  month, for each month Executive is employed by the Company pursuant
                  to
                  this Agreement.

              

      

      

      
        	
                 

              	
                d.

              	
                Executive
                  shall be entitled to twenty (20) days vacation per year for each
                  year this
                  Agreement is in effect.  All vacation shall be taken at such
                  times as shall be agreed upon by the Chief Executive Officer of
                  the
                  Company.  In the event of a termination of this Agreement, no
                  amount shall be payable to the Executive for any accrued but not
                  yet taken
                  vacation time.  Executive’s right to carry over unused vacation
                  days to subsequent years shall be subject to and limited by Centerline’s
                  policy regarding the carry over of unused vacation days in effect
                  for
                  similarly situated executives.

              

      

      

      
        	
                 

              	
                e.

              	
                Executive
                  will be entitled to participate in any fringe benefit and other
                  employee
                  benefit plans and programs available to salaried employees
                  of  the Company as in effect from time to time, to the extent
                  that Executive may be eligible to do so under the applicable provisions
                  of
                  the plans and programs (“Benefit
                  Rights”).

              

      

      

      
        	
                 

              	
                f.

              	
                Executive
                  shall be entitled to reimbursement of amounts incurred by him in
                  connection with the performance by him of his duties and obligations
                  hereunder in accordance with the Company’s expense reimbursement policy
                  (“Reimbursable Amounts”).  Executive shall
                  apply for all reimbursements for a particular calendar year not
                  later than
                  forty-five (45) days after it ends, and payment shall occur not
                  later than
                  two and one-half months after the end of the calendar year to which
                  the
                  Reimbursable Amounts relate.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                g.

              	
                Provided
                  Executive is insurable at normal risk rates, the Company shall
                  provide
                  Executive with a term life insurance policy in the amount of
                  $ 3,000,000.00 and Executive
                  or his designee shall be the owner of such policy and shall be
                  entitled to
                  name the beneficiary of any insurance proceeds payable
                  thereunder.

              

      

      

      
        	
                 

              	
                h.

              	
                The
                  Company shall also provide Executive with supplemental long term
                  disability insurance which will provide Executive with a full disability
                  benefit of Fifteen Thousand Dollars ($15,000.00) per month after
                  an
                  exclusion period of ninety (90) days and otherwise on substantially
                  the
                  same terms as are set forth on the attached Exhibit
                  C (the “Disability Coverage”).  During the ninety
                  (90) day exclusion period, the Company will pay Executive his full
                  Salary.  Disability Coverage shall be provided in a manner which
                  is most tax advantageous to the Executive, provided Executive cooperates
                  fully in the implementation of any reasonable plan proposed by
                  the Company
                  to achieve such results.

              

      

      

      4.      Termination;
        Severance Benefits.  The Employment Period and
        Executive’s employment with the Company will terminate upon the first to occur
        of the following and the Company shall make the following payments and no
        other
        payments upon the occurrence of such event, subject in all cases to the terms
        and conditions of subsection 10(e) hereof:

      

      
        	
                 

              	
                a.

              	
                Death. If
                  Executive dies during the Employment Period, the Termination Date
                  will be
                  the date of Executive’s death.  In such event, the Company shall
                  pay Executive’s estate within two and one-half months of the date of
                  Executive’s death a death benefit equal to: (i) severance compensation
                  equal to one year of Executive’s then current Salary and 100% of the
                  amount of the Executive’s most recently declared and
                  paid  Annual Bonus (“Severance Pay”); (ii)
                  Executive’s earned but unpaid Salary, any Reimbursement Amounts for the
                  period prior to termination, any accrued but unused vacation, and
                  any
                  declared but unpaid  Annual Bonus (collectively
                  “Entitlements”); (iii) Benefit Rights; (iv) additional
                  benefits (if any) in accordance with the applicable Company plans,
                  programs and arrangements (“Company Arrangements”); and
                  (v) the Company shall pay the COBRA premiums for Executive’s dependents
                  for the lesser of (A) one (1) year or (B) until Executive’s dependents
                  cease to be eligible for such COBRA benefits (including, without
                  limitation, by reason of any such dependents becoming eligible
                  for
                  substantially similar coverage from another employer).  Upon a
                  termination of the Executive by reason of Executive’s death, any unvested
                  options and restricted stock awarded to Executive under any compensation
                  plan sponsored by the Company and any promote shares under a co-investment
                  made by the Executive with the Company or its affiliates shall
                  fully vest
                  upon the date of his death.  Furthermore, the Executive shall be
                  eligible for consideration for an Annual Bonus for the year in
                  which the
                  Executive dies; provided, however, nothing herein shall entitle
                  the
                  Executive to an Annual Bonus and any award of an Annual Bonus shall
                  be
                  subject to the terms and provisions of the Bonus
                  Plan.

              

      

      

      
        	
                 

              	
                b.

              	
                Total
                  Disability.  If Executive incurs a Total
                  Disability, the Termination Date will be the date Executive (or
                  Executive’s beneficiary or representative)
                  first

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                becomes
                  entitled to receive benefits under the Disability Coverage unless
                  deferred
                  or extended by Centerline’s Compensation Committee, in which case it will
                  be the extended or deferred date (the "Disability Payment
                  Date"). In such event the Company shall pay to or on behalf
                  of
                  the Executive (or Executive’s beneficiary or representative) (i) on each
                  regular pay day the pro rata portion of any Salary which accrues
                  from the
                  date Executive incurs the Total Disability to the Disability Payment
                  Date,
                  (ii)  within two and one-half months of the Disability Payment
                  Date, a disability benefit equal to (A) Severance Pay; (B) the
                  Entitlements; (C) Benefit Rights; and (D) Company Arrangements;
                  (iii)
                  subsequent to the Disability Payment Date, any payments due on
                  account of
                  the Disability Coverage and (iv) the COBRA premiums for Executive
                  and his
                  dependents for the lesser of (A) one (1) year or (B) until Executive
                  and
                  his dependents cease to be eligible for such COBRA benefits (including,
                  without limitation, by reason of Executive becoming eligible for
                  substantially similar coverage from a subsequent employer).  For
                  these purposes, a “Total Disability” is a physical and/or
                  mental condition giving rise to Executive (or Executive’s beneficiary or
                  representative) receiving benefits on account of Executive’s being totally
                  disabled under any Disability Coverage.  Upon a termination of
                  the Executive by reason of Total Disability, any unvested options
                  and
                  restricted stock awarded to Executive under any compensation plan
                  sponsored by the Company and any promote shares under a co-investment
                  made
                  by the Executive with the Company or its affiliates shall fully
                  vest upon
                  the Termination Date.  Furthermore, the Executive shall be
                  eligible for consideration for an Annual Bonus for the year in
                  which the
                  Executive incurs a Total Disability; provided, however, nothing
                  herein
                  shall entitle the Executive to an Annual Bonus and any award of
                  an Annual
                  Bonus shall be subject to the terms and provisions of the Bonus
                  Plan.

              

      

      

      
        	
                 

              	
                c.

              	
                Termination
                  for Cause; Resignation without Good Reason.  Executive's
                  employment may be terminated by the Company for Cause at any time
                  upon
                  written notice from the Company to Executive. The Company’s notice must
                  set forth the facts or circumstances constituting Cause and specify
                  the
                  Termination Date.  Executive may resign without the existence of
                  Good Reason at any time upon not less than ninety (90) days written
                  notice
                  to the Company. Executive’s notice must specify the Termination
                  Date.  Upon the occurrence of either such event, the Company
                  shall only be obligated to pay Executive any amounts due under
                  Section 4(g) below. Upon a termination of the Executive
                  by the Company with Cause or a termination by the Executive without
                  Good
                  Reason, any unvested options and restricted stock awarded to Executive
                  under any compensation plan sponsored by the Company shall be forfeited
                  as
                  of the Termination Date.  Vested options shall continue to be
                  exercisable in accordance with the compensation plan pursuant to
                  which
                  they were issued.

              

      

      

      
        	
                 

              	
                d.

              	
                Failure
                  to Renew, Retirement, Termination Without Cause or Resignation
                  for Good
                  Reason.  In the event the Company shall determine
                  that Executive’s Employment Period will not be renewed pursuant to Section
                  1 of this Employment Agreement, the Company shall so notify Executive
                  not
                  less than

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                sixty
                  (60) days and not more than ninety (90) days prior to the expiration
                  of
                  the Employment Period, in which case the Termination Date shall
                  be the
                  expiration of the Employment Period and the Executive’s employment shall
                  be deemed to have been terminated by the Company without
                  Cause.  In addition, Executive may be terminated by the Company
                  without Cause at any time upon not less than thirty (30) days written
                  notice to Executive, in which case the Company’s notice must specify the
                  Termination Date.  Executive may resign if Good Reason exists
                  upon not less than ten (10) days written notice to the
                  Company.  Executive’s notice must set forth the facts and
                  circumstances constituting Good Reason and specify the Termination
                  Date.

              

      

      

      In
        the
        event of Executive’s Retirement, (i) any unvested options and restricted stock
        awarded to Executive under any compensation plan sponsored by the Company
        and
        any promote shares under a co-investment made by the Executive with the Company
        or its affiliates shall fully vest upon the Termination Date and (ii) the
        terms
        and provisions of Sections 5, 6, 7 and 8 of this Agreement shall continue
        in
        full force and effect.

      

      
        	
                 

              	
                If
                  Executive’s employment is terminated by the Company without Cause or
                  Executive terminates his employment with the Company for Good Reason,
                  Executive shall have no further rights or claims hereunder or with
                  regard
                  hereto except that, subject to his execution of a release running
                  to the
                  Company and its related entities and their respective partners,
                  shareholders, officers, directors and employees of all claims relating
                  to
                  his employment and termination substantially in the form of
                  Exhibit D (with such reasonable changes therein
                  as
                  may be deemed by counsel to the Company to be required or desirable
                  to
                  reflect applicable law at the time of delivery of such release)
                  (the
                  “Release”), (i) the Company will pay Executive a
                  separation payment equal to the Entitlements and Severance Pay
                  within two
                  and one-half months after terminating employment, (ii) Executive
                  will be
                  entitled to the Benefit Rights and Company Arrangements, and (iii)
                  the
                  Company will pay the COBRA premiums for Executive and his dependents
                  for
                  the lesser of (A) one (1) year or (B) until Executive and his dependents
                  cease to be eligible for such COBRA benefits (including, without
                  limitation, by reason of Executive becoming eligible for substantially
                  similar coverage from a subsequent employer).  If Executive
                  elects not to deliver the Release, then the Company shall have
                  no
                  obligation to pay Executive the severance provided for in clause
                  (i)
                  above, but shall be obligated to pay to Executive the amounts provided
                  for
                  in clause (ii) above at the times provided therein.  Any
                  payments to be made to Executive pursuant to this Section
                  4(d) are in addition to any benefits that may be payable under
                  any life insurance, disability insurance or similar policies of
                  insurance
                  that the Company may maintain on Executive’s behalf and to which Executive
                  contributes all or any portion of the premiums to maintain. If
                  Executive’s
                  employment is terminated hereunder, Executive shall be under no
                  obligation
                  to seek other employment and there shall be no offset against any amounts
                  due to Executive under this Agreement on account of any remuneration
                  attributable to any subsequent employment that Executive may
                  obtain.  Upon a

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                termination
                  of the Executive by the Company without Cause or, a termination
                  by the
                  Executive with Good Reason, any unvested options and restricted
                  stock
                  awarded to Executive under any compensation plan sponsored by the
                  Company
                  and any promote shares under a co-investment made by the Executive
                  with
                  the Company or its affiliates shall fully vest upon the end of
                  any
                  rescission period allowed with respect to the release provided
                  as Exhibit
                  D.  Furthermore, the Executive shall be eligible for
                  consideration for an Annual Bonus for the year in which the Executive
                  terminates with Good Reason or is Terminated without Cause; provided,
                  however, nothing herein shall entitle the Executive to an Annual
                  Bonus and
                  any award of an Annual Bonus shall be subject to the terms and
                  provisions
                  of the Bonus Plan.

              

      

      

      
        	
                 

              	
                e.

              	
                Change
                  of Control.  In the event that Executive’s
                  employment is terminated by the Company either in anticipation
                  of,  or within three months before, or within one (1) year
                  after, a Change in Control (other than as a result of Cause, death
                  or
                  Total Disability), or by the Executive for Good Reason within one
                  (1) year
                  after a Change of Control, the Company shall have no liability
                  or further
                  obligation to the Executive and the Executive shall have no further
                  rights
                  or claims hereunder or with regard hereto except that, subject
                  to his
                  execution (within 30 days after delivery to Executive) of the Release:
                  (i)
                  the Company will, within two and one-half months of the Executive’s
                  employment termination date, pay Executive the Entitlements and
                  a
                  separation payment equal to twenty-four months of Executive’s then current
                  Salary and  150% of the amount of the Executive’s most recently
                  declared and paid Annual Bonus; (ii) Executive will be entitled
                  to the
                  Benefits Rights and the Company Arrangements; and (iii) all medical
                  and
                  dental, disability and life insurance then provided to senior executives
                  of the Company shall be continued at no cost to the Executive or
                  his
                  dependents following the Termination Date for a period of twenty-four
                  (24)
                  months, or at the discretion of the Company, a cash payment shall
                  be made
                  in lieu of such benefits.  If Executive elects not to sign and
                  deliver the Release, then the Company shall have no obligation
                  to pay
                  Executive the monies and benefits described in the prior
                  sentence.  Upon a termination of Executive’s employment governed
                  by this Section 4(e), any unvested options and restricted stock
                  awarded to
                  Executive under any compensation plan sponsored by the Company
                  and any
                  promote shares under a co-investment made by the Executive with
                  the
                  Company or its affiliates shall fully vest upon the Termination
                  Date.  Furthermore, the Executive shall be eligible for
                  consideration for an Annual Bonus for the year in which the Executive’s
                  employment is terminated under the terms of this Section 4(e);
                  provided,
                  however, nothing herein shall entitle the Executive to an Annual
                  Bonus and
                  any award of an Annual Bonus shall be subject to the terms and
                  provisions
                  of the Bonus Plan.  For purposes of this Section 4(e), the
                  Termination Date shall be Executive’s last day of employment with the
                  Company.

              

      

      

      
        	
                 

              	
                f.

              	
                Immediate
                  Cessation of Employment.  If the Company gives
                  notice to Executive pursuant to subsection (c) above, or
                  Executive gives notice to the Company pursuant to subsection (c)
                  above, the Company may further direct

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                Executive
                  to immediately cease Executive’s activities on behalf of the Company, to
                  remove Executive’s personal belongings from the premises of the Company
                  and/or to discontinue using any of the Company’s­
                  facilities.

              

      

      

      
        	
                 

              	
                g.

              	
                Arrearages.  In
                  connection with the Executive’s termination of employment for any reason,
                  the Company shall pay Executive (or Executive’s estate or legal
                  representative, as the case may be) on the Termination Date his
                  (a)
                  accrued but unpaid Salary, if any, as of the Termination Date,
                  (b) accrued
                  but unpaid Annual Bonus for the Fiscal Year prior to the Fiscal
                  Year in
                  which Executive’s employment is terminated as of the Termination Date and
                  (c) unpaid Reimbursable Amounts, if any, as of the Termination
                  Date
                  (collectively, the “Arrearages”). If termination is
                  pursuant to subsection (c) above, the payments under this
                  subsection (g) will be in complete fulfillment of the
                  Company’s obligations to Executive under this
                  Agreement.  Otherwise, the Company shall be obligated to make
                  the additional payments required pursuant to this Section
                  4 in addition to the
                  Arrearages.

              

      

      

      
        	
                 

              	
                h.

              	
                Cooperation. The
                  Executive agrees
                  to cooperate with the Company, during the Employment Period and
                  thereafter
                  (including following the Executive’s termination of employment for any
                  reason), consistent with Executive’s duties, responsibilities and
                  availability under the terms of this Agreement,  by making
                  himself reasonably available to testify on behalf of the Company
                  or any of
                  its Affiliates in any action, suit, or proceeding, whether civil,
                  criminal, administrative, or investigative, and to assist the Company,
                  or
                  any Affiliate, in any such action, suit, or proceeding, by providing
                  information and meeting and consulting with: (i) the Board or its
                  representatives or counsel, (ii) representatives or counsel to
                  the
                  Company, and/or (iii) any Affiliate as reasonably
                  requested.  The Company agrees to reimburse the Executive, for
                  all reasonable expenses actually incurred in connection with his
                  provision
                  of testimony or assistance.

              

      

      

      5.      Non-Competition
        Agreement.

      

      
        	
                 

              	
                a.

              	
                Executive
                  absolutely and unconditionally covenants and agrees with the Company
                  that,
                  from the period commencing on the date of this Agreement and continuing
                  for a period of ninety (90) days following the termination of his
                  employment by Executive without Good Reason and for a period of
                  one (1)
                  year following the end of his employment for any other reason (the
                  “Noncompete Period”), Executive will not, either directly
                  or indirectly, solely or jointly with any other person or persons,
                  as an
                  employee, consultant, or advisor (whether or not engaged in business
                  for
                  profit), or as an individual proprietor, partner, shareholder,
                  director,
                  officer, joint venturer, investor or lender, render services in
                  or
                  directed into any state within the United States of an executive,
                  advertising, marketing, sales, supervisory, technical, research,
                  purchasing or consulting nature to any person or entity that engages
                  in or
                  intends to engage in a Competitive Business (as defined in
                  Exhibit A) (i) as conducted as of the date of
                  execution of this Agreement;  (ii) as conducted during the term
                  of this Agreement; or (iii) as

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                proposed
                  to be conducted by the Company Group as of the Termination Date
                  (collectively,
“Competition”).

              

      

      

      
        	
                 

              	
                b.

              	
                If
                  a court or arbitration panel concludes through appropriate proceedings
                  that the Executive has breached the covenant set forth in this
                  Section 5, the term of the covenant shall be extended
                  for
                  a term equal to the period for which the Executive is determined
                  to have
                  breached the covenant.

              

      

      

      6.      Covenant
        Not to Disclose.  Executive acknowledges and agrees that,
        by virtue of the performance of the normal duties of his position with the
        Company and by virtue of the relationship of trust and confidence between
        the
        Executive and the Company, the Company will permit Executive to have access
        to
        and Executive will become familiar with, acquire knowledge of and develop
        or
        maintain the Company’s Confidential Information (as defined below), whether
        currently existing or to be developed in the future, which Executive recognizes
        permits the Company to enjoy a competitive advantage and the premature
        disclosure of which would irreparably injure the Company.  The
        Executive covenants and agrees that he will not, at any time, whether during
        the
        term of this Agreement or otherwise, directly or indirectly use, disclose
        (in
        any manner, including transmitting via or posting on the Internet), reproduce,
        distribute, reverse engineer or otherwise provide, in whole or in part, to
        or on
        behalf of any person (other than the Company Group) or use for his own account,
        any data or knowledge of operations of the Company Group which are proprietary
        in nature and/or confidential, whether in writing, in computer or other form
        or
        conveyed orally, including but not limited to confidential or proprietary
        records, data, trade secret, pricing policy, bid amount, bid strategy, rate
        structure, personnel policy, method or practice of obtaining or doing business
        by the Company Group, or any other confidential or proprietary information
        whatsoever (the “Confidential Information”), whether or not
        obtained with the knowledge and permission of the Company and whether or
        not
        developed, devised or otherwise created in whole or in part by the efforts
        of
        the Executive and shall take no action that threatens to do so.  The
        Executive further covenants and agrees that he shall retain all such knowledge
        and information which he shall acquire or develop respecting such Confidential
        Information in trust for the sole benefit of the Company and its successors
        and
        assigns.  Executive shall not, without the prior written consent of
        the Company, unless compelled pursuant to the order of a court or other
        governmental or legal body having jurisdiction over such matter, communicate
        or
        divulge any such Confidential Information to anyone other than the Company
        and
        those designated by it.  In the event Executive is compelled by order
        of a court or other governmental or legal body to communicate or divulge
        any
        Confidential Information to anyone other than the Company and those designated
        by it, Executive shall promptly notify the Company of any such order and
        shall
        cooperate fully with the Company (and the owner of such Confidential
        Information) in protecting such information to the extent possible under
        applicable law.

      

      7.      Non-Interference
        Covenant.  To protect the Company’s legitimate business
        interests, including the Company’s Confidential Information and business
        relationships, Executive covenants and agrees that he will not, at any time,
        whether during the term of this Agreement or during the Non-Compete Period,
        directly or indirectly, for whatever reason, whether for his own account
        or for
        the account of any other person, firm, company or other
        organization:  (i) solicit for employment, employ, or otherwise deal
        with in a manner which interferes with the Company

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Group’s
        relationship with any person or entity who is an employee, officer, director
        or
        independent contractor of the Company Group at any time or who constitutes
        a
        bona fide prospective employee, officer, trustee, director or independent
        contractor of the Company Group, unless such person or entity shall no longer
        be
        actively employed, or engaged by the Company Group and shall no longer
        constitute a bona fide prospective employee, officer, director or independent
        contractor of the Company Group; provided, however, Executive will not be
        deemed
        to be in violation of this clause (i) if an employee of the Company Group
        is
        hired by Executive’s future employer provided that Executive did not otherwise
        violate this provision; (ii) interfere in any manner with any of the Company
        Group's contracts or relationships with any investor, customer, client or
        supplier (of services or tangible or intangible property) of the Company
        Group,
        or any person or entity who is a bona fide prospective, investor customer,
        client or supplier of the Company Group; (iii) solicit or otherwise interfere
        with any existing or proposed contract or relationship between the Company
        Group
        and any other party or (iv) speak or write in any manner which is disparaging
        of
        the Company Group, its business practices, employees, officers, trustees
        or
        directors.

      

      8.      Business
        Materials and Property Disclosure.  All written
        materials, records and documents made by the Executive or coming into his
        possession concerning the business or affairs of the Company Group shall
        be the
        sole property of the Company Group and, upon termination of his employment
        with
        the Company or upon request by the Company, the Executive shall return the
        same
        to the Company and shall retain no copies in any form or media.  The
        Executive shall also return to the Company all other property in his possession
        owned by the Company upon termination of his employment.

      

      9.      Breach
        by Executive.  It is expressly understood, acknowledged
        and agreed by the Executive that (i) the restrictions contained in
Sections 5, 6, 7 and 8 of this Agreement
        represent a reasonable and necessary protection of the legitimate interests
        of
        the Company and that his failure to observe and comply with his covenants
        and
        agreements in Sections 5, 6, 7, or 8 will cause irreparable harm to the Company;
        (ii) it is and will continue to be difficult to ascertain the nature, scope
        and
        extent of the harm; and (iii) a remedy at law for such failure by Executive
        will
        be inadequate.  Accordingly, it is the intention of the parties that,
        in addition to any other rights and remedies which the Company may have in
        the
        event of any breach of said Sections, the Company shall be entitled, and
        is
        expressly and irrevocably authorized by Executive, to demand and obtain specific
        performance, including without limitation temporary and permanent injunctive
        relief, and all other appropriate equitable relief against Executive in order
        to
        enforce against Executive, or in order to prevent any breach or any threatened
        breach by Executive, of the covenants and agreements contained in Sections
        5, 6,
        7 or 8 in any court of competent jurisdiction without the need to post any
        bond
        or undertaking.  Any action, suit or other legal proceeding to resolve
        any matter arising as a result of a breach of the restrictions contained
        in
        Sections 5, 6, 7, or 8 or an action to enforce any award rendered pursuant
        to
        the arbitration provisions in Section 10(g), may be commenced in a court
        of the
        State of New York and the parties hereby consent to the jurisdiction of such
        a
        court.  The parties hereto unconditionally waive their respective
        right to demand a jury trial in any dispute relating to this
        Agreement.  If any restriction with regard to Competition is found by
        any court of competent jurisdiction, or an arbitrator, to be unenforceable
        because it extends for too long a period of time or over too great a range
        of
        activities, or in too broad a geographic area, it shall be interpreted to
        extend
        over the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      maximum
        period of time, range of activities or geographic area to which it may be
        enforceable and the Company shall have no further obligations
        hereunder.

      

      10.  General
        Provisions.

      

      
        	
                 

              	
                a.

              	
                Except
                  insofar as Executive may be subject to general policies adopted
                  by the
                  Company from time to time, this Agreement contains the entire agreement
                  between the parties with respect to its subject matter, and all
                  prior
                  other representations, warranties, conditions or agreements relating
                  to
                  the subject matter of this Agree­ment, whether or not reduced to
                  writing in whole or part, are hereby revoked, terminated and declared
                  to
                  be null and void.  The preceding sentence notwithstanding, this
                  Agreement is in furtherance of, and does not affect or modify,
                  any
                  Deferred Compensation Plan in which the Executive may participate
                  or
                  Executive’s participation in any benefit plan or program provided by the
                  Company Group.

              

      

      

      
        	
                 

              	
                b.

              	
                The
                  waiver by any party of any breach or default of any provision of
                  this
                  Agreement will not operate or be construed as a waiver of any subsequent
                  breach or default of the same or any other provision of this
                  Agreement.  This Agreement may not be changed orally, but only
                  by an instrument in writing duly executed on behalf of the party
                  against
                  which enforcement of any waiver, change, modification, consent
                  or
                  discharge is sought.

              

      

      

      
        	
                 

              	
                c.

              	
                This
                  Agreement is binding upon and will inure to the benefit of the
                  Company and
                  Centerline, Executive and their respective successors, assigns,
                  heirs and
                  legal representatives.  Insofar as Executive is concerned, this
                  Agreement is personal and Executive's duties under it may not be
                  assigned
                  or delegated.  The Company may assign or delegate its rights or
                  obligations under this Agreement to any successor owner of the
                  Company’s
                  business, and, if ownership of the Company’s business is transferred or
                  the Company is merged with or consolidated into another entity,
                  the
                  Company will cause the successor to assume all of the Company’s
                  obligations under this Agreement.

              

      

      

      
        	
                 

              	
                d.

              	
                The
                  existence, terms, and conditions of this Agreement are and shall
                  be deemed
                  to be fully confidential and shall not be disclosed by Executive
                  or the
                  Company to any person or entity, except: (i) as may be required
                  by law;
                  (ii) by Executive to his accountant to the extent necessary to
                  prepare his
                  tax returns; (iii) by Executive to his family and attorney; (iv)
                  by the
                  Company or any affiliate of the Company to their attorneys and
                  human
                  resources personnel or to any entity which shall have executed
                  a
                  confidentiality agreement with the Company or any affiliate of
                  the
                  Company; and (v) by Executive to any lender, condominium or cooperative
                  board, or other entity or person that may require employment or
                  other
                  financial information for bona fide reasons that are not competitive
                  with
                  the Company, provided that the financial terms of this Agreement
                  may not
                  be disclosed to any potential employer that is a competitor of
                  the
                  Company, and that Executive gives each such person to whom disclosure
                  is
                  made notice of the confidentiality

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                provisions
                  of this Agreement.  Notwithstanding the foregoing Executive
                  shall not be prohibited from disclosing the general terms of his
                  compensation to prospective
                  Employers.

              

      

      

      
        	
                 

              	
                e.

              	
                The
                  Company may withhold from any and all amounts payable to Executive
                  hereunder pursuant to such federal, state and local taxes as may
                  be
                  required to be withheld pursuant to any applicable laws or
                  regulation.  The Executive is solely responsible for the payment
                  of any tax liability (including any taxes and penalties arising
                  under
                  Section 409A of the Internal Revenue Code of 1986, as amended (the
                  “Code”)) that Executive incurs as a result of any payments or benefits
                  that the Executive receives pursuant to this Agreement.  The
                  Company shall not have any obligation to pay the Executive for
                  any such
                  tax liabilities.  Nevertheless, if the Company reasonably
                  determines that any payments or benefits pursuant to Section 4
                  above would
                  cause the Executive to incur liability for additional tax under
                  Section
                  409A of the Code, then the Company (of its own initiative or upon
                  request
                  of the Executive) may suspend such payments or benefits until the
                  end of
                  the six-month period immediately following termination of the Executive’s
                  employment (the “409A Suspension Period”).  As soon as
                  reasonably practical after the end of the 409A Suspension Period
                  (and in
                  no event more than two and one-half months thereafter), the Company
                  will
                  make a lump-sum payment to the Executive, in cash, in an amount
                  equal to
                  any payments and benefits that the Company does not make on account of the
                  409A Suspension Period.  At the close of the 409A Suspension
                  Period, the Executive will receive any remaining payments and benefits
                  due
                  pursuant to Section 4 in accordance with the terms of that Section
                  (as if
                  there had not been any suspension beforehand).  Notwithstanding
                  the foregoing, in the event that this Agreement or any payment
                  or benefit
                  paid to the Executive hereunder is deemed to be subject to Section
                  409A of
                  the Code, Executive and the Company agree to negotiate in good
                  faith to
                  adopt such amendments that are necessary to comply with Section
                  409A of
                  the Code or to exempt such payments or benefits from Section 409A
                  of the
                  Code.

              

      

      

      
        	
                 

              	
                f.

              	
                In
                  the event that any dispute shall arise between Executive and the
                  Company
                  relating to Executive’s rights under this Agreement, the Company shall pay
                  to Executive all reasonable legal fees and expenses incurred in
                  connection
                  with such dispute, if the Company is not the prevailing party in
                  an action
                  for injunctive relief or if it is finally determined by the arbitration
                  referred to in Section 10(g) hereof or by a court of
                  competent jurisdiction that Executive is the prevailing party in
                  all or
                  substantially all material respects with respect to any
                  dispute.

              

      

      

      
        	
                 

              	
                g.

              	
                In
                  the event of any dispute between the Company and Executive with
                  regard to
                  this Agreement or his employment or termination thereof with the
                  Company,
                  other than for injunctive relief pursuant to Sections 5, 6, 7 and
                  8 hereof, such dispute shall be resolved pursuant to the
                  rules of
                  the American Arbitration Association (“AAA”) by
                  arbitration conducted in New York City, New York.  The decision
                  of the arbitrator or arbitrators shall be final and binding on
                  the parties
                  hereto and may be entered in any court having
                  jurisdiction.  Each party

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                shall
                  bear its own costs of arbitration and shall equally divide the
                  charges of
                  the arbitrators and the AAA, except as provided in Section
                  10(f).

              

      

      

      
        	
                 

              	
                h.

              	
                All
                  notices hereunder shall be given in writing and shall be either
                  delivered
                  personally, or sent by certified or registered mail, return receipt
                  requested, addressed to the other party at such party’s address on the
                  books of the Company or at the Company's executive offices (to
                  the
                  attention of the General Counsel), as the case may be.  Notices
                  shall be deemed given when received, or two (2) business days after
                  mailing, whichever is earlier.

              

      

      

      
        	
                 

              	
                i.

              	
                The
                  parties have entered into this Agreement in the belief that its
                  provisions
                  are valid, reasonable and enforceable.  If any one or more of
                  the provisions shall be held to be invalid, illegal or unenforceable
                  in
                  any respect, such invalidity, illegality or unenforceability shall
                  not
                  affect any other provision in this Agreement, but this Agreement
                  shall be
                  construed as if such invalid, illegal or unenforceable provision
                  had never
                  been contained therein.

              

      

      

      
        	
                 

              	
                j.

              	
                Executive
                  acknowledges that the prohibitions and restrictions set forth in
                  this
                  Agreement are reasonable and necessary for the protection of the
                  business
                  of the Company, that the restrictions and prohibitions here will
                  not
                  prevent him from earning a livelihood after the termination of
                  Executive’s
                  employment and that part of the compensation paid and benefits
                  provided to
                  Executive are in consideration for entering into this
                  Agreement.

              

      

      

      
        	
                 

              	
                k.

              	
                Centerline
                  hereby agrees that all obligations with respect to compensation
                  owed to
                  Executive under this Agreement by the Company shall be fully and
                  unconditionally guaranteed by Centerline and Centerline agrees
                  to take
                  such actions as are necessary to ensure compliance with any provision
                  hereof requiring action on the part of Centerline. Centerline's
                  obligations hereunder shall be binding on its successors and assigns
                  (including, without limitation, any entity that succeeds to all
                  or a
                  substantial portion of Centerline's business or
                  assets).

              

      

       

      
        	
                 

              	
                l.

              	
                
                  This
                    Agreement is governed by, and is to be construed in accordance
                    with, the
                    law of the State of New York without reference to the conflicts
                    of laws
                    principles thereof.

                

              

      

       

      
        	
                 

              	
                m.

              	
                
                  
                    The
                      provisions of Sections 4(h), 5, 6, 7, 8, 9, 10(f), 10(g)
                      and 11 of this Agreement shall survive and shall
                      continue
                      to be binding upon the Executive and the Company notwithstanding
                      the
                      termination of this Agreement for any reason
                      whatsoever.

                  

                

              

      

       

      
        	
                 

              	
                n.

              	
                
                  
                    
                      The
                        parties warrant and represent that each has the legal capacity
                        and
                        authority to enter into this
                        Agreement.

                    

                  

                

              

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                o.

              	
                
                  
                    
                      In
                        the event of a conflict between the terms and provisions
                        of any Bonus Plan
                        or Deferred Compensation Plan and this Agreement, the terms
                        of this
                        Agreement shall
                        prevail.

                    

                  

                

              

      

       

      
        	
                 

              	
                p.

              	
                
                  
                    
                      
                        Nothing
                          in this Agreement shall affect in any way any prior awards
                          to Executive of
                          stock options or restricted stock which shall continue
                          to be governed by
                          the terms of the award and the Deferred Compensation Program
                          governing
                          such award.

                      

                    

                  

                

              

      

      

      11.  Indemnification.  The
        Company shall indemnify and hold the Executive harmless from and against
        any and
        all liabilities to which he may be subject as a result of his employment
        hereunder (including as a result of service by him at the request of the
        Company
        as an officer or director of the Company or as an officer or director of
        any of
        its subsidiaries or affiliates) and shall provide Executive with the advancement
        of expenses with respect to such indemnification to the fullest extent that
        may
        be provided for laws applicable to the Company, its subsidiaries and
        affiliates.  During the Employment Period and for a period of six (6) years
        thereafter, the Company shall maintain directors’ and officers’ insurance
        coverage which shall include Executive as a covered person in amounts maintained
        by comparable companies. 

      

      [The
        next
        page is the signature page.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        the parties have executed this Agreement, Centerline Capital Group, Inc.
        and
        Centerline Holding Company acting by their respective duly authorized officers,
        effective as of the Effective Date.

       

      
        
           

          
            	 CENTERLINE
                    CAPITAL GROUP, INC. 	 	  EXECUTIVE:
	 	 	 
	 	 	 
	By  
/s/
Marc
                    D.
                    Schnitzer                                       	 	 
/s/ James
                    L.
                    Duggins                                       
	      Name:  Marc
                    D.
                    Schnitzer	 	 
                    Name: James L. Duggins
	     
                    Title:    Chief Executive Officer
                    and President	 	 

          

           

          
 

          CENTERLINE
            HOLDING COMPANY

          

          

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

               Title:    Chief
            Executive Officer and President

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      DEFINITIONS

      

      When
        used
        in the Executive Employment Agreement to which this EXHIBIT
        A is appended (the “Agreement”), the following
        terms have the following meanings.  Any capitalized terms used below
        which are defined in the Agreement are used with the meanings ascribed to
        them
        in the Agreement.

      

      “Cause”
        means:  (a) Executive's having been found or pleading guilty or
nolo contendre to committing any felony involving fraud, embezzlement,
        theft or moral turpitude, or any misdemeanor involving the same and materially
        damaging the Company’s reputation or financial interests; (b) any
        substantial and repeated failure, inability or refusal to perform, or breach
        of,
        Executive's material duties reasonably assigned to him and consistent with
        his
        duties and responsibilities as an officer of the Company, or a trustee, director
        or officer, as applicable, of Centerline or any member of the Company Group;
        (c)
        Executive’s repeated failure to follow reasonable material directions consistent
        with his duties and responsibilities under this Agreement from the Chief
        Executive Officer of Centerline, the board of directors of the Company or
        the
        board of directors of Centerline; (d) Executive’s willful and material breach of
        this Agreement; (e) Executive’s willful and repeated failure to substantially
        perform his duties and responsibilities consistent with his duties and
        responsibilities under this Agreement with regard to a material matter, (f)
        Executive’s fraud or breach of fiduciary duty to the Company or its affiliates,
        embezzlement, dishonesty or other dishonest act, in all cases of a material
        nature; (g) any material violation of a provision of the written Code of
        Conduct
        of the Company or other similar written policies of the Company (or failure
        to
        agree to observe the code of conduct) as in effect from time to time, which
        violation has a material adverse effect on the Company or its affiliates
        or (h)
        Executive’s material unauthorized use or disclosure of any proprietary
        information or trade secrets of Centerline.

      

       “Change
        in Control” means any of the following:

       

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

       

      (ii)  Change
        in Board Control.  Individuals who, as of the Effective Date, are
        members of the Board of Centerline (“Incumbent Board”), cease for any reason to
        constitute a majority of the Board of Centerline, provided, however, that
        if the
        election of a trustee is approved by vote of at least a majority of the
        Incumbent Board, such new trustee shall, for purposes of this Agreement,
        be
        considered as a member of the Incumbent Board.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

      “Company
        Group” means Centerline or its affiliates, including, without
        limitation, American Mortgage Acceptance Company, Centerline Capital Group,
        Inc., Centerline Capital Company LLC, Centerline Affordable Housing Advisors,
        LLC, Centerline Mortgage Capital Inc., Centerline Mortgage Partners Inc.,
        Centerline Financial Holdings LLC, Centerline Investors I, LLC and Centerline
        REIT, Inc.

      

      “Competitive
        Business” means any of the businesses of the Company Group, including,
        without limitation:

      

      (A)
        engaging, participating, or being
        involved directly or indirectly in any respect in the business of analyzing,
        investing in, purchasing or assisting any person or entity in the analysis,
        investment in or purchase of non-investment grade Commercial Mortgage Backed
        Securities (including servicing loans or originating loans) other than for
        Executive’s own account or by way of investment by Executive in less than five
        percent (5%) of the outstanding stock or other securities or a publicly traded
        entity;

      

      (B)
        arranging for or providing,
        directly or indirectly, debt and/or equity financing products or services
        to
        developers or owners of real property other than for Executive’s own account or
        by way of investment by Executive in less than five percent (5%) of the
        outstanding stock or other securities or a publicly traded
        entity;

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (C)
        engaging, participating, or being
        involved directly or indirectly in any respect in the business of the
        syndication and sale of housing tax credits, historic rehabilitation tax
        credits, new markets tax credits or home ownership tax credits other than
        for
        Executive’s own account or by way of investment by Executive in less than five
        percent (5%) of the outstanding stock or other securities or a publicly traded
        entity; or

      

      (D)
        providing credit intermediation
        relating to debt or equity interests in real property other than for Executive’s
        own account or by way of investment by Executive in less than five percent
        (5%)
        of the outstanding stock or other securities or a publicly traded
        entity.

      

      “Continuous
        Service” means the absence of any interruption or termination of
        service as an Centerline employee or consultant.  Continuous Service
        shall not be considered interrupted in the case of:  (i) sick leave;
        (ii) military leave; (iii) any other leave of absence approved by the
        Centerline, provided that such leave is for a period of not more than 90
        days,
        unless reemployment upon the expiration of such leave is guaranteed by contract
        or statute, or unless provided otherwise pursuant to Centerline policy adopted
        from time to time. Changes in status between service as an employee and a
        consultant will not constitute an interruption of Continuous
        Service.

      

      “Fiscal
        Year” means the fiscal year of the Company which is the period
        commencing January 1 and ending December 31 of each calendar year.

      

      “Good
        Reason”
means any of the following events that the Company does not reasonably
        cure
        within ten (10) days after receiving written notice thereof from the Executive
        (with Good Reason being established only at the end of such ten (10) day
        period): (a) a material adverse change or diminution in Executive’s duties,
        responsibilities or title as an employee of the Company or Centerline; (b)
        a
        reduction of more than five percent (5%) in Executive’s Salary, (c) a failure on
        the part of the Company to increase Executive’s Salary by at least ten percent
        (10%) over the then current Salary level at the end of the Initial Term and
        at
        the end of each three (3) year period thereafter; (d) for a period commencing
        with a Change of Control and ending the close of the Fiscal Year following
        the
        Fiscal Year in which a Change of Control occurs, a reduction in Executive’s
        total compensation (Salary plus Annual Bonus on an annualized basis) of more
        than ten (10%) of the average total compensation paid to Executive for two
        (2)
        Fiscal Years immediately preceding the Fiscal Year in which the Change of
        Control occurs, (e) an amendment, modification or termination of the Bonus
        Plan,
        which would result on a prospective basis in a reduction of greater than
        ten
        percent (10%) of the bonus pool which would otherwise be available under
        the
        Bonus Plan, if such amendment, modification or termination of the Bonus Plan
        had
        not been made and/or (f) the forced relocation of Executive to a location
        which
        is more than fifty (50) miles from his place of work as of the date of execution
        of this Agreement, which is 5221 North O’Connor Blvd., Irving,
        Texas.  Notwithstanding the foregoing, a decrease in all, or any part
        of, Executive’s compensation if such decrease is in accordance with an
        across-the-board decrease applying generally to similarly situated executives
        of
        the Company (other than such a decrease upon a Change of Control) shall not
        constitute “Good Reason”.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Retirement”
        means the Executive’s voluntary termination of employment upon not less than
        sixty (60) days prior written notice (unless waived by the Company), under
        circumstances not involving Termination for Cause if the Participant has
        attained age 62 and completed at least 10 consecutive years of Continuous
        Service immediately before ending Continuous Service.  A Participant’s
        Continuous Service for this purpose shall include any service with the Company
        or any of its Affiliates, as well as the Participant’s service (i) with any
        predecessor to the Company or its Affiliates, and (ii) with any company acquired
        by the Company or any Affiliate.

      

      “Termination
        Date” means the effective date of termination of the Employment Period
        and Executive’s employment with the Company, regardless of the cause of such
        termination.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      OTHER
        BUSINESS ACTIVITIES OF EXECUTIVE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        C

      

      SUMMARY
        - DISABILITY INSURANCE TERMS

      

       

      
        	
                Total
                  Monthly Benefit (with COLA):    

              	
                $15,000.00

              

        

        
          	
                  Beginning
                    Date:  

                	
                  91st
                    Day

                

        

        

        
          	
                  Benefit
                    Paid:    

                	
                  to
                    age 65

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        D

      

      FORM
        OF GENERAL RELEASE

      

      

      It
        hereby is agreed, by and among
        Centerline Capital Group, Inc. ("Employer"), and ____________
        ("Employee"), as follows:

      

      1.           [The
        Employee submits, and the Employer accepts, his permanent resignation from
        employment effective ___________][The Employer requests and the Employee
        submits
        to his termination from employment effective ___________].  Employee
        hereby waives any and all rights or claims to reinstatement or reemployment
        by
        the Employer.  Employer reaffirms it obligation to make the payments
        required pursuant to Section ___ of that certain agreement dated as of
        ___________, 2007 between the Employer and the Employee (the "Employment
        Agreement").

      

      2.           In
        consideration of the foregoing and for other good and valuable consideration,
        the receipt of which is hereby acknowledged by the Employee, Employee, for
        his
        self, his heirs, executors, administrators, successors and assigns, hereby
        releases and forever discharges the Employer, including any and all of
        Employer's subsidiaries, affiliates or related business entities (including,
        without limitation, American Mortgage Acceptance Company, Centerline Capital
        Group, Inc., Centerline Capital Company LLC, Centerline Affordable Housing
        Advisors, LLC, Centerline Mortgage Capital Inc., Centerline Mortgage Partners
        Inc., Centerline Financial Holdings LLC, Centerline Investors I, LLC and
        Centerline REIT, Inc.), its or their past, present and future owners, partners,
        directors, officers, agents, representatives, and employees or any of its
        or
        their subsidiaries, affiliates, parents, or related business entities, and
        its
        or their respective heirs, executors, administrators, successors and assigns,
        of, from and/or for all manner of actions, proceedings, causes of action,
        suits,
        debts, sums of money, accounts, contracts, controversies, agreements, promises,
        damages, judgments, claims, and demands whatsoever, known or unknown, whether
        arising in law or equity, out of any federal, state or city constitution,
        statute, ordinance, bylaw or regulation, or under the Employment Agreement,
        arising out of or relating to Employee's employment by the Employer, including
        but not limited to the termination of such employment, all claims of
        discrimination on the basis of age, alienage, citizenship, creed, disability,
        gender, handicap, marital status, national origin, race, religion sex or
        sexual
        orientation, and, without limitation, any claims arising under Title VII
        of the
        Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Equal
        Pay Act, the Rehabilitation Act, the Americans With Disabilities Act, the
        WARN
        Act, Sections 1981 and 1983 of the Civil Rights Act of 1866, the New York
        State
        Human Rights Law, New York Labor Law,  the New York City Human Rights
        Law, New York Labor Law and any other federal, state or local statute,
        ordinance, rule, regulation or order (collectively, “Claims” or “Damages”),
        which Employee ever had, now has, or which he, or his heirs, executors,
        administrators, successors or assigns can or may have for, or by reason of,
        any
        matter, cause, event, act, omission, transaction or occurrence up to and
        including the date of the execution of this Release, arising out of or relating
        to Employee's employment by the Employer, including but not limited to the
        termination of such employment.

      

      3.           The
        Employer, for itself, its successors, assigns and legal representatives,
        hereby
        releases and forever discharges the Employee, and the Employee’s heirs,
        executors, administrators, legal representatives and assigns, from and against
        any and all Claims or Damages which the Employer ever had, now has for, or
        by
        reason of, any matter, cause, event, act, omission, transaction or occurrence
        up
        to and including the date of the execution of this Release, arising out of
        or
        relating to Employee’s employment by the Employer; provided, however, that the
        Employer is not releasing any claims (“Retained Claims”) with respect to any act
        or failure to act by the Employee that constitutes Employee’s bad faith, gross
        negligence or willful misconduct or any fraudulent, intentionally improper,
        unauthorized or unlawful acts by the Employee, [with the understanding that
        the
        Employer is not currently aware of any such acts] 1; and
        provided
        further that any Retained Claims that are not brought in a legal proceeding
        against the Employee within eighteen (18) months following the date of this
        Release shall be deemed released and forever discharged from and after the
        date
        which is eighteen (18) months following the date of this
        Release.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.           (a)           Except
        with respect to amounts owed pursuant to the Employment Agreement and any
        vested
        benefits under the Employer’s employee benefit plans or those of its
        subsidiaries or affiliates, Employee covenants not to in any way cause to
        be
        commenced or prosecuted, or to commence, maintain or prosecute any action,
        charge, complaint or proceeding of any kind, on his own behalf or as a member
        of
        any alleged class of persons, in any court or before any administrative or
        investigative body or agency (whether public, quasi-public or private), against
        the Employer, or any of its subsidiaries, parents, affiliates, related business
        entities, or their respective successors or assigns, or any individual now
        or
        previously employed by the Employer, or by any of its subsidiaries, parents,
        affiliates, or related business entities and their successors and assigns,
        with
        respect to any act, omission, transaction or occurrence up to and including
        the
        date of this Agreement.

      

      (b)           Employee
        further represents that he has not commenced, maintained, prosecuted or
        participated in any action, charge, complaint or proceeding of any kind (on
        his
        own behalf and/or on behalf of any other person and/or on behalf of or as
        a
        member of any alleged class of persons) that is presently pending in any
        court,
        or before any administrative or investigative body or agency (whether public,
        quasi-public, or private), against or involving the Employer, or any of the
        Employer's subsidiaries, parents, affiliates, or related business entities,
        or
        their successors or assigns or any individual now or previously employed
        by the
        Employer, or by any of its subsidiaries, parents, affiliates, or related
        business entities or their successors and assigns.

      

      (c)           The
        Employer covenants not to in any way cause to be commenced or prosecuted,
        or to
        commence, maintain or prosecute any action, charge, complaint or proceeding
        of
        any kind in any court or before any administrative or investigative body
        or
        agency (whether public, quasi-public or private), against the Employee with
        respect to any act, omission, transaction or occurrence up to an including
        the
        date of this Release relating to the Employer's employment of the Employee
        or
        the termination of his employment; provided, however, that the Employer is
        not
        waiving and shall not waive such right with respect to any act or failure
        to act
        by the Employee that constitutes Employee’s bad faith, gross negligence or
        willful misconduct or any fraudulent, intentionally improper, unauthorized
        or
        unlawful acts by the Employee.  [As of the date of this Release, the
        Employer is not aware of any act or failure to act by the Employee that would
        give rise to any action, charge, complaint or proceeding of any kind in any
        court or before any administrative or investigative body or agency (whether
        public, quasi-public or private), against the Employee.] 1

      

      (d)           The
        Employer represents that it has not commenced, maintained, prosecuted or
        participated in any action, charge, complaint or proceeding of any kind that
        is
        presently pending in any court, or before any administrative or investigative
        body or agency (whether public, quasi-public, or private), against or involving
        the Employee or relating to the Employee’s employment with the Employer or the
        termination of his employment.

      

      5.           Employee
        acknowledges that he has been fully and fairly represented by counsel in
        connection with the execution and delivery of this Release, the terms of
        which
        have been explained to him.

      

      6.           Employee
        acknowledges that he has considered fully the terms of this Agreement before
        signing; that he has read this Agreement in its entirety and understands
        its
        terms; that he agrees to all terms and conditions contained herein; that
        he is
        signing this Agreement knowingly and voluntarily; and, that he intends to
        abide
        by its terms in all respects.

      

      7.           This
        Agreement shall be construed and enforced in accordance with the laws of
        the
        State of New York without regard to New York's choice of law
        provisions.  Any action to enforce this Agreement shall be brought in
        the New York State Supreme Court, County of New York.  The parties
        hereby consent to such jurisdiction.

      

        

      
        1
          This bracketed
          sentence will be included in the Release if at the time of the execution
          of the
          Release, the Employer is able to make such statement.  If at that time
          the Employer is not able to make such statement, the Release must be executed
          without such sentence.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      8.           This
        Agreement may be executed in more than one counterpart, each of which shall
        be
        deemed an original, but all of which shall constitute one and the same
        instrument.

    

    
      ________________________                         ______________________________

           Date                                                                   [Employee]

      

      Signed
        before me this

      ____
        day
        of _____, [Year]

      

      __________________________

           Notary
        Public

      CENTERLINE
        CAPITAL GROUP,
        INC.

      

      ________________________                         By:______________________________

           Date                                                 Name:

       Title:

      

      
        Signed
          before me this

        ____
          day
          of _____, [Year]

        

        __________________________

             Notary
          Public

      

       

      [If
        at
        time of execution the Employee is 40 years of age or older, this General
        Release
        is to be modified to comply with the provisions of the Older Workers Benefit
        Protection Act or similar legislation]

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