Document:

Exhibit 10.14

Exhibit 10.14

EXECUTION COPY

OMNIBUS AGREEMENT

This Omnibus Agreement (this “Agreement”), dated as of March 5, 2010, is entered into by
and among Centerline Holding Company, a Delaware statutory trust (“Centerline”), Centerline
Capital Company, LLC, a Delaware limited liability company (“CCC” and together with
Centerline, the “Centerline Parties”), Related Special Assets LLC, a Delaware limited
liability company (“RSA”) and Related General II, L.P. (“RG II”, and together with
RSA , the “Related Parties”).

Preliminary Statement

The Related Parties hold the following securities issued by the Centerline Parties:

	 	•	 	11% Cumulative Convertible Preferred Shares, Series A-1 issued by Centerline (the
“11% Preferred Shares”) — held by RSA;

	 	•	 	Special Preferred Voting Shares issued by Centerline (the “SPV Shares”) -
held by RG II; and

	 	•	 	Special Common Units issued by CCC (the “SCUs”) — held by RG II

Centerline has advised the Related Parties that it expects to enter into a purchase and sale
agreement, by and among C-III Capital Partners LLC (“Newco”), on the one hand, and
Centerline and certain of its subsidiaries, on the other hand, pursuant to which Newco will acquire
(i) Centerline’s assets comprising the former ARCap Investors LLC (“ARCap”) business and
certain other assets and (ii) newly issued Special Series A Shares (as defined below) representing
an approximately twenty percent (20%) fully diluted ownership interest in Centerline, for an
aggregate purchase price equal to (a) approximately $50,000,000 in cash and (b) the assumption of
approximately $60,000,000 of Centerline’s senior secured debt obligations (the “Island
Sale”). In addition, Centerline will enter into various agreements with certain of its
lenders, creditors and claimants to restructure certain of its other outstanding debt obligations
and a management agreement with an affiliate of Newco pursuant to which such affiliate will provide
executive management services to Centerline (the “Restructuring”, and together with the
Island Sale, the “Transaction”). The expected terms of the Transaction, including the
Restructuring, are summarized on Schedule III hereto (the “Transaction Summary”).

Reclassification/Trust Amendment. As a condition to consummating the Transaction,
Centerline must effectuate a recapitalization with respect to the following shares (the
“Existing Preferred Shares”): (i) the outstanding 4.4% Cumulative Perpetual Convertible
Community Reinvestment Act Preferred Shares, Series A-1 (the “4.4% CRA Preferred Shares”),
Convertible Community Reinvestment Act Preferred Shares (the “CRA Preferred Shares”),
Series A Convertible Community Reinvestment Act Preferred Shares (the “Series A CRA Preferred
Shares” and together with the 4.4% CRA Preferred Shares and the CRA Preferred Shares, the
“Existing CRA Preferred Shares”); and (ii) the outstanding 11% Preferred Shares. Pursuant
to the transactions contemplated by paragraphs (i), (ii) and (iii) below, referred to as the
“Recapitalization”), the Existing Preferred Shares and the 11% Preferred Shares will:

 

 

 

(i) except as provided in clauses (ii) and (iii) below with respect to the 4.4% CRA Preferred
Shares, if applicable, and the 11% Preferred Shares be surrendered to Centerline and cancelled in
exchange for the issuance by Centerline of Special Series A Shares (the “Special Series A
Shares”), with the rights and privileges set forth in the certificate of designation
substantially in the form attached hereto as Exhibit A (the “Special Series A
COD”),

(ii) at Centerline’s option, and in its sole and absolute discretion, in the case of the 4.4%
CRA Preferred Shares, be reclassified into Special Series A Shares by means of an amendment to the
certificate of designation of the 4.4% CRA Preferred Shares (the “4.4% COD”) that amends
and restates the 11.0% COD in its entirety as provided in the Special Series A COD (the “4.4%
COD Amendment”), and

(iii) in the case of the 11% Preferred Shares, be reclassified into Special Series A Shares
(the “Reclassification”) by means of an amendment to the certificate of designation of the
11% Preferred Shares (the “11.0% COD”) that amends and restates the 11.0% COD in its
entirety as provided in the Special Series A COD, substantially the form attached hereto as
Exhibit B (the “11% COD Amendment”).

Following the Recapitalization, Centerline will seek to amend its current Trust Agreement (as
defined below) to increase the number of shares of Centerline authorized for issuance (the
“Trust Amendment”) to permit the automatic conversion of the Special Series A Shares into
the appropriate number of Common Shares (as defined below) pursuant to the terms of the Special
Series A COD, the 4.4% COD Amendment, if applicable, and the 11% COD Amendment.

RSA is the holder of 11% Preferred Shares in the number set forth on Schedule I
hereto, representing approximately ninety-seven percent (97%) of the issued and outstanding 11%
Preferred Shares. RSA (i) desires to approve and consent to the Reclassification pursuant to the
11% COD Amendment and to have its 11% Preferred Shares reclassified into the number of Special
Series A Shares set forth on Schedule I hereto and (ii) agrees to approve and consent to
the Trust Amendment (and to grant an irrevocable proxy to Centerline, or any person designated by
Centerline, to vote its Special Series A Shares in favor thereof) in accordance with terms set
forth herein.

SPV Amendment. In addition, RG II (an affiliate of RSA) is the holder of SPV Shares
in the number set forth on Schedule II hereto. In connection with the Transaction and the
Recapitalization, RG II desires to amend the certificate of designation of the SPV Shares in
substantially the form of amendment attached hereto as Exhibit C to, among other matters,
eliminate the right of the holders of the SPVs to nominate and/or elect certain trustees to
Centerline’s board of trustees (the “SPV COD Amendment”) and therefore desires to approve
and consent to the SPV COD Amendment and (and grant an irrevocable proxy to Centerline, or any
person designated by Centerline, to vote such SPV Shares in favor thereof) in accordance with the
terms set forth herein.

 

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Release. In connection with the Transaction, Centerline, on the one hand, and the
Related Parties and The Related Companies, L.P. (“TRCLP”), on the other, have agreed to
mutually release each other from certain losses and claims they may have against the other.

SCU Amendment. In addition, RG II is the holder of SCUs in the number set forth on
Schedule II hereto. In connection with the Transaction and the Recapitalization, RG II has
agreed to amend the Amended and Restated Operating Agreement of CCC (the “CCC Operating
Agreement”) in substantially the form of amendment attached hereto as Exhibit D (the
“CCC Operating Agreement Amendment”) to eliminate (x) the distribution tax gross-up (i.e.,
the Preferred Return as defined in the CCC Operating Agreement) and provide that the distribution
on each SCU will be equal in amount to any dividend paid on each Common Share and (y) Centerline’s
obligation to contribute the Quarterly Distribution Shortfall (as defined in the CCC Operating
Agreement).

NOL Lock-Up Agreement. In connection with the Restructuring, Centerline must also
enter into certain protective measures to prevent Centerline from experiencing an “ownership
change” as defined in Section 382 of the Internal Revenue Code of 1986, as amended, and
compromising its ability to use its net operating losses (“NOLs”). Centerline views its
NOLs as a valuable asset of Centerline, which is likely to inure to the benefit of Centerline and
its shareholders, and Centerline believes that it is in the best interests of Centerline and its
shareholders to provide for the protection of Centerline’s NOLs. RSA and RG II understand and
agree with this view.

In connection therewith, and as a condition to consummating the Transaction, Centerline will
adopt a Tax Benefit Preservation Plan (the “NOL Preservation Plan”) substantially in the
form attached hereto as Exhibit E. As a further protective measure, Centerline must enter
into lock-up agreements (the “Lock-Up Agreements”) in substantially the form attached
hereto as Exhibit F with certain holders (the “Existing Holders”) of shares of
beneficial interest in Centerline (which includes RSA and RG II and their beneficial owners) who,
as of the effective date of the NOL Preservation Plan, individually own 4.75% or more of such
shares then outstanding together with any Affiliates and Associates (in each case, as defined in
the Lock-Up Agreements) of such holder.

Advisory Agreement; ROFO/ROFR Rights. As part of the Restructuring, TRCLP Affordable
Acquisitions LLC, a Delaware limited liability company and an affiliate of both RSA and RG II
(“TRCLP Affordable”), will enter into a Consulting and Advisory Agreement (the
“Advisory Agreement”), with Centerline Capital Group, Inc., a subsidiary of Centerline, in
substantially the form attached hereto as Exhibit G pursuant to which TRCLP Affordable will
perform consulting and advisory services for Centerline in consideration for which Centerline will
grant TRCLP Affordable, among other things, rights of first refusal and rights of first offer (the
“ROFO/ROFR Rights”) with respect to certain Tax Credit Properties and Tax Credit Equity
Interests (in each case, as defined in the Advisory Agreement).

Debt Assumption. In consideration of the ROFO/ROFR Rights, TRCLP Affordable has
agreed to incur five million dollars ($5,000,000) of Centerline’s senior secured debt that will

 

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remain outstanding following the Restructuring pursuant to a loan agreement substantially in the
form attached hereto as Exhibit H (the “Related Loan Agreement”).

Amendment Agreement. In addition to the agreements contemplated by the Transaction,
Centerline and RSA entered into a Settlement Agreement dated April 8, 2009 (the “Settlement
Agreement”) in connection with the settlement of Carfagno v. Schnitzer, 08-CV-912(SAS)
(S.D.N.Y.) and other related lawsuits (the “Settlement”) pursuant to which RSA agreed to
waive (the “Waiver”) certain of its rights under the Certificate of Designation for the
11.0% Preferred Shares (the “11% Certificate of Designation”) with respect to the dividend
rate and conversion price for the 11.0% Preferred Shares that RSA holds (the “RSA Shares”).
On May 18, 2009, the court having jurisdiction over the Settlement (the “Court”) issued
its Order and Final Judgment (the “Order”) approving the Settlement, including the Waiver,
but such Order is not effective until the dismissal of the actions Off v. Ross, et al, Civ. A. No.
3468-VCP (Del. Ch.) and Ciszerk v. Ross, Civ. A. No. 3511-VCP (Del. Ch.) (the “Dismissal”).
In order to implement the Waiver and in accordance with the amendment provisions of the 11%
Certificate of Designation contained in Section 5(c)(i)(ii) thereof, Centerline and RSA have agreed
to amend in its entirety the 11% Certificate of Designation pursuant to the Amendment Agreement
attached hereto as Exhibit I (the “Amendment Agreement”).

NOW, THEREFORE, in consideration of the representations, warranties, premises and agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

Agreement

ARTICLE I.

RECLASSIFICATION OF 11% PREFERRED SHARES

1.1 Consent to Reclassification; Surrender of Share Certificates. Subject to the terms and
conditions of this Agreement:

(a) Effective as of the closing date of the Transaction (the “Transaction Closing
Date”) and subject to the provisions of Article VI hereof, RSA hereby irrevocably and
unconditionally:

(i) consents to the adoption of the 11% COD Amendment and all of its 11% Preferred Shares
shall be deemed voted in favor of the 11% COD Amendment; and

(ii) surrenders all of its 11% Preferred Shares, including any of its rights, powers,
preferences, limitations, duties and obligations as a holder of 11% Preferred Shares, in exchange
for the number of Special Series A Shares set forth on Schedule I hereto and shall deliver
to Centerline for cancellation the share certificate(s) (the “11% Preferred Certificates”)
representing such 11% Preferred Shares so surrendered for exchange.

1.2 Adoption of the 11% COD Amendment; Delivery of Share Certificates.

 

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(a) Upon the consent of RSA to the adoption of the 11% COD Amendment in accordance with
Section 1.1, Centerline shall formally adopt the 11% COD Amendment, effective as of the
Transaction Closing Date.

(b) As soon as practicable after the Transaction Closing Date, Centerline shall deliver to RSA
a certificate in substantially the form attached hereto as Exhibit K (the “Special
Series A Certificate”) evidencing the Special Series A Shares owned by RSA.

(c) To the extent Section 5.c.ii of the 11.0% COD is applicable, in connection with the
consummation of the Transaction, RSA, as the holder of at least a majority of the outstanding
11%Preferred Shares, hereby irrevocably and unconditionally provides its consent under Section
5.c.ii of the 11.0% COD.

ARTICLE II.

AMENDMENT OF THE CERTIFICATE OF DESIGNATION OF THE SPECIAL PREFERRED VOTING SHARES

2.1 Consent to Amendment. Effective as of the Transaction Closing Date and subject to the
provisions of Article VI hereof, RG II hereby irrevocably and unconditionally consents to
the adoption of the SPV COD Amendment and all of its SPV Shares shall be deemed voted in favor of
the SPV COD Amendment.

2.2 Adoption of the SPV COD Amendment. Upon the consent of RG II to the adoption of the
SPV COD Amendment in accordance with Section 2.1, Centerline shall formally adopt the SPV
COD Amendment, effective as of the Transaction Closing Date.

ARTICLE III.

AMENDMENT OF THE LIMITED LIABILITY COMPANY AGREEMENT OF CENTERLINE CAPITAL COMPANY, LLC

3.1 Consent to Amendment. Effective as of the Transaction Closing Date and subject to the
provisions of Article VI hereof, RG II hereby irrevocably and unconditionally consents to
the CCC Operating Agreement Amendment and all of its SCUs shall be deemed voted in favor of the CCC
Operating Agreement Amendment.

3.2 Adoption of the CCC Operating Agreement Amendment. Upon receipt of the consent of RG
II, CCC shall formally adopt the CCC Operating Agreement Amendment.

ARTICLE IV.

AMENDMENT TO TRUST AGREEMENT

4.1 Consent to Amendment of Trust Agreement. In the event that:

(a) the board of trustees of Centerline (i) deems it to be advisable and in the best interests
of Centerline and its shareholders to recommend approval by Centerline’s shareholders of the Trust
Amendment to increase the number of authorized shares of Centerline from 160,000,000 Shares to at
least the minimum number of Common Shares necessary to effectuate, in accordance with the Special
Series A COD, the 4.4% COD Amendment and the 11% COD

 

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Amendment, the conversion into Common Shares of all Special Series A Shares issued or created
pursuant to the Transaction and (b) adopts a resolution setting forth the Trust Amendment, and

(b) the board of trustees of Centerline submits the Trust Amendment to the shareholders of
Centerline entitled to vote for the approval and adoption thereof,
then the Related Parties hereby agree to (A) approve and adopt the Trust Amendment on the
terms set forth therein and (B) vote all of the Special Series A Shares owned by RSA and all of the
SPV Shares owned by RG II as contemplated in this Agreement in favor of adopting the Trust
Amendment at every annual, special or adjourned meeting of the shareholders of Centerline and in
every written consent in lieu of such meeting at which or in which the approval and adoption of the
Trust Amendment is presented for shareholder action.

4.2 Grant of Irrevocable Proxy.

(a) By executing this Agreement, the Related Parties hereby irrevocably appoint Centerline, or
any person designated by Centerline, with full power of substitution and re-substitution, as the
sole attorney, agent and proxy for the Related Parties and hereby authorize and empower Centerline,
or any person so designated by Centerline, as its proxy to vote all of the Special Series A Shares
(created in connection with the Reclassification) of RSA identified on Schedule I hereto
and all of the SPV Shares of RG II identified on Schedule II hereto, in each case, that now
or hereafter may be owned beneficially or of record by RSA or RG II, as applicable, and to exercise
all voting and other rights of the Related Parties (to the fullest extent the Related Parties are
entitled to do so) with respect to such Special Series A Shares and such SPV Shares, at every
annual, special or adjourned meeting of the shareholders of Centerline and with respect to any
written consent in lieu of any such meeting, the power to execute and deliver such written consent.

(b) This proxy is limited strictly to the matters specified in Section 4.1 hereof and
shall not be exercisable with respect to any other matter that is subject to approval by
Centerline’s shareholders.

(c) To the fullest extent permitted by law, this proxy (a) is coupled with an interest, (b)
shall be irrevocable and binding on successors and assigns of the Related Parties (including any
transferee of any of the aforementioned Special Series A Shares or SPV Shares, as applicable), (c)
shall be valid beyond eleven (11) months after the date of the execution of this Agreement and not
be terminated by operation of law or upon the occurrence of any event.

(d) The proxy set forth in this Section 4.2 shall operate to revoke any prior proxy as
to such Special Series A Shares heretofore granted by RSA and to such SPV Shares heretofore granted
by RG II and, unless Centerline directs the Related Parties otherwise in writing, the Related
Parties agree (i) not to grant any subsequent proxies with respect to the aforementioned Special
Series A Shares or SPV Shares, (ii) to deposit any such Special Series A Shares or SPV Shares into
a voting trust or (iii) to enter into a voting agreement with respect to such Special Series A
Shares or SPV Shares.

 

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ARTICLE V.

INSURANCE COVERAGE; RELEASES

5.1 Insurance Coverage. From and after the Transaction Closing Date, subject to applicable
law, Centerline, shall indemnify and hold harmless all its past and present officers and directors,
including Stephen M. Ross and Jeff Blau (“Directors and Officers”), to the same extent and
in the same manner the Directors and Officers are entitled to be indemnified as of the date of this
Agreement pursuant to its Trust Agreement and Centerline Bylaws (collectively, “Indemnification
Arrangements”), for acts or omissions occurring at or prior to the Transaction Closing Date.
Centerline agrees that all rights of the Directors and Officers to exculpation, advancement of
expenses and indemnification under the Indemnification Arrangements shall survive the Transaction
Closing Date and shall continue in full force and effect in accordance with their terms and that
such rights shall not be amended or otherwise modified in any manner that would adversely affect
the rights of the Directors and Officers. Centerline shall pay any expenses of the Directors and
Officers under this Section 5.1 as incurred to the fullest extent permitted under applicable law,
provided that the person to whom expenses are advanced provides an undertaking to repay such
advances to the extent required by applicable law. The provisions of this Section 5.1 are intended
to be for the benefit of, and shall be enforceable by, each of Messrs. Ross and Blau, his heirs and
his representatives and are in addition to, and not in substitution for, any other rights to
indemnification or contribution that any such person may have by contract or otherwise.

5.2 Mutual Releases.

(a) Centerline Release. Centerline on behalf of itself and on behalf of each of its
respective subsidiaries, predecessors, current and former officers, directors, managers, members,
stockholders and employees, successors and assigns, absolutely and irrevocably releases, remises,
acquits and forever discharges the Related Parties and TRCLP and every entity and person affiliated
with, preceding and/or succeeding the Related Parties and TRCLP including, without limitation, all
of their affiliates, officers, directors, trustees, partners, members, fiduciaries, shareholders,
agents, attorneys, and employees (collectively, the “Related Released Parties”) from any
and all claims, rights, demands, suits, actions or causes of action, losses, costs, obligations,
liabilities, expenses, debts and duties of every kind or nature, known or unknown, suspected or
unsuspected, asserted or unasserted, fixed or contingent, at law or in equity (“Claims”),
arising out of or relating in any way to the Securities Purchase Agreement dated as of January 25,
2008, between Centerline and RSA (the “SPA”).

(b) Related Release. Each Related Party and TRCLP, on behalf of itself and on behalf
of each of its respective subsidiaries, predecessors, current and former officers, directors,
managers, members, stockholders and employees, successors and assigns, absolutely and irrevocably
releases, remises, acquits and forever discharges Centerline and every entity and person affiliated
with, preceding and/or succeeding Centerline including, without limitation, all of their
affiliates, officers, directors, trustees, partners, members, fiduciaries, shareholders, agents,
attorneys, and employees (collectively, the “Centerline Released Parties”) from any and all
Claims, arising out of or relating in any way to (i) the SPA; and (ii) the Common Shares, the SPV
Shares, the 11% Preferred Shares or the SCUs held by the Related Parties or TRCLP to the extent
related to Claims through and including the Transaction Closing Date. Notwithstanding

 

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the foregoing, the release of the Centerline Released Parties provided in this Section 5.2(b)
shall not be effective with respect to the indemnification obligations of Centerline under the SPA.

(c) Attorneys’ Fees. In the event any action is filed to enforce or defend releases
in Sections 5.2(a) or (b), the prevailing party in such action shall be entitled to, in addition to
any other damages or relief available, an award of reasonable attorneys’ fees and costs incurred in
connection with such action, including reasonable attorneys’ fees and costs incurred in any
bankruptcy or appellate proceeding.

(d) Advice of Counsel. In executing releases in Sections 5.2(a) or (b), each party
hereto acknowledges that it has consulted with and had the advice of independent legal counsel of
its own choosing in negotiations for and preparation of such releases and that each party was fully
advised by such legal counsel with respect to all rights which are affected by such releases.

ARTICLE VI.

INDEMNIFICATION

6.1 If Centerline or its Affiliates agrees to provide to any other holder of Existing Preferred
Shares indemnification rights against claims by third parties with respect to the Transaction, the
Related Parties shall also be entitled to the same indemnification right.

ARTICLE VII.

REPRESENTATIONS AND WARRANTIES

7.1 Representations and Warranties of the Centerline Parties. The Centerline Parties
hereby represent and warrant to the Related Parties that as of the Transaction Closing Date:

(a) Due Organization; Good Standing.

(i) Centerline is duly created, validly existing and in good standing as a statutory trust
under the laws of the State of Delaware.

(ii) CCC is duly formed, validly existing and in good standing as a limited liability company
under the laws of the State of Delaware.

(b) Authority; Enforceability; Corporate and Other Proceedings.

(i) Centerline has the requisite trust power and authority to execute and deliver this
Agreement and to carry out the Reclassification and the other transactions contemplated hereby, and
this Agreement has been duly authorized, executed and delivered by Centerline and (assuming the due
authorization, the execution and delivery by the Related Parties) constitutes the legal, valid and
binding obligation of Centerline, enforceable against Centerline in accordance with its terms,
except as the enforceability thereof may be subject to or limited by (i) applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting rights of creditors and (ii)
general equitable principles, regardless of whether enforcement is sought in a proceeding at law or
in equity.

 

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(ii) CCC has the requisite power and authority to execute and deliver this Agreement and to
carry out the transactions contemplated hereby, and this Agreement has been duly authorized,
executed and delivered by CCC and (assuming the due authorization, the execution and delivery by
the Related Parties) constitutes the legal, valid and binding obligation of CCC, enforceable
against CCC in accordance with its terms, except as the enforceability thereof may be subject to or
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting rights of creditors and (ii) general equitable principles, regardless of whether
enforcement is sought in a proceeding at law or in equity.

(c) Reclassification of Special Series A Shares.

(i) The Special Series A Shares created through the Reclassification, upon formal adoption of
the 11% COD Amendment, shall have been duly authorized and upon creation pursuant to the 11% COD
Amendment will be validly issued and outstanding, fully paid and nonassessable.

(ii) Centerline has reserved (to the extent required) from its duly authorized shares the
maximum number of Special Series A Shares contemplated by (a) this Agreement, (b) the 4.4% COD
Amendment, (c) the Special Series A COD and (d) those certain Consent and Exchange Agreements
between Centerline and certain holders of the Existing CRA Preferred Shares (items (b), (c) and (d)
referred to herein as the “Other Agreements”).

(d) Absence of Defaults.

(i) The execution, delivery and performance of this Agreement by Centerline and the
consummation of the Reclassification and the other transactions contemplated hereby will not (i)
violate any provision of applicable law, (ii) violate any provisions of Centerline’s Second Amended
and Restated Trust Agreement, dated as of November 17, 2003, as amended by Amendment No. 1 thereto,
dated as of September 20, 2005, as further amended by Amendment No. 2 thereto, dated as of November
30, 2005, as further amended by Amendment No. 3 thereto, dated as of June 13, 2006, and as further
amended by Amendment No. 4 thereto, dated as of April 2, 2007 (collectively, the “Trust
Agreement”), or the Fifth Amended and Restated Bylaws of Centerline (as amended, the
“Centerline Bylaws”) or (iii) violate any order, judgment, injunction, determination, award
or decree of any court or other governmental agency applicable to Centerline or its assets.

(ii) The execution, delivery and performance of this Agreement by CCC and the other
transactions contemplated hereby will not (i) violate any provision of applicable law, (ii) violate
any provisions of organizational documents or governing instruments or (iii) violate any order,
judgment, injunction, determination, award or decree of any court or other governmental agency
applicable to CCC or its assets.

(e) No Conflicts. The execution, delivery and performance of this Agreement by the
Centerline Parties and the consummation of the Reclassification and the other transactions
contemplated hereby will not conflict with or require the consent of any other person under (other
than consents received on or prior to the Transaction Closing Date in connection with the
Transaction) any material lease or agreement of the Centerline Parties pursuant to, any material

 

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agreement, document, instrument, or any organizational document, or any judgment, decree,
order, law, statute, rule or regulation, applicable to the Centerline Parties.

(f) SEC Reports; Financial Statements. Centerline has filed all reports required to
be filed by it under the Securities Act and the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder (the “Exchange Act”), including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof on a timely basis
(the “SEC Reports”). As of their respective dates, the SEC Reports complied in all
materials respects with the requirements of the Securities Act and the Exchange Act and the rules
and regulations promulgated thereunder. Except as qualified in the SEC Reports, the audited and
unaudited financial statements and schedules included in the SEC Reports present fairly in all
material respects the consolidated financial position of Centerline and its subsidiaries as of the
dates indicated and the consolidated results of operations and cash flows of Centerline and its
subsidiaries for the periods specified therein; except as qualified in the SEC Reports, such
financial statements and schedules have been prepared in conformity with the books and records of
Centerline and generally accepted accounting principles applied on a consistent basis during the
periods involved.

(g) Capitalization of Centerline.

(i) All of the issued and outstanding beneficial interests in Centerline (a) have been duly
and validly authorized and are fully paid and nonassessable, (b) have been issued in compliance
with all federal and state securities laws and (c) were not issued in violation of any preemptive
right, resale right, right of first refusal or other similar right.

(ii) Except as contemplated by this Agreement, the Other Agreements, the Trust Agreement, or
as disclosed in the SEC Reports or Schedule III hereto, there are no (i) outstanding
warrants, options, agreements, convertible securities or other commitments or instruments pursuant
to which Centerline is or may become obligated to issue or sell any of Centerline’s shares or other
securities (or securities convertible into securities of Centerline), (ii) preemptive rights,
resale rights, rights of first refusal or similar rights to purchase or otherwise acquire shares or
other securities of Centerline pursuant to any provision of applicable law, the Trust Agreement or
any contract, “shareholders’ rights plan”, “poison pill” (other than the NOL Preservation Plan) or
similar plan, arrangement or scheme to which Centerline is a party or (iii) right, contractual or
otherwise, to cause Centerline to register pursuant to the Securities Act, any beneficial interests
in Centerline upon the creation of the Special Series A Shares, in each case, other than those
rights that have been expressly waived, fully and unconditionally.

(iii) Immediately following the creation of the Special Series A Shares pursuant to the
Special Series A COD and the reclassification of the 4.4% Preferred Shares and the 11% Preferred
Shares pursuant to the 4.4% COD Amendment and the 11% COD Amendment, respectively, and assuming all
requisite holders of Existing CRA Preferred Shares enter into or otherwise duly approve Other
Agreements, the Special Series A Shares will represent not less than fifty-one percent (51%) of the
voting power and liquidation rights of Centerline’s Common Shares (as defined in the Trust
Agreement) on a fully diluted basis, assuming vesting of all outstanding restricted Common Shares
and conversion or exchange of all outstanding vested options exercisable for Common Shares, SPV
Shares or SCUs.

 

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(h) Issuance Exemption. Based upon and assuming the accuracy of the representations
of the Related Parties in Section 7.2 hereof and the holders of beneficial interest in
Centerline in the Other Agreements, the creation of the Special Series A Shares pursuant to the
Reclassification does not require registration under the Securities Act or applicable state
securities and “blue sky” laws. Centerline has made all requisite filings and has taken or will
take all action necessary to be taken to comply with such state securities or “blue sky” laws.

(i) Consents. The Centerline Parties are not required to obtain any consent, approval
or authorization from, or to file any declaration or statement with, any governmental
instrumentality or other agency in connection with or as a condition to the performance of this
Agreement, except those that will have been obtained as of the Transaction Closing Date.

7.2 Representations and Warranties of the Related Parties. The Related Parties hereby
represent and warrant to the Centerline Parties that as of the Transaction Closing Date:

(a) Due Organization; Good Standing. The Related Parties are duly organized, validly
existing and in good standing under the laws of the jurisdictions of their respective organization.

(b) Authority; Enforceability; Corporate and Other Proceedings. The Related Parties
have the requisite power and authority (i) to execute and deliver this Agreement, (ii) to consent
to the 11% COD Amendment, (iii) to consent to the SPV COD Amendment, (iii) to consent to the CCC
Operating Agreement Amendment and (iv) to carry out the Reclassification and the other transactions
contemplated hereby, and this Agreement has been duly authorized, executed and delivered by the
Related Parties and constitutes the legal, valid and binding obligation of the Related Parties,
enforceable against the Related Parties in accordance with its terms, except as the enforceability
thereof may be subject to or limited by (a) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting rights of creditors and (b) general equitable
principles, regardless of whether enforcement is sought in a proceeding at law or in equity.

(c) 11% Preferred Shares.

(i) RSA owns and possesses good and valid title to all of the 11% Preferred Shares as set
forth on Schedule I hereto, free and clear of all liens (statutory or otherwise),
mortgages, pledges, assessments, security interests, leases, adverse claims, levies, or other
encumbrances or restrictions of whatever nature.

(ii) Other than the 11% Preferred Shares set forth on Schedule I hereto, RSA does not
own or hold any other 11% Preferred Shares.

(d) SPV Shares and SCUs.

(i) RG II owns and possesses good and valid title to all of the SPV Shares and SCUs set forth
on Schedule II hereto, free and clear of all liens (statutory or otherwise), mortgages,
pledges, assessments, security interests, leases, adverse claims, levies, or other encumbrances or
restrictions of whatever nature.

 

11

 

(ii) Other than the SPV Shares and the SCUs set forth on Schedule II hereto, RG II
does not own or hold any SPV Shares or SCUs.

(e) Absence of Defaults. The execution, delivery and performance of this Agreement by
the Related Parties and the consummation of the Reclassification and the other transactions
contemplated hereby will not violate (i) any provision of applicable law, (ii) any provision of
RSA’s organizational documents or governing instruments, (iii) any provision of RG II’s
organizational documents or governing instruments, or (iv) any order, judgment, injunction,
determination, award or decree of any court or other governmental agency applicable to the Related
Parties or their respective assets.

(f) No Conflicts. The execution, delivery and performance of this Agreement by the
Related Parties and the consummation of the Reclassification and the other transactions
contemplated hereby will not conflict with or require the consent of any other person under (other
than consents received on or prior to the Transaction Closing Date in connection with the
Transaction) any material agreement, document, instrument, or any organizational document, or any
judgment, decree, order, law, statute, rule or regulation, applicable to the Related Parties.

(g) Consents. The Related Parties are not required to obtain any consent, approval or
authorization from, or to file any declaration or statement with, any governmental instrumentality
or other agency in connection with or as a condition to the performance of this Agreement.

(h) Experience. The Related Parties are “accredited investors” within the meaning of
Regulation D promulgated under the Securities Act and, by virtue of their experience in evaluating
and investing in private placement transactions of securities in companies similar to the
Centerline Parties, the Related Parties are capable of evaluating the merits and risks of its
investment in the Centerline Parties and has the capacity to protect their own interests. The
Related Parties have had access to the Centerline Parties’ senior management and has had the
opportunity to conduct such due diligence review as it has deemed appropriate.

(i) Investment.

(i) The Related Parties have not been formed solely for the purpose of making this investment
and is not making this investment with the view to, or for resale in connection with, any
distribution of any part thereof in violation of, or in a manner that would require registration of
the Special Series A Shares created as contemplated hereby under the Securities Act.

(ii) The Related Parties acknowledge and understand that (i) the Special Series A Shares have
not been registered under the Securities Act or applicable state securities or “blue sky” laws by
reason of a specific exemption from the registration provisions of the Securities Act and
applicable state securities or “blue sky” laws, the availability of which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of the Related Parties’
representations as expressed herein and the Related Parties will not take any actions that would
have caused the Special Series A Shares being acquired in the Reclassification, to be registered
under the Securities Act or applicable state securities or “blue sky” laws, as applicable,

 

12

 

and (ii) the Centerline Parties do not intend to register the Special Series A Shares under
any such securities’ laws.

(iii) The Related Parties are able to bear the economic risk and lack of liquidity inherent in
holding the Special Series A Shares and can afford a total loss of its investment.

(j) Transfer Restrictions. The Related Parties acknowledge and understand that it
must bear the economic risk of this investment for an indefinite period of time because the Special
Series A Shares (and the Common Shares into which they will be converted) must be held indefinitely
unless subsequently registered under the Securities Act and applicable state securities or “blue
sky” laws or unless an exemption from such registration is available. The Related Parties
understand that any transfer agent of the Centerline Parties will be issued stop transfer
instructions with respect to the Special Series A Shares unless any transfer thereof is
subsequently registered under the Securities Act and applicable state securities or “blue sky” laws
or unless an exemption from such registration is available.

7.3 Representations and Warranties of the Centerline Parties and the Related Parties. Each
party hereto hereby represents and warrants to the other party that it has not and will not pay any
commission or other remuneration, directly or indirectly, to any broker or other intermediary, in
connection with the Reclassification.

ARTICLE VIII.

ACKNOWLEDGMENTS 

8.1 Acknowledgments. The Related Parties hereby acknowledges that:

(a) Representatives of Island C-III Holdings LLC and the Centerline Parties have met with the
Related Parties and presented an overview of the Transaction;

(b) they have received and thoroughly reviewed the Transaction Summary;

(c) they have had such opportunity as they deem adequate to obtain from representatives of the
Centerline Parties such information as is necessary to permit the Related Parties to fully
comprehend the Transaction Summary and to evaluate the merits and risks of the Transaction
described therein and the Reclassification contemplated hereby;

(d) the terms of the Transaction are not yet final and are subject to further negotiation and
documentation; and

(e) they have and are acting for themselves and not at the direction or instruction of any
other person or entity, including the Centerline Parties.

ARTICLE IX.

MISCELLANEOUS

9.1 Entire Agreement; Amendments. This Agreement (including any schedules and exhibits
hereto), the 11% COD Amendment, the Amendment Agreement, the SPV COD Amendment, the CCC Operating
Agreement Amendment, the Lock-Up Agreements, the Release, the Advisory

 

13

 

Agreement, and the Related Loan Agreement constitute the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes any and all prior agreements,
representations and understandings of the parties hereto, written or oral. The terms of this
Agreement shall not be modified or amended except by subsequent written agreement of the parties
hereto.

9.2 Termination. This Agreement shall be of no force and effect if the Transaction Closing
Date has not occurred on or before September 30, 2010.

9.3 Counterparts; Facsimile; PDF. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall constitute one and
the same instrument. Any facsimile or portable document format copies hereof or signature hereon
shall, for all purposes, be deemed originals.

9.4 Waiver. No waiver by one of the parties hereto of the another party’s breach of any
term, covenant or condition contained in this Agreement shall be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant or condition of this Agreement. No
failure or delay by any party hereto in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. Except as
otherwise set forth herein, the rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

9.5 Governing Law. The parties hereto agree that this Agreement shall be construed, and
the rights and obligations of the parties hereto under the Agreement shall be determined, in
accordance with the substantive laws of the State of Delaware applicable to contracts to be
performed entirely within the State of Delaware as though this Agreement were to be wholly
performed within the State of Delaware and as though all persons or entities who are parties hereto
were domiciliaries of the State of Delaware.

9.6 Consent to Jurisdiction. The parties hereto hereby submit to the exclusive
jurisdiction of the federal and state courts of New York located in New York County, New York, in
connection with any action arising out of or relating to this Agreement and any of the agreements,
instruments and other documents entered into in connection herewith and the parties hereto hereby
irrevocably agree that all claims in respect of any such suit, action or proceeding shall be heard
and determined in such courts. The parties hereto hereby irrevocably waive, to the fullest extent
permitted by law, any objection which they may now or hereafter have to the laying of venue of any
such suit, action or proceeding brought in such court or any defense of inconvenient forum for the
maintenance of any such suit, action or proceeding. Each of the parties hereto agrees that a
judgment in any such suit, action or proceeding may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law.

9.7 Waiver of Jury Trial. EACH OF THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY SCHEDULE HERETO, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS

 

14

 

(WHETHER VERBAL OR WRITTEN) RELATING TO THE FOREGOING. THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT.

9.8 Severability. Each part of this Agreement is intended to be severable. If any term,
covenant, condition or provision of this Agreement is held to be unlawful, invalid or unenforceable
by a court of competent jurisdiction, such illegality, invalidity or unenforceability shall not
affect the remaining provisions of this Agreement, which shall remain in full force and effect and
shall be binding upon the parties hereto.

9.9 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors and assigns of the
parties hereto.

9.10 No Third Party Beneficiaries. Except as set forth in Article V, Article
VI and Article IX hereof, this Agreement is not intended and shall not be construed to
confer upon any person or entity other than the parties hereto any rights or remedies hereunder.

9.11 Further Assurances. Each of the parties hereto shall use all reasonable efforts to
take, or cause to be taken, all appropriate action, do or cause to be done all things necessary,
proper or advisable under any United States federal, state or local statute, law, ordinance,
regulation, rule, code order or other requirement or rule of law, and execute and deliver such
documents and other instruments, as may be required to carry out the provisions of this Agreement
and effect the transactions contemplated by this Agreement.

9.12 Headings; References; Interpretation. The headings contained in this Agreement are
solely for convenience and reference and shall not limit or otherwise affect the meaning or
interpretation of any of the terms or provisions of this Agreement. The references herein to
Sections, Schedules and Exhibits, unless otherwise indicated, are references to sections, schedules
and exhibits to this Agreement. Whenever the words “include”, “includes”, or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation”. Unless
the context requires otherwise, all words used in this Agreement in the singular number shall
extend to and include the plural number, all words in the plural number shall extend to and include
the singular number, and all words in any gender shall extend to and include all genders. To the
fullest extent permitted by law, this Agreement shall be construed without regard to any
presumption or rule requiring construction against the party drafting or causing this instrument to
be drafted.

[Signature Page Follows]

 

15

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	CENTERLINE HOLDING COMPANY

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer  	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	CENTERLINE CAPITAL COMPANY, LLC

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer  	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	RELATED SPECIAL ASSETS LLC

 	 
	 	By:  	The Related Realty Group, Inc., its Manager
 	 
	 	 	 	 
	 	By:  	/s/ Jeff Blau
 	 
	 	 	Name:  	Jeff Blau 	 
	 	 	Title:  	President 	 
	 	 	 	 
	 	RELATED GENERAL II, L.P.

 	 
	 	By:  	RCMP, Inc., its General Partner
 	 
	 	 	 	 
	 	By:  	/s/ Jeff Blau
 	 
	 	 	Name:  	Jeff Blau 	 
	 	 	Title:  	President 	 

	 	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED

SOLELY WITH RESPECT TO SECTION 5.2:

THE RELATED COMPANIES, L.P.

 	 	 
	By:  	The Related Realty Group, Inc.,
 	 	 
	 	its General Partner 	 	 
	 	 	 	 
	By:  	   /s/ Jeff Blau
 	 	 
	 	Name:  	Jeff Blau 	 	 
	 	Title:  	PresidentExhibit 10.15

Exhibit 10.15

Execution Version

SECOND AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN

AGREEMENT

Dated as of March 5, 2010

by and among

CENTERLINE HOLDING COMPANY and

CENTERLINE CAPITAL GROUP INC.,

as the Borrowers,

CENTERLINE INVESTOR LP LLC, CENTERLINE INVESTOR LP II
LLC,
 CENTERLINE INVESTOR LP III LLC,
CENTERLINE CAPITAL COMPANY LLC,
 CENTERLINE AFFORDABLE
HOUSING ADVISORS LLC, CENTERLINE HOLDING

TRUST, CENTERLINE HOLDING TRUST II, CM INVESTOR LLC,
CENTERLINE
 FINANCE CORPORATION,

CENTERLINE MANAGER LLC

and other named entities party hereto as of the date hereof and from time to time,

as Guarantors,

BANK OF AMERICA, N.A. and other named

entities party hereto as of the date hereof and from time to time, as Lenders,

and

BANK OF AMERICA, N.A.,

as Issuing Bank, and as Administrative Agent on behalf of the Lenders

* * * * *

BANC OF AMERICA SECURITIES LLC and CITICORP USA, INC.,

as Co- Lead Arrangers

and

BANC OF AMERICA SECURITIES LLC, as Book Manager

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	
	 	Page	 
	 
	1. DEFINITIONS AND RULES OF INTERPRETATION
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Rules of Interpretation
	 	 	31	 
	2. REVOLVING LOANS AND TERM LOAN
	 	 	32	 
	2.1 Revolving Loans
	 	 	32	 
	2.2 Term Loan
	 	 	36	 
	2.3 Types of Loans: Conversion and Continuation Options
	 	 	36	 
	2.4 Reduction of Commitments
	 	 	38	 
	3. USE OF PROCEEDS
	 	 	38	 
	3.1 Use of Proceeds
	 	 	38	 
	4. REPAYMENT OF REVOLVING LOANS AND TERM LOAN
	 	 	38	 
	4.1 Revolving Loans
	 	 	38	 
	4.2 Amortization of Term Loan
	 	 	39	 
	5. LETTERS OF CREDIT
	 	 	41	 
	5.1 Letter of Credit Commitments
	 	 	41	 
	5.2 Reimbursement Obligation of the Borrowers
	 	 	43	 
	5.3 Letter of Credit Payments
	 	 	44	 
	5.4 Obligations Absolute
	 	 	44	 
	5.5 Reliance by Issuer
	 	 	45	 
	5.6 Letter of Credit Fees
	 	 	45	 
	6. CERTAIN GENERAL PROVISIONS
	 	 	45	 
	6.1 Payments to Administrative Agent
	 	 	45	 
	6.2 No Offsets, Taxes Etc
	 	 	45	 
	6.3 Computations
	 	 	48	 
	6.4 Interest Limitation
	 	 	49	 
	6.5 Inability to Determine LIBOR Rate
	 	 	49	 
	6.6 Illegality
	 	 	49	 
	6.7
Additional Costs, Etc
	 	 	50	 
	6.8 Capital Adequacy
	 	 	51	 
	6.9 Certificate
	 	 	51	 
	6.10 Mitigation Obligations; Replacement of Lenders
	 	 	51	 
	6.11 Indemnity
	 	 	52	 
	6.12 Interest and Fees After Event of Default
	 	 	52	 
	6.13 Replacement of Lenders
	 	 	52	 
	7. CONDITIONS PRECEDENT
	 	 	53	 
	7.1 Documents
	 	 	53	 
	7.2 Other Conditions Precedent to advancing any portion of the Loans
	 	 	53	 
	8. REPRESENTATIONS AND WARRANTIES
	 	 	54	 
	8.1 Financial Information
	 	 	54	 
	8.2 Litigation
	 	 	54	 
	8.3 Good Title and No Liens
	 	 	55	 
	8.4 Franchise, Patents, Copyrights, Etc
	 	 	55	 
	8.5 Entity Matters
	 	 	55	 
	8.6 Authorization
	 	 	56	 
	8.7 Valid and Binding
	 	 	57	 
	8.8 Deferred Compensation and ERISA
	 	 	57	 

 

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	
	 	Page	 
	 
	8.9 No Materially Adverse Contracts, Etc
	 	 	57	 
	8.10 Compliance With Other Instruments, Laws, Etc
	 	 	57	 
	8.11 Tax Status
	 	 	58	 
	8.12 Holding Company and Investment Company Acts
	 	 	58	 
	8.13 Certain Transactions
	 	 	58	 
	8.14 Loan Documents
	 	 	59	 
	8.15 Regulations U and X
	 	 	59	 
	8.16 Solvency
	 	 	59	 
	8.17 No Material Change; No Default
	 	 	59	 
	8.18 Insurance
	 	 	59	 
	8.19 Use of Proceeds
	 	 	59	 
	8.20 Labor Matters
	 	 	59	 
	8.21 Exchange Listing
	 	 	60	 
	8.22 No Broker or Finder
	 	 	60	 
	8.23 LIHTC Investments
	 	 	60	 
	8.24 Non-Spinnaker Bonds
	 	 	60	 
	8.25 Supplemental Loans
	 	 	60	 
	8.26 [Intentionally Omitted]
	 	 	60	 
	8.27 Island Recapitalization
	 	 	60	 
	8.28 Information True, Complete and Not Misleading
	 	 	60	 
	9. AFFIRMATIVE COVENANTS
	 	 	61	 
	9.1 Punctual Payment
	 	 	61	 
	9.2 Maintenance of Location and Office
	 	 	61	 
	9.3 Organizational Number
	 	 	61	 
	9.4 Records and Accounts
	 	 	61	 
	9.5 Delivery of Financial Statements and Notices
	 	 	61	 
	9.6 Existence; Conduct of Business
	 	 	66	 
	9.7 Insurance
	 	 	67	 
	9.8 Taxes
	 	 	67	 
	9.9 Compliance with Laws, Contracts, Licenses, and Permits
	 	 	67	 
	9.10 Indemnification Against Payment of Brokers’ Fees
	 	 	67	 
	9.11 Fiscal Year
	 	 	68	 
	9.12 Place for Records; Inspection
	 	 	68	 
	9.13 Replacement Documentation
	 	 	68	 
	9.14 Further Assurances
	 	 	68	 
	9.15 Guaranties
	 	 	68	 
	9.16 Additional Information
	 	 	69	 
	9.17 EIT Preferred Shares Covenants
	 	 	69	 
	9.18 Ownership of CCG, Guarantors and Pledged Entities
	 	 	69	 
	9.19 LIHTC Investments
	 	 	70	 
	9.20 New Subsidiaries
	 	 	70	 
	9.21 Dissolving Subsidiaries
	 	 	70	 
	10. NEGATIVE COVENANTS; FINANCIAL COVENANTS
	 	 	71	 
	10.1 Liens
	 	 	71	 
	10.2 Negative Pledge and Double Negative Pledge
	 	 	74	 
	10.3 Indebtedness
	 	 	74	 

 

ii

 

TABLE OF CONTENTS

	 	 	 	 	 
	
	 	Page	 
	 
	10.4 EIT
	 	 	77	 
	10.5 Merger; Ownership Interests; Sale of Assets; Liquidations
	 	 	77	 
	10.6 Loans, Guarantees, Investments and Acquisitions
	 	 	79	 
	10.7 Distributions
	 	 	80	 
	10.8 Affiliate Payments
	 	 	80	 
	10.9 Purchase of Margin Stock
	 	 	81	 
	10.10 Transactions with Affiliates
	 	 	81	 
	10.11 Amendment to Governing Documents
	 	 	81	 
	10.12 Business Lines
	 	 	81	 
	10.13 Consolidated EBITDA to Fixed Charge Ratio
	 	 	82	 
	10.14 Total Debt/Consolidated EBITDA Ratio
	 	 	82	 
	10.15 Stock Buy-Backs
	 	 	82	 
	10.16 Amendment to Certain Agreements
	 	 	82	 
	10.17 Excluded Entities
	 	 	82	 
	11. DEFAULT
	 	 	83	 
	11.1 Events of Default
	 	 	83	 
	11.2 Remedies Upon Event of Default
	 	 	85	 
	11.3 Written Waivers
	 	 	86	 
	11.4 Allocation of Proceeds
	 	 	86	 
	11.5 Performance by the Administrative Agent
	 	 	86	 
	11.6 Rights Cumulative
	 	 	87	 
	12. SETOFF
	 	 	87	 
	13. THE ADMINISTRATIVE AGENT
	 	 	88	 
	13.1 Authorization
	 	 	88	 
	13.2 Employees, Advisors and the Administrative Agent
	 	 	89	 
	13.3 No Liability
	 	 	89	 
	13.4 No Representations
	 	 	89	 
	13.5 Payments
	 	 	90	 
	13.6 Administrative Agent as Lender and Issuing Bank
	 	 	91	 
	13.7 Resignation
	 	 	91	 
	13.8 Notification of Defaults
	 	 	92	 
	13.9 Duties in the Case of Enforcement
	 	 	92	 
	13.10 Administrative Agent May File Proofs of Claim
	 	 	93	 
	14. EXPENSES
	 	 	93	 
	15. INDEMNIFICATION
	 	 	94	 
	16. SURVIVAL OF COVENANTS, JOINT AND SEVERAL OBLIGATIONS, ETC.
	 	 	95	 
	16.1 Survival
	 	 	95	 
	16.2 Joint and Several Obligations
	 	 	96	 
	16.3 Maximum Amount
	 	 	96	 
	17. ASSIGNMENT AND PARTICIPATION
	 	 	96	 
	17.1 General Conditions
	 	 	96	 
	17.2 Assignments
	 	 	97	 
	17.3 Register; Accounts
	 	 	98	 
	17.4 Participations
	 	 	98	 
	17.5 Payments to Participants
	 	 	99	 
	17.6 Miscellaneous Assignment Provisions
	 	 	99	 

 

iii

 

TABLE OF CONTENTS

	 	 	 	 	 
	
	 	Page	 
	 
	17.7 Recordation in Register
	 	 	99	 
	18. NOTICES, ETC.
	 	 	100	 
	19. GOVERNING LAW; JURISDICTION; VENUE
	 	 	100	 
	20. HEADINGS
	 	 	101	 
	21. COUNTERPARTS
	 	 	101	 
	22. ENTIRE AGREEMENT, ETC.
	 	 	101	 
	22.1 Entire Agreement
	 	 	101	 
	22.2 Additional Guarantors and Pledged Entities
	 	 	101	 
	23. CONSENTS, AMENDMENTS, WAIVERS, ETC.
	 	 	101	 
	23.1 General Rule
	 	 	101	 
	23.2 Waivers
	 	 	103	 
	23.3 Reasonable Cooperation by Creditor Parties
	 	 	103	 
	24. SEVERABILITY
	 	 	103	 
	25. CONFIDENTIALITY
	 	 	103	 
	25.1 Confidentiality
	 	 	103	 
	25.2 Definition of Information
	 	 	104	 
	25.3 Compliance Standard
	 	 	104	 
	25.4 Intralinks and Public Lenders
	 	 	104	 
	26. USA PATRIOT ACT
	 	 	105	 
	27. NO ADVISORY OR FIDUCIARY RESPONSIBILITY
	 	 	105	 
	28. DESIGNATION OF PERMITTED LIENS
	 	 	106	 
	29. WAIVER OF JURY TRIAL
	 	 	106	 
	30. RELEASE
	 	 	107	 
	30.1 Waiver of Defaults under the Original Agreement
	 	 	107	 
	30.2 Waiver of any Claims Against Creditor Parties
	 	 	107	 

 

iv

 

SECOND AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

SECOND AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Credit Agreement”)
dated as of March 5, 2010 is by and among CENTERLINE HOLDING COMPANY, a Delaware statutory trust
(“CHC”), and CENTERLINE CAPITAL GROUP INC., a Delaware corporation (“CCG”) (each a “Borrower” and
collectively, the “Borrowers”); those Persons (as defined below) listed as Guarantors on
Schedule 1 as of the date hereof and any other Person who may from time to time be listed
on such Schedule in accordance with this Credit Agreement (each a “Guarantor” and collectively, the
“Guarantors”); BANK OF AMERICA, N.A. and the other lenders party hereto as listed on Schedule
2 from time to time in accordance with this Credit Agreement (each a “Lender” and collectively,
the “Lenders”); and BANK OF AMERICA, N.A., as Administrative Agent (as defined below), and as
Issuing Bank (in such capacity, the “Issuing Bank”).

This Credit Agreement amends and restates in its entirety that certain Amended and Restated
Revolving Credit and Term Loan Agreement, dated as of December 19, 2008, by and among the parties
hereto (as previously amended from time to time, the “Original Agreement”), and is intended as a
continuation of the transactions contemplated by the Original Agreement, and is not intended as a
novation thereof. All references to the Original Agreement in any of the Loan Documents (as
defined below) shall constitute references to this Credit Agreement.

The parties hereto agree as follows:

1. DEFINITIONS AND RULES OF INTERPRETATION.

1.1 Definitions.

1.1.1 Definitions of Borrowers, Guarantors and Affiliates. For purposes of this
Credit Agreement the Borrowers, Guarantors and certain of their Affiliates are defined as set forth
below:

Borrower and Borrowers. See the introductory paragraph to this Credit Agreement.

CAHA. Centerline Affordable Housing Advisors LLC, a Delaware limited liability company
(formerly known as Related Capital Company LLC and as CharterMac Capital LLC).

CCC. Centerline Capital Company, LLC, a Delaware limited liability company.

CCG. See the introductory paragraph to this Credit Agreement.

Centerline Investor LP. Centerline Investor LP LLC, a Delaware limited liability company.

Centerline Investor LP II. Centerline Investor LP II LLC, a Delaware limited liability
company.

Centerline LIHTC Sub. Centerline Investor LP III, a Delaware limited liability company.

 

1

 

Centerline Manager LLC. Centerline Manager LLC, a Delaware limited liability company.

Centerline Manager Transfer. The transfer, prior to or after the date hereof, by
Centerline Manager LLC, to Guaranteed Manager or to Guaranteed Manager II, of its interests as
managing member of general partners of certain Guaranteed Funds.

CFin. Centerline Financial LLC, a Delaware limited liability company through which CHC
indirectly engages in the business of providing credit intermediation. 

CFin Enhanced Projects. See Section 8.25.

CFin Holdings. Centerline Financial Holdings LLC, a Delaware limited liability company.
 

CHC. See the introductory paragraph to this Credit Agreement.

CMC. Centerline Mortgage Capital Inc., a Delaware corporation.

CMP. Centerline Mortgage Partners Inc., a Delaware corporation.

CSL. Centerline Servicing LLC, a Delaware limited liability company.

Dissolving Subsidiaries. Those Subsidiaries whose assets are being sold to Newco in
connection with the Island Recapitalization or that CHC anticipates dissolving following the
consummation of the Island Recapitalization, consisting of Centerline A/C Investors, LLC, ARCap
2004 RR3 Resecuritization Inc., ARCap 2005 RR5 Resecuritization Inc., Centerline Investors I LLC,
Centerline REIT Inc. and Centerline Credit Management LLC; provided, however, that,
upon written notice to the Administrative Agent, the Borrowers shall have the unilateral right to
delete any Subsidiary from the definition of “Dissolving Subsidiaries” (and, following any such
notice, such Subsidiary shall, to the extent applicable, continue as a Guarantor or Pledged
Entity).

EIT. Centerline Equity Issuer Trust, a Delaware statutory trust.

EIT Notes. Those certain three subordinated notes associated with LIHTC Properties known
as Lakepointe, Orchard Mill and Shannon Lake, held by EIT on the Closing Date.

EIT II. Centerline Equity Issuer Trust II, a Delaware statutory trust.

EIT II Transfer. The transfer after the Closing Date by EIT of all of its rights and title
to and interest in the EIT Notes to EIT II. 

Excluded Entities. CFin, CFin Holdings, Centerline Guarantor LLC, a Delaware limited
liability company, Guaranteed Manager, Guaranteed Manager II, and Guaranteed Holdings. In
addition, from and after such time as EIT has completed, and certified in writing to the
Administrative Agent that it has completed, the EIT II Transfer, EIT shall be an Excluded Entity.

 

2

 

Excluded Entity Distributions. Any Distribution by an Excluded Entity to CHC or one of
CHC’s Subsidiaries which is not an Excluded Entity. By way of example, any Distribution to CFin
Holdings from CFin shall not constitute an Excluded Entity Distribution.

Guaranteed Holdings. Centerline Guaranteed Holdings LLC, a Delaware limited liability
company, formed as a special purpose entity as contemplated by the terms of the Merrill Agreements
in connection with the Island Recapitalization.

Guaranteed Manager. Centerline Guaranteed Manager LLC, a Delaware limited liability
company.

Guaranteed Manager II. Centerline Guaranteed Manager II LLC, a Delaware limited liability
company or an entity to be formed as a Delaware limited liability company in connection with the
transactions contemplated by the Merrill Agreements.

Guarantor and Guarantors. See the introductory paragraph to this Credit Agreement.

Holding Trust. Centerline Holding Trust, a Delaware statutory trust.

Holding Trust II. Centerline Holding Trust II, a Delaware statutory trust.

Newco. C-III Capital Partners LLC, a Delaware limited liability company.

Pledged Entities. (a) Those Persons who are not Guarantors, but whose Capital Stock (or a
portion thereof) is pledged to secure the Loans as part of the Equity Collateral, and (b) CMC and
CMP; provided, however, that “Pledged Entities” shall not include the Excluded
Entities notwithstanding the fact that Capital Stock of an Excluded Entity may be pledged to the
Administrative Agent to secure the Obligations for the benefit of the Lenders.

SPV I. Centerline Sponsor 2007-1 Securitization, LLC, a Delaware limited liability
company.

SPV II. Centerline Stabilization 2007-1 Securitization, LLC, a Delaware limited liability
company.

1.1.2 General Definitions. The following terms shall have the meanings set forth in
this Section or elsewhere in the provisions of this Credit Agreement referred to below:

Act. See Section 26.

Administrative Agent. Bank of America, in its capacity as administrative agent under any
of the Loan Documents, or any successor administrative agent.

Administrative Agent’s Office. The Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 3, or at such other location as the Administrative Agent
may designate to the Borrowers and the Lenders from time to time.

 

3

 

Advisory Agreement. The Consulting and Advisory Agreement, dated as of the date hereof, by
and between CCG and TRCLP Affordable Acquisitions LLC, a Delaware limited liability company, as the
same may be amended, modified, restated or supplemented from time to time.

Affiliate. As to any Person, any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with, such Person. For the purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”) as applied to any Person, means directly or
indirectly possessing the power (i) to vote 10% or more of the Capital Stock having ordinary voting
power for the election of directors of such Person, or (ii) to direct or cause the direction of the
management or policies of that Person, whether through the ownership of voting securities, by
agreement, or otherwise.

Applicable Law. All applicable provisions of constitutions, statutes, rules, regulations
and orders of all governmental bodies and all orders and decrees of all courts, tribunals and
arbitrators.

Applicable Margin. The Applicable Margin applicable to the Loans shall be as set forth on
Exhibit 1.1.A.

Approved Fund. Any Fund that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

ARCap Transaction. The sale by CHC, CCG and certain of their Subsidiaries of certain
assets, including equity interests in certain of CHC’s or CCG’s Subsidiaries, by which CHC, CCG and
their Subsidiaries sell their servicing and special servicing business and platform to Newco, as
part of the Island Recapitalization.

Assignment and Acceptance. See Section 17.2.2.

Balloon. The principal balance of the Term Loan anticipated to become due and payable on
the Term Loan Maturity Date. As of the date hereof, the Balloon equals $65,000,000.00, and such
amount shall be reduced on a dollar for dollar basis for prepayments of the Term Loan to be applied
to the Balloon pursuant to the terms of Section 4.2.

Bank of America. Bank of America, N.A., and its successors.

Bankruptcy Code. 11 USC Sections 101 et. seq.

Base Rate. For any day, a fluctuating rate per annum equal to the rate of interest in
effect for such day as publicly announced from time to time by Bank of America as its “prime rate.”
The “prime rate” is a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect at the opening of
business on the day specified in the public announcement of such change.

 

4

 

Base Rate Loans. All or any portion of the Revolving Loans or the Term Loan bearing
interest calculated by reference to the Base Rate.

BBA LIBOR. See the definition of LIBOR Rate.

B Bonds. Those certain series B certificates held initially by SPV I in connection with
the Bond Transaction.

Bond Transaction. The exchange of a portfolio of bonds from Centerline 2007-1 EIT
Securitization, LLC, Centerline 2007-1 SU Securitization, LLC and Centerline 2007-1 T
Securitization, LLC to Freddie Mac, pursuant to which Freddie Mac issued series A certificates that
were sold by a placement agent and series B certificates that were held initially by SPV I for
purposes of a securitization of such portfolio that is credit enhanced by Freddie Mac pursuant to a
Bond Exchange and Sale Agreement dated as of December 1, 2007 among Freddie Mac, Centerline 2007-1
EIT Securitization, LLC, Centerline 2007-1 SU Securitization, LLC, Centerline 2007-1 T
Securitization, LLC, SPV I and SPV II, and the documents contemplated thereby.

Borrower Materials. See Section 25.4.

Business Day. Any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the laws of, or are in fact closed in, the state where the
Administrative Agent’s Office is located and, if such day relates to any LIBOR Rate Loan, means any
such day on which dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

Capitalized Lease Obligation. That portion of the obligations under a capital lease that is
required to be capitalized in accordance with GAAP.

Capital Stock. Any and all shares, interests, participations or other equivalents,
preferred or common (however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation) and any and all warrants, rights or
options to purchase any of the foregoing (including convertible debt instruments).

Cash Collateral. See Section 5.2.

Cash Equivalents. (a) Securities issued or directly and fully guaranteed or insured by the
United States or any agency or instrumentality thereof (provided that the full faith and credit of
the United States is pledged in support thereof) having maturities of not more than twelve months
from the date of acquisition (“Government Obligations”), (b) obligations of any state of the United
States or any political subdivision thereof for the payment of the principal and redemption price
of and interest on which there shall have been irrevocably deposited Government Obligations
maturing as to principal and interest at times and in amounts sufficient to provide such payment,
(c) Dollar denominated time and demand deposit accounts or money market accounts with domestic
banks (i) that are “adequately capitalized” (as defined in the

 

5

 

regulations of its primary federal banking regulator) and (ii) have “Tier 1 capital” (as defined in
such regulations) of not less than $250,000,000, where such accounts are insured by the FDIC.

Casualty Event. With respect to any property (including any interest in property) of either
Borrower, any Guarantor or any of their respective Subsidiaries, any loss of, damage to, or
condemnation or other taking of, such property for which such Person receives insurance proceeds,
proceeds of a condemnation award or other compensation.

Centerline Group. Consists of CHC and each of its direct and indirect Subsidiaries.

Centerline-Sponsored Funds. All low income housing tax credit funds sponsored and managed
by any Affiliate of CHC, or a predecessor in interest thereof.

Change in Control. The occurrence of any of the following:

(a) the occurrence of any events or circumstances such that any of CCG, or, except solely as
the result of a transaction expressly permitted by Section 10.5.3, any of the Guarantors or
any of the Pledged Entities, either directly or indirectly, shall no longer be controlled by CHC;

(b) as to CHC: (i) any merger or consolidation of CHC with or into any Person or any sale,
transfer or other conveyance, whether direct or indirect, of all or substantially all of the assets
of CHC, on a consolidated basis, in one transaction or a series of related transactions, if,
immediately after giving effect to such transaction, any Person or group of Persons (within the
meaning of Section 13 or 14 of the Securities Exchange Act) is or becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated by the SEC under the Securities Exchange Act) of the
common shares representing a majority of the total voting power on a fully diluted basis of the
aggregate outstanding securities of the transferee or surviving entity normally entitled to vote in
the election of directors, managers, or trustees, as applicable, of the transferee or surviving
entity; (ii) any Person or group of Persons (within the meaning of Section 13 or 14 of the
Securities Exchange Act) , other than Island or its Affiliates, is or becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated by the SEC under the Securities Exchange Act) of the
common shares representing a majority of total voting power of the aggregate outstanding common
shares of CHC normally entitled to vote in the election of directors of CHC; (iii) during any
period of 12 consecutive calendar months, individuals who were directors or trustees of CHC on the
first day of such period (together with any new directors or trustees whose election by the board
of directors or board of trustees of CHC or whose nomination for election by the stockholders of
CHC was approved by a vote of a majority of the directors or trustees then still in office who
were either directors at the beginning of such period or whose election or nomination for election
was previously so approved) cease for any reason to constitute a majority of the board of directors
of CHC; or (iv) any Person becomes entitled to either force a change in the individuals serving on
CHC’s board of directors, or name one or more individuals to serve on CHC’s board of directors, as
a result of such Person’s rights as a holder of any preferred Capital Stock of CHC; or

(c) in the event that CCG issues preferred Capital Stock creating rights to force any change
in CCG’s board of directors, if any, or management, similar to such rights arising under the EIT
Preferred Shares, the exercise of any such rights resulting in any such forced changes.

 

6

 

CHC/CCG Guaranty. CHC’s and CCG’s joint and several guarantee of the payment of all
amounts payable by CMC to CSL pursuant to Sections 7.01 and 4.01 of the Amended and Restated
Subservicing Agreement, dated as of the date hereof, by and among CMC, CSL, and solely with respect
to Section 8.14 thereof, CHC and CCG, as amended, restated supplemented or otherwise modified from
time to time.

CHC’s Filings. Forms 10-Q and 10-K filed from time to time by CHC with the SEC.

Closing Date. The first date on which the conditions set forth in Section 7 have
been satisfied, or waived in accordance with Section 23.

Code. The Internal Revenue Code of 1986, as amended.

Collateral. Collectively, the Equity Collateral, the Cash Collateral, and the Other
Collateral.

Commitment. With respect to each Lender, (a) the aggregate Dollar amount set forth on
Schedule 2 equal to the sum of (i) such Lender’s Revolving Loan Commitment (including such
Lender’s commitment to participate in the issuance, extension, renewal and honoring of Existing
Letters of Credit or New Letters of Credit), plus (ii) such Lender’s Term Loan Commitment; or (b)
if such Lender’s Revolving Loan Commitment and Term Loan Commitment are terminated pursuant to the
provisions hereof, zero.

Commitment Percentage. With respect to each Lender, the percentage set forth on
Schedule 2 obtained by dividing (i) the sum of such Lender’s Revolving Loan Commitment and
Term Loan Commitment, by (ii) the aggregate Commitments of all Lenders.

Compliance Certificate. See Section 9.5.1(c).

Consolidated or consolidated. With reference to any term defined herein, shall mean
that term as applied to the accounts of the named Person and its Subsidiaries, consolidated in
accordance with GAAP.

Consolidated EBITDA. With respect to any Person for any period; the sum (without
duplication) of:

(a) Consolidated Net Income;

plus:

(b) in each case to the extent deducted, or not included in net income, in determining
Consolidated Net Income,

(i) consolidated interest expense on Total Debt,

(ii) the Unused Facility Fee and any other unused facility fees on Total Debt,

 

7

 

(iii) Distributions paid, accrued or allocated to any class of preferred Capital
Stock (if actually paid, solely if and to the extent permitted to be paid by the
terms of this Credit Agreement; and other than Distributions permitted and
contemplated by Section 10.7),

(iv) all federal, state, local and foreign income tax expense,

(v) depreciation, depletion, and amortization expense (including mortgage servicing
rights) and other similar non-cash items,

(vi) non-cash losses related to mortgage servicing rights,

(vii) income allocated to minority interests related to SCU’s,

(viii) non-cash compensation, including all non-cash payments or accrued amounts for
bonuses,

(ix) non-cash impairments of non-working capital assets, including intangibles and
Supplemental Loans,

(x) non-recurring net losses from the sale or other disposition of assets outside
the ordinary course of business permitted under this Credit Agreement,

(xi) non-cash losses associated with the change in fair market value of rights and
obligations under Derivative Agreements,

(xii) any cash revenue received but not recognized as income in determining
Consolidated Net Income;

(xiii) any other non-cash losses or expenses,

(xiv) the principal amount of any Supplemental Loans collected,

(xv) all cash payments received or cash collateral released under any Derivative
Agreements,

(xvi) all non-cash reserves taken, directly or indirectly, on account of any risk-sharing
arrangements with Fannie Mae, Freddie Mac or any similar or successor governmental or
quasi-governmental body or any similar risk-sharing arrangement with any other Person,

(xvii) severance and transaction costs in an amount not greater than $8,500,000 during 2010
and relating to the Island Recapitalization, and

(xviii) amounts payable for third party costs and expenses out of the escrow account
established under the Escrow Agreement;

 

8

 

(xix) all non-cash losses arising out of the deconsolidation process with respect to the
Excluded Entities,

minus:

(c) in each case to the extent added, or not included as a net loss, in determining
Consolidated Net Income,

(i) all federal, state, local and foreign income tax benefits,

(ii) all federal, state, local and foreign taxes actually paid in cash,

(iii) non-cash gains related to sales of mortgage loans,

(iv) losses allocated to minority interests related to SCU’s,

(v) non-cash recoveries of non-working capital assets, including intangibles,

(vi) non-recurring net gains from the sale or other disposition of assets outside
the ordinary course of business permitted under this Credit Agreement,

(vii) non-cash gains associated with the change in fair market value of rights and
obligations under Derivative Agreements,

(viii) other non-recurring gains (including, without limitation, gains related to
mortgage servicing rights),

(ix) cash that is not generally available due to a restriction created by operation
of the terms of its Governing Documents or any agreement, instrument or Applicable
Law, or is otherwise designated as restricted by any Person, to the extent of any
such restriction; provided that any minimum capital or cash collateral postings
required by Freddie Mac, Fannie Mae or their successors shall not constitute such a
restriction,

(x) the principal amount of any Supplemental Loans, or cash reserves created in the
nature of Supplemental Loans or other protective advances, directly or indirectly
made to or for the benefit of any LIHTC Property or Centerline-Sponsored Fund,

(xi) all amounts paid, advanced or otherwise made available to Island or any of its
Affiliates, including, without limitation, pursuant to the Management Agreement,

(xii) all cash payments made or cash collateral provided under any Derivative
Agreements,

 

9

 

(xiii) all cash payments actually made, directly or indirectly, on account of any
risk-sharing arrangements with Fannie Mae, Freddie Mac or any similar or successor
governmental or quasi-governmental body or any similar risk-sharing arrangement with
any other Person,

(xiv) all amounts due and payable to third parties under the Timex Contribution
Agreement to the extent such amounts are included in CHC’s Consolidated Net Income,

(xv) any cash compensation actually paid, and

(xvi) any other non-cash revenues

(xvii) any non-cash reserves reversed,

(xviii) any non-cash gains arising out of the deconsolidation process with respect
to the Excluded Entities.

Consolidated Net Income. With respect to any Person for any period of calculation, after
adjusting for (y) the impact of FIN 46(R) from consolidation of partnerships and entities required
by FASB and (z) the deconsolidation of the Excluded Entities, the net income (or loss) of the
Person with respect to which Consolidated Net Income is being calculated (the “Target Person”) and
its Subsidiaries on a consolidated basis; provided that Consolidated Net Income shall
exclude:

(a) the undistributed earnings of any Subsidiary to the extent that the declaration or payment
of dividends or similar distributions by such Subsidiary of such amounts are not permitted by
operation of the terms of its organizational documents or any agreement, instrument or Applicable
Law applicable to such Subsidiary,

(b) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or
prior to the date any such Person is merged into or consolidated with the Target Person or any of
its Subsidiaries or that Person’s assets are acquired by the Target Person or any of its
Subsidiaries, and

(c) any income (or loss) for such Period of any Person if such Person is not a Subsidiary,
except that the Target Person’s equity in the net income of any such Person shall be included in
Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person
during such Period to the Target Person or a Subsidiary as a Distribution (and in the case of a
Distribution to a Subsidiary, such Subsidiary is not precluded from further distributing such
amount to the Target Person as described in clause (a) of this proviso).

Contingent Liabilities. Any guaranties or other indirect contingent Indebtedness
(excluding any such guaranties or other indirect contingent Indebtedness incurred by the Excluded
Entities), and with the aggregate amount thereof with respect to such Contingent Liabilities to be
equal to the stated or determinable amount of the primary obligation in respect of which such
guaranty or

 

10

 

other contingent obligation is made or (x) if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to perform thereunder)
as determined by such Person in good faith or (y) if the amount of the Contingent Liability is less
than the determinable amount of the primary obligation (e.g. because of limited recourse to the
guarantor), the maximum amount of potential liability on account of such guaranty or other
contingent obligation. For the avoidance of doubt, any such guaranties or other indirect
contingent Indebtedness incurred by a Person other than an Excluded Entity, by which such Person
guaranties or otherwise becomes liable for Indebtedness of an Excluded Entity, shall constitute
Contingent Liabilities.

Continue, Continuation and Continued. Refers to the continuation of a Base
Rate Loan or a LIBOR Rate Loan from one Interest Period to another Interest Period pursuant to
Section 2.3.2.

Contractual Obligations. For any Person, any provision of any security issued by that
Person or of any material indenture, mortgage, deed of trust, contract, undertaking, agreement, or
other instrument to which such Person is a party or by which it or any of its assets or properties
is bound or to which it or any of its assets or properties is subject.

Conversion Request. A notice given by the Borrowers to the Administrative Agent of the
Borrower’s election to Convert or Continue a Base Rate Loan to a LIBOR Rate Loan, or vice versa, in
accordance with Sections 2.3.1 and 2.3.2.

Convert, Conversion and Converted. Refers to the conversion of either a
Base Rate Loan into a LIBOR Rate Loan or a LIBOR Rate Loan into a Base Rate Loan pursuant to
Sections 2.3.1 and 2.3.2.

Covered Taxes. See Section 6.2.1.

Credit Agreement. See the introductory paragraph to this Credit Agreement.

Creditor Parties. The Lenders, the Administrative Agent and the Issuing Bank, or such
group of such Persons as a context may suggest or require.

Daily Unused Amount. See Section 2.1.2(c).

Default. Any event or circumstance which is either an Event of Default, or, with the
giving of notice or the passage of time or both, will become an Event of Default.

Default Rate. An interest rate equal to (a) the Base Rate plus (b) 5% per annum, in
all cases to the fullest extent permitted by applicable laws.

Delinquent Lender. See Section 13.5.3.

Derivative Agreement. Any forward contract, futures contract, swap, option or other similar
agreement or arrangement (including, without limitation, caps, floors, collars and similar
agreements).

 

11

 

Distribution. The declaration or payment of any dividend on or in respect of any shares of
any class of Capital Stock of CHC or any Subsidiary of CHC, including, without limitation, on
account of and pursuant to SCU’s, other than dividends payable solely in shares of common stock of
CHC or such Subsidiary; the payment or prepayment of principal of, premium, if any, or interest on,
or purchase, redemption, defeasance, retirement or other acquisition of or with respect to any
shares of any class of Capital Stock of CHC or any Subsidiary of CHC, directly or indirectly
through a Subsidiary of such Person or otherwise (including the setting apart of assets for a
sinking or other analogous fund to be used for such purpose); the return of capital by CHC or any
Subsidiary of CHC to its shareholders as such; or any other distribution on or in respect of any
shares of any class of Capital Stock of CHC or any Subsidiary of CHC.

Distribution Default. Any Default, other than a Financial Covenant Default.

Dollars or $. Dollars in lawful currency of the United States.

Domestic Lending Office. Initially, the office of each Lender designated as such by notice
to the Borrowers; thereafter, such other office of such Lender, if any, that shall be making or
maintaining Base Rate Loans.

Drawdown Date. The date on which any Revolving Loan is made or is to be made, and the date
on which any Revolving Loan, in accordance with Section 2.3, is Converted or Continued.

EIT Agreement. The Second Amended and Restated Trust Agreement dated as of December 27,
2007, as amended from time to time, by and among the managing trustees party thereto, CHC,
Wilmington Trust Company, as registered trustee, Holding Trust and CAHA, as manager relating to
EIT.

EIT Common Shares. The common shares of EIT, and any securities into or for which such
common shares hereafter may be converted or exchanged, constituting all Capital Stock of EIT other
than the EIT Preferred Shares.

EIT Preferred Shares. The preferred shares issued by EIT as of the date of the EIT
Agreement.

Eligible Assignee. Any Person that meets the requirements to be an assignee under
Sections 17.2.6, 17.2.7 and 17.2.8 (subject to such consents, if any, as may be required
under Section 17.2.6).

Employee Benefit Plan. Any employee benefit plan within the meaning of Section 3(3) of
ERISA established, maintained or contributed to (including any plan to which an obligation to
contribute exists) by the Borrower, any Guarantor or any ERISA Affiliate, other than a Guaranteed
Pension Plan or a Multiemployer Plan.

Employee-Owned Entity. The Management-Owned Entities and any other Person as to which one
or more employees of the Centerline Group own, directly or indirectly, any equity interest.

Equal or Higher Order Loan Party. Each Borrower shall be an Equal or Higher Order Loan
Party of the other Borrower, any Guarantor and any Pledged Entity. Each Guarantor shall be an
Equal

 

12

 

or Higher Order Loan Party of any other Guarantor and any Pledged Entity. Each Pledged Entity
shall be an Equal or Higher Order Loan Party of any other Pledged Entity.

Equity Collateral. All of the Capital Stock of CFin Holdings held by CCG (consisting of
90% of CFin Holdings’ issued and outstanding Capital Stock); and all of the Capital Stock in CCG,
each of the Guarantors (other than CCC), Guaranteed Holdings, EIT (other than the EIT Preferred
Shares), EIT II, SPV I, SPV II, and any other Persons listed on Schedule 1 under paragraph
C thereof.

ERISA. The Employee Retirement Income Security Act of 1974 as amended, and regulations
promulgated thereunder.

ERISA Affiliate. Any Person which is treated as a single employer with CHC or any
Subsidiary of CHC under Section 414 of the Code.

ERISA Event. (i) A “reportable event” within the meaning of Section 4043 of ERISA and the
regulations issued thereunder with respect to any Guaranteed Pension Plan; (ii) the failure to meet
the minimum funding standard of Code Section 412 with respect to any Guaranteed Pension Plan
(whether or not waived in accordance with Section 412(d) of the Code) or the failure to make by its
due date a required installment under Code Section 412(m) with respect to any Guaranteed Pension
Plan or the failure to make any required contribution to a Multiemployer Plan; (iii) the provision
by the administrator of any Guaranteed Pension Plan pursuant to Section 4041(a)(2) of ERISA of a
notice of intent to terminate such plan in a distress termination described in Section 4041(c) of
ERISA; (iv) the withdrawal by any Borrower, Guarantor, Pledged Entity or ERISA Affiliate from any
Guaranteed Pension Plan with two or more contributing sponsors or the termination of any such plan
resulting in liability pursuant to Sections 4063 or 4064 of ERISA; (v) the institution by the PBGC
of proceedings to terminate any Guaranteed Pension Plan, or the occurrence of any event or
condition which might constitute grounds under ERISA for the termination of, or the appointment of
a trustee to administer, any Guaranteed Pension Plan; (vi) the imposition of liability on any
Borrower, Guarantor, Pledged Entity or ERISA Affiliate pursuant to Section 4062(e) or 4069 of ERISA
or by reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal by any Borrower,
Guarantor, Pledged Entity or any ERISA Affiliate in a complete or partial withdrawal (within the
meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential
liability therefor, or the receipt by any Borrower, Guarantor, Pledged Entity or any ERISA
Affiliate of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant
to Section 4241 or 4245 of ERISA, or that it intends to terminate or has terminated under Section
4041A or 4042 of ERISA; (viii) the occurrence of an act or omission that could give rise to the
imposition on any Borrower, Guarantor, Pledged Entity or any ERISA Affiliate of material fines,
penalties, taxes or related charges under the Code in respect of any Employee Benefit Plan
including without limitation, the occurrence of a prohibited transaction within the meaning of Code
Section 4975, that would have a Material Adverse Effect; (ix) the assertion of a material claim
(other than routine claims for benefits) against any Employee Benefit Plan or the assets thereof,
or against any Borrower, Guarantor, Pledged Entity or any ERISA Affiliate in connection with any
such Employee Benefit Plan that would have a Material Adverse Effect; (x) receipt from the Internal
Revenue Service of notice of the failure of any Guaranteed Pension Plan (or any other Employee
Benefit Plan intended to be qualified under Code Section 401(a)) to

 

13

 

qualify under Code Section 401(a), or the failure of any trust forming part of any Employee Benefit
Plan that is an employee pension benefit plan within the meaning of Section 3(2) of ERISA to
qualify for exemption from taxation under Code Section 501(a); or (xi) the imposition of a Lien
pursuant to Code Section 401(a)(29) or 412(n) or pursuant to ERISA with respect to any Employee
Benefit Plan that is an employee pension benefit plan within the meaning of Section 3(2) of ERISA.

Escrow Agreement. That certain Escrow Agreement, dated as of March 5, 2010, by and among,
CHC, CCG, the Administrative Agent, and Bank of America, as escrow agent, as amended and/or
restated from time to time.

Event of Default. See Section 11.1.

Excess Sale Proceeds. Proceeds in excess of $15,000,000 in the aggregate (plus $1.00 for
each $3.00 by which the Balloon is reduced following the Closing Date) realized from any one
transaction or series of transactions in which CHC or any of its Subsidiaries conveys, sells,
transfers, securitizes, monetizes or otherwise disposes of any of their respective assets
(generically, a “Sale of Assets”). Excess Sale Proceeds expressly exclude:

(a) to the extent constituting proceeds of a Sale of Assets, any proceeds of Casualty Events
which are applied in accordance with the provisions of Section 4.2.2(b);

(b) to the extent constituting proceeds of a Sale of Assets, the proceeds from (i) any sale or
transfer of office equipment not used in the business of CHC or its Subsidiaries permitted pursuant
to Section 10.5.3(b), or (ii) any other sale or transfer permitted pursuant to Section
10.5.3(c) and (e);

(c) any Sale of Assets by any Excluded Entity; provided, however, such
exclusions from the definition of Excess Sale Proceeds shall not in any way diminish or alter the
Obligation to apply any Excluded Entity Distributions in accordance with the provisions of
Sections 4.2.2(c); and

(d) any Sale of Assets by a Centerline-Sponsored Fund.

Excess Sale Proceeds shall be net of (w) reasonable costs and expenses of effecting such sale
(including, without limitation, reasonable legal and brokerage fees) pursuant to one or more arm’s
length transactions; (x) repayment of Indebtedness secured solely by, and incurred in connection
with the acquisition of, the asset disposed of; (y) any income or gains tax due and payable arising
out of such sale; and (z) reasonable purchase price reserves (until such time as any portion of
such reserves are released to CHC or such Subsidiary).

Excluded Taxes. With respect to the Administrative Agent, any Lender, the Issuing Bank or
any other recipient of any payment to be made by or on account of any Obligation of the Borrowers
hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and
franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in which its

 

14

 

principal office is located, and (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction in which either Borrower is located.

Existing Letters of Credit. Those Letters of Credit issued under the Original Agreement
that continue to be outstanding as of the date hereof and that are listed on Schedule 5,
and any renewals or extensions thereof.

Expense Reimbursements. All amounts received, or to be received, by any member of the
Centerline Group, any employee of the Centerline Group or by any Employee-Owned Entity from any
Centerline-Sponsored Fund as repayment of any liabilities owed by the Centerline-Sponsored Fund to
such Person, other than amounts representing (a) Supplemental Loans and (b) any incidental
reimbursements (such as travel expenses) to employees of the Centerline Group in the ordinary
course of business.

FASB. Financial Accounting Standards Board.

Fannie Mae. Federal National Mortgage Association, a shareholder-owned
government-sponsored enterprise organized and existing under the laws of the United States.

FDIC. The Federal Deposit Insurance Corporation.

Fee Letter. The fee letter, of even date herewith, among the Borrowers and the
Administrative Agent.

Fees. Collectively, the Letter of Credit Fees and the Unused Facility Fee.

FHA. The United States Federal Housing Authority.

Financial Covenant Default. Any Default arising out of a failure to satisfy any of the
terms of Sections 10.13 and 10.14.

Fiscal Quarter(s). The approximately thirteen (13) or fourteen (14) week periods, the first
of which shall commence on the first day of each Fiscal Year, and the second, third and fourth of
which shall commence on the first day of April, July and October, respectively.

Fiscal Year. The period commencing on January 1 and ending on December 31 of each calendar
year.

Fixed Charges. The amount measured as of the last day of the applicable period derived
from:

(a) interest expense on Total Debt that is due and payable during such applicable period, plus

(b) the Unused Facility Fee and any other unused facility fees on any Indebtedness included in
Total Debt, plus

 

15

 

(c) scheduled principal payments on any Indebtedness included in Total Debt, plus

(d) any payments actually made on account of Contingent Liabilities if, and to the extent, not
deducted from Consolidated Net Income in calculating Consolidated EBITDA, plus

(e) mandatory Distributions paid to any class of preferred Capital Stock.

Freddie Mac. Federal Home Loan Mortgage Corporation, a shareholder-owned
government-sponsored enterprise organized and existing under the laws of the United States.

Fund. Any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
the ordinary course.

Fund Deferred Fees. Those certain Asset Management Fees and Disposition Fees (as such
terms are defined in the Fund Documents) or such other fees payable to the Fund GPs of the
Centerline-Sponsored Funds, or their assignees, to the extent any of such fees are intended under
the Fund Documents to be paid (i) from the operations of the Centerline-Sponsored Funds (including,
without limitation, from Sale or Refinancing Proceeds (as defined in the Fund Documents)) and not
from the proceeds of the capital contributions of the limited partners or members of such
Centerline-Sponsored Funds, or (ii) upon liquidation of the Centerline-Sponsored Fund.

Fund Documents. With respect to each Fund GP, the partnership agreement or limited
liability company agreement of the Centerline-Sponsored Fund for which such Fund GP serves as
general partner or managing member.

Fund GPs. The general partners and managing members of the Centerline-Sponsored Funds.

GAAP. Principles that are (i) consistent with the principles promulgated or adopted by the
Financial Accounting Standards Board and its predecessors and successors, as in effect from time to
time, and (ii) consistently applied with past financial statements of each Borrower, each Guarantor
and their respective Subsidiaries adopting the same principles, provided that in each case referred
to in this definition of “GAAP” a certified public accountant would, insofar as the use of such
accounting principles is pertinent, be in a position to deliver an unqualified opinion (other than
qualifications regarding changes in GAAP and as to normal year-end adjustments) as to financial
statements in which such principles have been properly applied.

Governing Documents. With respect to any Person, its certificate or articles of
incorporation, certificate of formation, certificate of trust, or, as the case may be, certificate
of limited partnership, its by-laws, operating agreement, trust agreement or, as the case may be,
partnership agreement or other constitutive documents and all shareholder agreements, voting trusts
and similar arrangements applicable to any of its Capital Stock.

Governmental Authority. Any foreign, federal, state, provincial, regional, local municipal
or other government, or any department, commission, board, bureau, agency, public authority or

 

16

 

instrumentality thereof, or any court or arbitrator; provided that, notwithstanding the foregoing,
the term “Governmental Authority” shall be deemed not to include Freddie Mac, Fannie Mae, FHA or
any other similar agency.

Government Obligations. See the definition of Cash Equivalents.

Guaranteed Funds. See Section 9.5.1(a)(iii).

Guaranteed Pension Plan. Any employee pension benefit plan within the meaning of Section
3(2) of ERISA established, maintained, or contributed to (including any plan to which an obligation
to contribute exists) by either Borrower, any Guarantor, any Pledged Entity or any ERISA Affiliate,
the benefits of which are guaranteed on termination in full or in part by the PBGC pursuant to
Title IV of ERISA, other than a Multiemployer Plan.

Guaranties. Collectively: (a) the guaranties described on Schedule 1; and (b) each
guaranty executed and delivered after the date hereof (each of which shall be in form and substance
reasonably satisfactory to the Administrative Agent) by a Person that becomes a Guarantor hereunder
in accordance with Section 9.20; pursuant to which, among other things, each Guarantor
jointly, severally and unconditionally guaranties the payment and performance in full of the
Obligations, in each case, as amended and/or restated from time to time.

Indebtedness. As to any Person, all of the following, whether or not included as a
liability or indebtedness in accordance with GAAP, but without duplication:

(a) every obligation of such Person for money borrowed;

(b) every obligation of such Person evidenced by bonds, debentures, notes or other similar
instruments, including obligations incurred in connection with the acquisition of property, assets
or businesses;

(c) every reimbursement obligation of such Person with respect to letters of credit (which are
drawn but not reimbursed or which are not yet drawn), bankers’ acceptances, or similar facilities
issued for the account of such Person;

(d) every obligation of such Person issued or assumed as the deferred purchase price of
property or services (including securities repurchase agreements, but excluding trade accounts
payable arising in the ordinary course of business);

(e) every obligation of such Person under any capitalized lease representing the capitalized
amount thereof that would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP;

(f) every obligation of such Person under any synthetic lease representing the capitalized or
principal amount of the remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or
other agreement were accounted for as a capital lease;

 

17

 

(g) all sales by such Person of (i) accounts or general intangibles for money due or to become
due, (ii) chattel paper, instruments or documents creating or evidencing a right to payment of
money or (iii) other receivables (collectively “receivables”), whether pursuant to a purchase
facility or otherwise (other than in connection with the disposition of the business operations of
such Person relating thereto, a disposition of defaulted receivables for collection and not as a
financing arrangement or a true sale without recourse to such Person), and together with any
obligation of such Person to pay any discount, interest, fees, indemnities, penalties, recourse,
expenses or other amounts in connection therewith;

(h) every obligation of such Person to purchase, redeem, retire or otherwise acquire for value
any shares of Capital Stock issued by such Person or any rights measured by the value of such
Capital Stock, other than any such obligation which may be satisfied solely through the conversion
to common stock or other delivery of equity securities and not through delivery of cash or any
other assets;

(i) every net obligation of such Person under any Derivative Agreement;

(j) every obligation in respect of Indebtedness of any other entity (including any partnership
in which such Person is a general partner) to the extent that such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity, except to the
extent that the terms of such Indebtedness provide that such Person is not liable therefor and such
terms are enforceable under applicable law; and

(k) every obligation, contingent or otherwise, of such Person guaranteeing, or having the
economic effect of guaranteeing or otherwise acting as surety for, any obligation of a type
described in any of clauses (a) through (j) above (the “primary obligation”) of another Person (the
“primary obligor”), in any manner, whether directly or indirectly, and including, without
limitation, any obligation of such Person (i) to purchase or pay (or advance or supply funds for
the purchase of) any security for the payment of such primary obligation, (ii) to purchase
property, securities or services for the purpose of assuring the payment of such primary
obligation, or (iii) to maintain working capital, equity capital or other financial statement
condition or liquidity of the primary obligor so as to enable the primary obligor to pay such
primary obligation.

The “amount” or “principal amount” of any Indebtedness at any time of determination
represented by (1) any Indebtedness, issued at a price that is less than the principal amount at
maturity thereof, shall be the amount of the liability in respect thereof determined in accordance
with GAAP, (2) any Capitalized Lease Obligation shall be the present value of the aggregate of the
rentals obligation under such capitalized lease payable over the term thereof that is not subject
to termination by the lessee, (3) any sale of receivables shall be the amount of unrecovered
capital or principal investment of the purchaser (other than CHC or any of its wholly-owned
Subsidiaries) thereof, excluding amounts representative of yield or interest earned on such
investment, which the seller is obligated to repay (4) any synthetic lease shall be the stipulated
loss value, termination value or other equivalent amounts, (5) any Derivative Agreement shall be
the net maximum amount of any termination or loss payment required to be paid by such Person if
such derivative contract were, at the time of determination, to be terminated by reason of any
event of default or early termination event thereunder, whether or

 

18

 

not such event of default or early termination event has in fact occurred, (6) any equity
related purchase obligation shall be the maximum fixed redemption or purchase price thereof
inclusive of any accrued and unpaid dividends to be comprised in such redemption or purchase price,
(7) any guaranty or other contingent liability referred to in clause (k) above shall be an amount
equal to the stated or determinable amount of the primary obligation in respect of which such
guaranty or other contingent obligation is made or, (x) if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith or (y) if the amount of the guaranty or
other contingent liability is less than the determinable amount of the primary obligation (e.g.,
because of limited recourse to the guarantor), the maximum amount of potential liability on account
of such guaranty or other contingent obligation, and (8) the amount of any Indebtedness for
borrowed money pursuant to any revolving credit facility or other credit accommodation permitting
future advances shall be the amount actually borrowed at the time of determination.
Notwithstanding the foregoing, Indebtedness of any Centerline-Sponsored Fund or any limited
partnership owning a LIHTC Property, that constitutes the sole Indebtedness of a CHC Subsidiary
because such Subsidiary is a single purpose entity holding no assets other than its partnership
interest held in connection with its serving as the general partner of such Centerline-Sponsored
Fund or limited partnership, shall not constitute Indebtedness under this Credit Agreement.

Information. See Section 25.2.

Intercompany Subordination Agreement. That certain Subordination Agreement, dated as of
December 27, 2007, and ratified as of the date hereof, among the Borrowers, the Guarantors, the
Pledged Entities, the subordinating creditors and the Administrative Agent, which provides,
inter alia, that all Indebtedness owing to another Borrower, Guarantor or Pledged
Entity shall be subordinated to the full and final payment of the Obligations.

Interest Payment Date. The first Business Day of each calendar month.

Interest Period. With respect to all or any relevant portion of each Revolving Loan or the
Term Loan, (a) initially, the period commencing on the Drawdown Date of such Loan and ending on the
last day of one of the periods set forth below, as selected by the Borrowers in a Revolving Loan
Request or as otherwise required by the terms of this Credit Agreement (i) for any Base Rate Loan,
each Business Day, and (ii) for any LIBOR Rate Loan 1, 2, 3, 6 or (if available from all Lenders)
12 months, and (b) thereafter, each period commencing on the last day of the next preceding
Interest Period applicable to such Loan or portion thereof and ending on the last day of one of the
periods set forth above, as selected by the Borrowers in a Conversion Request; provided
that all of the foregoing provisions relating to Interest Periods are subject to the following:

(a) if any Interest Period with respect to a LIBOR Rate Loan would otherwise end on a day that
is not a Business Day, that Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into another calendar
month, in which event such Interest Period shall end on the immediately preceding Business Day;

 

19

 

(b) if the Borrowers fail to give notice as provided in Section 2.3.4, the Borrowers
shall be deemed to have requested a conversion of the affected LIBOR Rate Loan to a Base Rate Loan
and the continuance of all Base Rate Loans as Base Rate Loans on the last day of the then current
Interest Period with respect thereto;

(c) any Interest Period relating to any LIBOR Rate Loan that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar
month; and

(d) any Interest Period relating to any LIBOR Rate Loan that would otherwise extend beyond the
applicable Maturity Date shall end on such Maturity Date.

Island. Island Capital Group LLC, a Delaware limited liability company.

Island Recapitalization. The transactions being consummated, the actions being taken and
the conditions being satisfied by Island, Newco, the Borrowers, the Guarantors, the Pledged
Entities and other Persons prior to or contemporaneously with the closing of this Credit
Agreement, which shall include, without limitation, (a) the restructuring of the Indebtedness
evidenced by the Original Agreement, (b) the ARCap Transaction, and (c) the Related Loan, which
shall include the execution and delivery of the agreements, instruments and writings, the
performance of all actions and the satisfaction of all conditions, referred to or contemplated by
(y) the Closing Checklist attached to this Credit Agreement as Exhibit 7.1, and (z) the
Closing Checklist attached to the Newco Loan Agreement as Exhibit 6.1.

Issuing Bank. See the introductory paragraph to this Credit Agreement.

LC Guaranty. See Section 5.1.2.

Lender or Lenders. See the introductory paragraph to this Credit Agreement. Such
term shall also include any Person that becomes a Lender by way of assignment or transfer pursuant
to this Credit Agreement.

Letter of Credit. Each of the Existing Letters of Credit and each New Letter of Credit.

Letter of Credit Application. See Section 5.1.2.

Letter of Credit Fees. See Section 5.6.

Letter of Credit Participation. See Section 5.1.5.

LIBOR Business Day. Any day on which commercial banks are open for international business
(including dealings in Dollar deposits) in London.

LIBOR Lending Office. Initially, the office of each Lender designated as such by notice to
the Borrower; thereafter, such other office of such Lender, if any, that shall be making or
maintaining LIBOR Rate Loans.

 

20

 

LIBOR Rate. For any Interest Period with respect to a LIBOR Rate Loan, the rate per annum
as determined on the basis of the offered rates for deposits in Dollars, for a period of time
comparable to such LIBOR Rate Loan which is equal to the British Bankers Association LIBOR Rate
(“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations
of BBA LIBOR as designated by the Administrative Agent from time to time) as of 11:00 a.m. London
time on the day that is two (2) LIBOR Business Days preceding the first day of the Interest Period
applicable to such LIBOR Rate Loan. If such rate is not available at such time for any reason,
then the “LIBOR Rate” for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in U.S. dollars for delivery on the first day
of such Interest Period in same day funds in the approximate amount of the LIBOR Rate Loan being
made, continued or converted and with a term equivalent to such Interest Period would be offered by
the Administrative Agent’s London branch to major banks in the London interbank eurodollar market
at their request at approximately 11:00 a.m. (London time) two LIBOR Business Days prior to the
commencement of such Interest Period. If the Administrative Agent’s London branch is not offering
such rate, then the LIBOR Rate shall be deemed to be unavailable.

In the event that the Board of Governors of the Federal Reserve System shall impose a Reserve
Percentage with respect to LIBOR Rate deposits of any Lender, then for any period during which such
Reserve Percentage shall apply, the LIBOR Rate shall be equal to the amount determined above
divided by an amount equal to 1 minus the Reserve Percentage.

LIBOR Rate Loans. All or any portion of the Revolving Loans or the Term Loan bearing
interest calculated by reference to the LIBOR Rate.

Liens. Any encumbrance, mortgage, deed of trust, assignment, attachment, deposit
arrangement, lien (statutory, judgment or otherwise), pledge, hypothecation, charge, restriction or
other security interest, security agreement, or any interest of any kind securing any obligation of
any entity or person, whether such interest is based on common law, civil law, statute or contract.

LIHTC Advance Amount. The total amount borrowed hereunder with respect to a particular
LIHTC Investment.

LIHTC Investments. See Section 3.1(b).

LIHTC Property. A multi-family affordable housing real estate property located in the
United States that provides low income housing tax credits to investors under the Code.

Line of Business or Lines of Business. See Section 10.6.2.

Loan Documents. This Credit Agreement, any Notes, the Letters of Credit, the Guaranties,
the Pledge Agreements, the Other Security Documents, the Fee Letter, the Intercompany Subordination
Agreement, the Omnibus Ratification and Amendment Agreement, any Derivative Agreement between a
Borrower or Guarantor and a Lender or an Affiliate of a Lender relating to any portion of the
Loans, and any other agreement between or among a Borrower and/or any Guarantor or Pledged Entity,
and the Administrative Agent and/or any Lender relating to fee arrangements, or any other
agreement, instrument or writing between or among such parties

 

21

 

pursuant to, ancillary to or contemplated by this Credit Agreement, in each case as amended or
restated from time to time.

Loan Party. Any of the Borrowers, the Guarantors or the Pledged Entities.

Loans. Collectively, the Revolving Loans and the Term Loan.

Management Agreement. The Management Agreement, dated on or about the Closing Date, by and
among Island Centerline Manager LLC, a Delaware limited liability company, CHC and CCG, as the same
may be amended, modified, restated or supplemented from time to time.

Management-Owned Entities. Collectively, Centerline GP Holdings LLC, Centerline GP
Dispositions LLC, CCL Dispositions II LLC and CCL Acquisitions II LLC.

Material Adverse Effect. A material adverse effect on (i) the properties, assets,
financial condition, operations or business of each of the Borrowers and Guarantors, and their
Subsidiaries, taken as a whole, (ii) the ability of either Borrower or any Guarantor to fully and
timely pay or perform its obligations under the Loan Documents, (iii) the legality, validity,
binding effect or enforceability against either Borrower or any Guarantor of a Loan Document to
which it is a party, or (iv) the rights, remedies and benefits available to, or conferred upon, the
Administrative Agent or any other Creditor Party under any Loan Document.

Maturity Dates. Collectively, the Revolver Maturity Date and the Term Loan Maturity Date.

Maximum Drawing Amount. The maximum aggregate amount that the beneficiaries may at any time
draw under outstanding Letters of Credit issued for the account of a Borrower, as such aggregate
amount may be reduced from time to time by draws under such Letters of Credit or otherwise pursuant
to the terms of such Letters of Credit.

Measurement Date. See the definition of Total Debt/Consolidated EBITDA Ratio.

Merrill. Merrill Lynch Capital Services Inc., a Delaware corporation.

Merrill Agreements. The Master Assignment, Stabilization, Assignment Allocation, Services
and Asset Management Agreement, dated on or about the Closing Date, among CHC, CCG, CAHA,
Guaranteed Manager, Guaranteed Holdings, CMC, and Guaranteed Manager II and each of the agreements
executed in connection therewith, including, but not limited to (a) the Receivables Assignment and
Assumption Agreement, by and among CHC, CCG Guaranteed Manager II and Guaranteed Holdings (the
“Merrill Receivables Assignment and Assumption Agreement”), (b) the Transaction Assignment
Agreement, among CCG, CHC, Guaranteed Holdings and Merrill, (c) the ISDA 1992 form (Multicurrency -
Cross Border) Master Agreement, among Guaranteed Holdings and Merrill and the Schedule, Credit
Support Annexes and Confirmations thereto and (d) the Reaffirmation of Guarantee by CHC in favor of
Merrill (the “Reaffirmation of Guarantee”), as such agreements may be amended, modified, restated
or supplemented from time to time.

 

22

 

Merrill Receivables Assignment and Assumption Agreement. See the definition of Merrill
Agreements.

Moody’s. Moody’s Investors Service, Inc. and its successors.

Multiemployer Plan. Any multiemployer plan within the meaning of Section 3(37) of ERISA
maintained or contributed to by either Borrower, any Guarantor or any ERISA Affiliate.

Natixis. Natixis Financial Products Inc., a Delaware corporation.

Natixis Agreements. The Master Novation, Stabilization, Assignment, Servicing and Asset
Management Agreement, dated on or about the Closing Date, by and among CHC, CCG, CAHA, Guaranteed
Manager, CFin Holdings, CMC and Natixis, and each of the other agreements executed in connection
therewith, including, but not limited to (a) the Receivables Assignment and Assumption Agreement by
and among CHC, CCG, CAHA, Guaranteed Manager, CFin Holdings and each of the Credit Enhanced Funds,
Credit Enhanced Partnership General Partners and Special Limited Partners listed on Exhibit
A thereto (the “Natixis Receivables Assignment and Assumption Agreement”), (b) the Senior
Secured Credit Agreement between CFin Holdings and Natixis, (c) the Novation Agreement, dated on or
about the Closing Date, among CCG, CFin Holdings and Natixis, and (d) the ISDA 1992 form
(Multicurrency — Cross Border) Master Agreement between CFin Holdings and Natixis and the Schedule,
Credit Support Annexes and Confirmations thereto, as such agreements may be amended, modified,
restated or supplemented from time to time.

Natixis Receivables Assignment and Assumption Agreement. See the definition of Natixis
Agreements.

Negative Covenants and Financial Covenants. The covenants of the Borrowers and the
Guarantors set forth in Section 10.

Newco Loan Agreement. That certain Term Loan Agreement, dated as of the date hereof, among
Newco, the guarantors named therein, the Administrative Agent and the Lenders, as amended or
restated from time to time.

New Lending Office. See Section 6.2.4.

New Letters of Credit. Letters of Credit issued by the Issuing Bank pursuant to the terms
of Section 5 from and after the Closing Date.

Non-Compete Agreement. Sections 6.10 and 6.11 of that certain Purchase and Sale Agreement,
of even date herewith, entered into among CHC, certain of its Subsidiaries and Newco, in connection
with the Island Recapitalization.

Non-U.S. Lender. See Section 6.2.4.

 

23

 

Notes. Any Revolving Notes and any Term Notes as a Lender may request from time to time
pursuant to Section 2.1.3 or Section 2.2.2, as the case may be.

Obligations. All indebtedness, obligations and liabilities of the Borrowers, any of the
Guarantors and their respective Subsidiaries to any of the Lenders, the Issuing Bank, the
Administrative Agent or any of their Affiliates, individually or collectively, existing on the date
of this Credit Agreement or arising thereafter, direct or indirect, joint or several, absolute or
contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by
contract, operation of law or otherwise, arising or incurred under this Credit Agreement or any of
the other Loan Documents, including, without limitation, under any Derivative Agreement between a
Borrower or Guarantor and any Lender or Lender’s Affiliate relating to any portion of the Loans, or
Reimbursement Obligations incurred or any of the Letters of Credit or other instruments at any time
evidencing any thereof.

Omnibus Ratification and Amendment Agreement. That certain Omnibus Ratification and
Amendment Agreement, of even date herewith, among CHC, CCG, those Persons listed as Guarantors on
Schedule A attached thereto, those Person listed as pledgors on Schedule A attached thereto, those
Persons listed as subordinating creditors on Schedule A attached thereto, those Persons listed as
Lenders on Schedule A attached thereto and the Administrative Agent.

Omnibus Release and Termination Agreement. That certain Omnibus Release and Termination
Agreement, of even date herewith, among the Persons listed as terminating parties on Schedule A
attached thereto, the Administrative Agent and those Persons listed as Lenders on Schedule A
attached thereto.

Original Agreement. See the second paragraph of this Credit Agreement.

Other Collateral. All of the collateral described in the Other Security Documents.

Other Security Documents. Collectively: (a) the security agreements, pledge agreements and
other documents and agreements described on Schedule 1; and (b) each security agreement
executed and delivered after the date hereof (each of which shall be in form and substance
reasonably satisfactory to the Administrative Agent) by a Subsidiary in accordance with Section
9.20; pursuant to which, among other things, Liens on the Other Collateral are granted, in each
case, as amended or restated from time to time.

Other Taxes. See Section 6.2.2.

Outstanding or outstanding. With respect to the Loans, the aggregate unpaid
principal thereof as of any date of determination.

Participant. See Section 17.4.

PBGC. The Pension Benefit Guaranty Corporation created by Section 4002 of ERISA and any
successor entity or entities having similar responsibilities.

 

24

 

Permitted Indebtedness. See Section 10.3.

Permitted Liens. See Section 10.1.

Permitted Refinancing. With respect to any Person, any modification, refinancing,
refunding, renewal or extension of any Permitted Indebtedness of such Person; provided that (a) the
principal amount (or accreted value, if applicable) thereof does not exceed the principal amount
(or accreted value, if applicable) of the Permitted Indebtedness so modified, refinanced, refunded,
renewed or extended except by an amount equal to unpaid accrued interest and premium thereon plus
any other reasonable amount paid, and fees and expenses reasonably incurred, in connection with
such modification, refinancing, refunding, renewal or extension and by an amount equal to any
existing commitments unutilized thereunder or as otherwise permitted pursuant to
Section 10.3, (b) such modification, refinancing, refunding, renewal or extension has a
final maturity date equal to or later than the maturity date of the Permitted Indebtedness being
modified, refinanced, refunded, renewed or extended, (c) if the Permitted Indebtedness being
modified, refinanced, refunded, renewed or extended is subordinated in right of payment to the
Obligations, such modification, refinancing, refunding, renewal or extension is subordinated in
right of payment to the Obligations on terms at least as favorable to the Lenders, in the
Administrative Agent’s reasonable judgment, as those contained in the documentation governing the
Permitted Indebtedness being modified, refinanced, refunded, renewed or extended, taken as a whole,
(d) the terms and conditions (including, if applicable, as to collateral) of any such modified,
refinanced, refunded, renewed or extended Permitted Indebtedness are not materially less favorable
to the Borrower and the Guarantors or the Lenders than the terms and conditions of the Permitted
Indebtedness being modified, refinanced, refunded, renewed or extended, and (e) such modification,
refinancing, refunding, renewal or extension is incurred by the Person or Persons who are the
obligors on the Permitted Indebtedness being modified, refinanced, refunded, renewed or extended.

Person. Any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

Platform. See Section 25.4.

Pledge Agreements. Collectively: (a) the pledge agreements and other documents and
agreements described on Schedule 1; and (b) each pledge agreement executed and delivered
after the date hereof (each of which shall be in form and substance reasonably satisfactory to the
Administrative Agent) by the holder(s) of the Capital Stock of a Subsidiary in accordance with
Section 9.20; pursuant to which, among other things, Liens on the Equity Collateral are
granted, in each case, as amended or restated from time to time.

Prior Fiscal Quarter. See the definition of Total Debt/Consolidated EBITDA Ratio.

Pro Forma Leverage Test. In order to determine

(a) whether certain Indebtedness constitutes Permitted Indebtedness pursuant to Section
10.3,

 

25

 

(b) whether certain mergers or consolidations are permitted pursuant to Section
10.5.1, or

(c) whether certain acquisitions are permitted pursuant to Section 10.6.3,

the Total Debt/Consolidated EBITDA Ratio for CHC as of the Measurement Date, after giving pro forma
effect to such Indebtedness, merger, consolidation or acquisition, shall not exceed 5.0 to 1.0.

Projected Consolidated EBITDA. The amount set forth on Schedule 4.2.3 with respect
to each Fiscal Year ending during the term of this Credit Agreement, commencing with the Fiscal
Year ending on December 31, 2011.

Public Lender. See Section 25.4.

Reaffirmation of Guarantee. See definition of Merrill Agreements.

Register. See Section 17.3.

Regulation D. Regulation D of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor or other regulation or official interpretation of said
Board of Governors relating to reserve requirements applicable to member banks of the Federal
Reserve System.

Reimbursement Obligation. See Section 5.2.

Related Loan. The loan by the Lenders of $5,000,000 to TRCLP Affordable Acquisitions LLC,
a wholly-owned Subsidiary of The Related Companies, in connection with, and as contemplated by, the
Island Recapitalization.

Related Parties. With respect to any specified Person, such Person’s Affiliates and the
respective equityholders, directors, trustees, officers, employees, agents, attorneys,
representatives and advisors of such Person and such Person’s Affiliates.

Required Lenders. Any Lender or combination of two or more Lenders holding at least 66.67%
of the Total Commitment (as the Commitment for each Lender is reflected on Schedule 2).

Reserve Percentage. The maximum aggregate reserve requirement (including all basic,
supplemental, marginal and other reserves) which is imposed on member banks of the Federal Reserve
System against “Eurocurrency Liabilities” as defined in Regulation D.

Revolver. The credit facility pursuant to which Revolving Loans are made and Letters of
Credit are issued as contemplated by the terms of this Credit Agreement.

Revolver Maturity Date. March 4, 2015, subject to acceleration under Section
11.2.1.

Revolving Credit Lender. Each Lender whose Revolving Loan Commitment and Revolving Loan
Commitment Percentage is greater than zero.

 

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Revolving Credit Limit. The aggregate of all Revolving Loan Commitments from time to time
under this Credit Agreement, as may be reduced from time to time pursuant to the terms of this
Credit Agreement. As of the date hereof, the Revolving Credit Limit equals $36,981,200. In
addition, in the event that any Existing Letter of Credit is terminated or expires, or the amount
remaining available to be drawn under any Existing Letter of Credit is reduced, the outstanding
principal balance of the Revolving Credit Limit shall be reduced dollar for dollar. Promptly in
the event of any reduction in the Revolving Credit Limit, the Administrative Agent will provide
written notice to the Borrowers, the Guarantors and the Lenders of the decrease in the Revolving
Credit Limit and the Total Credit Amount then occurring. From time to time as the Administrative
Agent provides notice of any such decrease, the Administrative Agent will also provide a revised
Schedule 2 pursuant to Section 17.3 reflecting the updated Revolving Loan
Commitments and the then applicable Revolving Credit Limit.

Revolving Exposure. At any time, the sum of the outstanding amount of all Revolving Loans,
plus the Maximum Drawing Amount, plus, without duplication, all Unpaid Reimbursement Obligations.

Revolving Loan Account. See Section 17.3.

Revolving Loan Commitment. Each Revolving Credit Lender’s share of the obligation of such
Lender to make Revolving Loans and participate in Letters of Credit in an aggregate principal
and/or face amount not to exceed the amount set forth under the heading Revolving Loan Commitment
opposite such Lender’s name on Schedule 2 or in the Assignment and Acceptance pursuant to
which such Lender became a party hereto, as the same may be (a) reduced from time to time pursuant
to Section 2.4;or (b) reduced or increased from time to time pursuant to assignments by or
to such Lender pursuant to Section 17.2.

Revolving Loan Commitment Percentage. With respect to each Revolving Credit Lender, the
percentage set forth opposite its name on Schedule 2.

Revolving Loan Request. See Section 2.1.5(a).

Revolving Loans. The revolving credit loans made by the Revolving Credit Lenders to the
Borrowers pursuant to Section 2.1.

Revolving Note. See Section 2.1.3.

S&P. Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

SCUs. Special Common Units issued by CCC entitling the holders thereof to a Preferred
Return (as defined in CCC’s Amended and Restated Operating Agreement dated November 17, 2003, as
amended).

SEC. The United States Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of the United States Securities and Exchange Commission.

 

27

 

Servicing Agreements. Those certain Servicing Agreements, each between CSL and CAHA, on the
one hand, and either CMC, CMP or other Loan Parties, each dated on or about the date hereof,
pursuant to which CSL and CAHA performs servicing or sub-servicing for such Loan Party.

Solvent. A Person is Solvent if the present fair saleable value of such Person’s assets is
greater than the amount that will be required to pay such Person’s probable liability on its
existing debts as they become absolute and matured.

Subordinated Debt. Any of the Borrowers’ Indebtedness for borrowed money subordinated to
the payment and performance of the Obligations upon terms and conditions reasonably acceptable to
the Administrative Agent. Such Indebtedness will be acceptable to the Administrative Agent, and
therefore will constitute Subordinated Debt, if such Indebtedness is not secured by any interest in
the Collateral and provides in writing that (a) that payments with respect to such Indebtedness are
prohibited during the existence of either or both of (i) a Default in any Obligation requiring the
payment of money or (ii) any Event of Default, and (b) that the holder of such Indebtedness shall
have agreed, for the benefit of the Lenders, to refrain from pursuing any rights or remedies with
respect to such Indebtedness or with respect to any collateral or security therefor (other than the
filing of any appropriate proof of claim) until such time as the Obligations have been fully and
indefeasibly paid and performed.

Subsidiary. Any corporation, association, trust, partnership, limited liability company or
other business entity of which the designated parent shall at any time own directly or indirectly
through a Subsidiary or Subsidiaries at least a majority (by number of votes) of the outstanding
Voting Stock.

Supplemental Loans. Loans made to the LIHTC Properties or to the Centerline-Sponsored
Funds which are made in connection with making operating or capital protective advances in the form
of documented or undocumented so-called “supplemental loans” or “voluntary loans” in the ordinary
course of business consistent with past practices.

Target Person. See definition of Consolidated Net Income.

Tax Distribution. Any Distribution made to any holder of any Capital Stock in CHC in an
amount equal to the product of (a) CHC’s taxable income, if any, allocated to such holder, times
(b) the then applicable highest federal and New York State, and New York City income tax rates.

Taxes. All present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

Term Loan. The term loan advanced by the Term Loan Lenders to the Borrowers pursuant to
Section 2.2.

Term Loan Account. See Section 17.3.

 

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Term Loan Commitment. As to each Term Loan Lender, the portion of the Term Loan advanced
by such Term Loan Lender as set forth on Schedule 2, or in the Assignment and Acceptance
pursuant to which such Lender assumed its Term Loan Commitment, as applicable, as the same may be
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 17.2.

Term Loan Commitment Percentage. With respect to each Term Loan Lender, the percentage set
forth opposite its name on Schedule 2.

Term Loan Lender. Each Lender whose Term Loan Commitment and Term Loan Commitment
Percentage is greater than zero.

Term Loan Limit. The aggregate of all Term Loan Commitments from time to time under this
Credit Agreement, as may be reduced from time to time pursuant to Section 4.2. As of the
date hereof, the Term Loan Limit equals $137,500,000.00.

Term Loan Maturity Date. March 3, 2017, subject to acceleration under Section
11.2.1.

Term Note. See Section 2.2.2.

The Related Companies. The Related Companies, L.P., a New York limited partnership.

The Related Companies Group. Consists of The Related Companies and all of its Affiliates
other than the Centerline Group.

Timex Contribution Agreement. Contribution Agreement, dated as of December 17, 2002, by
and among certain of the Loan Parties and The Related Companies, among others, pursuant to which
CHC acquired its platform for the syndication of LIHTC Investments.

Total Commitment. The sum of the Commitments of the Lenders, as in effect from time to
time.

Total Credit Amount. The aggregate of the Revolving Credit Limit and the Term Loan Limit,
from time to time. As of the date hereof, the Total Credit Limit equals $174,481,200. The Total
Credit Amount is subject to decrease pursuant to the definition of Revolving Credit Limit,
Section 2.4 and Section 4.2.

Total Debt. The sum (without duplication) of the outstanding principal of

(a) Revolving Loans, plus

(b) the Term Loan, plus

(c) Subordinated Debt of the Borrowers, the Guarantors or any of the Pledged Entities (other
than Indebtedness of EIT, to the extent that such Indebtedness is otherwise permitted hereunder),
plus

 

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(d) all other Indebtedness described in the following clauses of the definition of
Indebtedness: (a) through (h), (i) (to the extent not constituting Permitted Indebtedness)
and (j), plus

(e) Indebtedness of the Excluded Entities to the extent that such Indebtedness does not
constitute Permitted Indebtedness, plus

(f) without duplication, any Contingent Liabilities incurred in connection with or relating to
any of the foregoing.

Notwithstanding anything to the contrary contained herein, (i) Indebtedness associated with any
general partnership interests held by special purpose entities that are Subsidiaries of CHC shall
be included in the calculation of “Total Debt” only to the extent of any recourse to any of the
Loan Parties; and (ii) the following Indebtedness shall be excluded from the definition of Total
Debt: (1) any Indebtedness constituting Permitted Indebtedness pursuant to clauses (e), (g),
(h), (k) through (o) and (r) of Section 10.3.1 and Section 10.3.2, (2) that certain
promissory note made by CHC, in principal face amount of $20,000,000, made by CHC payable to the
order of Centerline Guarantor LLC, (3) CHC’s $75,000,000 DUS risk-share guaranty for the benefit of
Fannie Mae, (4) accrued loss share reserve(s) for the benefit of Fannie Mae and Freddie Mac, (5)
any put obligations related to the preferred Capital Stock of CHC set forth on item 2 of Schedule
8.5.4, (6) the CHC/CCG Guaranty, and (7) CHC’s guarantee and indemnification obligations arising
under the Reaffirmation of Guarantee.

Total Debt/Consolidated EBITDA Ratio. The ratio calculated by dividing Total Debt by
Consolidated EBITDA. In connection with calculating such ratio for purposes of determining (a)
whether certain Indebtedness constitutes Permitted Indebtedness pursuant to Section 10.3,
(b) whether certain mergers or consolidations are permitted pursuant to Section 10.5.1, or
(c) whether certain acquisitions are permitted pursuant to Section 10.6.3;

(y) Total Debt shall be measured as of the date such Indebtedness is to be incurred or such
merger, consolidation or investment is to be consummated (the “Measurement Date”), and

(z) CHC’s Consolidated EBITDA shall be measured for the twelve month period ending on the last
day of the Fiscal Quarter for which CHC is obligated to have provided financial statements pursuant
to Section 9.5.1(a) or (b) immediately preceding such Measurement Date (the “Prior Fiscal
Quarter”).

Type. As to all or any portion of any Revolving Loan or the Term Loan, its nature as a Base
Rate Loan or LIBOR Rate Loan.

Uniform Customs. See Section 5.1.4.

United States. United States of America.

 

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Unpaid Reimbursement Obligation. The Reimbursement Obligations for which the Borrowers do
not reimburse the Administrative Agent and the Lenders on the date specified in, and in accordance
with, Section 5.2.

Unused Facility Fee. See Section 2.1.2.

Valid Business Impediment. The existence of any (a) valid legal prohibition or regulatory
condition, (b) contractual impediment required for the ongoing profitable operation of such Person,
or (c) circumstance in which a consent cannot be obtained after reasonable effort, that would (in
any such event) prevent to any extent such Person from providing a Guaranty, an all asset Lien, a
Lien on a specific asset or a pledge of Capital Stock, as applicable. In addition, a Valid
Business Impediment shall also exist, solely for purposes of determining, under Sections 3.1(b)
and 9.19, whether Centerline Investor LP or Centerline Investor LP II is permitted to make a
LIHTC Investment instead of Centerline LIHTC Sub, if (x) the LIHTC Project which is the subject of
the LIHTC Investment is to be funded with exempt bond financing which would not be a qualified bond
under Section 147(a)(1) of the Code, or any successor provision thereto, by virtue of Centerline
LIHTC Sub being deemed to be a “substantial user” of the Project (as such term is used in
regulations promulgated under the Code) or (y) if the LIHTC Project which is the subject of the
LIHTC Investment is not treated as having an eligible basis greater than zero under Section
42(d)(A)(i) of the Code solely by virtue of the LIHTC Project being purchased from a person who
would be deemed to be a related person for purposes of Section 42(d)(2)(B)(iii) of the Code by
reason of Centerline LIHTC Sub being a partner of the purchaser.

Voting Stock. Capital Stock of any class or classes (however designated), the holders of
which are at the time entitled, as such holders, to vote for the election of the directors (or
persons performing similar functions) of the corporation, association, trust, partnership, limited
liability company or other business entity involved, whether or not the right so to vote exists by
reason of the happening of a contingency.

1.2 Rules of Interpretation.

(a) Unless otherwise expressly indicated, a reference to any document or agreement shall
include such document or agreement as amended, modified, restated, ratified or supplemented from
time to time in accordance with its terms and the terms of this Credit Agreement.

(b) The singular includes the plural and the plural includes the singular.

(c) Unless otherwise expressly indicated, a reference to any law or regulation includes any
amendment or modification to, or replacement of, such law or regulation.

(d) A reference to any Person includes its permitted successors and permitted assigns.

(e) Accounting terms not otherwise defined herein have the meanings assigned to them by GAAP
applied on a consistent basis by the accounting entity to which they refer.

 

31

 

(f) The words “include,” “includes” and “including” are not limiting.

(g) All terms not specifically defined herein or by GAAP, which terms are defined in the
Uniform Commercial Code as in effect in the State of New York, have the meanings assigned to them
therein, with the term “instrument” being that term as defined under Article 9 of the Uniform
Commercial Code.

(h) Reference to a particular “Section” refers to that section of this Credit
Agreement unless otherwise indicated. Reference to a particular “Exhibit” or “Schedule” refers to
that Exhibit or Schedule, as applicable, to this Credit Agreement.

(i) The words “herein,” “hereof,” “hereunder” and words of like import shall refer to this
Credit Agreement as a whole and not to any particular section or subdivision of this Credit
Agreement.

(j) Unless otherwise expressly indicated, in the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including,” the words
“to” and “until” each mean “to but excluding,” and the word “through” means “to and including.”

(k) This Credit Agreement and the other Loan Documents may use several different limitations,
tests or measurements to regulate the same or similar matters. All such limitations, tests and
measurements are, however, cumulative and are to be performed in accordance with the terms thereof.

(l) This Credit Agreement and the other Loan Documents are the result of negotiation among,
and have been reviewed by counsel to, among others, the Administrative Agent, the Lenders, the
Guarantors and the Borrowers and are the product of discussions and negotiations among all parties.
Accordingly, this Credit Agreement and the other Loan Documents are not intended to be construed
against any party merely on account of such party’s involvement in the preparation of such
documents.

(m) If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrowers or the Required Lenders shall
so request, the Administrative Agent, the Lenders, the Borrowers and the Guarantors shall negotiate
in good faith to amend such ratio or requirement to preserve the original intent thereof in light
of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change therein and (ii) the Borrowers shall provide to the Administrative Agent and the
Lenders financial statements and other documents required under this Credit Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

2. REVOLVING LOANS AND TERM LOAN.

2.1 Revolving Loans.

 

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2.1.1 Commitments to Make Revolving Loans. Subject to the terms and conditions of
this Credit Agreement, each Revolving Credit Lender agrees, severally and not jointly, to make
Revolving Loans to the Borrowers from time to time during the period commencing on the Closing Date
and ending on the Revolver Maturity Date, during which period the Borrowers may borrow, repay and
re-borrow in accordance with the terms of this Credit Agreement, an amount equal to the then
applicable Revolving Loan Commitment of each Revolving Credit Lender; provided,
however, that the Borrowers shall not be permitted to borrow Revolving Loans hereunder to
the extent that (a) such borrowing would cause the total Revolving Exposure to exceed the Revolving
Credit Limit, or (b) a Default has occurred and is continuing or would otherwise be caused by such
borrowing. In the event that such borrowing would cause the total Revolving Exposure to exceed the
Revolving Credit Limit, the Borrowers agree that such event shall be an Event of Default unless the
Borrowers shall, within two (2) Business Days after notice of such excess from the Administrative
Agent, pay cash to the Administrative Agent in such amount as shall be necessary to eliminate such
excess.

2.1.2 Unused Facility Fee. The Borrowers agree to pay to the Administrative Agent for
the pro rata benefit of the Lenders in accordance with their respective Revolving Loan Commitment
Percentages a fee (the “Unused Facility Fee”) calculated as follows:

(a) The Unused Facility Fee will accrue at the rate of 0.25% per annum (based on a 360 day
year and actual number of days elapsed) times the Daily Unused Amount (as defined below).

(b) The Unused Facility Fee as calculated under this Section for each day of such
Fiscal Quarter shall be payable quarterly in arrears on the first day of each Fiscal Quarter for
the immediately preceding Fiscal Quarter commencing on the first such date following the date
hereof, with a final payment on the Revolver Maturity Date or any earlier date on which the
Revolving Loan Commitments shall terminate.

(c) For purposes of the forgoing, the “Daily Unused Amount” shall mean (i) the Revolving
Credit Limit, minus (ii) the actual principal outstanding balance of Revolving Loans determined on
a daily basis, minus (iii) the applicable Maximum Drawing Amount determined on a daily basis.

2.1.3 Revolving Notes. At the request from time to time of any Revolving Credit
Lender, such Lender’s portion of the Revolving Loan Commitment shall be evidenced by a separate
promissory note made by the Borrowers payable to the order of such Lender in substantially the form
of Exhibit 2.1.3 (each a “Revolving Note”), dated as of the date hereof (or such other date
on which such Lender may become a Revolving Credit Lender in accordance with Section 17)
and completed with appropriate insertions. Any such Revolving Note shall be payable to the order
of such Lender in a principal face amount equal to such Lender’s Revolving Loan Commitment and
representing the joint and several obligations of the Borrowers to pay to such Lender such
principal amount or, if less, the outstanding amount of all Revolving Loans actually made by such
Lender as reflected from time to time in the Revolving Loan Account, plus interest accrued thereon,
as set forth below.

 

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2.1.4 Interest on Revolving Loans. Except as otherwise provided in Section
6.12:

(a) Each Revolving Loan which is a Base Rate Loan shall bear interest for each day such
Revolving Loan is outstanding at the rate per annum equal to the Base Rate plus the Applicable
Margin as in effect from time to time applicable to Revolving Loans that are Base Rate Loans.

(b) Each Revolving Loan which is a LIBOR Rate Loan shall bear interest for the period
commencing with the Drawdown Date thereof and ending on the last day of the Interest Period with
respect thereto at the rate per annum equal to the LIBOR Rate determined for such Interest Period
plus the Applicable Margin as in effect from time to time applicable to Revolving Loans that are
LIBOR Rate Loans.

(c) The Borrowers promise to pay interest on each Revolving Loan in arrears on each Interest
Payment Date with respect thereto.

2.1.5 Requests for Revolving Loans.

(a) The Borrowers shall give to the Administrative Agent written notice in the form of
Exhibit 2.1.5 of each Revolving Loan requested hereunder (a “Revolving Loan Request”) by no
later than 1:00 p.m. Boston time no less than (a) one (1) Business Day prior to the proposed
Drawdown Date of any Base Rate Loan and (b) three (3) Business Days prior to the proposed Drawdown
Date of any LIBOR Rate Loan. Each such notice shall specify (i) the principal amount of the
Revolving Loan requested, (ii) the proposed Drawdown Date of such Revolving Loan, (iii) the Type of
such Revolving Loan and (iv) the Interest Period for such Revolving Loan that is to be a LIBOR Rate
Loan. In addition, any Revolving Loan Request delivered in connection with a LIHTC Investment
pursuant to Section 3.1(b)(i) shall be accompanied by a certificate of an officer of CHC
certifying that the applicable LIHTC Property’s satisfaction of the investment criteria set forth
on Schedule 9.19. Promptly upon receipt of any Revolving Loan Request, the Administrative
Agent shall notify each of the Lenders thereof. Each Revolving Loan Request shall be irrevocable
and binding on the Borrowers and shall obligate the Borrowers to accept the Revolving Loan
requested from such Lenders on the proposed Drawdown Date. Each Revolving Loan Request with respect
to a Base Rate Loan shall be in a minimum aggregate amount of $500,000 and integral multiples of
$100,000 in excess thereof and each Revolving Loan Request with respect to a LIBOR Rate Loan shall
be in a minimum aggregate amount of $1,000,000 and integral multiples of $100,000 in excess
thereof.

(b) Each Revolving Loan that is advanced under this Credit Agreement shall be made by all of
the Revolving Credit Lenders simultaneously and proportionately to their respective Revolving Loan
Commitment Percentages, it being understood that no Revolving Credit Lender shall be responsible
for any default by any other Revolving Credit Lender in such Delinquent Lender’s obligation to make
a Revolving Loan requested hereunder nor shall the Revolving Loan Commitment of any Lender to make
any Revolving Loan be increased or decreased as a result of a default by a Delinquent Lender in the
Delinquent Lender’s obligation to make a Revolving Loan requested hereunder. No later than

 

34

 

4:00 p.m. Boston time on the date that the Administrative Agent receives a Revolving Loan
Request, the Administrative Agent shall notify each Revolving Credit Lender of such Revolving Loan
request. Each Revolving Credit Lender shall make the amount of its Revolving Loan available to the
Administrative Agent, in same day funds, at the office of the Administrative Agent located at 225
Franklin Street, Boston, Massachusetts, not later than 1:00 p.m. Boston time on the date on which
the Revolving Loan is to be made.

(c) Except as provided in Section 5.3 with respect to Revolving Loans to be used to
reimburse the Administrative Agent or Issuing Bank for the amount of any drawing under a Letter of
Credit, upon satisfaction or waiver of the conditions precedent specified in Section 7, the
Administrative Agent shall make the proceeds of such Revolving Loan available to the Borrowers by
causing an amount of same day funds equal to the proceeds of such Revolving Loan received by the
Administrative Agent from the Revolving Credit Lenders to be credited to the account of the
Borrowers at the Administrative Agent.

(d) Unless the Administrative Agent shall have been notified by any Revolving Credit Lender
prior to the date on which a Revolving Loan is to be advanced that such Revolving Credit Lender
does not intend to make available to the Administrative Agent the amount of such Revolving Credit
Lender’s Revolving Loan requested on such date, the Administrative Agent may assume that such
Revolving Credit Lender will make such amount available to the Administrative Agent on such date
and that the Administrative Agent may, in its sole discretion, but shall not be obligated to, make
available to the Borrowers a corresponding amount on the date of such advance. If such
corresponding amount is not in fact made available to the Administrative Agent by such Revolving
Credit Lender, the Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Delinquent Lender together with (i) interest thereon, for each day from the
advance of such Revolving Loan until the date such amount is paid to the Administrative Agent, at
the greater of the rate of interest accruing on such Revolving Loan or a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation, plus (ii)
any administrative, processing or similar fees customarily charged by the Administrative Agent in
connection with the foregoing. If such Delinquent Lender does not pay such corresponding amount
forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly
notify the Borrowers and the Borrowers shall immediately pay such corresponding amount to the
Administrative Agent together with interest thereon, for each day such Revolving Loan is
outstanding, at the rate payable under this Credit Agreement with respect to such Revolving Loan
(provided that, except to the extent otherwise prohibited in this Agreement, the Borrower may
instead immediately borrow additional Revolving Loans such that, after giving effect to an
additional failure by such Delinquent Lender to fund, the Borrower has borrowed the full amount set
forth in the applicable Revolving Loan Request, and, if applicable, the Administrative Agent is
reimbursed for any amounts advanced by it on behalf of such Delinquent Lender).

(e) Nothing in this Section shall be deemed to relieve any Delinquent Lender from its
obligation to fulfill its Revolving Loan Commitment hereunder, to prejudice any rights that the
Borrowers may have against any Delinquent Lender as a result of any default by such Delinquent
Lender hereunder, or to require the Borrowers to pay more than the rate of interest otherwise
applicable to the principal amounts outstanding.

 

35

 

2.2 Term Loan.

2.2.1 Commitments to Make Term Loan. Subject to the terms and conditions set forth in
the Original Agreement, each Lender has loaned to the Borrowers the amount of its Term Loan
Commitment Percentage of the Term Loan outstanding as of the Closing Date. On the Closing Date the
total outstanding principal amount of the Term Loan shall be $137,500,000.00. Any principal of the
Term Loan repaid may not be reborrowed.

2.2.2 Term Notes. At the request from time to time of any Term Loan Lender, such
Lender’s portion of the Term Loan shall be evidenced by a separate promissory note made by the
Borrowers payable to the order of such Lender in substantially the form of Exhibit 2.2.2
(each a “Term Note”), dated the Closing Date (or such other date on which such Lender may become a
Term Loan Lender in accordance with Section 17) and completed with appropriate insertions.
Any such Term Note shall be payable to the order of such Lender in a principal face amount equal to
such Lender’s Term Loan Commitment and representing the joint and several obligations of the
Borrowers to pay to such Lender such principal amount or, if less, the outstanding amount of the
Term Loan actually made by such Lender as reflected from time to time in the Term Loan Account,
plus interest accrued thereon, as set forth below.

2.2.3 Interest on Term Loan. Except as otherwise provided in Section 6.12:

(a) To the extent that all or any portion of the Term Loan bears interest at the Base Rate,
the Term Loan or such portion shall bear interest at the rate per annum equal to the Base Rate plus
the Applicable Margin as in effect from time to time applicable to all or any portion of the Term
Loan bearing interest at the Base Rate.

(b) To the extent that all or any portion of the Term Loan bears interest at the LIBOR Rate,
the Term Loan or such portion shall bear interest during the applicable Interest Period at the rate
per annum equal to the LIBOR Rate determined for such Interest Period plus the Applicable Margin as
in effect from time to time applicable to all or any portion of the Term Loan bearing interest at
the LIBOR Rate.

(c) The Borrowers promise to pay interest on the Term Loan or any portion thereof in arrears
on each Interest Payment Date with respect thereto.

2.3 Types of Loans: Conversion and Continuation Options.

2.3.1 Conversion to Different Type of Loan. The Borrowers may elect from time to
time, by giving the Administrative Agent written notice in the form of Exhibit 2.3.1 by
1:00 p.m. Boston time, to convert any portion of the outstanding Loans to a Loan of another Type,
provided that (a) with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan, the
Borrowers shall give the Administrative Agent at least one (1) Business Day’s prior written notice
of such election; (b) with respect to any such conversion of a Base Rate Loan to a LIBOR Rate Loan,
the Borrowers shall give the Administrative Agent at least three (3) Business Days’ prior written
notice of such election; (c) with respect to any such conversion of a LIBOR Rate Loan into a Base
Rate Loan, such conversion shall only be made on the last day of the Interest Period with respect
thereto unless the Borrowers pay breakage fees to the extent required pursuant to Section
6.11, and (d) no outstanding portion of the Loans may be converted

 

36

 

into, or continued as, a LIBOR Rate Loan when any Default has occurred and is continuing.
Promptly upon the receipt of any such election, the Administrative Agent shall notify the Lenders
thereof. On the date on which such conversion is being made, each Lender shall take such action as
is necessary to transfer its Commitment Percentage of such portion of the outstanding Loans to its
Domestic Lending Office or its LIBOR Lending Office, as the case may be. All or any part of
outstanding Loans of any Type may be converted into another Type as provided herein, provided that
any partial conversion with respect to an outstanding portion of the Loans shall be in an aggregate
principal amount of $1,000,000 or whole multiples of $100,000 in excess thereof. Each Conversion
Request by the Borrowers relating to the conversion of any portion of the Loans to a LIBOR Rate
Loan shall be irrevocable.

2.3.2 Continuation of Type of Loan. Any portion of the Loans of any Type may be
continued as the same Type upon the expiration of an Interest Period with respect thereto by the
Borrowers giving to the Administrative Agent written notice in the form of Exhibit 2.3.1 by
1:00 p.m. Boston time, to continue any portion of the outstanding Loans as such Type;
provided that no LIBOR Rate Loan may be continued as such when any Default has occurred and
is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the
first Interest Period relating thereto ending during the continuance of any Default of which
officers of the Administrative Agent active upon the Borrowers’ account have actual knowledge. In
the event that the Borrowers fail to provide any notice with respect to the continuation of any
LIBOR Rate Loan, then such LIBOR Rate Loan shall be automatically converted to a Base Rate Loan on
the last day of the Interest Period relating thereto. The Administrative Agent shall notify the
Lenders thereof promptly when any such automatic conversion contemplated by this Section is
scheduled to occur.

2.3.3 LIBOR Rate Loans. Any conversion to or from LIBOR Rate Loans shall be in such
amounts and be made pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of all LIBOR Rate Loans having the same Interest Period shall not be less than
$1,000,000 or whole multiples of $100,000 in excess thereof. No more than eight (8) LIBOR Rate
Loans having different Interest Periods may be outstanding at any time.

2.3.4 Notification by Borrowers. The Borrowers shall notify the Administrative Agent,
such notice to be irrevocable, at least three (3) Business Days prior to the Drawdown Date of any
portion of the Loans if all or any portion of the Loans is to bear interest at the LIBOR Rate.
After any portion of the Loans has initially been made, the provisions of Sections 2.3.1
and 2.3.2 shall apply mutatis mutandis with respect to such portion of the
Loans so that the Borrowers may have the same interest rate options with respect to such portion of
the Loans outstanding from time to time.

2.3.5 Amounts, Etc. Any portion of the Loan bearing interest at the LIBOR Rate
relating to any Interest Period shall be in the amount of $1,000,000 or an integral multiple of
$100,000 in excess thereof. No Interest Period relating to the Term Loan or any portion thereof
bearing interest at the LIBOR Rate shall extend beyond the date on which a regularly scheduled
installment payment of the principal of the Term Loan is to be made unless a portion of the Term
Loan at least equal to such installment payment has an Interest Period ending on such date or is
then bearing interest at the Base Rate.

 

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2.4 Reduction of Commitments.

2.4.1 Elective Reduction of Commitments. The Borrowers shall have the right, without
premium or penalty (except as otherwise set forth herein), at any time and from time to time upon
at least three (3) Business Days prior written notice to the Administrative Agent to reduce by
$3,000,000, or integral multiples of $1,000,000 in excess thereof, or to terminate entirely the
Revolving Credit Limit in excess of the then outstanding Revolving Exposure; provided,
however, that the Revolving Credit Limit may not be reduced below $10,000,000 unless all
Revolving Loans and all other Obligations relating thereto are paid and performed in full, all
Letters of Credit are terminated, replaced or secured by Cash Collateral in accordance with
Section 5.2, and the Revolving Credit Limit is reduced to zero.

2.4.2 Pro Rata Reductions in Commitments. In the event of any reduction pursuant to
Section 2.4.1, the Revolving Loan Commitments of the Lenders shall be either (i) reduced
pro rata in accordance with their respective Revolving Loan Commitment Percentages of the amount so
reduced, or (ii) as the case may be, terminated. Promptly after receiving any notice from the
Borrowers delivered pursuant to Section 2.4.1, the Administrative Agent will notify the
Lenders of the substance thereof. Upon the effective date of any such reduction or termination, the
Borrowers shall pay to the Administrative Agent for the respective pro rata accounts of such
Lenders the full amount of any Unused Facility Fee then accrued on the amount of the reduction. No
reduction or termination of the Revolving Loan Commitments may be reinstated. Upon any reduction
or termination of the aggregate Revolving Loan Commitments pursuant to this Section, the
Administrative Agent will unilaterally revise, and will circulate to the Borrowers and each of the
Lenders, a revised Schedule 2 reflecting such reduction or termination.

3. USE OF PROCEEDS

3.1 Use of Proceeds. The proceeds of the Revolving Loans and the Term Loan shall be
used solely and exclusively for the following purposes:

(a) Use of Term Loan. The proceeds of the Term Loan that are fully advanced as of the
Closing Date shall be repaid in full in accordance with the terms of this Credit Agreement, and may
not be reborrowed. The proceeds of the Term Loan shall be used solely to pay in full or in part,
or to refinance, the credit facilities outstanding under the Original Agreement.

(b) Use of Revolving Loans. From the Closing Date through the Revolver Maturity Date,
the proceeds of Revolving Loans equal to an aggregate outstanding balance of up to $25,000,000 may
be borrowed, repaid and reborrowed from time to time and may be used entirely (i) for investments
by Centerline LIHTC Sub or, in the event of a Valid Business Impediment to Centerline LIHTC Sub
making such investment, Centerline Investor LP or Centerline Investor LP II (“LIHTC Investments”)
and (ii) for the Borrowers’, Guarantors’ and Pledged Entities’ general corporate purposes.

4. REPAYMENT OF REVOLVING LOANS AND TERM LOAN. 

4.1 Revolving Loans.

 

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4.1.1 Maturity. The Borrowers promise to pay on the Revolver Maturity Date, and there
shall become absolutely due and payable on the Revolver Maturity Date, all of the Revolving Loans
outstanding on such date, together with any and all accrued and unpaid interest thereon and all
other fees and other amounts and Obligations then accrued and outstanding with respect thereto.

4.1.2 Repayments of Revolving Loans for LIHTC Investments. With respect to any LIHTC
Advance Amount advanced in order to fund any LIHTC Investments in a particular LIHTC Property, the
Borrowers shall repay such LIHTC Advance Amount on the earlier to occur of (a) such date as the
LIHTC Investments in such LIHTC Property (or such LIHTC Property itself ) are sold, transferred or
otherwise disposed of, and (b) 180 days after the first Revolving Loan was made with respect to
such LIHTC Property.

4.1.3 Optional Repayments of Revolving Loans. The Borrowers shall have the right, at
their election, to repay all or any portion of the outstanding Revolving Loans, at any time without
penalty or premium; provided that any full or partial prepayment of the outstanding amount
of any portions of the Revolving Loans that are LIBOR Rate Loans may be made only on the last day
of the Interest Period relating thereto (unless breakage costs are paid by the Borrowers pursuant
to Section 6.11). The Borrowers shall provide to the Administrative Agent, no later than
12:00 p.m. Boston time, at least three (3) Business Days prior written notice of any proposed
prepayment of any LIBOR Rate Loans pursuant to this Section, specifying the proposed date
of prepayment and the principal amount to be prepaid. Any prepayment of a portion of the then
outstanding Revolving Loans shall be applied, in the absence of instruction by the Borrowers, (a)
first, to prepay all outstanding fees and interest accrued to the date or prepayment on the amount
being prepaid, (b) second, to the principal of such Revolving Loans which are Base Rate Loans, and
(c) third, to the principal of such Revolving Loans which are LIBOR Rate Loans. Each partial
prepayment shall be allocated among the Lenders, in proportion to their respective Revolving Loan
Commitment Percentages, to the respective unpaid principal amount of each such Lender’s outstanding
portion of the Revolving Loans as reflected in the Revolving Loan Account.

4.2 Amortization of Term Loan. The entire outstanding principal balance of the Term
Loan, along with all interest thereon and any other Obligations relating thereto, shall be
absolutely due and payable in full on the Term Loan Maturity Date.

4.2.1 Mandatory Quarterly Amortization. Commencing with the first such payment to be
due and payable on December 30, 2011, and ending with the last such payment to be due and payable
on December 30, 2016, a portion of the then outstanding principal balance of the Term Loan equal to
$2,976,190 shall be due and payable on the last Business Day of each Fiscal Quarter following the
date hereof.  

4.2.2 Mandatory Prepayments from Excess Sale Proceeds, Casualty Events and Distributions
from Excluded Entities. Concurrently with the receipt by CHC or any of its Subsidiaries of:

(a) any Excess Sale Proceeds during the term of this Credit Agreement;

 

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(b) net cash proceeds from Casualty Events which have not been utilized by CHC or such
Subsidiary to repair or replace the property so damaged, destroyed or taken within one hundred
eighty (180) days of receipt of such proceeds (or within 365 days of such receipt if a contract for
such utilization is executed and delivered within 180 days of such Casualty Event);

(c) any Excluded Entity Distributions;

(d) any amounts released to a Loan Party or the Administrative Agent from the escrow account
established under the Escrow Agreement;

the Borrowers shall pay to the Administrative Agent for the respective accounts of the Lenders an
amount equal to 100% of such proceeds or Distributions, to be applied in the manner set forth in
Section 4.2.4; provided, however, the terms of this Section 4.2.2
may be waived by the Required Lenders.

4.2.3 Additional Mandatory Prepayments from Consolidated EBITDA. Commencing with the
Fiscal Year ending on December 31, 2011 and with respect to each Fiscal Year ending thereafter
until the Term Loan Maturity Date, the Borrowers shall prepay the then outstanding principal
balance of the Term Loan in an amount equal to 75% of the excess, if any, of (a) Consolidated
EBITDA for such Fiscal Year, over (b) 130% of the Projected Consolidated EBITDA for such Fiscal
Year; provided, that, in order to avoid double-counting, receipts which are applied to
prepay the Loans pursuant to Section 4.2.2 that are included in Consolidated EBITDA for the
relevant Fiscal Year shall be excluded from Consolidated EBITDA for purpose of calculating any
mandatory prepayment required pursuant to this Section 4.2.3. The amount to be paid
pursuant to this Section shall be due and payable one Business Day following the earlier to
occur of (y) the day on which the audited financial statements of CHC with respect to the Fiscal
Year for which Consolidated EBITDA is determined are delivered to the Administrative Agent pursuant
to Section 9.5.1(a), and (z) the date on which such audited financial statements are
required to be so delivered to the Administrative Agent pursuant to Section 9.5.1(a).

4.2.4 Application of Mandatory Repayments. Provided there is not then outstanding any
Event of Default, all payments made pursuant to Section 4.2.2 and Section 4.2.3
shall be applied (a) first, to prepay or pay all outstanding fees and interest accrued to the date
of prepayment on the amount being prepaid, (b) second, to the outstanding principal amount of the
Balloon which are Base Rate Loans, (c) third, to the outstanding principal amount of the Balloon
which are LIBOR Rate Loans, and (d) fourth, after such time as the amount of the Balloon and all
other Obligations relating thereto have been paid in their entirety, to prepay quarterly
amortization payments due pursuant to Section 4.2.1 in inverse order of maturity. Such
payments shall be made pro rata among the Lenders in accordance with their respective Term Loan
Commitment Percentages. Any such payments shall permanently reduce the Term Loan Limit and the
related Term Loan Commitments.

4.2.5 Optional Prepayments of Term Loan. The Borrowers shall have the right at any
time to prepay the Term Loan on or before the Term Loan Maturity Date, as a whole or in part,
without premium or penalty; provided that the minimum optional prepayment amount shall
equal or exceed $1,000,000, upon not less than one (1) Business Day with respect to Base

 

40

 

Rate Loans and three (3) Business Days with respect to LIBOR Rate Loans prior written notice
to the Administrative Agent; provided further that (a) no portion of the Term Loan
bearing interest at the LIBOR Rate may be prepaid pursuant to this Section except on the
last day of the Interest Period relating thereto (unless breakage costs are paid by the Borrowers
pursuant to Section 6.11) and (b) each partial prepayment shall be allocated among the
Lenders, in proportion to their respective Term Loan Commitment Percentages, to the respective
unpaid principal amount of each such Lender’s outstanding portion of the Term Loan as reflected in
the Term Loan Account. Any optional prepayment of principal of the Term Loan pursuant to this
Section shall be accompanied by payment in full of all interest accrued to the date of
prepayment on the amount being prepaid and, during such time as there is no Default outstanding,
shall be applied to the remaining scheduled installments of the Term Loan or to the Balloon as the
Borrowers may direct, on a pro rata basis among the Lenders. No amount prepaid with respect to the
Term Loan may be reborrowed.

5. LETTERS OF CREDIT.

5.1 Letter of Credit Commitments.

5.1.1 Existing Letters of Credit. Listed on Schedule 5 are all the Existing
Letters of Credit.

5.1.2 Commitment to Issue Letters of Credit. Subject to the terms and conditions
hereof and the execution and delivery by the Borrowers of a letter of credit application on the
Issuing Bank’s customary form (a “Letter of Credit Application”), the Issuing Bank on behalf of the
Revolving Credit Lenders and in reliance upon the agreement of such Lenders set forth in
Section 5.1.5 and upon the representations and warranties of the Borrowers contained
herein, agrees to issue, extend and renew for the account of the Borrowers one or more New Letters
of Credit, in such form as may be requested from time to time by one of the Borrowers and agreed to
by the Issuing Bank; and the Administrative Agent (if different than the Issuing Bank) shall, on
behalf of the Revolving Credit Lenders and in reliance upon the agreement of such Lenders set forth
in Section 5.1.5 and upon the representations and warranties of the Borrowers contained
herein, agrees to enter into an LC Guaranty to support the Reimbursement Obligations of the
Borrowers with respect to all Letters of Credit outstanding from time to time (an “LC Guaranty”);
provided, however, that after giving effect to such request, (i) the sum of the
aggregate Maximum Drawing Amount on all New Letters of Credit and all Unpaid Reimbursement
Obligations with respect to New Letters of Credit shall not exceed $10,000,000 at any one time, and
(ii) the Revolving Exposure shall not exceed the Revolving Credit Limit at such time.

5.1.3 Letter of Credit Applications. Each Letter of Credit Application shall be
completed to the reasonable satisfaction of the Administrative Agent and the Issuing Bank. In the
event that any provision of any Letter of Credit Application shall be inconsistent with any
provision of this Credit Agreement, then the provisions of this Credit Agreement shall, to the
extent of any such inconsistency, govern.

5.1.4 Terms of Letters of Credit. Each Letter of Credit shall, among other things,
(a) provide for the payment of sight drafts for honor thereunder when presented in

 

41

 

accordance with the terms thereof and when accompanied by the documents described therein, and
(b) have an expiration date no later than the date which is thirty (30) days (or, if the Letter of
Credit is confirmed by a confirmer or otherwise provides for one or more nominated persons, sixty
(60) days) prior to the Revolver Maturity Date. Subject to clause (b) above, each Letter of Credit
shall expire (without giving effect to any extension thereof by reason of an interruption of
business) at or prior to the close of business 365 days, in the case of standby Letters of Credit,
or 180 days, in the case of documentary Letters of Credit, after the date of the issuance of such
Letter of Credit (or, in the case of any renewal or extension thereof, 365 days or 180 days, as
applicable, after such renewal or extension); provided that the Issuing Bank shall, upon
request of the Borrowers, agree to extend, renew or issue any such standby Letter of Credit
providing for automatic extensions thereof to a date not later than 365 days beyond its current
expiration date (or such longer period as may be agreed to by the Issuing Bank) (provided
that in no event shall such period up to or longer than 365 days extend beyond the date referred to
in clause (b) above); and provided further that any such automatic extension of a
Letter of Credit must permit the Issuing Bank to prevent any such extension at least once in each
twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day in each such twelve-month period to be
agreed (but not less than 30 days prior to the then-current expiration date) upon at the time such
Letter of Credit is extended, renewed or issued. Each Letter of Credit so issued, extended or
renewed shall be subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500 or any successor version thereto
adopted by the Issuing Bank in the ordinary course of its business as a letter of credit issuer and
in effect at the time of issuance of such Letter of Credit (the “Uniform Customs”) or, in the case
of a standby Letter of Credit, either the Uniform Customs or the International Standby Practices
(ISP98), International Chamber of Commerce Publication No. 590, or any successor code of standby
letter of credit practices among banks adopted by the Issuing Bank in the ordinary course of its
business as a standby letter of credit issuer and in effect at the time of issuance of such Letter
of Credit. No Letter of Credit shall be for less than $500,000.00 (unless otherwise agreed to by
the Issuing Bank) and there shall be no more than ten (10) Letters of Credit outstanding at any one
time.

5.1.5 Letter of Credit Participation of Lenders. Each Revolving Credit Lender
severally, but not jointly, agrees that it shall be absolutely liable, without regard to the
occurrence of any Default or any other condition precedent whatsoever, to the extent of such
Lender’s Revolving Loan Commitment Percentage, to reimburse the Administrative Agent on demand for
the amount of each draft paid by the Issuing Bank under each Letter of Credit and, if applicable,
each payment made by the Administrative Agent to the Issuing Bank under any LC Guaranty relating to
any Letter of Credit issued for the account of either of the Borrowers to the extent that such
amount is not reimbursed by the Borrowers pursuant to Section 5.2 (such agreement by a
Lender being called herein the “Letter of Credit Participation” of such Lender).

5.1.6 Participations of Lenders. Each such payment made by a Revolving Credit Lender
shall, unless the applicable Reimbursement Obligation has been otherwise funded as a Revolving Loan
bearing interest at the Base Rate pursuant to Section 5.2, be treated as the purchase by
such Revolving Credit Lender of a participating interest in the Borrowers’ Reimbursement Obligation
under Section 5.2 in an amount equal to such payment. To that

 

42

 

extent, each Revolving Credit Lender shall share in accordance with its respective Revolving
Loan Commitment Percentage, in any interest which accrues pursuant to Section 5.2.

5.2 Reimbursement Obligation of the Borrowers. In order to induce the Administrative
Agent to cause the Issuing Bank to issue, extend and renew each Letter of Credit, the Borrowers
agree to reimburse or pay to the Administrative Agent for the account of the Administrative Agent
and/or the Issuing Bank or (as the case may be) the Lenders, with respect to each Letter of Credit
issued, extended or renewed for either of the Borrowers’ account, within two (2) Business Days
after notice from the Administrative Agent or the Issuing Bank that any draft presented under such
Letter of Credit is honored by the Issuing Bank, or the Issuing Bank or the Administrative Agent
otherwise makes a payment with respect thereto or the Administrative Agent makes any payment under
any LC Guaranty, (a) the amount paid by the Issuing Bank or the Administrative Agent under or with
respect to such Letter of Credit, and (b) the amount of any taxes, fees, charges or other costs and
expenses whatsoever reasonably incurred by the Issuing Bank or Administrative Agent or any Lender
(without duplication of any amounts paid by the Borrowers pursuant to Section 6.2, and
other than Excluded Taxes) in connection with any payment made by the Issuing Bank, Administrative
Agent or any Lender under, or with respect to, such Letter of Credit (collectively, the
“Reimbursement Obligations”); provided that, regardless of whether the conditions to
borrowing set forth herein are then satisfied, payment of each Reimbursement Obligation by the
Borrowers under this Section shall be made through the automatic funding of a Revolving
Loan bearing interest at the Base Rate applicable to Revolving Loans in an amount equal to the
amount of such Reimbursement Obligation, and the Borrowers hereby irrevocably authorize and direct
the Administrative Agent and Issuing Bank to take such actions as may be necessary to effectuate
such automatic funding of any such Base Rate Loans. Notwithstanding the foregoing, upon the
reduction (but not termination) of the Revolving Credit Limit to an amount less than the then
outstanding Revolving Exposure at such time as the then applicable Maximum Drawing Amount is
greater than zero, the Borrowers shall within two (2) Business Days provide cash or Cash
Equivalents to the Administrative Agent in an amount equal to the lesser of (i) the excess of the
Revolving Exposure over the Revolving Credit Limit, and (ii) such Maximum Drawing Amount, which
amount shall be held by the Administrative Agent for the benefit of the Lenders and the
Administrative Agent as cash collateral for all Reimbursement Obligations, and upon the reduction
of the Revolving Credit Limit to zero, or the acceleration of the Reimbursement Obligations with
respect to all Letters of Credit issued for the account of the Borrowers in accordance with
Section 11.2.1, the Borrowers shall immediately provide cash or Cash Equivalents to the
Administrative Agent in an amount equal to the then Maximum Drawing Amount on all Letters of
Credit, which amount shall be held by the Administrative Agent, for the benefit of the Lenders and
the Administrative Agent, as cash collateral for all Reimbursement Obligations (all such cash
collateral to be provided pursuant to this sentence, collectively, the “Cash Collateral”).

Each such payment shall be made to the Administrative Agent at the Administrative Agent’s Office in
immediately available funds. Interest on any and all amounts remaining unpaid by the Borrowers
under this Section at any time from the date such amounts become due and payable (whether
as stated in this Section, by acceleration or otherwise) until payment in full (whether
before or after judgment) shall be payable to the Administrative Agent on demand and shall accrue
interest at the Default Rate.

 

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5.3 Letter of Credit Payments. If any draft shall be presented or other demand for
payment shall be made under any Letter of Credit, the Administrative Agent shall notify the
Borrowers of the date and amount of the draft presented or demand for payment and of the date and
time when it expects to pay such draft or honor such demand for payment. If the Borrowers fail to
reimburse the Administrative Agent as provided in Section 5.2 on or before the date that
such draft is paid or other payment is made by the Issuing Bank or the Administrative Agent or, as
a result of the applicable borrowing limits described therein being exceeded such Reimbursement
Obligations are not satisfied by the making of a Revolving Loan bearing interest at the Base Rate
applicable to Revolving Loans, the Administrative Agent may at any time thereafter notify the
Revolving Credit Lenders of the amount of any such Unpaid Reimbursement Obligation. No later than
2:00 p.m. Boston time on the Business Day next following the receipt of such notice, each such
Revolving Credit Lender shall make available to the Administrative Agent, at the Administrative
Agent’s Office, in immediately available funds, such Revolving Credit Lender’s Revolving Loan
Commitment Percentage of such Unpaid Reimbursement Obligation, together with an amount equal to the
product of (a) the average, computed for the period referred to in clause (c) below, of the
weighted average interest rate paid by the Administrative Agent for federal funds acquired by the
Administrative Agent during each day included in such period, times (b) the amount equal to such
Lender’s Revolving Loan Commitment Percentage of such Unpaid Reimbursement Obligation, times (c) a
fraction, the numerator of which is the number of days that elapse from and including the date the
Issuing Bank or the Administrative Agent paid the draft presented for honor or otherwise made
payment to the date on which such Lender’s Revolving Loan Commitment Percentage of such Unpaid
Reimbursement Obligation shall become immediately available to the Administrative Agent, and the
denominator of which is 360. The responsibility of the Issuing Bank and the Administrative Agent to
the Borrowers and the Lenders shall be only to determine that the documents (including each draft)
delivered under each Letter of Credit in connection with such presentment shall be in conformity in
all material respects with such Letter of Credit.

5.4 Obligations Absolute. The Borrowers’ obligations under this Section shall
be joint, several, absolute and unconditional under any and all circumstances and irrespective of
the occurrence of any Default or any condition precedent whatsoever or any setoff, counterclaim or
defense to payment which either Borrower may have or have had against the Issuing Bank or the
Administrative Agent, any Lender or any beneficiary of a Letter of Credit. The Borrowers further
agree with the Administrative Agent and the Lenders that none of the Issuing Bank, the
Administrative Agent and the Lenders shall be responsible for, and the Borrowers’ Reimbursement
Obligations under Section 5.2 shall not be affected by, among other things, the validity or
genuineness of documents or of any endorsements thereon, even if such documents should in fact
prove to be in any or all respects invalid, fraudulent or forged, or any dispute between or among
the Borrowers, the beneficiary of any Letter of Credit or any financing institution or other party
to which any Letter of Credit may be transferred or any claims or defenses whatsoever of either
Borrower against the beneficiary of any Letter of Credit or any such transferee. None of the
Issuing Bank, the Administrative Agent and the Lenders shall be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit. The Borrowers agree that any action taken or
omitted by the Issuing Bank, the Administrative Agent or any Lender under or in connection with
each Letter of Credit and the related drafts and documents, if done in good faith and in the
absence of gross negligence or willful misconduct, shall be binding

 

44

 

upon the Borrowers and the Guarantors and shall not result in any liability on the part of the
Issuing Bank, the Administrative Agent or any Lender to the Borrowers or Guarantors.

5.5 Reliance by Issuer. To the extent not inconsistent with Section 5.4, the
Issuing Bank and the Administrative Agent shall be entitled to rely, and shall be fully protected
in relying upon, any Letter of Credit, draft, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or
other document reasonably believed by such Person to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and statements of legal
counsel, independent accountants and other experts selected by the Issuing Bank or the
Administrative Agent.

5.6 Letter of Credit Fees. The Borrowers shall pay the following fees in respect of
each Letter of Credit (the “Letter of Credit Fees”): (a) to the Administrative Agent, a per annum
fee in an amount equal to (i) during such time as there is outstanding no Event of Default, 3.00%
times the Maximum Drawing Amount of each such Letter of Credit, and (ii) during such time as there
exists an Event of Default, the rate provided in Section 6.12 (to the fullest extent
permitted by applicable law), which Letter of Credit Fees shall be for the accounts of the Lenders
in accordance with their respective Revolving Loan Commitment Percentages; and (b) to the Issuing
Bank, for the account of the Issuing Bank as a fronting fee, a per annum fee in an amount equal to
0.125% times the Maximum Drawing Amount of each Letter of Credit. The Letter of Credit Fees shall
be paid quarterly in arrears on the first Business Day of each Fiscal Quarter for the immediately
preceding Fiscal Quarter. In respect of each Letter of Credit issued for the account of either
Borrower, the Borrowers shall also pay to the Issuing Bank for the Issuing Bank’s own account, at
such other time or times as such charges are customarily made by the Issuing Bank, the Issuing
Bank’s customary issuance, amendment, negotiation, payment or document examination and other
administrative fees as in effect and applicable from time to time.

6. CERTAIN GENERAL PROVISIONS.

6.1 Payments to Administrative Agent. All payments of principal and interest on any
outstanding portion of the Loans and all Reimbursement Obligations, Fees and any other amounts due
hereunder or under any of the other Loan Documents (unless the provisions of this Credit Agreement
or another Loan Document require otherwise) shall be made on the due date thereof to the
Administrative Agent in Dollars for the respective accounts of the Creditor Parties, by wire
transfer of immediately available funds, at the Administrative Agent’s Office or at such other
place as the Administrative Agent may from time to time designate, in each case no later than 12:00
p.m. Boston time.

6.2 No Offsets, Taxes Etc.

6.2.1 No Offsets. Any and all payments by the Borrowers or Guarantors hereunder or
under any of the other Loan Documents shall be made free and clear of and without deduction or
withholding for any and all present or future Taxes, unless such Taxes are required by law or the
administration thereof to be deducted or withheld (all such Taxes, excluding the Excluded Taxes and
Other Taxes, being referred to herein as “Covered Taxes”). If the

 

45

 

Borrowers or Guarantors shall be required by law or the administration thereof to deduct or
withhold any Covered Taxes from or in respect of any sum payable hereunder or under any other Loan
Document, (a) the sum payable shall be increased as may be necessary so that after making all
required deductions or withholdings (including deductions or withholdings applicable to additional
amounts paid under this paragraph), the applicable Creditor Parties receive an amount equal to the
sum they would have received if no such deduction or withholding had been made; (b) the Borrowers
and Guarantors shall make such deductions or withholdings; and (c) the Borrowers and Guarantors
shall pay the full amount deducted or withheld to the relevant taxation or other authority in
accordance with applicable law.

6.2.2 Other Taxes. The Borrowers and Guarantors agree to pay, in a timely manner and
in accordance with all applicable law, any present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies (all such taxes, charges and levies being
herein referred to as “Other Taxes”) imposed by any jurisdiction (or any political subdivision or
taxing authority thereof or therein) which arise from any payment made by the Borrowers or
Guarantors hereunder or under any of the other Loan Documents or from the execution, delivery or
registration of, or otherwise with respect to, this Credit Agreement or any of the other Loan
Documents.

6.2.3 Indemnification. The Borrowers and Guarantors agree to indemnify each of the
Creditor Parties for the full amount of Covered Taxes or Other Taxes not deducted, withheld and
paid by the Borrowers or Guarantors in accordance with Sections 6.2.1 and 6.2.2 on
amounts payable by the Borrowers and Guarantors under this Section which are paid by any of
the Creditor Parties and any liability (including penalties and interest arising therefrom or with
respect thereto, other than penalties and interest attributable solely to the gross negligence or
willful misconduct of such Creditor Parties, as applicable) arising therefrom or with respect
thereto, whether or not any such Covered Taxes or Other Taxes were correctly or legally asserted.
Payment under this indemnification shall be made within fifteen (15) days from the date a Creditor
Party makes written demand therefor. A certificate as to the amount of such Covered Taxes or Other
Taxes and evidence of payment thereof submitted to the Borrowers and Guarantors shall be
conclusive, absent manifest error, of the amount due from the Borrowers or Guarantors to such
Creditor Party.

6.2.4 Non-U.S. Lenders. Each Creditor Party that is organized under the laws of a
jurisdiction outside the United States (a “Non-U.S. Lender”) agrees that it shall, no later than
the Closing Date (or, in the case of a Creditor Party which becomes a party hereto pursuant to this
Credit Agreement after the Closing Date, on or prior to the date upon which such Creditor Party
becomes a party hereto), and from time to time thereafter upon the reasonable request of the
Borrowers (but only if such Non-U.S. Lender or beneficial owner is legally entitled to do so)
deliver to the Borrowers and the Administrative Agent two properly completed and duly executed
copies of either United States Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY or any
subsequent versions thereof or successors thereto, or any other form prescribed by applicable law
as a basis for claiming exemption from (or reduction in) United States federal withholding tax
together with such supplementary documentation as may be prescribed by applicable law, in each case
claiming complete exemption from, or reduced rate of, United States federal withholding tax and
payments of interest hereunder. In addition, in the case of a Non-U.S. Lender claiming exemption
from United States federal withholding tax under Section

 

46

 

871(h) or Section 881(c) of the Code, such Non-U.S. Lender (to the extent legally entitled to
do so) shall deliver a certificate, in substantially the same form as Exhibit 6.2.4, to the
Borrowers and the Administrative Agent, certifying that such Non-U.S. Lender or beneficial owner is
not (A) a bank for purposes of Section 881(c)(3)(A) of the Code, (B) a 10-percent shareholder of
any of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, and (C) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code. Each Non-U.S. Lender (i)
agrees that it shall promptly notify the Borrowers and the Administrative Agent in the event any
such representation provided pursuant to this Section is no longer accurate and (ii) agrees
that it will deliver updated versions of the foregoing, as applicable, whenever any of the previous
certifications provided herein has become inaccurate in any material respect, together with such
other forms as may be required in order to confirm or establish the entitlement of such Creditor
Party to a continued exemption from or reduction in United States withholding tax with respect to
payments under this Credit Agreement. All forms provided in this Section shall be
delivered by each Non-U.S. Lender to the Borrowers and the Administrative Agent on or before the
date it becomes a party to this Credit Agreement and on or before the date, if any, such Non-U.S.
Lender changes its applicable lending office by designating a different lending office (a “New
Lending Office”).

6.2.5 U.S. Lenders. Any Creditor Party that is not a Non-U.S. Lender and that may not
be treated as an exempt recipient based on the indicators described in Treasury Regulation Section
1.6049-4(c)(1)(ii) shall deliver to the Borrowers on or prior to the date on which such Creditor
Party becomes a Creditor Party under this Credit Agreement (and from time to time thereafter as
prescribed by applicable law or upon the reasonable request of the Borrowers), two duly executed
and properly completed copies of United States Internal Revenue Service Form W-9, or any successor
form that such Creditor Party is entitled to provide at such time in order to comply with United
States back-up withholding requirements. Notwithstanding any other provision in this
Section, no amount shall be required to be paid to a Creditor Party under this
Section with respect to backup withholding if there has been a notified underreporting
pursuant to Section 3406(a)(1)(C) of the Code (or similar provision or successor provision) with
respect to such Creditor Party.

6.2.6 Pre-Existing Withholding Requirements. The Borrowers and Guarantors shall not
be required to indemnify any Non-U.S. Lender, or pay any additional amounts to any Non-U.S. Lender,
in respect of United States federal withholding tax pursuant to this Credit Agreement to the extent
that the obligation to withhold amounts with respect to United States federal withholding tax
existed on the date such Non-U.S. Lender became a party to this Credit Agreement or, with respect
to payments to a New Lending Office, the date such Non-U.S. Lender designated such New Lending
Office with respect to the Loans; provided, however, that this clause shall not
apply to the extent (i) the indemnity payment or additional amounts any transferee or assignee of
any Creditor Party, or any Creditor Party through a New Lending Office, would be entitled to
receive (without regard to this clause (i)) do not exceed the indemnity payment or additional
amounts that the Person making the assignment or transfer to such transferee or assignee, or
Creditor Party making the designation of such New Lending Office, would have been entitled to
receive in the absence of such assignment, transfer or designation, or (ii) the obligation to pay
such additional amounts would not have arisen but for a failure by such Non-U.S. Lender to comply
with the provisions of Section 6.2.4.

 

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6.2.7 Mitigation. Any Creditor Party claiming any indemnity payment or additional
payment amounts payable pursuant to this Section shall use reasonable efforts (consistent
with legal and regulatory restrictions), at the Borrowers’ and Guarantors’ expense, (a) to file any
certificate or document reasonably requested in writing by the Borrowers, or (b) to change the
jurisdiction of its applicable lending office if the making of such a filing or change (i) would
avoid the need for or reduce the amount of any such indemnity payment or additional amount which
may thereafter accrue, (ii) would not require such Creditor Party to disclose any information such
Creditor Party deems confidential and (iii) would not, in the sole determination of such Creditor
Party, be otherwise disadvantageous to such Creditor Party.

6.2.8 Refunds. If any Creditor Party (including a transferee) determines in its sole
discretion that it is entitled to claim a refund from a Governmental Authority in respect of
Covered Taxes or Other Taxes with respect to which any of the Borrowers or Guarantors has paid
additional amounts pursuant to this Section, it will promptly notify the applicable
Borrower or Guarantor of the availability of such refund claim and shall, within twenty (20) days
after receipt of a written request by such Borrower or Guarantor, make a claim to the Governmental
Authority for such refund at such Borrower’s or Guarantor’s expense. If any Creditor Party
receives a refund (including a refund made pursuant to the preceding sentence) in respect of any
Covered Taxes or Other Taxes with respect to which a Borrower or Guarantor has paid additional
amounts pursuant to this Section, such Creditor Party shall within ten (10) Business Days
from the date of the receipt pay over such refund (solely to the extent of such Borrower’s or
Guarantor’s payment, plus a pro rata portion of any interest paid by the relevant Governmental
Authority with respect to such refund) to such Borrower or Guarantor, net of all out of pocket
expenses of such Creditor Party incurred in connection with obtaining such refund, including
reasonable attorneys fees; provided, however, that such Borrower or Guarantor, upon
the request of such Creditor Party, agrees to repay the amount paid over to such Borrower or
Guarantor (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the applicable Creditor Party in the event such Creditor Party is required to repay
such refund to such Governmental Authority. This Section shall not be construed to require
any Creditor Party to make available its tax returns (or any other information relating to its
taxes that it deems confidential) to a Borrower, a Guarantor or any other Person. Notwithstanding
anything to the contrary, in no event will any Creditor Party be required to pay any amount under
this Section the payment of which would place such Creditor Party in a less favorable net
after-tax position than such Creditor Party would have been in if the additional amounts giving
rise to such refund of any Covered Taxes or Other Taxes had never been paid.

6.2.9 Evidence of Payment. The Borrowers and Guarantors shall furnish to the
Administrative Agent and each of the Creditor Parties the original or a certified copy of a receipt
evidencing any payment of Covered Taxes or Other Taxes made by the Borrowers or Guarantors as soon
as such receipt becomes available.

6.2.10 Survival. The provisions of this Section shall survive the termination
of this Credit Agreement and repayment of all Obligations for a period of one year.

6.3 Computations. All computations of interest on Loans, any Fees or any other amount
due hereunder shall, unless otherwise expressly provided herein, be based on a 365/366-day year for
all Base Rate Loans, and a 360-day year for all other purposes, and paid for the actual

 

48

 

number of days elapsed. Except as otherwise provided in the definition of the term “Interest
Period” with respect to LIBOR Rate Loans, whenever a payment hereunder or under any of the other
Loan Documents becomes due on a day that is not a Business Day, the due date for such payment shall
be extended to the next succeeding Business Day, and interest and fees shall accrue during such
extension.

6.4 Interest Limitation. Notwithstanding any other term of this Credit Agreement or
any other document referred to herein or therein, the maximum amount of interest which may be
charged to or collected from any Person liable hereunder by the Lenders shall be absolutely limited
to, and shall in no event exceed, the maximum amount of interest which could lawfully be charged or
collected under applicable law (including, to the extent applicable, the provisions of Section 5197
of the Revised Statutes of the United States, as amended or 12 U.S.C. Section 85, as amended), so
that the maximum of all amounts constituting interest under applicable law, howsoever computed,
shall never exceed as to any Person liable therefor such lawful maximum, and any term of this
Credit Agreement or any other document referred to herein or therein which could be construed as
providing for interest in excess of such lawful maximum, shall be and hereby is made expressly
subject to and modified by the provisions of this paragraph.

6.5 Inability to Determine LIBOR Rate. In the event, prior to the commencement of any
Interest Period relating to any LIBOR Rate Loan, the Administrative Agent shall in good faith
determine or be notified by the Required Lenders that (a) adequate and reasonable methods do not
exist for ascertaining the LIBOR Rate that would otherwise determine the rate of interest to be
applicable to any LIBOR Rate Loan during any Interest Period or (b) the LIBOR Rate determined or to
be determined for such Interest Period will not adequately and fairly reflect the cost to the
Lenders of making or maintaining their LIBOR Rate Loans during such period, the Administrative
Agent shall forthwith give notice of such determination (which shall be conclusive and binding on
the Borrowers and the Lenders) to the Borrowers and the Lenders. In such event (i) any Revolving
Loan Request or Conversion Request with respect to LIBOR Rate Loans shall be automatically
withdrawn and shall be deemed a request for Base Rate Loans, (ii) each LIBOR Rate Loan will
automatically, on the last day of the then current Interest Period relating thereto, become a Base
Rate Loan and (iii) the obligations of the Lenders to make LIBOR Rate Loans shall be suspended
until the Administrative Agent or the Required Lenders determine that the circumstances giving rise
to such suspension no longer exist, whereupon the Administrative Agent or, as the case may be, the
Administrative Agent upon the instruction of the Required Lenders, shall so notify the Borrowers
and the Lenders.

6.6 Illegality. Notwithstanding any other provisions herein, if any present or future
law, regulation, treaty or directive or in the interpretation or application thereof shall make it
unlawful for any Lender to (i) make or maintain LIBOR Rate Loans, or (ii) perform its obligations
in respect of any LIBOR Rate Loan, such Lender shall forthwith give notice of such circumstances to
the Borrowers, the Administrative Agent and the other Lenders and thereupon (a) the commitment of
such Lender to make LIBOR Rate Loans or convert any outstanding portion of the Loans of another
Type to LIBOR Rate Loans shall forthwith be suspended, and (b) such Lender’s Loans then outstanding
as LIBOR Rate Loans if any such Loans exist, shall be converted automatically to Base Rate Loans on
the last day of each Interest Period applicable to such LIBOR Rate Loans or within such earlier
period as may be required by law. The Borrowers hereby agree promptly to pay to the Administrative
Agent for the account of such Lender, upon

 

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demand by such Lender, any additional amounts necessary to compensate such Lender for any
costs incurred by such Lender in making any conversion in accordance with this Section,
including any interest or fees payable by such Lender to lenders of funds obtained by it in order
to make or maintain its LIBOR Rate Loans hereunder.

6.7 Additional Costs, Etc. If any present or future applicable law, which expression,
as used herein, includes statutes, rules and regulations thereunder and interpretations thereof by
any Governmental Authority charged with the administration or the interpretation thereof and
requests, directives, instructions and notices at any time or from time to time hereafter made upon
or otherwise issued to any Creditor Party by any central bank or other fiscal, monetary or other
authority (whether or not having the force of law), shall:

6.7.1 Taxes. subject any Creditor Party to any Tax or withholding of any nature with
respect to this Credit Agreement, the other Loan Documents, any Letters of Credit, such Creditor
Party’s Commitment or the LIBOR Rate Loans, or change in the basis of taxation of payments to such
Creditor Party (other than Taxes, levies, imposts, charges, fees, deductions or withholdings
covered by Section 6.2 and the imposition of, or any change in the rate of, any Excluded
Tax payable by such Creditor Party), or

6.7.2 Reserves. impose or increase or render applicable (other than to the extent
specifically provided for elsewhere in this Credit Agreement) any special deposit, reserve,
assessment, liquidity, capital adequacy or other similar requirements (whether or not having the
force of law) against assets held by, or deposits in or for the account of, or loans by, or letters
of credit issued by, or commitments of an office of any Creditor Party), or

6.7.3 Other Costs. impose on any Creditor Party any other conditions or requirements
with respect to this Credit Agreement, the other Loan Documents, such Lender’s Commitment, any
Letters of Credit or the LIBOR Rate Loans, and the result of any of the foregoing is:

(a) to increase the cost to any Creditor Party of making, funding, issuing, renewing,
extending or maintaining any of the LIBOR Rate Loans, such Commitment, any Letter of Credit, or

(b) to reduce the amount of principal, interest, Reimbursement Obligation or other amount
payable to such Creditor Party hereunder on account of such Commitment, any Letter of Credit or any
outstanding portion of the Loans, or

(c) to require such Creditor Party to make any payment or to forego any interest or
Reimbursement Obligation or other sum payable hereunder, the amount of which payment or foregone
interest or Reimbursement Obligation or other sum is calculated by reference to the gross amount of
any sum receivable or deemed received by such Creditor Party from the Borrowers hereunder,

then, and in each such case, the Borrowers will, upon demand made by such Creditor Party at any
time and from time to time and as often as the occasion therefor may arise, pay to such Creditor
Party such additional amounts as will be sufficient to compensate such Creditor Party for such
additional cost, reduction, payment or foregone interest or Reimbursement Obligation or

 

50

 

other sum upon presentation by such Creditor Party of a certificate in accordance with Section
6.9; provided that the Borrowers shall not be liable to any Creditor Party for costs
incurred more than one hundred eighty (180) days prior to receipt by the Borrowers of such
certificate from such Creditor Party, as applicable, unless such costs were incurred prior to such
180-day period solely as a result of such present or future applicable law being retroactive to a
date which occurred prior to such 180-day period.

6.8 Capital Adequacy. If after the date hereof any Creditor Party determines that (i)
the adoption of or change in any law, governmental rule, regulation, policy, guideline or directive
(whether or not having the force of law) regarding capital requirements for banks or bank holding
companies or any change in the interpretation or application thereof by a court or Governmental
Authority with appropriate jurisdiction, or (ii) compliance by such Creditor Party or any
corporation controlling such Creditor Party with any law, governmental rule, regulation, policy,
guideline or directive (whether or not having the force of law) of any such entity regarding
capital adequacy, has the effect of reducing the return on such Creditor Party’s Commitment with
respect to any outstanding portion of the Loans to a level below that which such Creditor Party
could have achieved but for such adoption, change or compliance (taking into consideration such
Creditor Party’s then existing policies with respect to capital adequacy and assuming full
utilization of such entity’s capital) by any amount deemed by such Creditor Party to be material,
then such Creditor Party may notify the Borrowers of such fact upon presentation of a certificate
in accordance with Section 6.9. To the extent that the amount of such reduction in the
return on capital is not reflected in the Base Rate, the Borrowers and such Creditor Party shall
thereafter attempt to negotiate in good faith, within thirty (30) days of the day on which the
Borrowers receive such notice, an adjustment to the compensation payable hereunder which will
adequately compensate such Creditor Party in light of these circumstances. If the Borrowers and
such Creditor Party are unable to agree to such adjustment within thirty (30) days of the date on
which the Borrowers receive such notice, then commencing on the date of such notice (but not
earlier than the effective date of any such increased capital requirement), the fees payable
hereunder shall increase by an amount that will, in such Creditor Party’s reasonable determination,
provide adequate compensation; provided that the Borrowers shall not be liable to any
Creditor Party for costs incurred more than one hundred eighty (180) days prior to receipt by the
Borrowers of such notice. Each Creditor Party shall allocate such cost increases among its
customers in good faith and on an equitable basis.

6.9 Certificate. A certificate setting forth any additional amounts payable pursuant
to Section 6.7 or Section 6.8 and a reasonably detailed explanation of such amounts
which are due, submitted by any Creditor Party to the Borrowers, shall be prima
facie evidence in the absence of manifest error that such amounts are due and owing.

6.10 Mitigation Obligations; Replacement of Lenders.

6.10.1 Designation of a Different Lending Office. If any Lender requests
compensation, or the Borrowers are required to pay any additional amounts to or for the benefit of
such Lender, pursuant to Section 6.6, Section 6.7 or Section 6.8, or if any
Lender gives a notice pursuant to Section 6.6, then such Lender shall use reasonable
efforts to designate a different Domestic Lending Office or LIBOR Lending Office for funding or
booking any portion of its outstanding Loans hereunder or to assign its rights and obligations
hereunder to another of

 

51

 

its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or
assignment (a) would eliminate or reduce amounts compensable or payable pursuant to Section
6.6, Section 6.7 or Section 6.8, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 6.6 as applicable, and (b) in each
case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

6.10.2 Survival. All of the Borrower’s Obligations under Section 6.7,
Section 6.8, Section 6.9 and this Section shall survive termination of the
Commitments and repayment of all other Obligations hereunder.

6.11 Indemnity. The Borrowers agree to indemnify the Administrative Agent and each
Lender and to hold each of them harmless from and against any loss, cost or expense that such
Person may sustain or incur as a consequence of (a) default by the Borrowers in payment of the
principal amount of or any interest on any LIBOR Rate Loans as and when due and payable, including
any such loss or expense arising from interest or fees payable by such Lender to lenders of funds
obtained by it in order to maintain its LIBOR Rate Loans, (b) default by the Borrowers in making a
borrowing or conversion after a Borrower has given (or is deemed to have given) a Revolving Loan
Request or a notice (in the case of all or any portion of the Loans pursuant to Section
2.3.4) or a Conversion Request relating thereto in accordance with Section 2.3.1 or
2.3.2 or (c) the making of any payment of a LIBOR Rate Loan or the making of any conversion
of any such outstanding portion of the Loans to a Base Rate Loan on a day that is not the last day
of the applicable Interest Period with respect thereto, including interest or fees payable by such
Lender to lenders of funds obtained by it in order to maintain any such LIBOR Rate Loans.

6.12 Interest and Fees After Event of Default. At the Administrative Agent’s
discretion or upon written request of the Required Lenders, upon the occurrence and during the
continuance of an Event of Default, the Borrowers shall pay interest on the principal amount of all
outstanding Obligations (other than Letter of Credit Fees) at a fluctuating interest rate per annum
at all times equal to the Default Rate, and Letter of Credit Fees at a rate equal to 2% above the
otherwise applicable fee, to the fullest extent permitted by applicable laws.

6.13 Replacement of Lenders. (a) If any Lender requests compensation, or the
Borrowers are required to pay any additional amount to or for the benefit of such Lender, pursuant
to Section 6.6, Section 6.7 or Section 6.8, or if any Lender gives a notice
pursuant to Section 6.7, (b) if any Lender is a Delinquent Lender; or (c) if any Lender
refuses to consent, or unreasonably withholds, conditions or delays its consent, pursuant to
Section 23.1.1 or Section 23.1.2; then the Borrowers may, at their sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 17), all of its interests, rights and obligations under this
Credit Agreement and the other Loan Documents to an Eligible Assignee that shall assume such
obligations; provided that:

(i) the Borrowers shall have paid to the Administrative Agent the processing and recordation
fee specified in Section 17.2.2;

 

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(ii) such Lender shall have received payment of an amount equal to the outstanding principal
of all Loans made by it, accrued interest thereon, accrued fees and all other amounts payable
hereunder and under the other Loan Documents (including any amounts under Section 6.6,
Section 6.7 or Section 6.8) from the Eligible Assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other
amounts);

(iii) such assignment does not conflict with any applicable laws; and

(iv) A Lender shall not be required to make any such assignment or delegation pursuant to this
Section if, prior to the consummation of such assignment, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and
delegation cease to apply.

7. CONDITIONS PRECEDENT

The Lenders’ willingness to execute and deliver this Credit Agreement, and to make Revolving Loans
and the Term Loan, and for the Issuing Bank to consider extending or renewing any of the Existing
Letters of Credit or issuing any New Letters of Credit, are subject to the satisfaction or waiver
(in each Lender’s unrestricted discretion) of the following conditions precedent; provided that the
execution and delivery by a Lender of this Credit Agreement shall be deemed to constitute the
agreement of such Lender that the conditions precedent to the initial borrowings hereunder have
been satisfied:

7.1 Documents. The Creditor Parties shall have received each of the following, in
form and substance reasonably satisfactory to such Creditor Parties and their respective counsel:

(a) Counterparts of this Credit Agreement, and the other Loan Documents required to be
executed and delivered contemporaneously with this Credit Agreement, including, without limitation,
those documents reflected on the Closing Checklist attached to this Credit Agreement as Exhibit
7.1, duly executed and delivered by each of the parties thereto;

(b) Such other documents, agreements and instruments and the completion of all actions as the
Creditor Parties may reasonably request.

7.2 Other Conditions Precedent to advancing any portion of the Loans.

(a) No Default shall have occurred and be continuing as of the Closing Date or the date of the
making of a portion of the Loans or would exist immediately after giving effect thereto.

(b) All warranties and representations made by or on behalf of either of the Borrowers or any
of the Guarantors to any of the Creditor Parties pursuant to the Loan Documents shall be true and
accurate in all material respects.

 

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(c) The Creditor Parties reasonably shall be satisfied that the Pledge Agreements and Other
Security Documents create or will create, as security for the Obligations, a valid and enforceable
perfected first priority security interest in and Lien upon all of the Equity Collateral and Other
Collateral described therein in favor of the Administrative Agent, on behalf of the Creditor
Parties, subject to no other Liens, other than such Liens as are permitted pursuant to the terms of
the Pledge Agreements or Other Security Documents and Permitted Liens.

(d) The Required Lenders shall, in their good faith judgment, be satisfied that, other than
for those matters set forth on Schedule 8.2, no litigation, action, suit, investigation or
other arbitral, administrative or judicial proceeding shall be pending or threatened which could
reasonably be expected to result in a Material Adverse Effect.

(e) the Borrowers and the Guarantors shall have received all approvals, consents and waivers,
and shall have made or given all necessary filings and notices as shall be required to consummate
the transactions contemplated hereby without the occurrence of any default under, conflict with or
violation of (1) any Applicable Law or (2) any agreement, document or instrument to which any such
Person is a party or by which any of them or their respective properties is bound, except for such
approvals, consents, waivers, filings and notices the receipt, making or giving of which would not
reasonably be likely to have a Material Adverse Effect.

(f) The Borrowers shall have paid the Administrative Agent, for the ratable benefit of the
Lenders, where applicable, such amounts as shall be due under the Fee Letter and shall have paid
all other amounts required on or prior to such borrowing date to be paid hereunder.

8. REPRESENTATIONS AND WARRANTIES

In order to induce the Creditor Parties to enter into this Credit Agreement and to make the Loans,
each of the Borrowers, and each of the Guarantors, jointly and severally, represent and warrant to
the Administrative Agent, the Issuing Bank and the Lenders as follows:

8.1 Financial Information. Pro forma consolidated financial statements of each
Borrower and a pro forma consolidating balance sheet and income statement for CHC, as of and for
the fiscal quarter ended most recently prior to the date hereof, have been delivered to the
Creditor Parties and, have been prepared in good faith based on assumptions believed by the
Borrowers to be reasonable as of the date of delivery thereof, and fairly present in all material
respects the financial condition of each Borrower, each Guarantor and each Pledged Entity as of
such date, on a pro forma basis after giving effect to the transactions contemplated to occur on
the Closing Date.

8.2 Litigation. Except as set forth on Schedule 8.2, there are no actions,
suits, proceedings or investigations of any kind pending or, to the knowledge of either Borrower or
any Guarantors, threatened, against any of them or their respective Subsidiaries, before any court,
tribunal or administrative agency or board that, if adversely determined, would reasonably be
expected to, either in any case or in the aggregate, have a Material Adverse Effect, or result in
any substantial liability not adequately covered by insurance, or for which adequate reserves are

 

54

 

not maintained on the balance sheet of such Person, or which question the validity of this
Credit Agreement or any of the other Loan Documents, or any action taken or to be taken pursuant
hereto or thereto.

8.3 Good Title and No Liens. The Borrowers, the Guarantors and the Pledged Entities
are the lawful owners of their respective assets and are and will be the lawful owners of such
assets, free and clear of all liens and encumbrances of any nature whatsoever other than (i) as
permitted in conjunction with this Credit Agreement, (ii) liens and encumbrances securing other
Indebtedness incurred in connection with the conduct of business by such Persons in the ordinary
course of their respective businesses consistent with past practices and listed on Schedule
8.3, (iii) liens and encumbrances which are being released, terminated or discharged with the
proceeds of the Term Loan or (iv) Permitted Liens.

8.4 Franchise, Patents, Copyrights, Etc. Each of the Borrowers and each of the
Guarantors possess all franchises, patents, copyrights, trademarks, trade names, licenses and
permits, and rights in respect of the foregoing, required for the conduct of its business
substantially as now conducted, without known conflict with any rights of others, except to the
extent the failure to own or have the same would not be reasonably expected to have a Material
Adverse Effect.

8.5 Entity Matters.

8.5.1 Organization. Each of the Borrowers, each Guarantor and each of the Pledged
Entities:

(a) is the type of business entity, formed in the jurisdiction, and qualified to do business
in the jurisdictions, as set forth on Schedule 8.5.1. 

(b) that purports to be a Delaware statutory trust, is a duly organized validly existing
statutory trust in good standing under the laws of the State of Delaware and is duly qualified in
each jurisdiction where the nature of its business is such that qualification is required, except
where failure to be so qualified would not result in a Material Adverse Effect, and has all
requisite power and authority to conduct its business and to own its property as now conducted or
owned and as contemplated by this Credit Agreement.

(c) that purports to be a corporation, is a duly organized validly existing corporation in
good standing under the laws of the jurisdiction set forth on Schedule 8.5.1 and is duly
qualified in the jurisdiction where the nature of its business is such that qualification is
required, except where failure to be so qualified would not result in a Material Adverse Effect,
and has all requisite power and authority to conduct its business and to own its property as now
conducted or owned and as contemplated by this Credit Agreement.

(d) that purports to be a limited liability company, is a duly organized validly existing
limited liability company in good standing under the laws of the jurisdiction set forth on
Schedule 8.5.1 and is duly qualified in the jurisdiction where the nature of its business
is such that qualification is required, except where failure to be so qualified would not result in
a Material Adverse Effect, and has all requisite power and authority to conduct its business and to
own its property as now conducted or owned and as contemplated by this Credit Agreement.

 

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8.5.2 Ownership. The ownership of the Capital Stock of CCG, each of the Guarantors
and each of the Pledged Entities is set forth on Schedule 8.5.2. True and complete copies
of each of the Governing Documents for each such Person is listed on Schedule 8.5.2 and
have been furnished to the Administrative Agent by the Borrowers and the Guarantors. The Borrowers
and the Guarantors further represent and warrant that Schedule 8.5.2 sets forth all of the
information required to be set forth thereon with respect to all of their respective Subsidiaries
that are either (i) a Borrower, a Guarantor or a Pledged Entity, or (ii) an entity that generates
net income or holds net assets equal to or greater than 5% of CHC’s Consolidated Net Income or
consolidated net assets.

8.5.3 Taxpayer Identification Numbers. The taxpayer identification numbers and state
organizational numbers (if applicable) of each Borrower, each Guarantor and each Pledged Entity are
accurately stated in Schedule 8.5.3.

8.5.4 Equity Interests. The Borrowers and the Guarantors are each the owner, free and
clear of all liens and encumbrances (other than those created in favor of the Administrative Agent
pursuant to the Loan Documents), of the Capital Stock which they purport to own of each of their
respective Subsidiaries required to be listed on Schedule 8.5.2. All shares of such
Capital Stock constituting corporate shares have been validly issued and are fully paid and
nonassessable, all shares or units of such Capital Stock constituting equity in other forms of
entities (e.g. statutory trusts, limited liability companies or partnerships) are not subject to
any calls or assessments, no rights to subscribe to any additional Capital Stock of any such Person
have been granted, and no options, warrants, or similar rights are outstanding, except as set forth
on Schedule 8.5.4.

CHC may unilaterally, from time to time, revise the Schedules referenced in this Section
8.5 by providing such revised Schedule to the Administrative Agent, so as to reflect the
addition or removal of Subsidiaries that meet or no longer meet the criteria set forth above or
other changed circumstances; provided that the right to modify such Schedules shall in no event
diminish or otherwise affect the Loan Parties’ obligations under the other provisions of this
Credit Agreement (including, without limitation, under Sections 9 and 10 hereof).

8.6 Authorization. The execution and delivery of this Credit Agreement and the other
Loan Documents to which each Borrower or any Guarantor is to become a party and the performance by
such Persons of the transactions contemplated hereby and thereby; including, without limitation,
the consummation of (a) the restructuring of the Indebtedness under the Original Agreement, (b) the
ARCap Transaction, and (c) the other transactions contemplated by, and incidental to, the Island
Recapitalization; (i) are within the authority of each Borrower and each Guarantor, as applicable,
(ii) have been duly authorized by all necessary corporate, trust or limited liability company
action, as applicable, (iii) do not conflict with, result in any breach or contravention of or
require any consent, waiver, authorization or approval under any legal requirement to which any
such Person is subject or any judgment, order, writ, injunction, license or permit applicable to
any such Person, as applicable, and (iv) do not conflict with any provision of any such Person’s
Governing Documents or any Contractual Obligation of any such Person, as applicable, except, in
each case described in this Section 8.6, where such conflict would not have a Material
Adverse Effect.

 

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8.7 Valid and Binding. Each of the Loan Documents constitutes the legal, valid and
binding obligation of each of the Borrowers and the Guarantors party thereto, enforceable against
each such Person in accordance with the respective terms thereof, subject to bankruptcy, insolvency
and similar laws of general application affecting the rights and remedies of creditors generally
and, with respect to the availability of the remedies of specific enforcement and other equitable
remedies, subject to the discretion of the court before which any proceeding therefor may be
brought.

8.8 Deferred Compensation and ERISA. Except as could not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect, the Borrowers, the Guarantors,
the Pledged Entities and each ERISA Affiliate are in material compliance with all applicable
provisions and requirements of ERISA and the regulations and published interpretations thereunder
with respect to each Employee Benefit Plan, and have performed all their material obligations under
each Employee Benefit Plan. No ERISA Event has occurred or is reasonably expected to occur except
ERISA Events that, individually or in the aggregate, could not reasonably be expected to result in
a liability of any Borrower, Guarantor, Pledged Entity or ERISA Affiliate in excess of $1,000,000.
Except to the extent required under Section 4980B of the Code, no Employee Benefit Plan provides
health or welfare benefits (through the purchase of insurance or otherwise) for any retired or
former employees of any Borrower, Guarantor, Pledged Entity or ERISA Affiliate. No Employee
Benefit Plan that is a group health plan within the meaning of Part 6 of Title I of ERISA is
self-insured or provides benefits by any means other the purchase of insurance. None of the
Borrowers, Guarantors, Pledged Entities or any ERISA Affiliates has any Guaranteed Pension Plan
except as may be designated to the Lender in writing by the Borrowers from time to time. As of the
most recent valuation date for each Guaranteed Pension Plan, the amount of unfunded benefit
liabilities (as defined in Section 4001(a)(18) of ERISA), individually or in the aggregate of all
Guaranteed Pension Plans (excluding for purposes of such computation any Pension Plans with respect
to which assets exceed benefit liabilities), does not exceed $1,000,000; and no “Reportable Event”
within the meaning of Section 4043 of ERISA has occurred with respect to any Guaranteed Pension
Plan. The granting of any portion of the Loans, the performance by the Borrowers and the
Guarantors of their respective obligations under the Loan Documents and the Borrowers’, the
Guarantors’ and the Pledged Entities’ conducting of their respective operations do not and will not
violate any provisions of ERISA or any Employee Benefit Plan.

8.9 No Materially Adverse Contracts, Etc. Except as set forth on Schedule
8.9, neither Borrower nor any Guarantor or any Pledged Entity, and none of their respective
Subsidiaries, is subject to, or in breach or default under, any charter, corporate or other legal
restriction, or any judgment, decree, order, rule or regulation, that has or is expected in the
future to have, or where such breach or default has or is expected to have, a Material Adverse
Effect. Except as set forth on Schedule 8.9, neither Borrower nor any Guarantor or any
Pledged Entity, and none of their respective Subsidiaries, is a party to, or in breach or default
under, any contract or agreement that has or is expected to have, or where such breach or default
has or is expected to have, any Material Adverse Effect.

8.10 Compliance With Other Instruments, Laws, Etc. Neither Borrower nor any Guarantor
or any Pledged Entity, and none of their respective Subsidiaries, is in violation of any provision
of its Governing Documents, or any Contractual Obligations or any legal requirements,

 

57

 

including, without limitation, with respect to any leverage limitations, or any environmental,
hazardous substance or regulatory matter, in any of the foregoing cases in a manner that could
reasonably be expected to result in the imposition of substantial penalties or result in a Material
Adverse Effect.

8.11 Tax Status. The Borrowers, the Guarantors, the Pledged Entities and their
respective Subsidiaries (a) have filed all federal and state income and all other material tax
returns, reports and declarations required by any jurisdiction to which such Person is subject,
except for any inadvertent and immaterial failures to file, and (b) have paid all federal, state
and other material Taxes shown or determined to be due on such returns, reports and declarations,
except those being contested in good faith and by appropriate proceedings for which appropriate
reserves have been taken and are being maintained in accordance with GAAP. Except for Taxes being
contested as provided in clause (b) above, there are no unpaid Taxes in any material amount claimed
to be due in writing by the taxing authority of any jurisdiction, and such Persons know of no basis
for any such claim.

8.12 Holding Company and Investment Company Acts. Neither Borrower nor any Guarantor
or any Pledged Entity, and none of their respective Subsidiaries, is a “holding company,” or an
“affiliate” of a “holding company,” as such terms are defined in the Public Utility Holding Company
Act of 2005; nor are any such Persons an “investment company,” or an “affiliated company” or a
“principal underwriter” of an “investment company,” as such terms are defined in the Investment
Company Act of 1940.

8.13 Certain Transactions. Except as set forth on Schedule 8.13, as of the
date of this Credit Agreement, none of the Related Parties of either Borrower, any Guarantor, any
Pledged Entity or any of their respective Subsidiaries is presently a party to any transaction with
any such Persons (other than (a) for services as employees, officers, trustees, agents, attorneys,
representatives, advisors or directors; (b) transactions (i) with fund entities which are
consolidated on the books of any such Person solely because of the application of FASB Accounting
Standards Codification Topic 810 or other similar accounting pronouncements, and (ii) with public
investment funds that would have been so consolidated under FASB Accounting Standards Codification
Topic 810 or other similar accounting pronouncements, except for the rights of the investors in
such funds to remove the general partners of such funds without cause; (c) such transactions
between or among one or more members of The Related Companies Group, on the one hand, and the
Centerline Group, on the other hand, or other transactions in which a member of the Related
Companies Group purchases LIHTC Investments (or the LIHTC Property associated with the same) from a
Centerline-Sponsored Fund, each upon terms and conditions no less advantageous to the Centerline
Group than would be available on an arm’s length basis with a Person who is not an Affiliate; (d)
such transactions with Island and its subsidiaries and controlled Affiliates which are not
otherwise prohibited by this Agreement and are upon terms and conditions no less advantageous to
the Centerline Group than would be available on an arm’s length basis with a Person who is not an
Affiliate; or (e) such transactions with Newco and its subsidiaries and Affiliates which are not
otherwise prohibited by this Agreement and are upon terms and conditions no less advantageous to
the Centerline Group than would be available on an arm’s length basis with a Person who is not an
Affiliate), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, trustee,

 

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director or such employee or any corporation, partnership, trust or other entity in which any
officer, trustee, director, or any such employee has a substantial interest or is an officer,
director, trustee or partner.

8.14 Loan Documents. All of the representations and warranties of the Borrowers and
the Guarantors made in the Loan Documents are true and correct in all material respects as of the
date when made or deemed made thereunder or under this Credit Agreement.

8.15 Regulations U and X. No portion of the Loans is to be used for the purpose of
purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221
and 224.

8.16 Solvency. Taking into account the Obligations hereunder, the Borrowers, the
Guarantors, the Pledged Entities and their respective Subsidiaries (excluding the Excluded
Entities) are on a consolidated basis, taken as a whole, Solvent.

8.17 No Material Change; No Default. There has been no (i) events or circumstances
that could reasonably be expected to have a Material Adverse Effect (except as set forth on
Schedule 8.17), or (ii) Change in Control, in each case since the date of the Borrowers’
and Guarantors’ last financial statements most recently delivered to the Administrative Agent; and
there is not currently outstanding any Default.

8.18 Insurance. Each of the Borrowers, each of the Guarantors and each of the Pledged
Entities maintains in full force and effect such insurance with financially sound and reputable
insurers with respect to such Person’s properties and business, against such casualties,
liabilities and contingencies, as are in accordance with the general practices of reasonably
prudent businesses engaged in similar activities in similar geographic areas and in amounts,
containing such terms and in such forms as are reasonable and prudent in the ordinary course of
such Persons’ business.

8.19 Use of Proceeds. The Borrowers will use the proceeds of the Loans and will
request the issuance of Letters of Credit only for the purposes and uses specified in Section
3.

8.20 Labor Matters. Except as could not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect:

8.20.1 As of the date hereof, there are no strikes, lockouts or slow downs against either
Borrower, any Guarantor or Pledged Entity or any of their respective Subsidiaries pending or, to
the knowledge of the Borrowers and Guarantors, threatened;

8.20.2 The hours worked by and payments made to employees of any such Persons have not been in
violation in any material respect with the federal Fair Labor Standards Act or any other applicable
federal, state, local or foreign law dealing with such matters and all payments due from such
Persons, or for which any claim may be made against any of such Persons, on account of wages and
employee health and welfare insurance and other benefits have been paid or accrued as a liability
on the books of such Persons; and

 

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8.20.3 The consummation of the transactions contemplated by this Credit Agreement, including,
without limitation, in connection with the Island Recapitalization, will not give rise to any right
of termination or right of renegotiation on the part of any union under any collective bargaining
agreement to which either Borrower, any Guarantor or Pledged Entity, or any of their respective
Subsidiaries, is bound.

8.21 Exchange Listing. Intentionally deleted.

8.22 No Broker or Finder. Neither Borrower nor any Guarantor or any other Person
acting on their behalf, has dealt with any broker, finder or other Person who or which may be
entitled to a broker’s or finder’s fee, or other compensation, payable by the Creditor Parties or
the Administrative Agent in connection with the Loans, the execution and delivery of the Loan
Documents, the consummation of the transactions contemplated hereby, and the performance of the
Obligations.

8.23 LIHTC Investments. All LIHTC Investments made with funds provided by any of the
Persons included in the Centerline Group as of the Closing Date have been made by Centerline
Investor LP or Centerline Investors LP II. All LIHTC Investments in which either Centerline
Investor LP or Centerline LP II holds an interest as of the Closing Date are listed on Schedule
8.23. Schedule 8.23 will be revised from time to time in accordance with the terms of
this Credit Agreement in order to list all LIHTC Investments in which Centerline LIHTC Sub,
Centerline Investor LP or Centerline LP II holds an interest as of the date of such revision.

8.24 Non-Spinnaker Bonds. Neither CHC nor any of its Subsidiaries owns all or any
portion of any mortgage revenue bond except as set forth on Schedule 8.24.

8.25 Supplemental Loans. As of the Closing Date, the aggregate principal balance of
all Supplemental Loans outstanding does not exceed $26,150,000 (excluding any Supplemental Loans
outstanding in connection with the Merrill Agreements and the Natixis Agreements) and there are
outstanding no Supplemental Loans in connection with (a) any LIHTC Properties or
Centerline-Sponsored Funds that has CFin as the provider of either a direct or back-to-back credit
default swap; or (b) any debt with respect to which CFin is providing any credit enhancement (LIHTC
Properties or Centerline-Sponsored Funds described in the foregoing clause (a) and any debt
described in the foregoing clause (b), collectively, the “CFin Enhanced Projects”).

8.26 [Intentionally Omitted]

8.27 Island Recapitalization. The Island Recapitalization has been completed in all
material respects (with it being understood that certain of the transactions to be consummated
pursuant to the Natixis Agreements and the Merrill Agreements are contemplated to occur, pursuant
to the express terms of the Natixis Agreements and the Merrill Agreements, respectively, after the
Closing Date).

8.28 Information True, Complete and Not Misleading. All of the factual information
provided by or on behalf of the Borrowers or the Guarantors that is contained or referred to in
this Section 8 and in the Schedules to this Credit Agreement, and in the certificates and
opinions furnished to the Administrative Agent or the Lenders by or on behalf of the Borrowers and
the

 

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Guarantors in connection with this Credit Agreement or any other Loan Document, is true,
accurate and complete in all material respects, and omits no material fact necessary to make the
same, in light of the circumstances when made, not misleading.

9. AFFIRMATIVE COVENANTS

For so long as this Credit Agreement is in effect, and until such time as all of the Obligations
have been indefeasibly fully paid and performed, unless the Creditor Parties shall otherwise
consent in the manner provided for in Section 23, the Borrowers and the Guarantors shall
comply, jointly and severally, and shall cause all of their Subsidiaries to comply, with the
following covenants:

9.1 Punctual Payment. The Borrowers will duly and punctually pay or cause to be paid
the principal and interest on the Loans and all interest, fees and other Obligations provided for
in this Credit Agreement or any other Loan Document, all in accordance with the terms of this
Credit Agreement and the other Loan Documents.

9.2 Maintenance of Location and Office. Each Borrower and each Guarantor will
maintain (i) its jurisdiction of formation in the jurisdiction indicated on Schedule 8.5.1,
and its chief executive office in New York, New York, or at such other jurisdiction or place in the
United States as such Borrower or Guarantor shall designate by not less than thirty (30) days prior
written notice to the Administrative Agent.

9.3 Organizational Number. Neither Borrower, nor any Guarantor or Pledged Entity,
will change its organizational number or taxpayer identification number, except upon thirty (30)
days prior written notice to the Administrative Agent.

9.4 Records and Accounts. Each Borrower and each Guarantor will keep, and cause each
of their respective Subsidiaries to keep, true and accurate records and books of account in which
full, true and correct entries will be made in accordance with GAAP.

9.5 Delivery of Financial Statements and Notices.

9.5.1 Financial Statements, Reports, Etc. Each Borrower and Guarantor will furnish,
or shall cause each of the Affiliates specifically enumerated hereafter to furnish, to the
Administrative Agent (in form and substance reasonably acceptable to the Administrative Agent),
either physically or through electronic delivery, and the Administrative Agent will promptly
furnish to each Lender, the following:

(a) Within:

	 	(i)	 	ninety (90) days after the end of each Fiscal Year with respect to CHC and CCG,
	 
	 	(ii)	 	one hundred five (105) days after the end of each Fiscal Year with respect to
EIT, EIT II (if and to the extent that EIT II prepares such financial statements), CMC
and CMP,

 

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	 	(iii)	 	one hundred twenty (120) days after the end of each Fiscal Year with respect
to each guaranteed Centerline-Sponsored Fund (the “Guaranteed Funds”) but only to the
extent that such financial statements of a Guaranteed Fund are delivered to any of the
Centerline Group’s investors, and
	 
	 	(iv)	 	one hundred twenty (120) days after the end of each Fiscal Year with respect to
CFin, CFin Holdings (but only to the extent such financial statements are delivered to
Natixis), and Guaranteed Holdings (but only to the extent such financial statements are
delivered to Merrill),

its consolidated balance sheet, income statement, statement of equity and cash flow statement, and,
with respect to CHC and CCG, consolidating balance sheet and related statement of income showing
the financial condition of each such Person and its consolidated Subsidiaries as of the close of
such Fiscal Year and the results of its operations and the operations of such Subsidiaries during
such year, together with comparative figures for the immediately preceding Fiscal Year. The
consolidating statements shall include separate figures for CAHA. Such balance sheets and related
statements referred to above (other than with respect to CCG) shall be audited by Deloitte & Touche
LLP or other independent public accountants of recognized national standing reasonably acceptable
to the Administrative Agent (which consent shall not be unreasonably withheld or delayed), and
shall be accompanied by an opinion of such accountants (which opinion shall not be qualified in any
material respect), to the effect that such consolidated financial statements fairly present the
financial condition and results of operations of such Person and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied. In addition, such audited
statements shall be accompanied by unaudited equity statements and cash flow statements of CAHA,
excluding the partnerships it controls and consolidates, certified as true and correct by CHC’s
chief financial officer;

(b) within forty-five (45) days with respect to CHC, and within sixty (60) days with respect
to CCG, EIT, EIT II (if and to the extent that EIT II prepares such financial statements), CMC,
CMP, the Guaranteed Funds (but only to the extent such financial statements are delivered to any of
the Centerline Group’s investors), CFin, CFin Holdings (but only to the extent such financial
statements are delivered to Natixis) and Guaranteed Holdings (but only to the extent such financial
statements are delivered to Merrill), after the end of each of the first three Fiscal Quarters of
each Fiscal Year, each such Person’s consolidated balance sheet, income statement, statement of
equity and cash flow statement, and, with respect to CCG and CHC, consolidating balance sheet and
related statement of income showing the financial condition of such Person and its consolidated
Subsidiaries as of the close of such Fiscal Quarter and the results of its operations and the
operations of such Subsidiaries during such Fiscal Quarter and the then elapsed portion of the
Fiscal Year, and comparative figures for the same periods in the immediately preceding Fiscal Year,
all unaudited and certified by such Person’s chief financial officer as fairly presenting the
financial condition and results of operations of such Person and its consolidated Subsidiaries on a
consolidated (and, in the case of CCG and CHC, a consolidating) basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments. The consolidating statement
shall include separate figures for CAHA. In addition, such statements shall be accompanied by
unaudited equity statements and cash flow statements of CAHA, excluding the partnerships it
controls and consolidates, certified as true and correct by CHC’s chief financial officer;

 

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(c) concurrently with any delivery of financial statements with respect to CHC under clause
(a) or (b) above, a certificate substantially in the form of Exhibit 9.5.1(c) (a
“Compliance Certificate”) of CHC’s chief financial officer opining and certifying (i) that no
Default has occurred or, if a Default has occurred, specifying the nature and extent thereof and
any corrective action taken or proposed to be taken with respect thereto and (ii) setting forth
computations in reasonable detail satisfactory to the Administrative Agent demonstrating compliance
with the covenants contained in Sections 10.13 and 10.14 and, (x) setting forth the
Borrowers’ calculation of Consolidated EBITDA, Fixed Charges and Total Debt, (y) certifying that
there has been no change in the business activities, assets or liabilities of any Person likely to
result, in the good faith and reasonable judgment of CHC’s chief financial officer, in a Material
Adverse Effect, or if there has been any such change, describing such change in reasonable detail,
and (z) certifying that the Borrowers, the Guarantors and the Pledged Entities are in compliance
with Section 10.11;

(d) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by such Persons with the SEC, or with any
national securities exchange, or distributed to its shareholders, partners or members, as the case
may be. In the event that CHC is no longer required to file periodic and other reports to the SEC,
the Borrowers shall provide from time to time such statements and reports as CHC would have been
required to file on a so-called Form 8-K if it were still required to file such statements and
reports with the SEC;

(e) promptly after the receipt thereof by any such Person or any Subsidiary, a copy of any
“management letter” received by any such Person from its certified public accountants, and the
management’s response thereto;

(f) promptly, from time to time, such other information regarding the operations, business
affairs and financial condition of such Persons or any of their Subsidiaries, or compliance with
the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably request;
including, without limitation, if so requested, a reasonably detailed consolidated budget
reflecting CHC and its Subsidiaries in the aggregate as well as reflecting each of the separate
businesses included in such consolidated group;

(g) documents required to be delivered pursuant to Section 9.5.1(a), (b) or
(d) (to the extent any such documents are included in materials otherwise filed with the
SEC) which may be delivered electronically and, if so delivered, shall be deemed to have been
delivered on the date (i) on which such Person posts such documents, or provides a link thereto, on
such Person’s website on the internet; or (ii) on which such documents are posted on such Person’s
behalf on IntraLinks/IntraAgency or another relevant website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or whether sponsored by
the Administrative Agent);

(h) within fifteen (15) days after any sale of assets producing Excess Sale Proceeds (or
amounts that, in the absence of the “basket” contained in the definition of such term, would
constitute Excess Sale Proceeds), a report reflecting the sale price, detailed expenses and
detailed accounting of Excess Sale Proceeds, if any, for such sale;

 

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(i) within forty-five (45) days after the end of each Fiscal Quarter of CHC, commencing with
the Fiscal Quarter ending March 31, 2010, a detailed report setting forth (i) the collection by any
member of the Centerline Group, during such Fiscal Quarter, of any Fund Deferred Fees, Expense
Reimbursements or Supplemental Loan repayments under voluntary loans, protective advances and
accounts payable advances, together with a breakdown of how and to which third parties outside of
the Centerline Group such collected funds were distributed, and (ii) the advance by any member of
the Centerline Group during such Fiscal Quarter of any Supplemental Loans or amounts to cover
expenses of Centerline-Sponsored Funds;

(j) a copy of Fannie Mae’s DUS watch list for mortgage loans serviced by CMC, including,
without limitation, information on loans that have matured or are in default, and special servicing
action plans related to the same, upon the earlier to occur of (i) promptly after the such reports
are delivered to Fannie Mae, or (ii) such time as such reports are required to be delivered to
Fannie Mae;

(k) a copy of Freddie Mac’s Risk Share watch list for mortgage loans serviced by CMP,
including, without limitation, information on loans that have matured or are in default, upon the
earlier to occur of (i) promptly after the such reports are delivered to Freddie Mac, or (ii) such
time as such reports are required to be delivered to Freddie Mac;

(l) from time to time as the Administrative Agent may request in its discretion at reasonable
intervals, reports of all revenue or other amounts of any kind received or accrued by any of the
Management-Owned Entities during the time period specified in such request, including, without
limitation, Management Proceeds, such reports to include the amount, source and disposition, if
any, of such revenues and other amounts Funds; and

(m) On or before the fifteenth day following the end of each calendar month after the Closing
Date, the Borrowers shall provide to the Administrative Agent a revised version of Schedule
8.23 which shall describe all LIHTC Investments currently in place as of the last day of the
immediately preceding calendar month.

9.5.2 Notices. With reasonable promptness, but in all events within five (5) Business
Days after the Person described below has actual knowledge thereof:

(a) Defaults. Each Borrower and each Guarantor will, and will cause each of their
respective Subsidiaries to notify the Administrative Agent in writing of the occurrence of any act,
event or condition which constitutes a Default under any of the Loan Documents, such notice to
include a written statement of any remedial or curative actions which such Person proposes to
undertake to cure or remedy any such Default before it becomes an Event of Default.

(b) Collateral. Each Borrower and each Guarantor will, and will cause each of their
respective Subsidiaries to give notice to the Administrative Agent in writing of any events or
circumstances relating to (i) the Equity Collateral that materially adversely affects the rights of
the Administrative Agent or any other Creditor Parties with respect thereto; and (ii) any other
Collateral that materially adversely affects the value of the Collateral, taken as

 

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a whole, or rights of the Administrative Agent or any other Creditor Parties to exercise
remedies with respect thereto provided for under any of the Loan Documents, other than (in any such
case described in this clause (ii)) conditions or events which are generally applicable to the
industries in which the Loan Parties operate.

(c) Litigation. Each Borrower and each Guarantor will, and will cause each of their
respective Subsidiaries to, give notice to the Administrative Agent in writing of any litigation or
proceedings threatened or any pending litigation and proceedings affecting any such Person that, if
adversely determined, could reasonably be expected to result in liabilities in excess of
$2,000,000, or with respect to any of the foregoing Persons, that could reasonably be expected to
have a Material Adverse Effect, and stating the nature and status of such litigation or
proceedings. Each Borrower and each Guarantor will, and will cause each of their respective
Subsidiaries to, give notice to the Administrative Agent in writing in form and detail reasonably
satisfactory to the Administrative Agent of any judgment, final or otherwise, against such Persons
in excess of $2,000,000. Notwithstanding the foregoing, the parties hereto agree that the
litigation listed on Schedule 8.2 shall be excluded from the notice provisions of this
Section.

(d) Change in Credit Rating. Each Borrower and each Guarantor will, and will cause
each of their respective Subsidiaries to, give notice to the Administrative Agent in writing of (i)
any change in any such Person’s credit rating, or the credit rating pertaining to any debt
obligations of any such Person; or (ii) any change in the servicer rating of CSL, CAHA or any of
their Affiliates party to the Servicing Agreements; in either case as determined by Moody’s, S&P or
any other nationally recognized rating service from time to time.

(e) Management. The Borrowers and Guarantors will provide to the Administrative Agent
prompt notice in the event that (a) the employment of (i) any of their respective officers or other
members of senior management who is a reporting person for purposes of Section 16 of the United
States Securities and Exchange Act of 1934, or (ii) any of Island’s officers or other members of
senior management actively involved in performing services under the Management Agreement as the
functional equivalent of such a reporting person, has been terminated or will be terminating.

(f) Material Adverse Change. Each Borrower and each Guarantor will, and will cause
each of its Subsidiaries to, give notice to the Administrative Agent in writing of any events or
circumstances that in the good faith judgment of the Borrowers is reasonably likely to cause a
Material Adverse Effect, other than events or circumstances which are generally applicable to the
industries in which the Loan Parties operate.

(g) Certain Agreements. The Borrower and Guarantors will provide to the
Administrative Agent prompt notice in the event of any breach or default under the Management
Agreement, the Servicing Agreements or the Non-Compete Agreement of which the Borrower or any
Guarantor has knowledge.

(h) Regulatory Status with Agencies. The Borrowers and Guarantors will provide to the
Administrative Agent prompt notice in the event such Borrower or

 

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Guarantor has actual knowledge that Fannie Mae, Freddie Mac or FHA has, or is reasonably
likely to, adversely change the regulatory or license status of CMC or CMP.

(i) Notice to Lenders. The Administrative Agent will promptly furnish to each Lender
a copy of each notice received by the Administrative Agent under this Section 9.5.2.

(j) Sale of LIHTC Properties to The Related Companies Group. The Borrowers and the
Guarantors shall furnish prompt notice to the Administrative Agent if and when any
Centerline-Sponsored Fund or any Affiliate of the Borrowers enters into a purchase and sale
agreement with The Related Companies Group or any of its Affiliates with respect to a LIHTC
Investment, a LIHTC Property or an equity interest in a LIHTC Property.

9.5.3 True, Accurate and Complete Financial Statements. All financial statements
furnished hereunder shall be true, accurate and complete in all material respects and shall fairly
present in all material respects the financial condition of such Persons as of the date thereof.

9.5.4 Revisions to Schedule 8.5.2. The Borrowers and Guarantors shall provide from
time to time all information as the Administrative Agent may reasonably request regarding any
Subsidiaries listed on Schedule 8.5.2; provided, however, that, with
respect to proprietary or confidential information that may be requested from time to time, the
confidentiality of any such information shall be maintained in accordance with the terms of
Section 25.

9.6 Existence; Conduct of Business.

9.6.1 Statutory Trusts. Each of the Borrowers, the Guarantors and the Pledged
Entities, if any, that are organized as statutory trusts (see Schedule 8.5.1) will (a) do
or cause to be done all things necessary to preserve and keep in full force and effect its
existence as a Delaware statutory trust, (b) preserve and keep in full force all of its rights and
franchises, except where such failure would not have a material adverse effect on the business,
assets or condition, financial or otherwise, of such Person, and (c) only engage in the Lines of
Business and as contemplated by its Governing Documents.

9.6.2 Corporations. Each of the Borrowers, the Guarantors and the Pledged Entities,
if any, that are organized as corporations (see Schedule 8.5.1) will (a) do or cause to be
done all things necessary to preserve and keep in full force and effect its existence as a Delaware
corporation, (b) preserve and keep in full force all of its rights and franchises, except where
such failure would not have a material adverse effect on the respective business, assets or
condition, financial or otherwise, of such Person, and (c) only engage in the Lines of Business and
as contemplated by its Governing Documents.

9.6.3 Limited Liability Companies. Each of the Borrowers, the Guarantors and the
Pledged Entities, if any, that are organized as limited liability companies (see Schedule
8.5.1) will (a) do or cause to be done all things necessary to preserve and keep in full force
and effect such Person’s existence as a Delaware limited liability company, (b) preserve and keep
in full force all of such Person’s rights and franchises, except where such failure would not have
a

 

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material adverse effect on the business, assets or condition, financial or otherwise, of such
Person, and (c) only engage in the Lines of Business and as contemplated by such Person’s Governing
Documents.

Notwithstanding anything to the contrary contained in this Section 9.6 and in Section
22, the Borrowers and their respective Subsidiaries may from time to time liquidate
Subsidiaries, or merge or consolidate Subsidiaries into or with other Subsidiaries, so long as (in
any such case) such liquidation, merger or consolidation is not prohibited by Section 10.5.

9.7 Insurance. Each of the Borrowers, each of the Guarantors, each of the Pledged
Entities and their respective Subsidiaries shall maintain with respect to its business operations,
and shall cause each of their respective Subsidiaries to maintain, with financially sound and
reputable insurers, insurance with respect to such properties and its business against such
casualties, liabilities and contingencies as shall be in accordance with the general practices of
reasonably prudent businesses engaged in similar activities in similar geographic areas and in
amounts, containing such terms, in such forms, covering such risks and for such periods as may be
reasonably acceptable to the Administrative Agent. At the Administrative Agent’s request from time
to time, the Borrowers and Guarantors shall provide a comprehensive or partial list (as requested)
of all such policies and true, correct and complete copies of some or all such policies, as may be
requested.

9.8 Taxes. The Borrowers and each Guarantor and Pledged Entity will, and will cause
each of their Subsidiaries to, duly pay and discharge, or cause to be paid and discharged, before
the same shall become overdue, all Taxes imposed upon it and its real properties, sales and
activities, or any part thereof, or upon the income or profits therefrom, except for those Taxes
which any such Person is contesting in good faith by appropriate proceedings and with respect to
which appropriate reserves have been established and are being maintained in accordance with GAAP.

9.9 Compliance with Laws, Contracts, Licenses, and Permits. Each Borrower, each
Guarantor and each Pledged Entity will, and will cause each of their respective Subsidiaries to,
comply with (a) all applicable legal requirements now or hereafter in effect wherever its business
is conducted, (b) the provisions of its Governing Documents, and (c) all of its Contractual
Obligations (except during any period where such compliance is not permitted by the terms of this
Credit Agreement), except to the extent the failure to comply with any of the foregoing would not
be reasonably expected to result in a Material Adverse Effect. If at any time while any Obligation
is outstanding, any authorization, consent, permit or license from any Governmental Authority,
Freddie Mac, Fannie Mae, FHA or similar agencies or other third party consents, approvals, or
notifications, shall become necessary or required in order that any such Person may fulfill any of
its respective Obligations under any of the Loan Documents, such Person will promptly take or cause
to be taken all reasonable steps within its respective power to obtain such authorization, consent,
permit or license, or other third party consents, and to provide such notifications, and furnish
the Administrative Agent with evidence thereof.

9.10 Indemnification Against Payment of Brokers’ Fees. Each Borrower and each
Guarantor agrees to defend, indemnify and hold harmless the Administrative Agent and each other
Creditor Party from and against any and all liabilities, damages, penalties, costs, and

 

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expenses, relating in any manner to any brokerage or finder’s fees in respect of any portion
of the Loans (except as resulting from any arrangements or agreements made with any broker or
finder by the Administrative Agent or another Creditor Party).

9.11 Fiscal Year. The fiscal year of each Borrower and each Guarantor (and each of
their Subsidiaries) presently ends on December 31 of each year. If any of the Borrowers, the
Guarantors or their Subsidiaries shall change their fiscal year end, such Person shall promptly
furnish the Administrative Agent with thirty (30) days prior written notice thereof.

9.12 Place for Records; Inspection. The Borrowers, the Guarantors and the Pledged
Entities shall maintain all of their business records at the address specified in Section
18. Upon reasonable notice and at reasonable times during normal business hours, the
Administrative Agent and, during such time as there is outstanding any Default with respect to
which notice, if any is required under Section 11.1.2, has been given, each Lender shall
have the right to examine each Borrower’s, each of the Guarantor’s, and each Pledged Entity’s
property and make copies of and abstracts from each such Person’s books of account, correspondence
and other records and to discuss their respective financial and other affairs with any of their
respective senior officers and any accountants hired by any such Person, it being agreed that the
Administrative Agent and each Lender receiving any such information shall hold such information in
confidence in accordance with the provisions of Section 25. Any transferee of any portion
of the Loans or any holder of a participation interest in the Loans shall be entitled to deal with
such information in the same manner and in connection with any subsequent transfer of its interest
in the Loans or of further participation interests therein; provided, however, that
the Administrative Agent, or any Lender, transferee, holder or participant shall be bound by the
confidentiality provisions of Section 25. The Administrative Agent and Lenders shall give
the Borrowers the opportunity to participate in any discussions with the Borrowers’ accountants;
provided, however, that (a) providing any such opportunity shall not unreasonably
hinder or delay such discussions, and (b) no such opportunity shall be required to be provided
during such time as there is in existence an Event of Default.

9.13 Replacement Documentation. Upon receipt of an affidavit of an officer of the
Administrative Agent or a Lender as to the loss, theft, destruction or mutilation of any Note, or
as to any other Loan Document which is not of public record, and, in the case of any such loss,
theft, destruction or mutilation, upon surrender and cancellation of such Note or other Loan
Document, each Borrower and each Guarantor will promptly issue, in lieu thereof, a replacement Note
or other Loan Document which shall be, as applicable, in the same principal amount thereof and
otherwise of like tenor.

9.14 Further Assurances. Each Borrower and each Guarantor will cooperate with, and
will cause each of its Subsidiaries to cooperate with, the Administrative Agent and execute such
further instruments and documents as the Administrative Agent shall reasonably request to carry out
to the Administrative Agent’s reasonable satisfaction the transactions contemplated by this Credit
Agreement and the other Loan Documents.

9.15 Guaranties. Each of the Guarantors shall at all times comply with the terms and
conditions of its respective Guaranty.

 

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9.16 Additional Information. Without derogating the Borrowers’ obligations hereunder,
and each Guarantor’s obligations pursuant hereto and to its respective Guaranties, each Borrower
and each Guarantor will promptly supply the Administrative Agent with such additional information
relating to this Credit Agreement and the other Loan Documents and the performance of the
Obligations contemplated hereby and thereby as the Administrative Agent may hereafter reasonably
request from time to time.

9.17 EIT Preferred Shares Covenants. EIT shall maintain, with no material
modifications, all covenants applicable to and binding upon EIT Preferred Shares.

9.18 Ownership of CCG, Guarantors and Pledged Entities.

(a) Holding Trust shall hold at all times, beneficially and of record, (i) 100% of the EIT
Common Shares and voting control of EIT, on a fully diluted basis, assuming the conversion of all
convertible securities, the granting of all authorized options and equity awards and the exercise
of all options, warrants, subscription rights, preemptive rights and other similar rights, (ii)
100% of the Capital Stock of SPV I, and (iii) 100% of the Capital Stock of SPV II.

(b) Holding Trust and EIT shall not issue any additional Capital Stock or any rights or
instruments convertible into Capital Stock.

(c) CHC shall hold at all times, beneficially and of record, (i) all of the Capital Stock of
CCG and (ii) 100% of the Common Shares of Beneficial Interest of Holding Trust and Holding Trust
II (as defined in the Governing Documents of Holding Trust and Holding Trust II, respectively).

(d) CCG shall hold at all times, beneficially and of record, (i) all of the Common Units of
CCC (as defined in the Governing Documents of CCC), (ii) 1% of the Capital Stock of CAHA, (iii) all
of the Capital Stock of CMC, CMP, CM Investor LLC and Guaranteed Holdings, and (iv) until the
conditions set forth in Section 9.21 have been satisfied all of the Capital Stock of
Centerline Finance Corporation, Centerline Credit Management LLC and Centerline A/C Investors LLC.

(e) CCC shall hold at all times, beneficially and of record, 99% of the Capital Stock of CAHA.

(f) CCG shall maintain at all times direct ownership of at least 90% of the voting and common
equity interests in the Capital Stock of CFin Holdings.

(g) CFin Holdings shall maintain at all times direct ownership of 100% of the voting and
common equity interests in the Capital Stock of CFin.

(h) CAHA shall hold at all times, beneficially and of record not less than (i) 49% of the
Capital Stock of Centerline Investor LP, (ii) 49% of the Capital Stock of CCL Dispositions II LLC,
(iii) 49% of the Capital Stock of CCL Acquisitions II LLC, (iv) 100% of the Capital Stock of
Centerline LIHTC Sub; and (v) 100% of the Capital Stock of Centerline Manager LLC.

 

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(i) Centerline GP Holdings LLC shall hold at all times, beneficially and of record, (i) all of
the Capital Stock of Centerline Investor LP not held by CAHA, and (ii) 100% of the Capital Stock of
Centerline Investor LP II.

(j) Holding Trust II shall hold at all times, beneficially and of record, all of the Capital
Stock of EIT II.

(k) Until the conditions set forth in Section 9.21 have been satisfied, (i) Centerline
A/C Investors LLC shall hold at all times, beneficially and of record, 100% of the Capital Stock of
Centerline Investors I LLC, (ii) Centerline Investors I LLC shall hold at all times, beneficially
and of record, 100% of the Capital Stock of Centerline REIT Inc., and (iii) Centerline REIT Inc.
shall hold at all times, beneficially and of record, 100% of the Capital Stock of ARCap 2004 RR3
Resecuritization Inc. and ARCap 2005 RR5 Resecuritization Inc.

9.19 LIHTC Investments. The Borrowers and Guarantors shall cause all LIHTC
Investments that are made from funds provided by CHC or its Subsidiaries to be made by Centerline
LIHTC Sub, or, in the event of a Valid Business Impediment, Centerline Investor LP or Centerline
Investor LP II. Each LIHTC Investment shall satisfy all of the investment criteria set forth on
Schedule 9.19.

9.20 New Subsidiaries. Contemporaneously with or prior to the formation or
acquisition of a Subsidiary, the Borrowers and Guarantors shall (a) cause each Subsidiary of the
Borrowers or the Guarantors formed or acquired after the date hereof to grant an all asset Lien to
the Administrative Agent, for the benefit of the Lenders, (which Lien shall have first priority
status except as provided in Section 10.1.11 below), (b) cause each such Subsidiary to
execute and deliver an unlimited guaranty of the Obligations, and (c) cause all Capital Stock in
such new Subsidiary owned by such Borrower or any of its Subsidiaries to be pledged to the
Administrative Agent, in each case by executing and delivering, or causing to be executed and
delivered, a security agreement, guaranty and pledge agreement in form and substance reasonably
satisfactory to the Administrative Agent. Each such new Subsidiary shall thereafter be a Guarantor
(or in the event such Subsidiary cannot become a Guarantor because of a Valid Business Impediment,
a Pledged Entity) hereunder. Notwithstanding the foregoing provisions of this Section
9.20, no such grant of an all asset Lien or Lien on a specific asset, execution of a guaranty
or pledge of Capital Stock shall be required if, and solely to the extent that, a Valid Business
Impediment is applicable to such grant, guaranty or pledge. Notwithstanding the foregoing, the
Administrative Agent shall not take a security interest in those assets as to which the
Administrative Agent shall determine, in its reasonable discretion, that the cost of obtaining such
Lien (including any mortgage, stamp, intangibles or other similar tax, title insurance or similar
items) is excessive in relation to the benefit to the Creditor Parties of the security afforded
thereby.

9.21 Dissolving Subsidiaries. As soon as reasonably practicable after the Closing
Date, the Borrowers agree to, and will, (a) cause all of the Dissolving Subsidiaries to Distribute
all of their respective assets to a Borrower or a Guarantor, (b) dissolve or cause to be dissolved
all of the Dissolving Subsidiaries, and (c) deliver to the Administrative Agent evidence of such
Distributions and dissolutions in form and substance reasonably satisfactory to the Administrative
Agent.

 

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10. NEGATIVE COVENANTS; FINANCIAL COVENANTS

For so long as this Credit Agreement is in effect, and until such time as all of the Obligations
have been indefeasibly fully paid and performed, unless the Creditor Parties shall otherwise
consent to the extent and in the manner set forth in Section 23, the Borrowers and the
Guarantors shall comply, jointly and severally, with the following covenants:

10.1 Liens. The Borrowers and Guarantors shall not create, incur, suffer or assume,
and they shall not permit or suffer any Pledged Entity creating, incurring, suffering or assuming,
any Lien upon or with respect to any of such Person’s assets, including, without limitation, any
Capital Stock, except such Persons may create, incur or assume the following Liens (collectively,
“Permitted Liens”):

10.1.1 Affordable Housing Syndications.

(a) Liens on Capital Stock owned by Centerline LIHTC Sub, Centerline Investor LP, Centerline
Investor LP II or Centerline SLP LLC, granted by such Person in connection with a LIHTC Investment
to secure capital contribution obligations in the ordinary course of CHC’s Subsidiaries’
multi-family affordable housing business;

(b) Liens arising in the ordinary course of CHC’s Subsidiaries’ multi-family affordable
housing business on general partner or managing member interests in Centerline-Sponsored Funds,
consisting of the right to remove such general partners or managing members in order to secure
obligations of such general partners or managing members to (i) the respective Centerline-Sponsored
Funds, (ii) investors in such Centerline-Sponsored Funds, or (iii) Natixis or Merrill with respect
to certain Guaranteed Funds;

10.1.2 Governmental Charges. Liens or charges for current Taxes which are not
delinquent or remain payable without penalty, or the validity of which is being contested in good
faith and by appropriate proceedings upon stay of execution of the enforcement thereof; provided
that the obligor with respect thereto shall have set aside on its books and shall maintain adequate
reserves for their payments in conformity with GAAP;

10.1.3 Liens Contemplated Hereby. Liens in favor of the Administrative Agent, on
behalf of the Lenders, pursuant to and as contemplated by the terms hereof and by the terms of the
other Loan Documents;

10.1.4 Mortgage Warehouse Lines. Liens pursuant to any mortgage warehouse line of
credit constituting Permitted Indebtedness pursuant to Section 10.3.1(h) (provided
that (i) no Lien in connection with any mortgage warehouse line of credit gives rise to any
interest in any collateral other than any mortgages financed with the proceeds of such line of
credit (and with respect to which the Administrative Agent and the Lenders hereby disclaim any
Lien), and (ii) underlying mortgage loans made under such warehouse lines shall be entered into
pursuant to unconditional purchase commitments (subject to program deliverable and other
requirements arising in the ordinary course of business consistent with past practices) from Fannie
Mae, Freddie Mac or FHA, or other investors acceptable to the mortgage warehouse lender, on terms
and conditions consistent with the mortgage warehouse line of credit utilized by CMC on the date
hereof);

 

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10.1.5 Bond Warehouse Lines. Liens pursuant to any bond warehouse line of credit
constituting Permitted Indebtedness pursuant to Section 10.3.1(i) (provided that
(i) no Lien in connection with any bond warehouse line of credit gives rise to any interest in any
collateral other than any bonds financed with the proceeds of such line of credit (and with respect
to which the Administrative Agent and the Lenders hereby disclaim any Lien), provided that bonds
acquired under such warehouse lines shall be entered into pursuant to purchase commitments (subject
to deliverable and other requirements arising in the ordinary course of business consistent with
market practices) from investors acceptable to the bond warehouse lender, on terms and conditions
consistent with market practices);

10.1.6 Existing Liens. Liens existing on the date hereof and listed on Schedule
8.3 and any renewal, replacement, modification or extension thereof; provided that (i)
the Lien does not extend to any additional property other than (A) after-acquired property that is
affixed or incorporated into the property covered by such Lien or financed by indebtedness
permitted by Section 10.3, and (B) proceeds and products thereof, and (ii) the
modification, replacement, renewal, extension or refinancing of the obligations secured or
benefited by such Liens (if such obligations constitute Indebtedness) is in connection with a
Permitted Refinancing;

10.1.7 Mechanics Liens, etc. Landlords’, carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, suppliers’, brokers’ or other like statutory Liens arising in the
ordinary course of business which are not overdue for a period of more than thirty (30) days or
which are being contested in good faith and by appropriate proceedings diligently conducted, if
adequate reserves with respect thereto are maintained on the books of the applicable Person;

10.1.8 Pledges & Deposits. Liens (including pledges and deposits) incurred in the
ordinary course of business in connection with workers’ compensation, unemployment insurance and
other social security legislation and other similar obligations incurred in the ordinary course of
business, other than any Lien imposed by ERISA;

10.1.9 Bids. Liens (including pledges and deposits) incurred to secure the
performance of bids, trade contracts, governmental contracts, tenders, and leases (other than
Indebtedness), statutory obligations, surety, appeal bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business;

10.1.10 Easements. Easements, rights-of-way, restrictions, reservations, covenants,
conditions, encroachments, other minor defects or irregularities of title, and other similar
encumbrances affecting real property (including encumbrances consisting of zoning restrictions,
easements, licenses and restrictions on the use of real property or minor imperfections in title
thereto) which, in the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person;

10.1.11 Judgments. Liens securing judgments for the payment of money not constituting
an Event of Default under Section 11.1.7;

 

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10.1.12 Purchase Money. Liens securing Indebtedness that constitutes Permitted
Indebtedness pursuant to Section 10.3.1(b); provided that (i) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness, and (ii) the
Indebtedness secured thereby does not (at the time such Indebtedness is incurred) exceed the cost
of the property being acquired on the date of acquisition (unless such Indebtedness does not
provide the creditor with recourse to the Borrowers or their respective Subsidiaries on account of
any deficiency);

10.1.13 Precautionary UCC Financing Statements. The interest of a lessor under Liens
arising from precautionary UCC financing statement filings regarding leases (other than
Indebtedness) entered into by such Persons in the ordinary course of business;

10.1.14 Bankers’ Liens. Liens (a) of a collection bank arising under Section 4-210 of
the Uniform Commercial Code on the items in the course of collection and (b) that are contractual
or statutory set-off rights arising in the ordinary course of business with financial institutions
or bankers’ Liens on deposits of cash in favor of banks or other depository institutions, solely to
the extent incurred in connection with the maintenance of such deposit accounts in the ordinary
course of business; 

10.1.15 Licenses. Any interest or title of a licensor, lessor or sublessor under any
license or lease agreement pertaining to real property pursuant to which rights are granted to such
Persons;

10.1.16 Public Utilities. Deposits or pledges in favor of public or private utility
companies arising in the ordinary course of business and not out of any extraordinary transaction;

10.1.17 Bond Transaction. Liens of Freddie Mac in connection with the Bond
Transaction;

10.1.18 New Subsidiaries/Asset Acquisitions. Liens (a) on any asset or property of a
Person at the time such Person becomes a Subsidiary of any Borrower in accordance with the terms of
Section 9.20 or any Guarantor is merged into or consolidated with or into any Borrower or
any Guarantor in accordance with the terms of Section 10.5.1 and any modifications,
replacements, renewals or extensions thereof in connection with a Permitted Refinancing of the
related Indebtedness, and (b) existing on any asset prior to the acquisition thereof by any
Borrower or any Guarantor in accordance with the terms of Section 10.6.3 and any
modifications, replacements, renewals or extensions thereof in connection with a Permitted
Refinancing of the related Indebtedness, and in the case of each of clause (a) and (b) above, not
created in contemplation of such event;

10.1.19 Investment and Dispositions; Cash Earned Money Deposits. Liens (i)(a) on
advances of cash or Cash Equivalents in favor of the seller of any property to be acquired in an
investment permitted pursuant to Section 10.6.3 to be applied against the purchase price
for such investment and (b) consisting of an agreement to dispose of any property in a disposition
permitted under Section 10.5.3, in each case under this clause (i), solely to the extent
such investment or disposition, as the case may be, would have been permitted on the date of the

 

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creation of such Lien and (ii) cash earnest money deposits made by CHC or any of its
Subsidiaries in connection with any letter of intent or purchase agreement permitted under this
Credit Agreement;

10.1.20 Debt Liens. Liens on the property of any Borrower, Guarantor or Pledged
Entity securing secured Indebtedness constituting Permitted Indebtedness pursuant to clauses
(g) and (q) of Section 10.3.1;

10.1.21 Insurance Premium Financing Liens: Liens on insurance proceeds under
insurance policies for which the premiums have been financed as contemplated by Section
10.3.1(c); and

10.1.22 Receivables Assignment and Assumption Agreement Liens. Liens in favor of (a)
CFin Holdings pursuant to the Natixis Receivables Assignment and Assumption Agreement and (b)
Guaranteed Holdings pursuant to the Merrill Receivables Assignment and Assumption Agreement, but
solely to the extent that such Liens arise for precautionary purposes in case the transfers and
assignments described in the Natixis Receivables Assignment and Assumption Agreement and the
Merrill Receivables Assignment and Assumption Agreement are deemed not to be true sales.

10.2 Negative Pledge and Double Negative Pledge.

10.2.1 Negative Pledge. The Borrowers shall not grant, create, or suffer to be
granted or created, any Lien (other than any Liens in favor of the Administrative Agent) on the
Capital Stock directly or indirectly held by it of (a) CMC and CMP, (b) from and after such time as
the Natixis Agreements have been executed and delivered, and to the extent required therein,
Guaranteed Manager, or (c) from and after such time as the Merrill Agreements have been executed
and delivered, and to the extent required therein, Guaranteed Manager II.

10.2.2 Double Negative Pledge. Other than pursuant to the terms of this Credit
Agreement, in no event shall the Borrowers agree with, or become obligated to, or permit or suffer
any of their Subsidiaries agreeing or becoming obligated to, any other Person (other than Fannie
Mae and Freddie Mac with respect to CMC and CMP) to refrain from granting or creating a Lien on the
Capital Stock of CMC, CMP, Guaranteed Manager or Guaranteed Manager II; provided,
however, that neither the Natixis Agreements nor the Merrill Agreements shall prohibit any
granting of a Lien on the Capital Stock of CMC or CMP to the Administrative Agent for the benefit
of the Lenders.

10.3 Indebtedness. The Borrowers and Guarantors shall not incur, assume or become
obligated with respect to, or permit or suffer any Pledged Entity incurring, assuming or becoming
obligated with respect to, directly or indirectly, any Indebtedness (on a consolidated and
individual basis) except such Persons may incur, assume or become obligated with respect to the
following Indebtedness (collectively, “Permitted Indebtedness”):

10.3.1 Types of Permitted Indebtedness and Persons to whom they Apply. Set forth
below is a list of each type of Permitted Indebtedness with a description of which entities may
incur, without duplication, the particular type of Permitted Indebtedness:

 

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(a) The Borrowers, Guarantors and Pledged Entities may have outstanding Indebtedness existing
on the date of this Credit Agreement, listed and described, but only to the extent so listed and
described and only with respect to the Person disclosed to be liable with respect to each such
specific Indebtedness on Schedule 10.3.1 and any Permitted Refinancing thereof;

(b) Each of the Borrowers, the Guarantors and the Pledged Entities may incur Indebtedness for
borrowed money on a recourse or non-recourse basis if and to the extent that such Indebtedness is
either (i) unsecured, (ii) non-recourse Indebtedness or Indebtedness secured only by other
Permitted Liens (with respect to Indebtedness owed to unrelated third parties), or (iii)
Subordinated Debt; provided that after giving pro forma effect to the incurrence of
any such Indebtedness described in clauses (i) and (iii) above the Pro Forma Leverage Test shall be
satisfied. Indebtedness shall be considered to be on a non-recourse basis where the creditor has
recourse against the debtor only to the extent and with respect to specific assets financed by such
Indebtedness, and on account of fraud and other enumerated bad acts;

(c) Each of the Borrowers, the Guarantors and the Pledged Entities may incur Indebtedness for
the financing of insurance premiums where (i) the sole collateral for such financing is a security
interest in the proceeds of such insurance, and (ii) such insurance is required to be in place
pursuant to the terms of Section 9.7;

(d) Subject to satisfaction of the Pro Forma Leverage Test with respect to Indebtedness owed
to Affiliates which are not a Loan Party, the Borrowers, the Guarantors and the Pledged Entities
may incur Indebtedness consisting of obligations owed by a Borrower, Guarantor or a Pledged Entity
to any of their respective Affiliates; provided, however, that if any such
Affiliate is not a Borrower or a Guarantor, such Indebtedness must be subordinated to the
Obligations in accordance with the Intercompany Subordination Agreement upon terms and conditions
satisfactory to the Administrative Agent (provided further, however, that any such
Indebtedness, regardless of when it is incurred, need not be subject to the Intercompany
Subordination Agreement if it arises out of tax credit transactions between or among one or more
members of The Related Companies Group, on the one hand, and the Centerline Group, on the other
hand, entered into in the ordinary course of business upon terms and conditions no less
advantageous to the Centerline Group than would be available on an arm’s length basis with a Person
who is not an Affiliate);

(e) The Borrowers, the Guarantors and the Pledged Entities may incur Indebtedness for Taxes to
the extent that payment thereof shall at the time not be required to be made in accordance with
Section 9.8;

(f) Each of the Borrowers and the Guarantors shall be jointly and severally liable for and may
incur the Obligations;

(g) Each of the Borrowers, the Guarantors and the Pledged Entities may incur Indebtedness
consisting of cash management charges, or arising out of ACH services, and other Indebtedness in
respect of overdraft protection and similar arrangements, in each case, incurred in the ordinary
course of business consistent with such entity’s past practices;

 

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(h) Each of CMC and CMP may incur Indebtedness in respect of mortgage warehouse lines of
credit; provided that underlying mortgage loans made under such warehouse lines shall be
entered into pursuant to unconditional purchase commitments from Fannie Mae, Freddie Mac or FHA, or
other investors acceptable to the mortgage warehouse lender, on terms and conditions consistent
with the mortgage warehouse line of credit utilized by CMC on the date hereof;

(i) Subject to satisfaction of the Pro Forma Leverage Test, the Pledged Entities may incur
Indebtedness in respect of bond warehouse lines of credit; provided that underlying bonds
warehoused thereon shall be issued pursuant to purchase commitments from investors acceptable to
the Administrative Agent in its reasonable discretion; provided that any investor with prior
commitments from Holding Trust shall be deemed to be reasonably acceptable to the Administrative
Agent;

(j) Subject to satisfaction of the Pro Forma Leverage Test, each new direct or indirect
Subsidiary becoming a Guarantor or Pledged Entity after the date hereof may be liable for any
Indebtedness that exists at the time such Person becomes a Subsidiary and is not created in
contemplation of or in connection with such Person becoming a Subsidiary;

(k) Each of the Borrowers, the Guarantors and the Pledged Entities may incur Indebtedness
which may be deemed to exist pursuant to any guaranties of commercial office space leases incurred
by a different Borrower, Guarantor or Pledged Entity in the ordinary course of business consistent
with past practices for such Person undertaking such Indebtedness;

(l) Each of the Borrowers may incur Indebtedness consisting of unsecured promissory notes
issued to current or former directors, consultants, managers, officer and employees or their
spouses or estates of any of its Subsidiaries to purchase or redeem Capital Stock of CHC (other
than any more than a de minimus amount of such Indebtedness on account of SCU’s), issued to such
director, consultants, manager, officer or employee in the ordinary course of business consistent
with past practices for such Person undertaking such Indebtedness;

(m) Each of CHC, CCG, CAHA, CFin Holdings, Guaranteed Holdings, CMC, CMP and Centerline
Finance Corporation may incur Indebtedness in respect of workers’ compensation claims;

(n) Each of the Borrowers, Guarantors and Pledged Entities may incur unsecured Indebtedness
consisting of incentive, non-compete, consulting, deferred compensation, employment, or other
similar arrangements or co-investment programs for employees, entered in the ordinary course of
business consistent with market standards;

(o) Each of Holding Trust, SPV I, SPV II and CHC, may incur Indebtedness in connection with
the Bond Transaction; provided, however, such Indebtedness shall be Permitted
Indebtedness solely if and to the extent that such Indebtedness results from circumstances or
events beyond the control of either Borrower or any of their Subsidiaries (except, with respect to
this proviso, SPV I may incur Indebtedness arising under the Bond Transaction in the event CMC
elects to foreclose in its capacity as special servicer under the Bond Transaction);

 

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(p) Each of the Borrowers, Guarantors and Pledged Entities may incur Contingent Liabilities
solely to the extent that such Contingent Liabilities are incurred in the ordinary course of
business consistent with past practices and market practices and arising solely out of (i)
risk-sharing arrangements with Fannie Mae and Freddie Mac with respect to mortgage loan
originations on multifamily properties and (ii) Contingent Liabilities where the primary obligor is
a different Borrower, Guarantor or Pledged Entity and where such primary obligations constitute
Permitted Indebtedness;

(q) Each of the Borrowers, Guarantors and Pledged Entities may incur Indebtedness pursuant to
Derivative Agreements entered into (i) by the Borrowers in connection with the Obligations, or (ii)
by the Borrowers, Guarantors and Pledged Entities, as the case may be, with respect to their own
Indebtedness for borrowed money permitted by Section 10.3.1(b), in the ordinary course of
business and not for speculation;

(r) CHC and CCC may incur Indebtedness on account of accrued Distributions that are not paid
pursuant to Section 10.7 to the extent such accruals constitute Indebtedness;

(s) CHC and CCG may incur Indebtedness on account of the CHC/CCG Guaranty;

(t) CHC may incur Indebtedness on account of guarantee and indemnification obligations arising
under the Reaffirmation of Guarantee;

10.3.2 CHC. CHC may incur, without duplication:

(a) Indebtedness to Fannie Mae, Freddie Mac, GNMA, FHA or other parties with whom CHC or its
Subsidiaries originate, sell, repurchase or service mortgage loans, to the extent directly relating
to or arising out of such origination, sale, repurchase, or servicing in the ordinary course of
business;

(b) Indebtedness secured by real property acquired upon foreclosure of mortgages, to the
extent directly related to such real property, not in excess of the fair market value thereof, and
reasonably expected by CHC to be recovered from the sale or other disposition of the subject real
property;

10.4 EIT. Notwithstanding any other provision of this Credit Agreement or any other
Loan Document, EIT will incur no Indebtedness of any kind other than accrued and unpaid obligations
to holders of the EIT Preferred Shares existing on the Closing Date to the extent permitted under
Section 9.17. Prior to the completion of the EIT II Transfer, EIT shall own no assets
other than (a) the EIT Notes; and (b) those certain Freddie Mac Enhanced A Certificates issued to
EIT in connection with the Bond Transaction; and EIT shall have outstanding no Indebtedness other
than liabilities to the holders of the EIT Preferred Shares which liabilities are effectively
economically defeased by such Freddie Mac Enhanced A Certificates.

10.5 Merger; Ownership Interests; Sale of Assets; Liquidations. The Borrowers and
Guarantors shall not, and shall not permit or suffer any of the Pledged Entities to, with respect
to each such Person:

 

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10.5.1 Mergers, Consolidations and Asset Sales. Merge into or consolidate with any
other Person or permit any other Person to merge into or consolidate with it, or sell, transfer,
lease or otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all of the assets (whether now owned or hereafter acquired) of such Person;
provided, however that (i) as long as there is no Default for which notice, if
required, has been given is then outstanding, (ii) where at least one of the parties to the merger
or consolidation is a Loan Party, the surviving Person in any such merger or consolidation is the
Equal or Higher Order Loan Party and (iii) such merger or consolidation could not reasonably be
expected to cause a Material Adverse Effect:

(a) the Borrowers, the Guarantors and the Pledged Entities may cause other Persons (other than
an Excluded Entity) to merge into or consolidate with a Borrower, a Guarantor or a Pledged Entity
(including in connection with an investment permitted pursuant to Section 10.6.2 or an
acquisition permitted pursuant to Section 10.6.3); provided, that after giving
pro forma effect to such transaction, the Pro Forma Leverage Test is satisfied;

(b) any Subsidiary of CHC (other than an Excluded Entity) may merge with any other Person
(other than an Excluded Entity) in order to effect an investment permitted pursuant to Section
10.6.2 or an acquisition permitted pursuant to Section 10.6.3, provided that after
giving pro forma effect to such transaction, the Pro Forma Leverage Test is
satisfied; and

(c) any Borrower, Guarantor or Pledged Entity may be merged or consolidated with or into any
other Borrower, Guarantor or Pledged Entity.

10.5.2 Dissolve, liquidate, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of the assets (whether now
owned or hereafter acquired) of such Person; provided, however that any Guarantor
or Pledged Entity may be dissolved or liquidated so long as (a) such Person has first distributed
all of its assets to an Equal or Higher Order Loan Party, (b) at the time of such dissolution or
liquidation, such Person has no material assets or liabilities,and (c) such dissolution or
liquidation could not reasonably be expected to cause a Material Adverse Effect.

10.5.3 Other Asset Transfers. Effect any sale, disposition, contribution or other
transfer of their respective tangible or intangible assets constituting all or a material asset of
a Line of Business, other than (a) sales, dispositions, contributions or other transfers of any
such assets to any Equal or Higher Order Loan Party; (b) sales of used, obsolete or worn out
equipment or other property not used in the business of CHC and its Subsidiaries, (c) dispositions
of equipment to the extent that (i) such equipment is exchanged for credit against the purchase
price of similar replacement equipment or (ii) the proceeds of such disposition are promptly
applied to the purchase price of such replacement equipment; (d) dispositions of accounts
receivables in connection with the collection or compromise thereof; (e) any disposition of any
inventory or other property or asset by the Borrowers and Guarantors in the ordinary course of
business, consistent with past practices, including, without limitation, any sales of (i) a LIHTC
Investment to a Centerline-Sponsored Fund, (ii) servicing rights on FHA mortgage loans in
connection with the origination of such loans, and (iii) mortgage loans to pre-committed buyers;
(f) dispositions of leases, subleases, licenses or sublicenses of real property in the ordinary
course of business and which do not materially interfere with the business of the

 

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Borrowers and the Guarantors; (g) transfers of property subject to Casualty Events upon
receipt of the net cash proceeds of such Casualty Events; and (h) immaterial dispositions of
investments in joint ventures relating to multi-family affordable housing developments, to the
extent required by or made pursuant to buy/sell arrangements between the joint venture parties set
forth in, joint venture arrangements and similar binding arrangement in effect on the Closing Date.
For the avoidance of doubt, by way of example only, and not in limitation of the foregoing, any
sale, disposition, contribution or other transfer of CMC’s Fannie Mae Delegated Underwriting and
Servicing license or any similar license or governmental or quasi-governmental agency servicing
rights shall be deemed to constitute a transfer of a material asset of a Line of Business.

10.5.4 Centerline Manager Transfer. Notwithstanding any other provision of this
Credit Agreement, Centerline Manager LLC may consummate the Centerline Manager Transfer.

10.6 Loans, Guarantees, Investments and Acquisitions.

10.6.1 Limitations on Loans. The Borrowers and Guarantors will not make, and will not
permit or suffer any of the Pledged Entities making, any loans, advances or extensions of credit to
any Person (other than a Borrower, a Guarantor, or a Pledged Entity), except:

(a) loans made by CAHA to a Person developing a LIHTC Property in connection with a LIHTC
Investment which is permitted to be made in accordance with the terms of Section 3.1(b)
where such loan is consistent with CAHA’s past practices of making so-called “pre-development
loans” and the proceeds of any such loans is drawn from funds available to be drawn as Revolving
Loans;

(b) Supplemental Loans in aggregate principal amounts not to exceed $2,000,000 per Fiscal Year
in each of 2010, 2011 and 2012, to support LIHTC Properties  included in the Guaranteed Funds
listed in Schedule A-1 to the Omnibus Release and Termination Agreement;

(c) Supplemental Loans in aggregate principal amounts not to exceed $2,000,000 for the Fiscal
Year ending December 31, 2010 and $1,000,000 for the Fiscal Year ending December 31, 2011 to
support LIHTC Properties included in the Guaranteed Funds listed in Schedule A-2 to the Omnibus
Release and Termination Agreement that are not CFin Enhanced Projects;

(d) Supplemental Loans to support LIHTC Properties that are financed by the B Bonds;

(e) Supplemental Loans to non Guaranteed Funds (other than Supplemental Loans made pursuant to
clauses (b) through (d) above) in aggregate principal amounts not to exceed $2,500,000 per Fiscal
Year during each Fiscal Year prior to the Revolver Maturity Date; and

(f) advances to employees to cover reasonable business expenses in the ordinary course of
business.

 

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10.6.2 Limitations on Investments. The Borrowers and Guarantors will not make, and
will not permit or suffer any of the Pledged Entities making, any investment in any business, other
than investments in the businesses engaged in by the Borrowers and Guarantors consisting of the
following (collectively, the “Lines of Business”):

(a) Substantially as engaged in on the Closing Date: (i) the syndication of LIHTC Investments,
(ii) the provision of asset management services, (iii) the origination, selling and servicing of
mortgage loans pursuant to governmental or quasi-governmental agency programs, and (iv) the
ownership, management, stabilization and maintenance of the B Bonds and cash flows derived
therefrom,

(b) investments by any Borrower, Guarantor and Pledged Entity in any other Borrower, Guarantor
and Pledged Entity;

(c) the acquisition and securitization of tax-exempt bonds issued to fund construction of
affordable housing in the United States;

(d) investments (including debt obligations and Capital Stock) converted in connection with
(x) the bankruptcy or reorganization of any Person and in settlement of obligations of, or disputes
with, any Person arising in the ordinary course of business and upon foreclosure with respect to
any secured investment or other transfer of title with respect to any secured investment and (y)
the non-cash proceeds of any disposition permitted by Section 10.5; and

(e) any businesses reasonably complementary to any of the businesses described in clause (a)
of this Section;

10.6.3 Limitations on Acquisitions. The Borrowers and Guarantors will not make, and
will not permit or suffer any of the Pledged Entities making, any acquisition of the Capital Stock
or all, substantially all or a material portion of the assets of any Person unless (a) such
acquisition is in furtherance of the Lines of Business, and (b) at the time of any such acquisition
(i) there is no Default outstanding for which notice, if required, has been given, and (ii) the Pro
Forma Leverage Test is satisfied.

10.7 Distributions. The Borrowers, the Guarantors and the Pledged Entities shall not
make any Distributions to any Persons other than (a) Tax Distributions (provided, however, that no
such Tax Distributions shall be made at such time as there is outstanding a Distribution Default),
(b) to a Person that is a Borrower or a Guarantor; (c) to a Person that is a Pledged Entity
provided that such Pledged Entity, within one Business Day, makes a further Distribution of such
amounts to a Person that is a Borrower or a Guarantor; and (d) to the holders of the EIT Preferred
Shares or the holders of any securities into which the EIT Preferred Shares are converted if and to
the extent that such Distributions are made solely out of funds received from Freddie Mac as
contemplated by the Bond Transaction.

10.8 Affiliate Payments. No Borrower, Guarantor or Pledged Entity will make any
payments to any Affiliate that is not a Borrower or Guarantor on account of any Indebtedness owed
by such Person to such Affiliate, other than: (a) reimbursements for the payment of Taxes during
such time as there is outstanding no Distribution Default; (b) payments in order to cover

 

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operating expenses and current liabilities for services rendered, (c) the payment of customary
fees and reimbursement of reasonable out-of-pocket costs of, and customary indemnities provided to
or on behalf of, directors, officers and employees of any Borrower and any Guarantor in the
ordinary course of business as determined in good faith by the board of directors or senior
management of the Person making such payment, (d) payments required to be made under the Management
Agreement, the Advisory Agreement and the Servicing Agreements, and (e) payments to the Related
Companies Group on account of obligations incurred in the ordinary course of business in connection
with transactions in which a member of the Related Companies Group purchases a LIHTC Property or an
equity interest in a LIHTC Property from a Centerline-Sponsored Fund or an Affiliate of the
Borrowers; provided that any of the foregoing payments are upon terms and conditions no
more favorable to such Affiliate, and no less favorable to the Borrowers and the Guarantors, than
would be available in an arm’s-length transaction between independent parties. Notwithstanding the
foregoing, nothing in this Section shall prohibit any member or members of The Related Companies
Group from continuing to perform its obligations with respect to any LIHTC Property which it owns
prior to the date hereof.

10.9 Purchase of Margin Stock. Except with the prior written consent of the
Administrative Agent, the Borrowers and the Guarantors shall not utilize and shall not permit or
suffer any other Person utilizing, any part of the proceeds of the Loans to purchase or carry any
margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System) or to extend credit to others for the purpose of purchasing or carrying any such margin
stock.

10.10 Transactions with Affiliates. The Borrowers and the Guarantors shall not enter,
and shall not permit or suffer the Pledged Entities entering, into any purchase, sale, lease or
other transaction with an Affiliate (other than the Borrowers, the Guarantors or the Pledged
Entities), except (a) (i) in the ordinary course of business, (ii) as expressly permitted by
Sections 10.1, 10.3, 10.4, 10.5 and 10.7, or (iii) with the
prior written consent of the Administrative Agent, on terms with respect to this clause (a) that
are no less favorable to the Borrower, Guarantor or Pledged Entity, as the case may be, than those
that might be obtained at the time in a comparable arm’s-length transaction with any Person who is
not an Affiliate, and (b) those transactions set forth in the Management Agreement, the Advisory
Agreement and the Servicing Agreements.

10.11 Amendment to Governing Documents. Except with the prior written consent of the
Administrative Agent, the Borrowers, Guarantors and Pledged Entities shall not amend or agree with
any Person to vary the terms of any of their respective Governing Documents; provided,
however, that any such Person may enter into such amendments or agreements if such change
or amendment does not or will not adversely affect (a) the liability, risk or rights of any
Creditor Party under any of the Loan Documents or in connection with any of the transactions
contemplated hereby or thereby, or (b) the status of such Person as an entity that would not be
substantively consolidated with any other of the Borrowers, the Guarantors or the Pledged Entities
in the event any of them is the debtor in any bankruptcy proceeding.

10.12 Business Lines. The Borrowers and the Guarantors shall not engage, and shall
not permit or suffer any Pledged Entity engaging, in any business lines, other than their
respective Lines of Business.

 

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10.13 Consolidated EBITDA to Fixed Charge Ratio. CHC shall maintain at the end of
each Fiscal Quarter a ratio of Consolidated EBITDA to Fixed Charges equal to or greater than the
ratios set forth on Exhibit 1.1A.

10.14 Total Debt/Consolidated EBITDA Ratio. CHC shall maintain at the end of each
Fiscal Quarter a Total Debt/Consolidated EBITDA Ratio equal to or less than the ratios set forth on
Exhbit 1.1A.

10.15 Stock Buy-Backs. No Borrower, Guarantor, or Pledged Entity shall purchase or
otherwise acquire for any consideration (other than such purchaser’s common stock) its Capital
Stock during the term of this Credit Agreement.

10.16 Amendment to Certain Agreements.

10.16.1 Neither the Borrower, nor any Guarantor or Pledged Entity, shall permit or consent to
any amendment to, or waiver of any material provision of, the Management Agreement, the Servicing
Agreements or the Non-Compete Agreement without the prior written consent of the Administrative
Agent. In furtherance, and not in limitation, of the foregoing, neither CHC nor any of its
Subsidiaries that are parties to the Non-Compete Agreement shall, by amendment, waiver, consent or
failure to enforce, permit Newco to engage in, nor shall CHC or any such Subsidiary suffer Newco
engaging in, any activity that violates the terms of the Non-Compete Agreement.

10.16.2 Neither the Borrower, nor any Guarantor or Pledged Entity shall permit or consent to
any amendment to, or waiver of any provision of any of the Merrill Agreements or the Natixis
Agreements requiring any release by the Administrative Agent of any of the Collateral that is not
required to be released pursuant to the Merrill Agreements and the Natixis Agreements in force and
effect as of the date hereof without the prior written consent of the Administrative Agent.

10.17 Excluded Entities. Notwithstanding any other provision of this Credit Agreement
or any other of the Loan Documents, the Borrowers and the Guarantors shall not permit or suffer any
of the Excluded Entities (a) engaging in any business, financial or other activities of any kind,
(b) incurring any Indebtedness, (c) selling or purchasing any assets or making any investments, (d)
merging into or with either Borrower, any Guarantor, any Pledged Entity or any other Person, or (e)
permitting or suffering either Borrower, any Guarantor, any Pledged Entity or any other Person
merging into such Excluded Entity; except that:

10.17.1 Centerline Guarantor LLC. Centerline Guarantor LLC shall continue to engage
in the business of holding as payee a $20,000,000 promissory note from CHC and providing guaranties
of (a) obligations normally guaranteed by local developers of LIHTC Properties in the ordinary
course of business consistent with past practices and (b) obligations owing to Freddie Mac pursuant
to the limited support guaranty delivered pursuant to the Bond Transaction;

10.17.2 Guaranteed Manager and Guaranteed Manager II. Guaranteed Manager shall
continue to engage in the business of holding the managing member interests of the general partners
of all of the Guaranteed Funds or tax credit investments in which the

 

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Guaranteed Funds have invested and, from and after such time as called for under the Natixis
Agreements and the Merrill Agreements, Guaranteed Manager shall engage in such business solely with
respect to the Guaranteed Funds addressed in the Natixis Agreements. At such time as called for
under the Natixis Agreements and the Merrill Agreements, Guaranteed Manager II shall engage in such
business solely with respect to the Guaranteed Funds addressed in the Merrill Agreements.

10.17.3 CFin and CFin Holdings. CFin and CFin Holdings shall engage solely in such
business activities as are contemplated by, and necessary and appropriate for the performance by
such Persons of their obligations under, the Natixis Agreements, including, without limitation,
incurring such Indebtedness as is contemplated by the Natixis Agreements;

10.17.4 Guaranteed Holdings. Guaranteed Holdings shall engage solely in such business
activities as are contemplated by, and necessary and appropriate for the performance by such Person
of its obligations under, the Merrill Agreements, including, without limitation, incurring such
Indebtedness, if any, as is contemplated by the Merrill Agreements.

10.17.5 EIT. During such time as EIT shall be an Excluded Entity, EIT shall have no
assets other than those certain Freddie Mac Enhanced A Certificates issued to EIT in connection
with the Bond Transaction; and EIT shall have outstanding no Indebtedness other than the
liabilities to the holders of the EIT Preferred Shares which liabilities are effectively
economically defeased by such Freddie Mac Enhanced A Certificates.

11. DEFAULT

11.1 Events of Default. Each of the following events or circumstances, unless cured
within any applicable grace period set forth or referred to below in this Section, shall
constitute an “Event of Default”:

11.1.1 Failure to Pay.

(a) The Borrowers shall fail to pay any principal on any outstanding portion of the Loans as
and when the same shall become due and payable; or

(b) The Borrowers shall fail to pay any interest or any other Obligation under any outstanding
portion of the Loans within five (5) days of when the same is due and payable;

11.1.2 Failure to Perform. Either Borrower or any Guarantor shall: (a) fail to comply
with any of its Negative Covenants and Financial Covenants; (b) fail to comply, within thirty (30)
days after such Person receives notice of such failure from the Administrative Agent or from any
Lender, with any of its other agreements and covenants contained herein which are not otherwise
referenced herein (such thirty day period to be extended at the discretion of the Administrative
Agent (but not by more than forty-five (45) days) if such failure can be cured, the Borrowers and
Guarantors have promptly commenced and are diligently pursuing a cure and the Administrative Agent
determines that such extension is reasonably necessary in order to effect such a cure); or (c) fail
to comply with any of its other agreements, covenants, liabilities and

 

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obligations contained in any of the other Loan Documents beyond any applicable notice and
grace periods;

11.1.3 Breach of Representation or Warranty. Any representation or warranty of either
Borrower or any Guarantor in this Credit Agreement or any of the other Loan Documents shall have
been false or misleading in any material respect upon the date when made or deemed to have been
made or repeated;

11.1.4 Failure to Pay Other Indebtedness or Perform Contractual Obligations. Either
Borrower, any Guarantor or any Pledged Entity shall be in default or breach (a) of any recourse or
non-recourse obligations aggregating $10,000,000 or more, and the effect thereof is (i) to cause an
acceleration, mandatory redemption or other required repurchase of such obligations, or (ii) to
permit the holder(s) of such obligations to accelerate the maturity of any such obligations or
require a redemption or other repurchase of such obligations; or any such obligations shall be
otherwise declared to be due and payable (by acceleration or otherwise) or required to be prepaid,
redeemed or otherwise repurchased (other than by a regularly scheduled required prepayment) prior
to the stated maturity thereof; or (b) of, in any material respect, any obligations under the
Management Agreement, the Servicing Agreements or the Non-Compete Agreement;

11.1.5 Insolvency. Either Borrower, any Guarantor or any Pledged Entity shall make an
assignment for the benefit of creditors, or admit in writing its inability to pay or generally fail
to pay its debts as they mature or become due, or shall petition or apply for the appointment of a
trustee or other custodian, liquidator or receiver of any such Person or of any substantial part of
any such Person’s assets or shall commence any case or other proceeding relating to any such Person
under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or
liquidation or similar law of any jurisdiction, now or hereafter in effect, or shall take any
action to authorize or in furtherance of any of the foregoing, or if any such petition or
application shall be filed or any such case or other proceeding shall be commenced against any such
Person and any such Person shall indicate its approval thereof, consent thereto or acquiescence
therein;

11.1.6 Involuntary Proceedings. (i) The filing of any case or other proceeding
against either Borrower, any Guarantor or any Pledged Entity under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any
jurisdiction, now or hereafter in effect and such case or proceeding is not controverted within
twenty (20) days and dismissed within sixty (60) days of its commencement; (ii) a decree or order
is entered appointing a trustee, custodian, liquidator or receiver for any such Person, or
adjudicating any such Person bankrupt or insolvent, or approving a petition in any such case or
other proceeding; or (iii) a decree or order for relief is entered in respect of any such Person,
in an involuntary case under federal bankruptcy laws as now or hereafter constituted;

11.1.7 Judgments. There shall remain in force, undischarged, unsatisfied, unstayed or
unvacated, or not bonded pending appeal, for more than ninety (90) days, whether or not
consecutive, any final judgment against either Borrower, any Guarantor or any Pledged Entity that,
with other outstanding final judgments undischarged against such Person, exceeds in the aggregate
$1,000,000.00;

 

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11.1.8 Cancellation of Loan Documents. If any of the Loan Documents shall be
canceled, terminated, revoked or rescinded or any action at law, suit or in equity or other legal
proceeding to cancel, revoke or rescind any of the Loan Documents shall be commenced by or on
behalf of either Borrower, any Guarantor or any Pledged Entity, or any court or any other
governmental or regulatory authority or agency of competent jurisdiction shall make a determination
that, or issue a judgment, order, decree or ruling to the effect that, any one or more of the Loan
Documents is illegal, invalid or unenforceable in accordance with the terms thereof;

11.1.9 ERISA. There occurs one or more ERISA Events that individually or in the
aggregate results in or otherwise is associated with liability of any Borrower, Guarantor, Pledged
Entity or ERISA Affiliate in excess of $1,000,000 annually; provided, however, that
it shall be an Event of Default if there exists, as of any valuation date for a Guaranteed Pension
Plan, or in the aggregate for all Guaranteed Pension Plans (excluding Guaranteed Pension Plans with
assets in excess of benefit liabilities) an excess of the actuarial present value (determined on
the basis of reasonable assumptions employed by the independent actuary for such plan) of benefit
liabilities (as defined in Section 4001(a)(16) of ERISA) over the fair market value of the assets
of such plan, only if such excess individually or in the aggregate for all Guaranteed Pension Plans
(excluding in such computation any Guaranteed Pension Plans with assets greater than benefit
liabilities) exceeds $1,000,000 annually;

11.1.10 Indictment. Either Borrower, any Guarantor or any Pledged Entity shall be
indicted for a federal crime, a punishment for which could include the forfeiture of any assets of
such Person; or

11.1.11 Change in Control. There shall occur a Change in Control.

11.2 Remedies Upon Event of Default. During the continuance of an Event of Default:

11.2.1 Accelerate Debt. The Administrative Agent may, and with the direction of the
Required Lenders shall, declare the Obligations evidenced by this Credit Agreement and the other
Loan Documents immediately due and payable and such date shall constitute the Revolver Maturity
Date and the Term Loan Maturity Date (provided that in the case of the occurrence of an event set
forth in Sections 11.1.5 and 11.1.6, such acceleration shall be automatic); and

11.2.2 Pursue Remedies. The Administrative Agent may, and with the direction of the
Required Lenders shall, pursue any and all remedies provided for hereunder, or under any one or
more of the other Loan Documents. Except as expressly contemplated or permitted by the terms of
this Credit Agreement, each Lender may exercise setoff rights as contemplated by, and pursuant to,
Section 12 solely with the consent of the Administrative Agent, but not otherwise.
Further, no Lender in its capacity as such, may proceed to protect and enforce its rights by suit
in equity, action at law or other proceeding, whether for the specific performance of any covenant
or agreement contained in this Credit Agreement or the other Loan Documents or any instrument
pursuant to which the Obligations to such Lender are evidenced, or otherwise proceed to enforce the
payment thereof or exercise any other legal or equitable right of such Lender, all such rights
being delegated to the Administrative Agent in accordance with the terms of this Credit Agreement.

 

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11.2.3 Power of Attorney. For the purpose of exercising the rights granted by this
Section, as well as any and all other rights and remedies of the Administrative Agent or
the Lenders, each of the Borrowers and each Guarantor hereby irrevocably constitutes and appoints
the Administrative Agent (or any agent designated by the Administrative Agent) its true and lawful
attorney-in-fact, with full power of substitution, which appointment is coupled with an intent,
exercisable upon and during the continuance of any Event of Default, to execute, acknowledge and
deliver any instruments and to and perform any acts in the name and on behalf of the Borrowers or
any Guarantor.

11.3 Written Waivers. If a Default is waived by the Administrative Agent and/or any
other Creditor Party, in accordance with the applicable provisions of Section 23, in their
sole discretion, pursuant to a specific written instrument executed by an authorized officer of
such Persons, respectively, the Default so waived shall be deemed to have never occurred.

11.4 Allocation of Proceeds. If an Event of Default shall have occurred and be
continuing and the Maturity Dates have been accelerated, all payments received by the
Administrative Agent under any of the Loan Documents, in respect of any principal of or interest on
the Obligations or any other amounts payable by the Borrowers hereunder or thereunder, shall be
applied in the following order and priority:

(a) amounts due to the Administrative Agent, in its capacity as such, in respect of fees and
expenses due under Section 14, or otherwise due under this Credit Agreement and the other
Loan Documents;

(b) any amounts due the other Creditor Parties pursuant to the terms of this Credit Agreement
and the other Loan Documents other than principal of or interest on any portion of the Loans;

(c) payments of interest on any outstanding portion of the Loans to be applied pro rata to
each Lender and proportionately to the aggregate unpaid and accrued interest on the Revolving Loans
and the Term Loan respectively;

(d) payments of principal of the Revolving Loans and Term Loans, payments of Reimbursement
Obligations, and payments under any Derivative Agreement relating to any portion of the Loans
between a Borrower or Guarantor and any Lender or Lender’s Affiliate, to be applied pro rata to
each Lender and Lender’s Affiliate proportionately to the aggregate of such unpaid principal,
Reimbursement Obligations and amounts due under such Derivative Agreements, respectively, at the
time of allocation;

(e) payments of all other Obligations pro rata to each Creditor Party; and

(f) any amount remaining after application as provided above, and after all of the Obligations
have been indefeasibly paid in full, shall be paid to either Borrower or whomever else may be
legally entitled thereto.

11.5 Performance by the Administrative Agent. If either Borrower or any of the
Guarantors shall fail to perform any covenant, duty or agreement contained in any of the Loan

 

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Documents, the Administrative Agent may perform or attempt to perform such covenant, duty or
agreement on behalf of such Person after the expiration of any cure or grace periods set forth
herein if and to the extent the Administrative Agent considers in its discretion that such
performance is necessary or advisable in order to protect or preserve the Collateral or in order to
protect against a potential Material Adverse Effect. In such event, such Person shall, at the
request of the Administrative Agent, promptly pay any amount expended by the Administrative Agent
in such performance or attempted performance to the Administrative Agent, together with interest
thereon at the applicable Default Rate from the date of such expenditure until paid.
Notwithstanding the foregoing, the Administrative Agent shall not have any liability or
responsibility whatsoever for the performance of any obligation of such Person under this Credit
Agreement or any other Loan Document in the absence of its gross negligence or willful misconduct.
All amounts expended by the Administrative Agent pursuant to this Section shall constitute
Obligations secured by the Collateral.

11.6 Rights Cumulative. The rights and remedies of the Administrative Agent and the
other Creditor Parties under this Credit Agreement and each of the other Loan Documents shall be
cumulative and not exclusive of any rights or remedies which any of them may otherwise have under
Applicable Law. In exercising their respective rights and remedies the Administrative Agent and
the other Creditor Parties may be selective and no failure or delay by any such Person in
exercising any right shall operate as a waiver thereof, nor shall any single or partial exercise of
any power or right preclude its other or further exercise or the exercise of any other power or
right.

12. SETOFF.

Regardless of the adequacy of any Collateral, if any Event of Default shall have occurred and be
continuing, any deposits or other sums credited by or due from the Administrative Agent or any
other Creditor Party to either Borrower or any of the Guarantors and any securities or other
property of either Borrower or any of the Guarantors in the possession of the Administrative Agent
or such other Creditor Party or any of their respective Affiliates may, at any time, solely with
the consent of the Administrative Agent, without demand or notice (any such notice being expressly
waived by the Borrowers and the Guarantors), in whole or in part, be applied to or set off by the
Administrative Agent or such other Creditor Party against the payment of Obligations, now existing
or hereafter arising, of the Borrowers or any of the Guarantors to the Administrative Agent or such
other Creditor Party regardless of the adequacy of any other collateral securing any outstanding
portion of the Loans. The Administrative Agent and each of the other Creditor Parties agree with
and among each other that (i) if an amount to be set off is to be applied to Indebtedness of the
Borrowers or any of the Guarantors to the Administrative Agent or such other Creditor Party, such
amount shall be applied ratably first to Obligations owed to the Creditor Party exercising such
right of set off and pro rata to any other similarly situated Creditor Parties, and then to the
Obligations owed all other Creditor Parties, including, without limitation, Reimbursement
Obligations owed to the Issuing Bank or all Lenders, and (ii) if the Administrative Agent or such
other Creditor Party shall receive from either Borrower or any Guarantor or any other source,
whether by voluntary payment, exercise of the right of setoff, counterclaim, cross action,
enforcement of the claim evidenced by this Credit Agreement in the name of, or constituting
Reimbursement Obligations owed to, the Administrative Agent or such other Creditor Party by
proceedings against a Borrower or a Guarantor at law or in equity or by

 

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proof thereof in bankruptcy, reorganization, liquidation, receivership or similar proceedings, or
otherwise, and shall retain and apply to the payment of the Obligations owed to the Administrative
Agent or such other Creditor Party any amount in excess of its ratable portion of the payments
received by all of the Creditor Parties with respect to the debt evidenced hereby corresponding to
all of the Creditor Parties, such Creditor Party will make such disposition and arrangements with
the other Creditor Parties with respect to such excess, either by way of distribution, pro tanto
assignment of claims, subrogation or otherwise as shall result in each Creditor Party receiving in
respect of the debt evidenced hereby in its name or Reimbursement Obligations owed it, its
proportionate payment as contemplated by this Credit Agreement; provided that if all or any part of
such excess payment is thereafter recovered from such Creditor Party, such disposition and
arrangements shall be rescinded and the amount restored to the extent of such recovery, but without
interest. ANY AND ALL RIGHTS TO REQUIRE THE ADMINISTRATIVE AGENT TO EXERCISE ITS RIGHTS OR REMEDIES
WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO THE ADMINISTRATIVE
AGENT OR ANY OTHER CREDITOR PARTY EXERCISING ANY RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS,
CREDITS OR OTHER PROPERTY OF EITHER BORROWER OR ANY GUARANTOR ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED.

13. THE ADMINISTRATIVE AGENT.

13.1 Authorization.

13.1.1 Authorization to Act. The Administrative Agent is authorized to take such
action on behalf of each of the Creditor Parties and to exercise all such powers as are hereunder
and under any of the other Loan Documents and any related documents delegated to the Administrative
Agent, together with such powers as are reasonably incident thereto, including the authority,
without the necessity of any notice to or further consent of the Creditor Parties, from time to
time to take any action with respect to any Collateral or the Loan Documents which may be necessary
to perfect, maintain perfected or insure the priority of the security interest in and liens upon
the Collateral granted pursuant to the Loan Documents, and no duties or responsibilities not
expressly assumed herein or therein shall be implied to have been assumed by the Administrative
Agent.

13.1.2 Independent Contractor. The relationship between the Administrative Agent and
each of the Creditor Parties is that of an independent contractor. The use of the term
“Administrative Agent” is for convenience only and is used to describe, as a form of convention,
the independent contractual relationship between the Administrative Agent and each of the Creditor
Parties. Nothing contained in this Credit Agreement nor the other Loan Documents shall be construed
to create an agency, trust or other fiduciary relationship between the Administrative Agent and any
of the Creditor Parties.

13.1.3 Representative. As an independent contractor empowered by the Creditor Parties
to exercise certain rights and perform certain duties and responsibilities hereunder and under the
other Loan Documents, the Administrative Agent is nevertheless a “representative” of the Creditor
Parties, as that term is defined in Article 1 of the Uniform Commercial Code, for purposes of
actions for the benefit of the Creditor Parties and the

 

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Administrative Agent with respect to all collateral security and guaranties contemplated by
the Loan Documents. Such actions include the designation of the Administrative Agent as “secured
party,” “pledgee” or the like on all financing statements and other documents and instruments,
whether recorded or otherwise, relating to the attachment, perfection, priority or enforcement of
any security interests, pledges, mortgages or deeds of trust in collateral security intended to
secure the payment or performance of any of the Obligations, all for the benefit of the Creditor
Parties and the Administrative Agent.

13.1.4 Regarding Collateral. The Administrative Agent is authorized and directed by
the Creditor Parties to consent to any sale or other disposition of Collateral permitted to be sold
or disposed of hereunder, and to release its liens on such Collateral, and the Administrative Agent
is authorized to rely on a certification from the Borrowers that such sale or disposition is
permitted hereunder.

13.2 Employees, Advisors and the Administrative Agent. The Administrative Agent may
exercise its powers and execute its duties by or through employees or agents and shall be entitled
to take, and to rely on, advice of counsel selected by it in the absence of gross negligence or
willful misconduct, concerning all matters pertaining to its rights and duties under this Credit
Agreement and the other Loan Documents. The Administrative Agent may utilize the services of such
Persons as the Administrative Agent in its sole discretion may reasonably determine, and all
reasonable fees and expenses of any such Persons shall be paid by the Borrowers pursuant to
Section 14.

13.3 No Liability. Neither the Administrative Agent (in its capacity as
Administrative Agent) nor any of its Related Parties nor any other Person assisting them in their
duties nor any agent or employee thereof, shall be liable to any Creditor Party for any waiver,
consent or approval given or any action taken, or omitted to be taken, in good faith by it or them
hereunder or under any of the other Loan Documents, or in connection herewith or therewith, or be
responsible for the consequences of any oversight or error of judgment whatsoever, except that the
Administrative Agent or such other Person, as the case may be, may be liable for losses due to its
willful misconduct or gross negligence. Each of the Issuing Bank and the Administrative Agent
shall be fully justified in failing or refusing to take any action under this Credit Agreement
unless it shall first have received such advice or concurrence of the Required Lenders as they
reasonably deem appropriate or it shall first be indemnified to its reasonable satisfaction by the
other Creditor Parties against any and all liability and expense which may be incurred by it by
reason of taking or continuing to take any such action. The Issuing Bank and the Administrative
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Credit Agreement in accordance with a request of the Required Lenders, and such request and any
action taken or failure to act pursuant thereto shall be binding upon the Creditor Parties and all
future holders of a Commitment or of a Letter of Credit Participation.

13.4 No Representations.

13.4.1 General. The Administrative Agent shall not be responsible for the execution
or validity or enforceability of this Credit Agreement, the Letters of Credit, any Notes, any of
the other Loan Documents or any instrument at any time constituting, or intended to constitute,
collateral security for any of the Obligations, or for the value of any such collateral

 

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security or for the validity, enforceability, or collectibility of any such amounts owing with
respect to any of the Loan Documents, or for any recitals or statements, warranties or
representations made herein or in any of the other Loan Documents or in any certificate or
instrument hereafter furnished to it by or on behalf of the Borrowers, the Guarantors or any of
their respective Subsidiaries, or be bound to ascertain or inquire as to the performance or
observance of any of the terms, conditions, covenants or agreements herein or in any instrument at
any time constituting, or intended to constitute, collateral security for any of the Loan Documents
or to inspect any of the properties, books or records of the Borrowers, the Guarantors or any of
their respective Subsidiaries. The Administrative Agent shall not be bound to ascertain whether any
notice, consent, waiver or request delivered to it by the Borrowers or any Guarantor shall have
been duly authorized or is true, accurate and complete so long as the Administrative Agent believes
in good faith that any such notice, consent, waiver or request is genuine and has been signed, sent
or made by the proper person. The Administrative Agent has not made nor does it now make any
representations or warranties, express or implied, nor does it assume any liability to the Creditor
Parties, with respect to the creditworthiness or financial conditions of the Borrowers, any
Guarantor or any of their Subsidiaries. Each Creditor Party acknowledges that it has, independently
and without reliance upon the Administrative Agent or any other Creditor Party, and based upon such
information and documents as it has deemed appropriate, made its own credit analysis and decision
to enter into this Credit Agreement, the other Loan Documents and the transactions contemplated
hereby.

13.4.2 Closing Documentation, Etc. For purposes of determining compliance with the
conditions set forth in Section 7, each Creditor Party that has executed this Credit
Agreement shall be deemed to have consented to, approved or accepted, or to be satisfied with, each
document and matter either sent, or made available, by the Administrative Agent to such Creditor
Party for consent, approval, acceptance or satisfaction, or required thereunder to be consented to
or approved by or acceptable or satisfactory to such Creditor Party.

13.5 Payments.

13.5.1 Payments to Administrative Agent. A payment by the Borrowers to the
Administrative Agent hereunder or under any of the other Loan Documents for the account of any
Creditor Party shall constitute a payment to such Creditor Party. The Administrative Agent agrees
promptly to distribute to each Creditor Party such Creditor Party’s pro rata share of payments
received by the Administrative Agent for the account of such Creditor Party except as otherwise
expressly provided herein or in any of the other Loan Documents.

13.5.2 Distribution by Administrative Agent. If in the opinion of the Administrative
Agent the distribution of any amount received by it in such capacity hereunder or under any of the
other Loan Documents might expose it to any liability, it may refrain from making distribution
until its right to make distribution shall have been adjudicated by a court of competent
jurisdiction. If a court of competent jurisdiction shall adjudge that any amount received and
distributed by the Administrative Agent is to be repaid, each Person to whom any such distribution
shall have been made shall either repay to the Administrative Agent its proportionate share of the
amount so adjudged to be repaid or shall pay over the same in such manner and to such Persons as
shall be determined by such court.

 

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13.5.3 Delinquent Lenders. Notwithstanding anything to the contrary contained in this
Credit Agreement or any of the other Loan Documents, any Lender that fails (i) to make available to
the Administrative Agent its pro rata share of any Revolving Loan or to pay any Letter of
Credit Participation in accordance with the terms of this Credit Agreement or (ii) to comply with
the provisions of Section 12 with respect to making dispositions and arrangements with the
other Lenders, where such Lender’s share of any payment received, whether by setoff or otherwise,
is in excess of its pro rata share of such payments due and payable to all of the Lenders, in each
case as, when and to the full extent required by the provisions of this Credit Agreement, shall be
deemed delinquent and shall be deemed a Delinquent Lender (a “Delinquent Lender”) until such time
as such delinquency is satisfied. A Delinquent Lender shall be deemed to have assigned any and all
payments due to it from the Borrowers, whether on account of any outstanding portion of the Loans,
Unpaid Reimbursement Obligations, interest, fees or otherwise, to the remaining applicable
non-delinquent Lenders for application to, and reduction of, their respective pro rata shares of
all outstanding Loans and Unpaid Reimbursement Obligations. The Delinquent Lender hereby authorizes
the Administrative Agent to distribute such payments to the applicable non-delinquent Lenders in
proportion to their respective pro rata shares of all applicable outstanding Loans and Unpaid
Reimbursement Obligations. A Delinquent Lender shall be deemed to have satisfied in full a
delinquency when and if, as a result of application of the assigned payments to all applicable
outstanding Loans and Unpaid Reimbursement Obligations of the non-delinquent Lenders, the Lenders’
respective pro rata shares of all outstanding Loans and Unpaid Reimbursement Obligations
have returned to the respective Revolving Loan Commitment Percentages or Term Loan Commitment
Percentages, as the case may be, of all the Lenders without giving effect to the nonpayment causing
such delinquency.

13.5.4 Indemnity. The Lenders ratably agree hereby to indemnify and hold harmless the
Administrative Agent and the Revolving Credit Lenders ratably agree hereby to indemnify and hold
harmless the Issuing Bank, from and against any and all claims, actions and suits (whether
groundless or otherwise), losses, damages, costs, expenses (including any expenses for which the
Administrative Agent and/or the Issuing Bank have not been reimbursed by the Borrowers as required
by Section 14 and indemnifications pursuant to Section 15), and liabilities of
every nature and character arising out of or related to this Credit Agreement or any of the other
Loan Documents or the transactions contemplated or evidenced hereby or thereby, or the
Administrative Agent’s or the Issuing Bank’s actions taken hereunder or thereunder, except to the
extent that any of the same shall be paid by or on behalf of the Borrowers or caused by the
Administrative Agent’s or the Issuing Bank’s willful misconduct or gross negligence.

13.6 Administrative Agent as Lender and Issuing Bank. In its individual capacity,
Bank of America shall have the same obligations and the same rights, powers and privileges in
respect to its Commitment and the Loans made by it and as the purchaser of any Letter of Credit
Participation as it would have were it not also the Administrative Agent or Issuing Bank.

13.7 Resignation. The Administrative Agent may resign at any time by giving sixty
(60) days prior written notice thereof to the Creditor Parties and the Borrowers. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent.
Unless an Event of Default shall have occurred and be continuing, such successor Administrative
Agent shall be acceptable to the Borrowers; provided that the Borrowers shall not

 

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unreasonably withhold, condition or delay any such acceptance. If no successor Administrative
Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation,
then the retiring Administrative Agent may, on behalf of the Creditor Parties, appoint a successor
Administrative Agent, which shall be a financial institution having a rating of not less than A by
S&P or its equivalent by another nationally recognized rating agency. Unless an Event of Default
shall have occurred and be continuing, such successor Administrative Agent shall be acceptable to
the Borrowers; provided that the Borrowers shall not unreasonably withhold, condition or
delay any such acceptance. Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. After any retiring Administrative Agent’s resignation, the provisions of this Credit
Agreement and the other Loan Documents shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as Administrative Agent. Any
resignation by Bank of America, as Administrative Agent pursuant to this Section shall also
constitute its resignation as Issuing Bank. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring Issuing Bank, and (b) the retiring
Issuing Bank shall be discharged from all of its duties and obligations hereunder or under the
other Loan Documents, (c) the successor Issuing Bank shall issue letters of credit pursuant to the
terms of this Credit Agreement and in substitution for Letters of Credit, if any, outstanding at
the time of such succession or make other arrangements satisfactory to the retiring Issuing Bank to
effectively assume the obligations of the retiring Issuing Bank with respect to the Letters of
Credit then outstanding or the obligation to issue New Letters of Credit.

13.8 Notification of Defaults. Each Creditor Party hereby agrees that, upon learning
of the existence of a Default, it shall promptly notify the Administrative Agent thereof, whereupon
the Administrative Agent will notify the other Creditor Parties of such Default. The Administrative
Agent hereby agrees that upon receipt of any notice under this Section it shall promptly
notify the other Creditor Parties of the existence of such Default.

13.9 Duties in the Case of Enforcement. In case one or more Events of Default have
occurred and shall be continuing, and whether or not acceleration of the Obligations and the
Maturity Dates shall have occurred, the Administrative Agent may if it so elects and, shall if (a)
so requested by the Required Lenders and (b) the Lenders have provided to the Administrative Agent
such additional indemnities and assurances against expenses and liabilities as the Administrative
Agent may reasonably request, proceed to enforce the provisions of the Loan Documents authorizing
the sale or other disposition of all or any part of the Collateral and exercise all or any such
other legal and equitable and other rights or remedies as it may have in respect of such
Collateral. The Required Lenders may direct the Administrative Agent in writing as to the method
and the extent of any such sale or other disposition, the Lenders hereby agreeing to indemnify and
hold the Administrative Agent harmless from all liabilities incurred in respect of all actions
taken or omitted in accordance with such directions (other than with respect to such liabilities
arising out of the Administrative Agent’s, but not the Required Lenders’, gross negligence or
willful misconduct); provided that the Administrative Agent need not comply with

 

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any such direction to the extent that the Administrative Agent reasonably believes the
Administrative Agent’s compliance with such direction to be unlawful or commercially unreasonable
in any applicable jurisdiction.

13.10 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial, administrative or like proceeding or any assignment for the benefit
of creditors relative to either Borrower, any Guarantor or any of the Pledged Entities, the
Administrative Agent (irrespective of whether the principal of any outstanding portion of the Loans
or Reimbursement Obligation shall then be due and payable as herein expressed or by declaration, by
operation of the terms of Section 11.2.1, or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered,
by intervention in such proceeding, under any such assignment or otherwise:

(a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of any portion of the Loans or Reimbursement Obligations and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Creditor Parties and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of the
Lenders and the Administrative Agent and their respective agents and counsel and all other amounts
due the Creditor Parties and the Administrative Agent under Sections 5.6, 6.1, and
14) allowed in such proceeding or under any such assignment;

(b) at the direction of the Required Lenders to credit bid; and

(c) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same in accordance with the terms of this Credit Agreement.

Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in
any such proceeding or under any such assignment is hereby authorized by each Creditor Party to
make such payments to the Administrative Agent and, in the event that the Administrative Agent
shall consent to the making of such payments directly to the Creditor Parties, nevertheless to pay
to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 5.6, 6.1, and 14).

Nothing contained herein shall authorize the Administrative Agent to consent to or accept or adopt
on behalf of any Creditor Party any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations owed to such Creditor Party or the rights of any Lender or to authorize
the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding or
under any such assignment.

14. EXPENSES.

The Borrowers agree to pay (i) the Administrative Agent (and, during the existence of an Event of
Default, the Lenders) for the reasonable costs of producing and reproducing this Credit

 

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Agreement, the other Loan Documents and the other agreements and instruments mentioned herein,
including, without limitation, in connection with the consummation of the transactions contemplated
by the Island Recapitalization, (ii) without duplication of any amounts paid by the Borrowers
pursuant to Section 6.2, any Taxes (including any interest and penalties in respect
thereto) payable by any of the Creditor Parties (other than Excluded Taxes) on or with respect to
the transactions contemplated by this Credit Agreement (the Borrowers hereby agreeing to indemnify
the Creditor Parties with respect thereto), (iii) the reasonable fees, expenses and disbursements
of the Administrative Agent’s (and, during the existence of an Event of Default, the Lenders’)
counsel or any local counsel to the Administrative Agent incurred in connection with the
preparation, negotiation, execution, delivery, administration or interpretation of the Loan
Documents and other instruments mentioned herein, each closing hereunder, amendments,
modifications, restatements, approvals, consents or waivers hereto or hereunder, and proposed
amendments, modifications, restatements, approvals, consents or waivers hereto or hereunder, (iv)
the reasonable fees, expenses and disbursements of the Administrative Agent incurred by the
Administrative Agent in connection with the preparation and syndication of the Loan Documents and
other instruments mentioned herein, including, without limitation, collateral examination,
reasonable legal fees, appraisal expenses and environmental audits, (v) the reasonable fees,
expenses and disbursements of the Administrative Agent incurred by the Administrative Agent in
connection with the administration or interpretation of the Loan Documents and other instruments
mentioned herein, including, without limitation, collateral examination and appraisal expenses,
(vi) all reasonable fees, expenses and disbursements (including without limitation reasonable
attorneys’ fees and costs and reasonable consulting, accounting, appraisal, investment banking and
similar professional fees and charges) incurred by any of the Creditor Parties in connection with
(A) the enforcement of or preservation of rights under any of the Loan Documents against any of the
Guarantors, the Borrowers or any of their respective Subsidiaries or the administration thereof
during the continuance of an Event of Default, and (B) any litigation, proceeding or dispute
whether arising hereunder or otherwise, in any way related to any Creditor Party’s relationship
with any of the Borrowers, the Guarantors, or any of their respective Subsidiaries, unless such
Creditor Party is conclusively determined by a final order of a court of competent jurisdiction to
have breached its obligations hereunder, (vii) any reasonable and customary fees, costs, expenses
and bank charges, including bank charges for returned checks, incurred by any of the Creditor
Parties or any of their Affiliates in establishing, maintaining or handling of any accounts for the
collection, application or disposition of any of the Collateral, and (viii) all reasonable fees,
expenses and disbursements of the Administrative Agent (and, during the existence of an Event of
Default, the Lenders) incurred in connection with UCC searches, and UCC filings. The Borrowers and
the Guarantors authorize the Administrative Agent (or, with the consent of the Administrative
Agent, any other Creditor Party to debit any account maintained by either Borrower or a Guarantor,
with the Administrative Agent or such Creditor Party or with any of their Affiliates, in payment of
amounts due hereunder. The covenants of this Section shall survive payment or satisfaction
of all other Obligations.

15. INDEMNIFICATION.

The Borrowers and the Guarantors agree jointly and severally to indemnify and hold harmless the
Creditor Parties together with each of their Affiliates and their Related Parties, from and against
any and all claims, actions and suits whether groundless or otherwise, and from and

 

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against any and all liabilities, losses, damages and expenses of every nature and character arising
out of this Credit Agreement or any of the other Loan Documents or the transactions contemplated
hereby, including, without limitation, (i) any actual or proposed use by the Borrowers or any of
their Subsidiaries of the proceeds of any portion of the Loans or Letters of Credit, (ii) the
reversal or withdrawal of any provisional credits granted by any Creditor Party, or any of their
Affiliates upon the transfer of funds from bank agency or lock box accounts or in connection with
the provisional honoring of checks or other items, (iii) the Borrowers, the Guarantors or any of
their respective Subsidiaries entering into or performing this Credit Agreement or any of the other
Loan Documents, (iv) any actual or alleged infringement of any patent, copyright, trademark,
service mark or similar right of the Borrowers, the Guarantors or any of their respective
Subsidiaries, or (v) with respect to the Borrowers, the Guarantors and their respective
Subsidiaries and their respective properties and assets, the violation of any environmental law,
the presence, disposal, escape, seepage, leakage, spillage, discharge, emission, release or
threatened release of any hazardous substances or any action, suit, proceeding or investigation
brought or threatened with respect to any hazardous substances (including, but not limited to,
claims with respect to wrongful death, personal injury or damage to property), in each case
including, without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent (and, to the extent that the interests of a Lender materially differ from
those of the Administrative Agent in connection with such case, or during the existence of an Event
of Default, the reasonable fees and disbursements of counsel to such Lender) incurred in connection
with any such event, circumstances, investigation, litigation or other proceeding,
provided, however, that the Borrowers and Guarantors shall not be liable to the
Creditor Parties, any of their Affiliates or any of their Related Parties for any of the foregoing
to the extent that they arise from such Person’s gross negligence or willful misconduct as
determined by final order of a court of competent jurisdiction. In litigation, or the preparation
therefor, the Administrative Agent (and, during the existence of an Event of Default, the Lenders)
shall be entitled to select its own (or their own respective) counsel and, in addition to the
foregoing indemnity, the Borrowers and Guarantors agree to pay promptly the reasonable fees and
expenses of such counsel. If and to the extent that the obligations of either Borrower or any
Guarantor under this Section are unenforceable for any reason, the Borrowers and Guarantors
hereby jointly and severally agree to make the maximum contribution to the payment in satisfaction
of such obligations which is permissible under applicable law. The covenants contained in this
Section shall survive payment or satisfaction in full of all other Obligations. Each of the
Creditors Parties agree to promptly notify the Borrowers of any such claim, action, suit,
liability, loss, damage or expense after becoming aware of the same; provided that the failure to
provide such notice shall not affect the Borrowers’ and Guarantors’ obligations under this
Section.

16. SURVIVAL OF COVENANTS, JOINT AND SEVERAL OBLIGATIONS, ETC.

16.1 Survival. All covenants, agreements, representations and warranties made herein,
in any of the other Loan Documents or in any documents or other papers delivered by or on behalf of
the Borrowers, the Guarantors or any of their respective Subsidiaries pursuant hereto shall be
deemed to have been relied upon by the Creditor Parties, notwithstanding any investigation
heretofore or hereafter made by any of them, and shall survive the making of any portion of the
Loans and the issuance, extension or renewal of any Letters of Credit, as herein contemplated, and
shall continue in full force and effect so long as any Letter of Credit or any

 

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Obligation due under this Credit Agreement or any of the other Loan Documents remains
outstanding or any obligation to make any Loans or any obligation to extend or renew any Existing
Letter of Credit or issue any New Letter of Credit, and for such further time as may be otherwise
expressly specified in this Credit Agreement.

16.2 Joint and Several Obligations. All of the Obligations shall be the individual,
as well as the joint and several, obligation, responsibility, commitment and liability of each of
the Borrowers and the Guarantors. Regardless of the payment in full of the Obligations and
termination of all Commitments of the Lenders if, after the payment in full of the Obligations, any
portion of such payments to the Administrative Agent or any other Creditor Party is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then the Obligations and all liens, rights and remedies therefor
or relating thereto shall be reinstated to the extent of such invalidation, declaration, set aside
or repayment, and the Borrowers and the Guarantors shall continue to be jointly and severally
liable for such reinstated Obligations as if such Obligations had not been paid.

16.3 Maximum Amount. Anything contained in this Credit Agreement or the other Loan
Documents to the contrary notwithstanding, the amount of the Obligations payable by each Borrower
under this Credit Agreement or the other Loan Documents shall be the aggregate amount of the
Obligations unless a court of competent jurisdiction adjudicates such Borrower’s Obligations under
this Credit Agreement and the other Loan Documents (or the amount thereof) to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers), in which case the amount of the
Obligations payable by such Borrower hereunder or thereunder shall be limited to the maximum amount
that could be incurred by such Borrower without rendering such Borrower’s obligations under this
Credit Agreement and the other Loan Documents invalid or unenforceable under such applicable law.

17. ASSIGNMENT AND PARTICIPATION.

17.1 General Conditions. The provisions of this Credit Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that neither Borrower nor any of the Guarantors may assign or otherwise
transfer any of their respective rights or obligations hereunder without the prior written consent
of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (a) to an Eligible Assignee in accordance with the
provisions of Section 17.2, (b) by way of participation in accordance with the provisions
of Section 17.4 or (c) by way of pledge or assignment of a security interest subject to the
restrictions of Section 17.6 (and any other attempted assignment or transfer by any party
hereto shall be null and void). Nothing in this Credit Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in Section 17.4 and, to the
extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and
the Lenders) any legal or equitable right, remedy or claim under or by reason of this Credit
Agreement or any of the other Loan Documents.

 

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17.2 Assignments. Any Lender may at any time assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Credit Agreement (including all or a
portion of its Revolving Loan Commitment or Term Loan Commitment, and the Loans at the time owing
to it); provided that:

17.2.1 Minimum Assignments. Subject to the terms of Section 17.2.5, any
assignment of any Revolving Loan Commitment shall be for the entire amount of such assignor’s
Revolving Loan Commitment or for a minimum amount of such Revolving Loan Commitment equal to
$5,000,000 plus a whole multiple of $1,000,000 in excess thereof; and any assignment of any Term
Loans shall be for the entire amount of such assignor’s Term Loans or for a minimum amount of such
Term Loans equal to $5,000,000; provided, however, that the foregoing minimum
amounts shall not apply to any assignment to another Lender or to a Lender’s Affiliate or Approved
Fund (provided further, however, that the aggregate Commitments held by any
particular Lender and its Affiliates and its Approved Funds shall satisfy the foregoing minimum
amounts).

17.2.2 Deliverables. The parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance substantially in the form and content of
Exhibit 17.2.2 (an “Assignment and Acceptance”), together with a processing and recordation
fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire in such substance and form, and providing such
information, as the Administrative Agent may require from time to time, provided,
however, that only one such processing and recordation fee will be charged in connection
with the simultaneous assignment by a single Lender to more than one of its Approved Funds.

17.2.3 Joinder. Subject to acceptance and registration thereof by the Administrative
Agent pursuant to Section 17.3, from and after the effective date specified in each
Assignment and Acceptance, the Eligible Assignee thereunder shall be a party to this Credit
Agreement and, to the extent of the interest assigned by such Assignment and Acceptance have the
rights and obligations of a Lender under this Credit Agreement, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from
its obligations as such under this Credit Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Person’s rights and obligations under this Credit
Agreement, such Person shall cease to be a party hereto) but shall continue to be entitled to the
benefits of (i) Sections 6.2, 6.6, 6.7, 6.8 and 6.11 with
respect to facts and circumstances occurring prior to the effective date of such assignment and
(ii) Section 15 notwithstanding such assignment. Any assignment or transfer by a Lender of
rights or obligations under this Credit Agreement that does not comply with this paragraph shall be
treated for purposes of this Credit Agreement as a sale by such Person of a participation in such
rights and obligations in accordance with Section 17.4.

17.2.4 No Incremental Cost to Borrowers. The Borrowers shall bear no incremental cost
or expense arising out of or relating to any assignment contemplated by this Section 17.

 

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17.2.5 Pro Rata Assignments. Any assignment hereunder by any Lender shall consist of
a proportional assignment of such Lender’s Revolving Loan Commitment and Term Loan Commitment,
unless an Event of Default has occurred and is then continuing.

17.2.6 Required Consents. Assignments hereunder by any Lender shall require the
following consents:

(a) the consent of the Borrowers (such consents not to be unreasonably withheld, conditioned
or delayed; provided that the Creditor Parties acknowledge and agree that it shall not be
unreasonable for the Borrowers to withhold their approval of any competitor of any Borrower) shall
be required unless (1) an Event of Default has occurred and is continuing at the time of such
assignment, or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
and

(b) the consent of the Administrative Agent and the Issuing Bank (such consents not to be
unreasonably withheld, conditioned or delayed) shall be required if such assignment is to a Person
that is not a Lender, an Affiliate of a Lender or an Approved Fund.

17.2.7 No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

17.2.8 No Assignment to Borrowers. No such assignment shall be made to either
Borrower or to any of their Subsidiaries or Affiliates.

17.3 Register; Accounts. The Administrative Agent will maintain at the Administrative
Agent’s Office a copy of each Assignment and Acceptance delivered to it, and Schedule 2 as
a register for the recordation of the names and addresses of the Lenders and the Issuing Bank, and
the Commitments and Commitment Percentages of each Lender. The Administrative Agent will also
maintain accounts reflecting principal amounts of the Revolving Loans and Term Loan owing to each
Lender pursuant to the terms hereof from time to time, payments made on such Loans and other
appropriate debits and credits (the “Revolving Loan Account” and the “Term Loan Account,”
respectively and, collectively with Schedule 2, the “Register”). The Administrative Agent
may unilaterally, from time to time, revise the Register so as to update the information set forth
thereon (including, without limitation, as a result of any reductions of Commitments pursuant to
Section 2.4, as well as arising out of the execution and delivery of any Assignment and
Acceptance); and the entries in the Register shall be conclusive absent manifest error. The
Borrowers, the Guarantors, the Administrative Agent, the Issuing Bank and the Lenders may treat
each Person whose name is recorded as a Lender in the Register  pursuant to the terms hereof as a
Lender hereunder for all purposes of this Credit Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Borrowers, the Issuing Bank and any Lender,
at any reasonable time and from time to time upon reasonable prior notice.

17.4 Participations. Any Lender may at any time, without the consent of, or notice
to, either Borrower, any Guarantor, or any of the other Creditor Parties, sell participations to
any Person (other than the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries, or a
natural person) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under

 

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this Credit Agreement (including all or a portion of its Commitments and/or the Loans owing to
it); provided that (a) such Lender’s obligations under this Credit Agreement shall remain
unchanged, (b) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (c) no Participant shall have any right to direct the vote of such
Lender with respect to any matter requiring the vote or approval of the Required Lenders, and
(d) the Borrowers, the Guarantors and the other Creditor Parties shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this Credit
Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Credit Agreement and to
approve any amendment, modification or waiver of any provision of this Credit Agreement in
accordance with the terms of this Credit Agreement; provided that such agreement or
instrument may provide that, solely as between such Lender and the Participant, such Lender will
not, without the consent of the Participant, agree to any amendment, modification or waiver that
would reduce the principal of or the interest rate on any portion of the Loans, extend the term or
increase the amount of the Commitment of such Lender as it relates to such Participant, reduce the
amount of the Unused Facility Fee or Letter of Credit Fees to which such Participant is entitled or
extend any regularly scheduled payment date for principal or interest. Subject to Section
17.5, the Borrowers and the Guarantors agree that each Participant shall be entitled to the
benefits of Sections 6.2, 6.6, 6.7, 6.8 and 6.11 to the
same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 17.2. To the extent permitted by law, each Participant also shall be entitled to
the benefits of Section 12 as though it were a Lender, provided such Participant agrees to
be subject to Section 12 as though it were a Lender.

17.5 Payments to Participants. A Participant shall not be entitled to receive any
greater payment under Sections 6.2, 6.6, 6.7, 6.8 and 6.11
than the applicable Lender would have been entitled to receive with respect to the participation
sold to such Participant.

17.6 Miscellaneous Assignment Provisions. A Lender may at any time grant a security
interest in all or any portion of its rights under this Credit Agreement to secure obligations of
such Lender, including without limitation (a) any pledge or assignment to secure obligations to any
of the twelve Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C.
§341 and (b) with respect to any Lender that is a Fund, to any lender or any trustee for, or any
other representative of, holders of obligations owed or securities issued by such Fund as security
for such obligations or securities or any institutional custodian for such Fund or for such lender;
provided that no such grant shall release such Lender from any of its obligations
hereunder, provide any voting rights hereunder to the secured party thereof, substitute any such
secured party for such Lender as a party hereto or affect any rights or obligations of either
Borrower, any Guarantor, the Administrative Agent or the Issuing Bank hereunder.

17.7 Recordation in Register. Upon its receipt of an Assignment and Acceptance
executed by the parties to such assignment, together with a copy of any Note subject to such
assignment, the Administrative Agent will (a) record the information contained therein in the
Register, and (b) give prompt notice thereof to the Borrowers and the other Creditor Parties by
issuance of an updated Schedule 2.

 

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18. NOTICES, ETC.

Except as otherwise expressly provided in this Credit Agreement, all notices and other
communications made or required to be given pursuant to this Credit Agreement shall be in writing
and shall be (i) delivered in hand, (ii) mailed by United States registered or certified first
class mail, postage prepaid, (iii) sent by overnight courier, or (iv) sent by facsimile or email,
addressed as follows:

(a) if to the Borrower, any Guarantor or any Pledged Entity, to the address and with the copy
described on Schedule 3;

(b) if to the Administrative Agent, to the address and with the copy described on Schedule
3; and

(c) if to the Issuing Bank or a Lender, at the Issuing Bank’s or such Lender’s address for its
Domestic Lending Office set forth on Schedule 2 hereto;

or, in each case, to such other address for notice as such party shall have last furnished in
writing to the Person giving the notice.

Any such notice or demand shall be deemed to have been duly given or made and to have become
effective (i) if delivered by hand, overnight courier, email or facsimile, at the time of the
receipt thereof or the sending of such email or facsimile, and (ii) if sent by registered or
certified first-class mail, postage prepaid, on the third Business Day following the mailing
thereof.

19. GOVERNING LAW; JURISDICTION; VENUE.

THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED THEREIN, EACH OF THE OTHER
LOAN DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE OF NEW YORK (EXCLUDING THE LAWS
APPLICABLE TO CONFLICTS OR CHOICE OF LAW BUT INCLUDING AND GIVING EFFECT TO SECTIONS 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). EACH OF THE PARTIES HERETO AGREES THAT ANY SUIT
FOR THE ENFORCEMENT OF THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN
THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, THE STATE OF NEW YORK, OR ANY FEDERAL COURT
SITTING THEREIN, AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND SERVICE OF
PROCESS IN ANY SUCH SUIT BEING MADE UPON SUCH PARTY BY MAIL AT THE ADDRESS SPECIFIED IN SECTION
18. EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

 

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20. HEADINGS.

The captions in this Credit Agreement are for convenience of reference only and shall not define or
limit the provisions hereof.

21. COUNTERPARTS.

This Credit Agreement and any amendment, modification or restatement hereof may be executed in
several counterparts and by each party on a separate counterpart, each of which when executed and
delivered shall be an original, and all of which together shall constitute one instrument. In
proving this Credit Agreement it shall not be necessary to produce or account for more than one
such counterpart signed by the party against whom enforcement is sought. Delivery by facsimile,
email or by other electronic method of transmission by any of the parties hereto of an executed
counterpart hereof or of any amendment, waiver or restatement hereto shall be as effective as an
original executed counterpart hereof or of such amendment, waiver or restatement and shall be
considered a representation that an original executed counterpart hereof or such amendment, waiver
or restatement as the case may be, will be delivered.

22. ENTIRE AGREEMENT, ETC.

22.1 Entire Agreement. The Loan Documents are intended by the parties as the final,
complete and exclusive statement of the transactions evidenced by the Loan Documents. All prior or
contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be
superseded by the Loan Documents, and no party is relying on any promise, agreement or
understanding not set forth in the Loan Documents.

22.2 Additional Guarantors and Pledged Entities. The Administrative Agent and CHC may
from time to time, without any action of any other Lender, Borrower or Guarantor, revise
Schedule 1 so as to reflect the addition or removal of Persons from the definition of
Guarantors and Pledged Entities. Such revised Schedule 1 provided by the Administrative
Agent and CHC from time to time shall be conclusively presumed to be true, accurate correct, and
binding upon all of the parties hereto, in the absence of manifest error.

23. CONSENTS, AMENDMENTS, WAIVERS, ETC.

23.1 General Rule. Any consent or approval required or permitted by this Credit
Agreement to be given by all of the Lenders may be given, and any term of this Credit Agreement,
the other Loan Documents or any other instrument related hereto or mentioned herein may be amended,
and the performance or observance by either Borrower, any of the Guarantors or any of their
respective Subsidiaries of any terms of this Credit Agreement, the other Loan Documents or such
other instrument or the continuance of any Default may be waived (either generally or in a
particular instance and either retroactively or prospectively) with, but only with, the written
consent of the Required Lenders. Notwithstanding the foregoing, no consent, approval, amendment,
modification or waiver shall:

23.1.1 Affected Lenders. Without the written consent of each Borrower, each Guarantor
and each Lender directly affected thereby:

 

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(a) reduce or forgive the principal amount of any portion of the Loans or Reimbursement
Obligations, or reduce the rate of interest on any portion of the Loans or the amount of the Unused
Facility Fee or Letter of Credit Fees (other than interest accruing pursuant to Section
6.12 following the effective date of any waiver by the Required Lenders of the Event of Default
relating thereto);

(b) increase the amount of the Total Commitment or any Lender’s Revolving Loan Commitment or
Term Loan Commitment (except upon an assignment in accordance with the terms of Section 17)
or extend the expiration date of the Total Commitment or any Lender’s Revolving Loan Commitment or
Term Loan Commitment;

(c) postpone or extend either the Revolver Maturity Date or the Term Loan Maturity Date or any
other regularly scheduled dates for payments of principal of, or interest on, any portion of the
Loans or Reimbursement Obligations or any fees or other amounts payable to such Lender or waive any
Event of Default relating thereto (it being understood that (i) a waiver of the application of the
Default Rate, (ii) any vote to accelerate or to rescind any acceleration made pursuant to
Section 11.2.1 of amounts owing with respect to any portion of the Loans and other
Obligations and (iii) any modifications of the provisions relating to amounts or timing of
prepayments of portion of the Loans and other Obligations shall require only the approval of the
Required Lenders);

(d) release the Borrowers from any Obligations consisting of principal, interest, fees,
reimbursement obligations, expenses, or indemnities, release all or substantially all of the
Collateral or release all or substantially all of the Guarantors from their guaranty obligations
under the Guaranties (excluding, if either Borrower, any Guarantor or any of their Subsidiaries
becomes a debtor under the Bankruptcy Code, the release of “cash collateral,” as defined in Section
363(a) of the Bankruptcy Code pursuant to a cash collateral stipulation with the debtor approved by
the Required Lenders); provided, however, that the release or sale of Collateral in
connection with (i) an exercise of remedies or (ii) credit bidding of the Obligations shall require
only the consent of the Required Lenders; and

(e) amend any provision of this Credit Agreement calling for the pro rata application of funds
to any Creditor Parties;

For the avoidance of doubt, sales or other dispositions of Collateral that are not prohibited,
or are expressly permitted, pursuant to the terms of
Section 10.5 shall not require consent
from the Administrative Agent or from any Lender, and the Administrative Agent shall be permitted
to, and shall upon any such permitted sale or other disposition, release its lien on such
Collateral in order to permit the applicable Borrower or Guarantor to effect such sale or other
disposition. Additionally, notwithstanding the foregoing provisions of this Section
23.1.1, the sale of all or a material asset of a Line of Business (but less than all or
substantially all of the Collateral) shall not require the consent of more than the Required
Lenders.

23.1.2 All Lenders. Without the written consent of all of the Lenders, (a) amend or
waive Section 23.1 (other than Sections 23.1.3 and 23.1.4), 23.2 or
23.3 or the definition of Required Lenders, (b) permit an assignment of any rights
hereunder by either Borrower, (c) amend or waive Section 11.4;

 

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23.1.3 Administrative Agent and Issuing Bank. Without the written consent of the
Administrative Agent, and, to the extent affected thereby, the Issuing Bank, amend or waive
Section 5 or Section 13, the amount or time of payment of any Letter of Credit Fees
payable for the Administrative Agent’s or the Issuing Bank’s account or any other provision
applicable to the Administrative Agent or the Issuing Bank; or

23.1.4 Upon Change in Administrative Agent or Issuing Bank. In the event of any
change in the Person acting as the Administrative Agent or the Issuing Bank hereunder, without the
written consent of the Person formerly acting as such, amend or waive any provision of this Credit
Agreement accruing to the benefit of such Person in respect of all actions taken or omitted to be
taken by either of them prior to such change.

23.2 Waivers. No waiver shall extend to or affect any obligation not expressly waived
or impair any right consequent thereon. No course of dealing or delay or omission on the part of
the Administrative Agent, the Issuing Bank or any Lender in exercising any right shall operate as a
waiver thereof or otherwise be prejudicial thereto. No notice to or demand upon the Borrowers or
any Guarantor shall entitle such Person to other or further notice or demand in similar or other
circumstances.

23.3 Reasonable Cooperation by Creditor Parties. If and to the extent that the
written consent of the Required Lenders, all of the Lenders or the Issuing Bank, respectively, is
required to take any of the actions contemplated by this Section, and the Administrative
Agent has given such consent, none of the other Creditor Parties entitled to give or withhold their
consent shall unreasonably withhold, condition or delay its decision regarding the giving of any
such consent.

24. SEVERABILITY.

The provisions of this Credit Agreement are severable and if any one clause or provision hereof
shall be held invalid or unenforceable in whole or in part in any jurisdiction under particular
circumstances, then such invalidity or unenforceability shall affect only such clause or provision,
or part thereof, in such jurisdiction and under such circumstances, and shall not in any manner
affect such clause or provision in any other jurisdiction or other circumstances, or any other
clause or provision of this Credit Agreement in any jurisdiction. The parties agree that they will
negotiate in good faith to replace any provision hereof so held invalid or unenforceable with a
valid provision which is as similar as possible to the invalid or unenforceable provision.

25. CONFIDENTIALITY.

25.1 Confidentiality. During such period as any portion of the Loans remains
outstanding and is not then due and payable and any of the Commitments remain in effect, and for
six months thereafter (and twelve months with respect to proprietary information of CFin disclosed
hereunder), each of the Creditor Parties agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its Affiliates and to its
Affiliates’ respective Related Parties (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), to the extent utilized for the administration of the

 

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Obligations and the Loan Documents, including, without limitation, the assignment,
participation or exercise of remedies with respect thereto, (b) to the extent requested by any
regulatory authority purporting to have jurisdiction over it (including any self-regulatory
authority), (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) to the extent required to exercise any
remedies hereunder or under any other Loan Document or to take any action or proceeding relating to
this Credit Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing provisions substantially the same as those of
this Section, to (i) any assignee of or participant in, or any prospective assignee of or
participant in, any of its rights or obligations under this Credit Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to either
Borrower or a Guarantor and their respective Obligations, (g) with the consent of CHC or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to any Creditor Party or any of their respective
Affiliates on a nonconfidential basis from a source other than a Borrower (provided,
however, with respect to this clause (ii), the Creditor Parties acknowledge that they are
each subject to the confidentiality provisions of this Section 25 and that, accordingly,
they will each view any disclosures of any Information they receive from another Creditor Party to
be provided on a confidential basis under the terms of this Section 25 unless they have a
reasonable basis to believe in a particular instance that such Information is being provided on a
nonconfidential basis by such Creditor Party).

25.2 Definition of Information. For purposes of this Section, “Information”
means all confidential information received from either Borrower or any Guarantor relating to
either Borrower, any Guarantor or any Pledged Entity or any of their respective businesses, other
than any such information that is available to any Creditor Party or an Affiliate of such Creditor
Party on a nonconfidential basis prior to disclosure by either Borrower, any Guarantor or any
Pledged Entity, or subsequently becomes available on such basis. Any Person required to maintain
the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

25.3 Compliance Standard. Each of the Creditor Parties acknowledges that (a) the
Information may include material non-public information concerning the Borrowers, the Guarantors,
and their Subsidiaries, as the case may be, (b) it has developed compliance procedures regarding
the use of material non-public information and (c) it will handle such material non-public
information in accordance with applicable law, including federal and state securities laws. To the
extent practicable and possible in compliance with applicable law, regulation, proceeding or court
order, each of the Creditor Parties shall, prior to disclosure thereof, notify the Borrowers of any
request for disclosure of any such non-public information by any governmental agency or
representative thereof (other than any such request in connection with an examination of the
financial condition of such Creditor Party by such governmental agency) or pursuant to legal
process.

25.4 Intralinks and Public Lenders. The Borrowers and the Guarantors hereby
acknowledge that (a) the Administrative Agent will make available to the other Creditor Parties
materials and/or information provided by or on behalf of the Borrowers and the Guarantors

 

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hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks
or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be
“public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information
with respect to the Borrowers or their securities) (each, a “Public Lender”). The Borrowers and the
Guarantors hereby agree that (w) all Borrower Materials that are to be made available to Public
Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the
word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrowers and the Guarantors shall be deemed to have authorized the Creditor Parties
to treat such Borrower Materials as not containing any material non-public information with respect
to the Borrowers and the Guarantors or their securities for purposes of United States Federal and
state securities laws (provided, however, that to the extent such Borrower
Materials constitute Information, they shall be treated as set forth in this Section); (y)
all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor”; and (z) the Administrative Agent shall be entitled to treat
any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion
of the Platform not designated “Public Investor.”

26. USA PATRIOT ACT.

Each Creditor Party hereby notifies the Borrowers that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies each Borrower, which information
includes the name and address of the Borrowers and other information that will allow such Creditor
Party to identify the Borrowers in accordance with the Act.

27. NO ADVISORY OR FIDUCIARY RESPONSIBILITY.

In connection with all aspects of each transaction contemplated hereby, the Borrowers and the
Guarantors acknowledge and agree, and acknowledge the understanding of each Person included in the
Centerline Group, that: (i) the Loans provided for hereunder and any related arranging or other
services in connection therewith (including in connection with any amendment, waiver, restatement
or other modification hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrowers, the Guarantors and their respective Affiliates, on the one hand,
and the Administrative Agent, on the other hand, and the Borrowers and the Guarantors are each
capable of evaluating and understanding and understand and accept the terms, risks and conditions
of the transactions contemplated hereby and by the other Loan Documents (including any amendment,
waiver, restatement or other modification hereof or thereof); (ii) in connection with the process
leading to such transaction, the Administrative Agent is and has been acting solely as a principal
and is not the agent, fiduciary, or financial advisor for the Borrowers, the Guarantors or any of
their respective stockholders, creditors or employees, any other Person in the Centerline Group or
any other Person; (iii) the Administrative Agent has not assumed or will not assume an agency,
fiduciary, or advisory responsibility in favor of the Borrowers or any Guarantor, or any other
Person in the Centerline Group, with respect to any of the transactions contemplated hereby or the
process leading thereto, including with respect to any amendment, restatement, waiver or other
modification hereof or of any other Loan Document (irrespective of whether the Administrative Agent
has advised or is currently advising either Borrower, any Guarantor or any other Person in the
Centerline Group on other matters) and the

 

105

 

Administrative Agent has no obligation to either Borrower, any Guarantor or any other Person in the
Centerline Group with respect to the transactions contemplated hereby except those obligations
expressly set forth herein and in the other Loan Documents; (iv) the Administrative Agent and its
Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Borrowers, the Guarantors or other Persons in the Centerline Group, and the
Administrative Agent has no obligation to disclose any of such interests by virtue of any advisory,
agency or fiduciary relationship; and (v) the Administrative Agent has not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of the transactions
contemplated hereby (including any amendment, waiver, restatement or other modification hereof or
of any other Loan Document) and the Borrowers and the Guarantors have consulted their own legal,
accounting, regulatory and tax advisors to the extent they have deemed appropriate. Each of the
Borrowers and the Guarantors hereby waives and releases, to the fullest extent permitted by law,
any claims that it may have against the Administrative Agent with respect to any breach or alleged
breach of agency or fiduciary duty.

28. DESIGNATION OF PERMITTED LIENS.

The designation of a Lien as a Permitted Lien is not, and shall not be deemed to be, an
acknowledgment by any Creditor Party to any Person that the Lien shall have priority over any Lien
of the Administrative Agent granted in any Loan Document for the benefit of the other Creditor
Parties.

29. WAIVER OF JURY TRIAL.

EACH PARTY HERETO MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM BASED HEREON ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE ADMINISTRATIVE AGENT OR ANY LENDER
RELATING TO THE ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE LOAN DOCUMENTS, ARISING UNDER
CONTRACT, TORT, STRICT LIABILITY OR ANY OTHER LAW OR AT EQUITY, AND AGREES THAT IT WILL NOT SEEK TO
CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED. Except as prohibited by law, each party hereto hereby waives any right it may have to claim
or recover in any litigation referred to in the preceding sentence any special, exemplary, punitive
or consequential damages or any damages other than, or in addition to, actual damages. Each
Borrower and each Guarantor (i) certifies that no representative, agent or attorney of any Creditor
Party has represented, expressly or otherwise, that such Creditor Party would not, in the event of
litigation, seek to enforce the foregoing waivers and (ii) acknowledges that this waiver
constitutes a material inducement for the Creditor Parties to execute this Credit Agreement and
make the Loans and issue Letters of Credit.

 

106

 

 

30. RELEASE.

30.1 Waiver of Defaults under the Original Agreement. Each of the Creditor Parties
hereby acknowledges and agrees that upon the effectiveness of this Credit Agreement pursuant to
Section 7 hereof, any Defaults (as defined in the Original Agreement) under the Original
Agreement are hereby waived; provided that such waiver shall not impair the rights and remedies of
the Creditor Parties pursuant to this Agreement on account of any Default hereunder, including,
without limitation, any such Default arising pursuant to the same facts and circumstances as any
Default (as defined in the Original Agreement) which has been waived pursuant to this Section
30.1.

30.2 Waiver of any Claims Against Creditor Parties.

(a) The Borrowers and the Guarantors acknowledge and agree that, as of the date hereof: (i)
none of the Borrowers or Guarantors have any claim or cause of action against the Administrative
Agent, the Issuing Bank or the Lenders arising out of, under or in any way relating to the Original
Agreement or the Loan Documents (as defined in the Original Agreement), any documents, instruments,
agreements, dealings or other matters in connection with such Loan Documents, the transactions
contemplated by such Loan Documents, or any actions taken or not taken by the Administrative Agent
or the Lenders in connection therewith; (ii) none of the Borrowers or the Guarantors have any
offset rights, counterclaims or defenses of any kind against payment and performance of the
obligations under such Loan Documents; and (iii) the Administrative Agent and the Lenders have
heretofore properly performed and satisfied in a timely manner all of their obligations to the
Borrowers and the Guarantors under such Loan Documents.

(b) In consideration of the execution and delivery by the Administrative Agent, the Issuing
Bank and the Lenders herein, the Borrowers and the Guarantors agree to eliminate any possibility
that any past conditions, acts, omission, events, circumstances or matters would impair or
otherwise adversely affect any of the rights, interests, contracts, collateral security or rights
and remedies of the Administrative Agent, the Issuing Bank or the Lenders under the Loan Documents
(for the avoidance of doubt, as defined in this Credit Agreement). Therefore, each of the
Borrowers and the Guarantors, on their own behalf and on behalf of each of their respective
Subsidiaries, successors and assigns, hereby waives, releases and discharges the Administrative
Agent, the Issuing Bank and the Lenders, from any and all claims, demands, actions or causes of
action on or before the date hereof and arising out of, under or in any way relating to such Loan
Documents (including this Credit Agreement), any documents instruments, agreements, dealings or
other matters connected with such Loan Documents, the transactions contemplated by such Loan
Documents or any actions taken or not taken by the Administrative Agent, the Issuing Bank or the
Lenders in connection therewith, including, without limitation, all matters, claims, transactions
or things occurring on or prior to the date hereof. The waivers, releases and discharges in this
paragraph shall be effective regardless of any other event that may occur or not occur prior to, or
on or after the date hereof.

 

107

 

 

[Signatures Appear on Next Page]

 

108

 

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

	 	 	 	 	 
	 	BORROWERS:

 

CENTERLINE HOLDING COMPANY

 

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

	 	 	 	 	 
	 	
CENTERLINE CAPITAL GROUP INC.

 

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

	 	 	 	 	 
	 	
GUARANTORS:

CENTERLINE INVESTOR LP LLC

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

	 	 	 	 	 
	 	
CENTERLINE INVESTOR LP II LLC

 

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

	 	 	 	 	 
	 	
CENTERLINE INVESTOR LP III LLC

 

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

[Signatures Continue on Next Page]

Signature Page to Second Amended and Restated Revolving Credit and Term Loan Agreement

 

 

 

	 	 	 	 	 
	 	CENTERLINE CAPITAL COMPANY LLC

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

	 	 	 	 	 
	 	
CENTERLINE AFFORDABLE HOUSING ADVISORS LLC

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

	 	 	 	 	 
	 	CENTERLINE HOLDING TRUST

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

	 	 	 	 	 
	 	
CENTERLINE HOLDING TRUST II

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

	 	 	 	 	 
	 	
CENTERLINE FINANCE CORPORATION

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

 [Signatures Continue on Next Page]

Signature Page to Second Amended and Restated Revolving Credit and Term Loan Agreement

 

 

 

	 	 	 	 	 
	 	CENTERLINE CREDIT MANAGEMENT LLC

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

	 	 	 	 	 
	 	
CM INVESTOR LLC

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

	 	 	 	 	 
	 	
CENTERLINE MANAGER LLC

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

[Signatures Continue on Next Page]

Signature Page to Second Amended and Restated Revolving Credit and Term Loan Agreement

 

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT AND
LENDERS:

BANK OF AMERICA, N.A., as the Administrative Agent, as the Issuing Bank, and as
a Lender

 	 
	 	By:  	/s/ John F. Simon	 
	 	 	Name:  	John F. Simon	 
	 	 	Title:  	SVP	 

	 	 	 	 	 
	 	CITICORP USA, INC., as a
Lender

	 
	 	By:  	/s/ Lu Shi	 
	 	 	Name:  	Lu Shi	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 
	 	
COMERICA BANK, as a Lender

	 
	 	By:  	/s/ Sarah R. Miller	 
	 	 	Name:  	Sarah R. Miller	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 
	 	
MLBUSA COMMUNITY DEVELOPMENT CORP.,

as a Lender

	 
	 	By:  	/s/ John F. Simon	 
	 	 	Name:  	John F. Simon	 
	 	 	Title:  	Authorized Signatory	 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, as a Lender

 	 
	 	By:  	/s/ Todd Vannucci	 
	 	 	Name:  	Todd Vannucci	 
	 	 	Title:  	Managing Director	 

	 	 	 	 	 
	 	CIBC INC., as a Lender

 

	 
	 	By:  	/s/ Charles D. Mulkeen	 
	 	 	Name:  	Charles D. Mulkeen	 
	 	 	Title:  	Authorized
Signatory	 

Signature Page to Second Amended and Restated Revolving Credit and Term Loan Agreement

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