Document:

Exhibit 10.1

Table of Contents

Exhibit 10.1

SHAREHOLDERS AGREEMENT OF DRAFT II PARTICIPAÇÕES S.A. 

     VBC ENERGIA S.A., former Serra da Mesa Energia S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Engenheiro Luís Carlos Berrini, 1297/1307,
13th floor, suite 132, enrolled with the National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 00.095.147/0001 -02, hereinafter simply referred to as “VBC”; 

     521 PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of Rio de Janeiro, State of Rio de Janeiro, at Praia de Botafogo, 501 – 4th floor, enrolled with the National Register
of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 01.547.749/0001 -16, hereinafter simply referred to as “521”; 

     BONAIRE PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Juscelino Kubitscheck, 50, 18th floor – part occupancy,
enrolled with the National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 02.117.801/0001 -67, hereinafter simply referred to as “BONAIRE”; and they may be individually referred to as PARTY, or
collectively PARTIES; 

and, as Intervening Consenting Party, 

     DRAFT II PARTICIPAÇÕES S.A., whose name shall be changed to CPFL Energia S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Rua Iguatemi,
192, suite 121, enrolled with the National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 02.429.144/0001 -93, hereinafter simply referred to as “COMPANY”; the PARTIES and COMPANY being represented
according to their respective bylaws, 

WHEREAS the PARTIES: 

 (i) hold the majority of the capital of COMPANY, a holding resulting from the reorganization of investments of VBC, 521, and BONAIRE in the electricity power industry; 

 (ii) hold a direct equity in Companhia Paulista de Força e Luz — CPFL (hereinafter referred to as CPFL-D) and in CPFL Geração de Energia S.A. (hereinafter referred to as CPFL-G); 

 (iii) are bound to increase the capital of COMPANY upon the transfer of all shares owned in the capital of CPFL-D and CPFL-G;

(iv) wish to list COMPANY’s shares in Brazilian stock exchanges, according to the rules of the New Market, and abroad; and

(v) wish to regulate the exercise of the voting right inherent to their shares, the restriction on the circulation, the mutual relations as controlling shareholders, as well as to establish the general principles to exercise of the controlling power
and manage COMPANY and the SUBSIDIARIES thereof,

They have agreed to enter into this Shareholders Agreement, pursuant to, and for the purposes of article 118, including its paragraphs, Law Nr. 6.404, of 12/15/1976, which shall be governed as follows:

CLAUSE ONE – DEFINITIONS

1.1 Unless as otherwise clearly required by context, the capitalized terms and expressions below shall have the meanings set forth in this clause:

			
	 	(a) SHARES or BOUND SHARES – the common shares issued by the COMPANY and owned by the PARTIES (sub-clause 3.1), as well as any shares added to the equity of each of the PARTIES by virtue of subscription, split or bonus; 
	 	 	 
	 	(b) LITIGATION SHARES – such BOUND SHARES that are object of arrest, seizure or legal attachment; 
	 	 	 
	 	(c) AGREEMENT – this Shareholders Agreement, which is the only voting agreement executed by and between the PARTIES, which are hereby bound not to execute any other agreement of the same nature with the PARTIES or with third parties during the effectiveness hereof; 
	 	 	 
	 	(d) AFFILIATE – shall mean, in relation to each PARTY, the legal entity acting as its parent company, subsidiary, or directly or indirectly controlled by the same parent company(ies) of the PARTY, 
	 	 	 
	 	(e) CONTROL BLOCK – the block of BOUND SHARES, owned by the PARTIES, representing more than 50% of COMPANY’s voting capital, which entitle them to preponderance in company resolutions; 
	 	 	 
	 	(f) ASSOCIATED COMPANY – a company in which COMPANY holds no less than ten percent (10%) of the voting capital, without, however, controlling it; 
	 	 	 
	 	(g) SUBSIDIARY – a company in which COMPANY, directly or through other companies, holds the controlling power, (i) individually, for being the holder of voting rights that entitle it on a permanent basis preponderance in company resolutions and the power to elect the majority of the managers, or (ii) for participating in the control block governed by Shareholders or Quotaholders Agreement; 
	 	 	 
	 	(h) BYLAWS – the COMPANY’S bylaws, which – based on CPFL-D’s current bylaws – shall, in no more than 60 days as of this date, be restated to reflect the changes in the Brazilian Corporate Law (“Lei das S.A.’s”) and the provisions hereof, including any amendment approved during the effectiveness thereof; 
	 	 	 
	 	(i) ANNUAL BUDGET – the annual budget containing an estimate of the operating revenues and expenses, of the costs and investments, the cash flow, the amount to be used to pay dividends, the inversions of resources with own capital or that of third parties and other data deemed required by COMPANY’s management; 
	 	 	 
	 	(j) OFFEROR – the PARTY willing to dispose of the BOUND SHARES to a third party or to any of the other PARTIES or, for the purposes of Clause 12, that whose control is changed; 
	 	 	 
	 	(l) RELATED PARTY(IES) – partner(s), quotaholder(s) or shareholder(s) of the PARTIES, to wit: 
	 	 	 
	 	 	 (i) in relation to VBC: Votorantim Energia Ltda., Bradesplan Participações S.A. and Camargo Corrêa Energia Ltda., and their respective AFFILIATES; 
	 

			
	 	 	(ii) in relation to 521: PREVI – Caixa de Previdência dos Funcionários do Banco do Brasil, and their AFFILIATES; 

	 	 	 
	 	 	(iii) in relation to BONAIRE: Funcesp – Fundação Cesp, Petros – Fundação Petrobrás de Seguridade Social, Sistel – Fundação Sistel de Seguridade Social, Sabesprev – Fundação Sabesp de Seguridade Social and their respective AFFILIATES; 

	 	 	 
	 	(m) 5-YEAR BUSINESS PLAN – COMPANY’s 5-year business plan comprising the strategic planning, which shall contain the investment plans and the projections for a period of five (5) fiscal years of COMPANY and the SUBSIDIARIES thereof, comprising activities, strategies, new investments, and business opportunities, the amounts to be invested or otherwise contributed from resources of its own or third parties, as well as the expected return and profit rates; 

	 	 	 
	 	(n) PREVIOUS MEETING – meeting of the PARTIES to be held before any General Meeting or meeting of the Board of Directors of COMPANY, the SUBSIDIARIES or ASSOCIATED COMPANIES, in order to define the orientation of the vote to be given by representatives of the PARTIES in such corporate bodies; 

	 	 	 
	 	(o) ECONOMIC VALUE — shall mean the value of the BOUND SHARES, evaluated by the discounted cash flow method, according to criteria usually adopted in the evaluation of companies in the industry, carried out by a reputable expert company, to exercise the preemptive right in case of change of control of the PARTY, as set forth in clauses 11 and 12. 

CLAUSE TWO – OBJECT

2.1 The object hereof is to assure and govern the exercise of the control of COMPANY and its SUBSIDIARIES, the PARTIES being jointly bound to maintain the ownership of a block of SHARES that entitle them on a permanent basis to the majority of votes
in the General Meetings, and the power to elect the majority of managers and audit committee members of COMPANY and (by intermediation thereof) of its SUBSIDIARIES.

CLAUSE THREE – BOUND SHARES

3.1 The following SHARES of each PARTY are bound to the AGREEMENT, which comprise the participation percentage in the entire capital of COMPANY and in the CONTROL BLOCK, as shown in the table below:

							
	 	 	NUMBER OF COMMON 

    SHARES 	 	PERCENTAGE 
	 			 
	 	 	 	IN THE ENTIRE 

    CAPITAL 	 	IN THE 

    CONTROL BLOCK 
	PARTY 	 	 	 
	 		 		 		 
	VBC 	 	  19,571 	 	36.26 	 	  45.32 
	521 	 	  16,410 	 	30.40 	 	  38.00 
	BONAIRE 	 	  7,203 	 	13.34 	 	  16.68 
	      Total Shares 	 	  43,184 	 	80.00 	 	  100.00 

3.1.1 Pursuant to WHEREAS (iii) above, the PARTIES shall increase the capital of COMPANY upon the transfer of all common and preferred shares issued and owned by CPFL-D and CPFL-G, most of which were jointly purchased thereby, and the least of which
were individually purchased by one or some of the PARTIES. For the purposes of the provisions in this clause 3, CPFL-D and CPFL-G jointly purchased shares (hereinafter referred to as “CPFL JOINTLY PURCHASED SHARES”) are those the manner of acquisition of which was one of the following:

		
	 	a) shares (common or preferred) purchased (i) at CPFL-D privatization auction (including those alienated by the State and those corresponding to the balance not purchased by the employees); and (ii) resulting from the share purchase public offer made by DOC 4 Participações S.A.; 
	 	 
	 	b) CPFL-D and CPFL-G shares subscribed in increases of their capitals from November/1997 through March/2002, resulting from the exercise of the preemptive right inherent to the shares referred to in item “a” above; 
	 	 
	 	c) class “C” preferred bonus shares by CPFL-D, corresponding to the shares referred to in letters “a” and “b” above; and 
	 	 
	 	d) CPFL-G common and preferred shares, corresponding to the shares referred to in letters “a” to “c” above, received by the PARTIES resulting from the partial split-up of CPFL-D. 

3.1.2 After the increase of capital to which sub-clause 3.1.1 refers, in addition to the SHARES referred to in sub-clause 3.1. , the portion of new subscribed shares issued by the COMPANY corresponding to the transfer of eighty percent (80%) of the
“CPFL JOINTLY PURCHASED SHARES” shall be bound to the AGREEMENT. An Amendment to the AGREEMENT to be executed after the increase of capital shall set forth the new amount of BOUND SHARES of each PARTY, the percentage in relation to the
full capital of COMPANY and to the CONTROL BLOCK.

3.2 The PARTIES shall be bound at all times to exercise the voting right inherent to the common shares of the COMPANY, of which they are, now or in the future, holders in accordance with this AGREEMENT, even if some of such shares are not bound to
the AGREEMENT, by which they can only grant voting rights to third parties on the unbound shares, through a power of attorney, usufruct, pledge or another proper mean, if the third party is required to vote according to the instruction of the PARTY
that granted such third party the right to vote.

CLAUSE FOUR – GENERAL PRINCIPLES IN CONDUCTING CORPORATE MATTERS

4.1 The PARTIES shall be bound to exercise the voting right inherent to the SHARES, the controlling power they have over the managers of COMPANY, and its SUBSIDIARIES and ASSOCIATED COMPANIES, and the rights hereunder in order to apply the following
principles, guidelines and policies:

		
	 	a) to promote and observe the basic objective of COMPANY and its SUBSIDIARIES, companies engaged in the electricity power generation, transmission, and distribution industry, and like activities, in order to assure the operation of the facilities and equipment required for the exploration of the respective public service concessions, and to assure the continuation, regularity, and quality of the electricity power services provided; 
	 	 
	 	b) to take into account, in the strategic decisions of COMPANY and its SUBSIDIARIES, the interest of the PARTIES to safeguard the continuation and expansion of the operations of COMPANY and its SUBSIDIARIES, the financial return of the investments and to promote the provision of proper services by the SUBSIDIARIES, within the quality and competitive standards required for the good service to users and in compliance with the obligations of franchisees; 

		
	 	c) to implement in COMPANY and its SUBSIDIARIES a dividend distribution policy in a currency that entitle its shares the characteristics of savings security in order to have periodic income, without prejudice of the constitution of the reserves provided for in the ANNUAL BUDGET or in the 5-YEAR BUSINESS PLAN, and that are required for the expansion plan of its activities and for the improvement of the provision of services of the franchises explored by the SUBSIDIARIES; 
	 	 
	 	d) to adopt a dynamic management structure in COMPANY and SUBSIDIARIES within the minimum standard required for its good management, comprised by qualified and reputable professionals; 
	 	 
	 	e) to prepare guidelines for the activities and management of COMPANY and SUBSIDIARIES to be reflected (i) in the 5-YEAR BUSINESS PLAN; and (ii) in the ANNUAL BUDGET of COMPANY and SUBSIDIARIES, prepared in accordance with the 5-YEAR BUSINESS PLAN. 

4.2 Any business or agreement to be executed by COMPANY or its SUBSIDIARIES with a RELATED PARTY shall be concluded strictly based on mutual and market conditions, as such business or agreement had been contracted with third parties.

CLAUSE FIVE – PREVIOUS MEETINGS

5.1 Before any General Meeting or meeting of the Board of Directors of COMPANY, its SUBSIDIARIES or its ASSOCIATED COMPANIES to resolve on any of the matters set forth in sub-clauses 5.4 and 7.4, the PARTIES, called as provided for in sub-clause
5.2, shall meet to define the manner by which the vote will be exercised by their representatives in accordance with the provisions herein.

5.2 The PREVIOUS MEETINGS shall be called by the chairman of the Board of Directors of COMPANY or its SUBSIDIARY, by any other two members of the Board, acting together, by any member of the Board of Directors of the ASSOCIATED COMPANY appointed by
COMPANY or further by any of the PARTIES, upon written notice sent by any means to the addresses referred to in sub-clause 17.6, at least three (3) business days in advance. The meetings shall be held at COMPANY’s principal place of business or
as otherwise previously informed, provided that such place is located in the same city of its principal place of business, at least twenty-four (24) hours before the General Meeting or meeting of the Board of Directors. The PREVIOUS MEETINGS calls
shall include the agenda to be discussed, and a copy of any supporting document required should be attached thereto.

5.3 The PREVIOUS MEETINGS shall take place with the presence of the representatives of the PARTIES holding at least fifty-one percent (51%) of the BOUND SHARES, the PARTIES being bound to appear thereat by proxies with powers to resolve on the
agenda.

5.4 A PREVIOUS MEETING shall be mandatory for all matters requiring the approval of the General Meeting or for those in which the Board of Directors of COMPANY, or its SUBSIDIARIES, can only resolve by the qualified majority (pursuant to sub-clause
7.4) . A PREVIOUS MEETING shall also be required for the Board of Directors (of COMPANY and its SUBSIDIARIES) to resolve on the following matters:

		
	 	a) approval of the other members of the Staff of Officers, appointed by the Chief Executive Officer previously elected by the Board of Directors; and 

	 	b) execution of agreement of any nature in a total amount higher than R$ 20 million, even if such agreement is related to the expenses set forth in the ANNUAL BUDGET or in the 5-YEAR BUSINESS PLAN. 

5.5 The PARTIES and their representatives in resolutions of COMPANY or its SUBSIDIARIES shall postpone or adjourn the General Meeting or meeting of the Board of Directors called to resolve on a matter subject to the PREVIOUS MEETING when (i) for any
reason, until the date of the General Meeting or meeting of the Board of Directors, the PREVIOUS MEETING had not been held; or (ii) if held, there is no valid decision of the PARTIES. In both cases, the postponement or adjournment shall be
maintained until the PARTIES previously meet and a valid decision is made (sub-clause 5.6) . In case the valid decision is not made only in relation to some aspects of the agenda, the PARTIES shall cause such aspects to be removed from the order of
the day, and shall resolve on the other aspects as defined in the PREVIOUS MEETING.

5.6 All resolutions of the PARTIES in PREVIOUS MEETINGS shall be adopted by the simple majority (50% + 1) of the BOUND SHARES, except those to which General Meeting is incumbent and those subject to the approval of the qualified majority of the
Board of Directors, as determined in sub-clause 7.4, for which the approval of the PARTIES representing at least eighty percent (80%) of the BOUND SHARES shall be required.

5.6.1 In the PREVIOUS MEETINGS each BOUND SHARE entitled to one vote, and the blank votes or denials shall – for the purposes of the decision on matters requiring the approval of the qualified majority – be computed as approval of the
proposal with the largest number of votes.

5.6.2 The orientation of vote defined by the PARTIES in PREVIOUS MEETING shall be followed uniformly and in block by the representatives of the PARTIES in the resolutions of COMPANY, its SUBSIDIARY or ASSOCIATED COMPANY resolving thereon.

5.7 If the ANNUAL BUDGET of COMPANY and/or its SUBSIDIARIES had not been approved by the qualified majority until the first business day of the year to which it refers, the monthly disbursement (excluding new investments) up to the amount of
one-twelfth (1/12) or the budget approved for the previous year, with the adjustment of the respective amounts based on the variation of the IGP-M, published by Getúlio Vargas Foundation shall be automatically authorized. Such
disbursement authorization shall be in force only during the first quarter of the subsequent year. After this period, only expenses and investments required to assure the operations of COMPANY and its SUBSIDIARIES for the continuation of the
provision of services and projects and investments already approved and in progress may be made.

5.8 The impediment to participate by representatives of any of the PARTIES in any of the Assistant Committee of the Board of Directors of COMPANY and/or its SUBSIDIARIES for the reasons set forth in sub-clause 8.9.6 shall not restrict, for any
purpose or effect, the participation of the same PARTY in the PREVIOUS MEETING to resolve on such matter, in which it may exercise its voting right in full.

5.9 The failure to appear by any of the PARTIES at a PREVIOUS MEETING duly called and held shall imply in the full acceptance thereby of the resolution adopted by the majority of votes of the BOUND SHARES owned by the PARTIES present at the meeting,
and the votes corresponding to the SHARES of the absent PARTY shall be computed as favorable votes for the purposes of calculation of the qualified majority in the cases required hereunder.

5.10 The chairman of the General Meeting or of the Board of Directors, of COMPANY and its SUBSIDIARIES, shall not compute the vote given by representatives of the PARTY in breach of the provisions hereof or the resolutions of the PREVIOUS MEETING
(sub-clauses 5.4 and 

5.6.2) . In such event, any of the representatives of the other PARTIES may, by submitting a copy of the minutes of the PREVIOUS MEETING in which the matter had been resolved by the PARTIES, required the vote of the party in breach to be considered
and calculated as previously approved in the PREVIOUS MEETING.

5.11 The failure to appear at the General Meeting or the meeting of the Board of Directors of COMPANY or its SUBSIDIARIES, as well as the abstention to vote of the representative of any PARTY or member of the Board of Directors elected thereby in
accordance with this AGREEMENT, entitled any of the representatives of the other PARTIES to participate, as the case may be, in the General Meeting or in the meeting of the Board of Directors, and exercise the voting right (i) in the case of a
General Meeting, with the shares owned by the absent or non-voting PARTY, and (ii) in the case of a meeting of the Board of Directors, on behalf of the absent or non-voting member of the board.

5.12 The minutes of the PREVIOUS MEETING shall be summarily transcribed, and, pursuant to art. 130, § 1, Law 6.404/76, it shall be allowed to present separate votes and protests, which, initialed by the presents, shall be filed by the PARTIES
– which shall include, clearly and accurately, the resolution of the PARTIES and the sense of vote that its representatives – in General meetings and Boards of Directors, of COMPANY and its SUBSIDIARIES and ASSOCIATED COMPANIES –
shall manifest or approve in the respective resolutions.

5.13 Upon the resolution of the majority of the PARTIES, the PREVIOUS MEETINGS may be tape-recorded.

CLAUSE SIX – EXERCISE OF THE VOTING RIGHT IN THE GENERAL MEETINGS GENERAL MEETINGS

6.1 The PARTIES shall exercise the voting right in the General meetings of COMPANY – and the latter in the General meetings of SUBSIDIARIES and ASSOCIATED COMPANIES – in accordance herewith.

6.2 Only matters provided for by law shall be submitted to the General Meeting. The BYLAWS of COMPANY shall provide that the decisions at the General Meeting shall be made by the simple majority of the attending shareholders present, except for the
matters where qualified majority is required by law.

6.3 Notwithstanding the provision in sub-clause 6.2, the PARTIES shall be bound to appear at all General meetings of COMPANY and therein exercise their voting rights in order to assure that the resolutions on any matters be approved, as defined in
the PREVIOUS MEETING, by the vote of the PARTIES holding at least eighty percent (80%) of the BOUND SHARES

6.4 Without prejudice of the provision in sub-clauses 5.10 and 5.11, and in art. 118 of Law 6.404/76, any exercise by any of the PARTIES of the voting right at the General meetings not in accordance with the resolutions in the PREVIOUS MEETING shall
imply invalidity of the vote and vacation of the resolution adopted, without prejudice of the right of the interested PARTY to promote the specific execution of the obligation breaches and claim for loss and damages.

6.5 Should either PARTY fail to appear at a General Meeting called to resolve on the matter submitted for its approval, or in case of appearance, fails to vote, the provision in sub-clause 5.11 and in § 9, art. 118, Law 6.404/76, shall
apply.

6.6 The provisions of this clause shall also apply to the resolutions at the General meetings of the SUBSIDIARIES, and, as the case may be, the ASSOCIATED COMPANIES.

CLAUSE SEVEN – RESOLUTIONS OF THE BOARD OF DIRECTORS

7.1. The PARTIES shall be bound to direct the members of the Board of Directors of COMPANY, the SUBSIDIARIES and ASSOCIATED COMPANIES elected thereby (subclause 8.2.1) to vote in the meetings of the Board of Directors, as resolved in the PREVIOUS
MEETINGS and the provisions herein.

7.2. The Board of Directors shall be incumbent to decide on any matter of the interest of the company, except (i) those attributed by Law exclusively to the General Meeting; and (ii) those attributed to the Staff of Officers by this AGREEMENT and by
the bylaws of COMPANY and its SUBSIDIARIES.

7.3 The decisions of the Board of Directors shall be – except for the provision in sub-clause 7.4 below – made by the simple majority of the members present, and the Chairman (or in the absence thereof, the Vice-Chairman) shall be entitled
to vote in case of a tie.

7.4 Without prejudice of the provision in sub-clause 5.6.2, the approval of the following matters require the approval of seventy percent (70%) of the acting members appointed by the PARTIES:

		
	 	a) election of the Chief Executive Officer and dismissal of any members of the Staff of Officers (including the Chief Executive Officer); 
	 	 
	 	b) definition of the dividends policy; 
	 	 
	 	c) establishment and closure of SUBSIDIARIES; acquisition and disposal of investments in other companies; 
	 	 
	 	d) approval of the ANNUAL BUDGET of COMPANY, considering that in the absence of agreement with the operating budget of a certain year, that of the preceding year shall prevail, will all amounts adjusted by the variation of the IGP-M in the previous year, according to sub-clause 5.7; 
	 	 
	 	e) approval of the 5-YEAR BUSINESS PLAN of COMPANY and its annual reviews; 
	 	 
	 	f) increase of capital of COMPANY within the limit of the capital authorized and pricing of the issuance of shares; 
	 	 
	 	g) issuance of subscription bonus within the limit of the authorized capital; 
	 	 
	 	h) indebtedness of COMPANY – including the provision of guarantees and assumption of obligations in favor of SUBSIDIARIES and ASSOCIATED COMPANIES – beyond the limits provided for in the ANNUAL BUDGET or in the 5-YEAR BUSINESS PLAN; 
	 	 
	 	i) execution of agreement of any nature in the total amount higher than R$ 20 million, even if such agreement refers to an expense provided for in the ANNUAL BUDGET or in the 5-YEAR BUSINESS PLAN; 
	 	 
	 	j) constitution of any type of guarantee by COMPANY in favor of third parties, in addition to the cases provided for in letter (h); 

		
	 	l) execution of agreements with the RELATED PARTIES in an amount higher than R$ 5 million; 
	 	 
	 	m) selection and substitution of COMPANY’s independent accountants; 
	 	 
	 	n) authorization for the purchase of shares issued by COMPANY itself, for the purpose of cancellation or treasury; 
	 	 
	 	o) amendments to the franchise agreement of a SUBSIDIARY; 
	 	 
	 	p) approval of share purchase option plans; 
	 	 
	 	q) purchase, disposal or encumbrance of any fixed asset of an amount equal to or higher than R$ 20 million; 
	 	 
	 	r) details of the matters to be submitted to previous analysis of each of the Committees, as provided for in sub-clause 8.9.4; 
	 	 
	 	s) compensation of the members of the Committees (sub-clause 8.9.2) that are not part of COMPANY staff. 

7.5 The resolution of the matters provided for in sub-clause 7.4 concerning SUBSIDIARIES or, as the case may be, ASSOCIATED COMPANIES, is subject to the PREVIOUS MEETING.

7.6 The provisions in sub-clauses 5.10 and 5.11 shall apply to the resolutions of the Board of Directors of COMPANY and SUBSIDIARIES.

CLAUSE EIGHT – COMPOSITION AND OPERATION OF THE MANAGEMENT BODIES

8.1 Company shall be managed by a Board of Directors and by an Executive Board, which shall be comprised and shall operate according to the BYLAWS and the provisions hereof.

8.2 BOARD OF DIRECTORS — The Board of Directors of COMPANY shall be comprised by at least twelve (12) members, one of which will be the Chairman, elected for a one (01) year office, which may be reelected.

8.2.1. Until such time as the registration for negotiation of COMPANY shares at the stock market does not become effective, the Board of Directors shall be constituted by twelve (12) members, being:

	  		
a) VBC incumbent of appointing six (6) members;	
	 
	    		
b) 521 shall appoint four (4) members;	
	 
	    		
c) BONAIRE shall appoint two (2) members;	

8.2.1.1 The number of members of the Board of Directors which each PARTY is entitled to appoint, according to sub-clause 8.2.1 above, takes into consideration the current interest of the PARTIES in the CONTROL BLOCK. In case of amendment to the
interest of any of the PARTIES in the total BOUND SHARES, the number of Members of the Board which the referred PARTY will be entitled to appoint shall be adapted to reflect such change, remaining, however, unchanged the number of Members of the Board of the PARTY whose relative interest in the total BOUND SHARES was not amended.

8.2.2 Notwithstanding the provisions of sub-clause 8.2.1.1, after the registration of COMPANY shares for negotiation in the stock market is completed, (i) the number of members of the Board of Directors of COMPANY (sub-clause 8.2) shall be increased
or reduced, depending on the case, so as to always assure the PARTIES, whilst holders of the CONTROL BLOCK, the power of appointing 12 Members of the Board, and (ii) one or more positions of the Board of Directors shall be destined to minority
shareholders, according to the law or as resolved by the PARTIES.

8.2.3 The PARTIES shall appoint, twenty-four (24) hours in advance of the General Meeting, the persons chosen thereby to be elected to the Board of Directors. The PARTIES hereby are bound to vote in block in the persons to appointed, which names
shall not be rejected, except in case of failure to comply with legal provisions.

8.2.4 The Chairman of the Board of Directors shall be appointed at the first meeting held after the election of its members, among the permanent Members of the Board appointed by the PARTY which, individually, holds the larger amount of the BOUND
SHARES and the Vice-Chairman by the PARTY which individually holds the second larger quantity of such shares.

8.2.4.1 In case of transfer of BOUND SHARES to a common SUBSIDIARY – understood as such the company which, under the terms defined herein, may be deemed SUBSIDIARY of more than one of the PARTIES — the right to appoint the Chairman and the
Vice Chairman of the Board of Directors as per sub-clause 8.2.4 shall not be affected, and these will continue to be appointed according to the criteria established therein, ignoring, for this purpose, the transfer of BOUND SHARES to the common
SUBSIDIARY.

8.2.5 The right to appoint the members of the Board of Directors, according to the provisions of sub-clause 8.2.1, shall not be assigned to third parties.

8.2.6 It is a condition precedent for the empowerment in the Board of Directors, that the Counselor appointed by any of the PARTIES executes the adhesion term to the present AGREEMENT, where (i) he acknowledges its contents and is bound to comply
with same, especially in relation to the obligation of uniform block vote as decided in the PREVIOUS MEETINGS and (ii) undertake several responsibility with the PARTY electing him, for the defaults caused by him.

8.3 In case of adoption of the multiple vote processes, the PARTIES shall be bounded to distribute its votes so as to reflect the proportion of the Board of Directors’ composition established under sub-clause 8.2.1 above.

8.4 In the General Meetings called to fill in the vacancy of counselor, the PARTIES shall vote so as to elect substitution appointed by the same PARTY indicating the substituted.

8.5 Any of the PARTIES may substitute, anytime and without justification, the member(s) of the Board of Directors appointed by same, and the PARTIES hereby undertake to vote so that the provisions of this sub-clause be complied with.

8.6 The PARTIES hereby are bound to dismiss any counselor appointed by them, respectively, who fails to comply with the provisions or the voting guidelines issued by the PARTIES, according to the present AGREEMENT, being null and void possible
resolutions taken in disagreement with such guidelines (as foreseen under clause 6.4), in which case a new meeting shall be held to discuss the matter, amending (if necessary) the resolutions which have not observed the provisions hereof or the guidelines and recommendations determined by the PREVIOUS MEETINGS (sub-clause 5.4) .

8.7 The meetings of the Board of Directors of COMPANY shall occur at least once every month, in dates to be determined by the Board of Directors during its first meeting, and may, however, be held more frequently, should the Chairman of the Board of
Directors so request, by its own initiative or by means of request by any member of the Board of Directors. The meetings of the Board of Directors shall be called ten (10) days in advance, by notice sent by the Chairman of the Board, indicating the
matters to be discussed and accompanied by the support documents possibly required. The presence of all members shall allow the holding of meetings of the Board of Directors irrespectively of call.

8.8 The meetings of the Board of Directors may be validly installed with the presence of the majority of its members, one of which shall be the Chairman or the Vice Chairman, and its resolutions shall be taken by majority of votes of the attending
Members of the Board, having the Chairman (and in his absence the Vice Chairman) the quality vote, except for the matters listed under sub-clause 7.4, which shall only be resolved by a qualified majority of seventy percent (70%) of the active
Members of the Board appointed by the PARTIES.

8.8.1 Should there be no quorum for the installation at first call, the Chairman shall call a new meeting of the Board of Directors, which may be installed in second call – to be made at least seven (7) days in advance —, with any number,
it being hereby established that no matter which is not in the Agenda of the original meeting of the Board of Directors may be discussed under second call, except if all Members of the Board are present and they expressly agree to the new
agenda.

8.9 Committees – The Board of Directors, in the resolutions covering the activities both of the COMPANY and its SUBSIDIARIES or ASSOCIATED COMPANIES, shall be assisted by 5 Committees, as follows: (a) Audit Committee, (b) Compensation
Committee. (c) Works Committee, (d) Financial Services Committee and (e) Purchase or Sale of Components Committee.

8.9.1 The Audit Committees and the Compensation Committees shall be permanent and the other Committees shall only be called when it is necessary to analyze and manifest opinion on the matters under their competence (according to sub-clause 8.9.4)
..

8.9.2 The Compensation Committee shall be comprised by six (6) members, appointed by the Board of Directors, being three (3) appointed by VBC, two (2) by 521 and one (1) by BONAIRE. The other Committees shall be comprised by four (4) members,
appointed by the Board of Directors, being two (2) appointed by VBC, one (1) by 521 and one (1) by BONAIRE. Only the Members of the Board may be appointed to the Compensation Committee, being the appointment of non Members of the Board acceptable as
members of the other Committees.

8.9.3 The Audit and Compensation Committees may be assisted, in the exercise of their tasks, by professionals, whether they are or not employees of COMPANY.

8.9.4 The detailing of the matters to be submitted to prior analysis of each of the Committees shall be defined and ruled by the internal regulations to be approved by the Board of Directors, being it hereby defined that:

		
	 	a) The Audit Committee shall be responsible for coordinating the internal audit procedures, appointing independent auditors when necessary and submitting to the Board an opinion on the approval of the management accounts and financial statements,
and, yet, on specific areas object of audit;

		
	 	b) The Compensation Committee shall be responsible for coordinating the process of electing the Chief Executive Officer and the process of assessing the whole Executive Board (including the Chief Executive Officer), recommending possible dismissals; proposing the compensation level for the main officers and the profit sharing bonus amounts as a consequence of the performance appraisal; 
	 	 
	 	c) The Works Committee shall be responsible for evaluating the supplier selection process for construction work and assembly in works with amounts over R$ 10 million, issuing an opinion on the best proposal; 
	 	 
	 	d) The Financial Service Committee shall be responsible for evaluating the supplier selection process for financial services for contracts exceeding R$ 10 million, issuing an opinion on the best proposal; and 
	 	 
	 	e) the Component Purchase and Sale Committee shall be responsible for: evaluating the supplier selection process for contracts exceeding R$ 5 million which may involve RELATED PARTIES, issuing an opinion on the best proposal; monitor the closing of Power sales agreements exceeding R$ 5 million to RELATED PARTIES, assuring the compliance with market conditions. 

8.9.5 The composition of the Committees defined under sub-clause 8.9.2 above takes into consideration the current interest of the PARTIES in the control group constituted by the BOUND SHARES. In case of amendment to the interest of any of the
PARTIES in the total BOUND SHARES, the number of Committee members which the referred PARTY will be entitled to appoint shall be adapted to reflect such change, remaining, however, unchanged the number of committee members of the PARTY whose
relative interest in the total BOUND SHARES was not amended.

8.9.6 People who may have, actual or potential conflict of interests or which are connected to RELATED PARTIES which main activities imply the existence, actual or potential, of conflict of interests, shall not participate of the non permanent
Committee of Works and of Purchase or Sale of Components.

8.9.7 The matters analyzed by each of the Committees shall be object of reports and proposals, which do not bind the resolution of the Board of Directors.

8.10 EXECUTIVE BOARD – The Executive Board, chosen for a three (3) year term, shall be comprised of six (6) members, being one (1) Chief Executive Officer, one (1) Strategy Director, one (1) Financial Director (also responsible for Relations
with Investors), one (1) Superintendent of Power Management, one (1) Distribution Superintendent and one (1) Generation Superintendent.

8.10.1 The Chief Executive Officer shall be elected by the Board of Directors, by qualified majority (sub-clause 7.4 above), from the names listed by the Compensation Committee. The other Executive Board members shall be elected by the Board of
Directors by simple majority vote, from the names listed by the Chief Executive Officer, so as to maintain the cohesion of the executive board of COMPANY and SUBSIDIARIES.

8.10.2 The Chief Executive Officer of COMPANY shall also be the Chief Executive Officer of the SUBSIDIARIES, and shall be incumbent, according to item 8.10.1, to submit the names of the professionals who will fill in the other Executive Officers
positions of the SUBSIDIARIES. The Power Management, Distribution and Generation Superintendents shall be, respectively, the Superintendents (and main executives) of the SUBSIDIARIES by means of which the activities of power management, distribution
and generation will be exercised.

8.11 Conflict in the Election of the Chief Executive Officer – In case none of the names submitted by the Compensation Committee is approved by the Board of Directors (according to sub-clause 7.4), and the position remains vacant for a period
of over two (2) months, this will characterize conflict in the election of the Chief Executive Officer, and will be solved according to the following mechanism:

		
	 	a) The Compensation Committee shall appoint up to three executive headhunting companies, the approval of which shall require the favorable vote of at least five (5) members of the Committee. No company having been approved within thirty (30) days counted from the characterization of the conflict, each of the PARTIES, through a Counselor member of the Committee elected by same, may appoint a sole executive headhunting company (which complies with the minimum requirements previously defined by the Board of Directors); 
	 	 
	 	b) should the list of executive selection companies be comprised by three names, the second major individual shareholder (taking into consideration only the BOUND SHARE) shall eliminate one of the companies and the main individual shareholder shall choose, from the two remaining companies, the one to select the candidates for the position of Chief Executive Officer. Should there be only two options of executive selection companies, the main individual shareholder shall choose, among them, the one to provide the services of selection of candidates; 
	 	 
	 	c) the executive selection company chosen according to letter “b” above shall have two (2) months to submit a list comprised of three candidates for the position of Chief Executive Officer, and the second major individual shareholder (taking into consideration only the BOUND SHARE) shall eliminate one of the candidates and the main individual shareholder shall choose, from the two remaining candidates, the one to be the Chief Executive Officer. 

8.12 During the period while the new Chief Executive Officer is being selected, the Chairman of the Board of Directors shall take over as interim Chief Executive Officer, or, if this is not possible, the Financial Director shall take over.

8.13 Conflict in the choice of Other Directors – Should, after three (3) months after the selection of the Chief Executive Officer, any of the Executive Officers positions (whether COMPANY or SUBSIDIARY) remains vacant due to the fact that none
of the candidates submitted by the Chief Executive Officer having obtained the approval of the Board of Directors by simple majority, this will characterize the conflict, which will be solved through the following mechanism:

The Chief Executive Officer shall appoint at least two candidates for the vacant position (being entitled to include a name which was not previously elected), and the Board of Directors shall elect the candidate chosen by vote of simple majority of
the PARTIES during a PREVIOUS MEETING.

8.14 The Executive Officers members shall be appraised annually by the Compensation Committee, who will submit its opinion on their performance to the Board of Directors.

8.15 The dismissal of the Chief Executive Officer or any other member of the Executive Officers due to unsatisfactory performance, requires decision of the Board of Directors by qualified majority (sub-clause 7.4) .

8.16 The Chief Executive Officer may dismiss any member of the Executive Officers, and shall inform his decision and the reasons for same to the Compensation Committee and, for legal purposes, the formalization of the dismissal shall occur during the next meeting of the Board of Directors, and the substitution shall be chosen and elected according to sub-clauses 8.10.1 and 8.13. The position of the dismissed Manager shall, up to
the appointment of his substitution, held by the Manager appointed by the Chief Executive Officer.

8.17 The rules dealing with sub-clauses 8.13 to 8.16 shall apply to the Managers of the SUBSIDIARIES.

CLAUSE NINE – MANAGEMENT BODIES OF THE SUBSIDIARIES AND ASSOCIATED COMPANIES

9.1 The composition, operation and resolutions of the Board of Directors and Executive Officers of the SUBSIDIARIES shall observe the provisions hereof. Whenever possible, the people elected to be part of the Board of Directors of the SUBSIDIARIES
shall be the same people elected by the PARTIES for the Board of Directors of COMPANY.

9.2 The Executive Officers of the SUBSIDIARIES shall be comprised by the number of members more suitable to their requirements, as resolved by the PARTIES, taking into consideration a proposal of COMPANY’s Chief Executive Officer.

9.3 Where applicable, the same rules shall be applied in relation to the ASSOCIATED COMPANIES where COMPANY elects Members of the Board.

CLAUSE TEN – AUDIT COMMITTEE

10.1 Company shall have an Audit Committee which will operate under permanent character and shall be comprised of three (03) or five (05) permanent members and corresponding alternates, with term up to the Annual General Meeting subsequent to its
election, and may be reelected.

10.2 The composition, competence and operation of the Audit Committee shall observe the terms of the BYLAWS and of the law.

CLAUSE ELEVEN – LIMITATIONS TO THE TRANSFER OF SHARES

11.1 The PARTIES mutually grant the first refusal right to, under equal conditions with third parties and observing the procedures provided under sub-clause 11.3, acquire the BOUND SHARES which one of them intends to dispose of.

11.2 The OFFEROR is bound not to dispose his BOUND SHARES except through one of the following types of legal business:

		
	 	I — purchase and sale, hypothesis when the offer to the remaining PARTIES must be under the same price and payment conditions of the offer to third parties; 
	 	 
	 	II – on the grant in payment, case in which the offer to the other PARTIES shall be of sale for a price equal to the debt value payable with the delivery of the BOUND SHARES. 

11.2.1 The disposal of BOUND SHARES by the OFFEROR may occur by means of type of legal business different from that indicated under sub-clause 11.2 above provided the remaining PARTIES agree to them, at their exclusive discretion.

11.3 The OFFEROR shall offer to the other PARTIES the disposal of the BOUND SHARES offered, under the same conditions of the proposal of the third interested party, observing the following rules:

		
	 	I – the offer to the other PARTIES shall be in writing, by means of letter delivered to the Chairman of the Board of Directors of COMPANY, accompanied by copy of the unconditional proposal of the third interested party, with effectiveness not inferior to forty-five (45) days; 
	 	 
	 	II – the Chairman of the Board of Directors of COMPANY, within the five (5) days subsequent to their receipt, shall send copy of the offer to the other PARTIES. 
	 	 
	 	III – within thirty (30) days counted as of the receipt of the copy of the offer, the other PARTIES shall bear the first refusal right to acquire the BOUND SHARES offered under the same conditions of the proposal of the third interested party, without any change or amendment, and the preference shall be exercised on all BOUND SHARES object of the offer. Should more than one PARTY accept the offer, the BOUND SHARES held by each of them, shall be apportioned pro-rata the BOUND SHARES held by each one, not taking into consideration, for the apportionment, the BOUND SHARES of the OFFEROR; 
	 	 
	 	IV – the exercise of the first refusal right shall (a) cover all BOUND SHARES offered and (b) be notified in writing to the Chairman of the Board of Directors of COMPANY within the term granted in the above item, after which the first refusal right will expire. 
	 	 
	 	V – once the first refusal right has been exercised and the provisions of item VI observed, the Chairman of the Board of Directors of COMPANY shall immediately notify the OFFEROR if the other PARTY(IES) exercised such right, and the disposal of the shares object of the offer shall be implemented within sixty (60) days counted from the end of the term for exercise of the preference as provided under item III; 
	 	 
	 	VI – Should the Offer Receiving Parties not exercise their first refusal right, or should such right expire, the OFFEROR may dispose of the BOUND SHARES to the third proponent under the exact terms of the proposal, provided such disposal is completed within ninety (90) days from the end of the term provided under item III of this sub- clause; 
	 	 
	 	VII – any modification of the disposal conditions indicated in the proposal of the third proponent, or the expiry of the term referred under item VI without the disposal to third party having been completed, will evidence a new and different disposal, which shall only be contracted after a new offer to the other PARTY(IES), under the terms of this sub-clause, so that these may exercise their first refusal right. 

11.4 Any of the PARTIES receiving the offer under the terms of sub-clause 11.3 may choose to dispose, together with the OFFEROR, its BOUND SHARES to the third proponent, it being adjusted that:

		
	 	I – should the third party offer not be extendable to all BOUND SHARES, being only restricted to a given quantity of SHARES, the PARTIES which decide not to exercise their first refusal rights and prefer to sell their shares jointly, shall be entitled to dispose to the third party, together with the OFFEROR, a portion of their shares pro-rata to the interest of each of then in the total BOUND SHARES (not taking into consideration the SHARES of the PARTY who does not wish to sell them); 

		
	 	II — Notwithstanding the provisions of item I above, in case of an acquisition of BOUND SHARES by a third party (who is not PARTY hereof) result in such third party becoming the major individual shareholder of the control block, the other PARTIES may choose to sell the totality of their SHARES to such third party, in which case the offer of the third party shall mandatorily provide for this possibility and encompass the obligation of acquiring the SHARES from the other PARTIES. 
	 	 
	 	III — the other PARTIES which receive the offer under the terms of this sub-clause 11.4 shall manifest, within the term of exercise of the first refusal right (sub-clause 11.3 item III) the option of disposing, depending on the case, (items I and II above) part or all their BOUND SHARES under the penalty of loosing such right, thus releasing the third proponent from the obligation of acquiring them; however, should the disposal option be exercised, the BOUND SHARES adhering to the offer and the OFFERORS shall be transferred to the third proponent by the same instrument. 
	 	 
	 	IV – in the case covered by item II above, the offer of the third proponent shall be null and void, for the purposes and effects of the sub-clause 11.3, if it does not contain the obligation of acquiring all shares of the remaining PARTIES.

11.4.1 The provisions of sub-clause 11.4 do not apply to the disposal of BOUND SHARES by BONAIRE for as long as it holds less than twenty percent (20%) of interest in the CONTROL BLOCK.

11.5 The first refusal right mutually granted under sub-clause 11.1 shall not apply in case of transfer of BOUND SHARES to the AFFILIATE, provided that:

		
	 	I – The AFFILIATE declares previously and in writing to the other PARTIES and to COMPANY’s Executive Officers its unrestricted adhesion to the AGREEMENT; 
	 	 
	 	II – Being the AFFILIATE controlled by the disposing PARTY, it previously and in writing undertakes to the other PARTY(IES) not to transfer, at whatever title or under whatever form, including as a consequence of a merger, incorporation or scission transaction, the control of the AFFILIATE, except if it re-buys in advance the BOUND SHARES transferred to the AFFILIATE under the terms of this sub-clause; 
	 	 
	 	III – Being the AFFILIATE the controller of the PARTY, or a company under common control, the end controlling shareholder of the AFFILIATE undertakes, in writing, to the other PARTY(IES) not to transfer, at whatever title or under whatever form, including as a consequence of a merger, incorporation or scission transaction, the control of the AFFILIATE, except if it re-buys in advance from the AFFILIATE all SHARES held by same and (b) unrestrictly adheres to the AGREEMENT by means of a letter sent to the other PARTY(IES) and to COMPANY’s Executive Officers. 

11.6 The exclusion of the first refusal right foreseen under sub-clause 11.5 does not cover the transfer, at any title, of BOUND SHARES to the AFFILIATE of which capital there participate, directly or indirectly, more than one of the PARTIES, in
which case the provisions of subclauses 11.1 to 11.3 shall apply.

11.7 The PARTY transferring BOUND SHARES to the AFFILIATE shall be legally and severally liable, irrespectively of any additional formality, together with the AFFILIATE, for the compliance of its obligations foreseen under the AGREEMENT or resulting
from its performance.

11.8 The provisions of sub-clauses 11.1 to 11.3 apply to the first refusal right of the PARTIES to the subscription of SHARES of capital increase of COMPANY, which shall bear preemptive rights on such capital increase pro-rata the number of SHARES
held by them.

11.9 Should BOUND SHARES of any of the PARTIES come to be subject to arrest, seizure or judicial pledge, this fact shall imply the irrevocable offer by the PARTY subject to JUDICIAL LITIGATION to the other PARTY(IES) to sell the LITIGATION SHARES,
observing the following provisions:

				
	 	I – the sales price of the LITIGATION SHARES shall be equal to its ECONOMICAL VALUE determined (where applicable) under the terms of sub-clauses 12.4 and 12.5; 

	 	 	 	 
	 	II – once the arrest, seizure or judicial pledge has occurred, by means of service of process to COMPANY, the sales offer will be deemed made, as covered by this sub- clause, and, consequently, the following rules shall apply: 

	 	 	 	 
	 	 	a) within ten (10) days as of the arrest, seizure or judicial pledge notice, there shall start the determination of the ECONOMIC VALUE of the LITIGIOUS SHARES (being the cost of such evaluation paid by the PARTY holding same), which, after determined, shall be notified by COMPANY to the other PARTIES; 

	 	 	 	 
	 	 	b) during the fifteen (15) days subsequent to the notice of the ECONOMIC VALUE of the LITIGATION SHARES, the other PARTY (IES) shall notify the PARTY holding the LITIGATION SHARES and the COMPANY of the exercise of the first refusal right, which shall only be validly exercised if it involves the totality of the LITIGATION SHARES. Should more than one PARTY exercise its first refusal right, the LITIGATION SHARES shall be apportioned pro-rata the SHARES held by each PARTY; 

	 	 	 	 
	 	 	c) once the right to acquire the LITIGATION SHARES has been exercised, the payment of the price shall be made as per the form and place determined by the judge ordering the judicial constraint of the LITIGATION SHARES, observing the following procedure: 

	 	 	 	 
	 	 	 	(i) should the credit guaranteed by the constraint of the LITIGATION SHARES, including court costs and legal counsel fees, is inferior to the ECONOMIC VALUE of the LITIGATION SHARES, the surplus of the LITIGATION SHARES acquisition price shall be paid directly to the disposing PARTY; 

	 	 	 	 
	 	 	 	(ii) should the credit guaranteed by the constraint of the LITIGATION SHARES, including court costs and legal counsel fees, exceed the ECONOMIC VALUE of the LITIGATION SHARES, the PARTY holding the LITIGATION SHARES shall supplement the funds required for the Court Guarantee, under the penalty of, by not doing so, such supplementation be made by the PARTY(IES) exercising the first refusal right. In this case, the PARTY holding the LITIGATION SHARES, shall be bound to return the amount paid as supplement, accrued by non reducible compensatory fine of 20% on the value corrected by the fluctuation of the IGP-M plus interest on arrears of at 1% per month or fraction. 

			
	 	 	d) once the price of the LITIGATION SHARES has been paid, should the SHARES transfer not be made by act of the Judge, the PARTIES shall execute the legal instrument of transfer of title; 

	 	 	 
	 	III – should the judicial order of arrest, seizure or judicial pledge of the LITIGATION SHARES be revoked (including due to substitution of the asset object of the judicial constraint) within sixty (60) days counted from the date of the legal notice to COMPANY as mentioned under item II above, the offer of sale ruled under this sub- clause shall be deemed cancelled, and the PARTY holding the LITIGATION SHARES shall (a) evidence the revocation of the legal proceedings by means of delivery to the other PARTY(IES) a certified copy of the revocation order, at or up to the sixty-first date of the date of the notice to COMPANY of the arrest, seizure or judicial pledge and (b) reimburse COMPANY or the other PARTIES, depending on the case, for the reasonable costs incurred up to then to determine the ECONOMIC VALUE. 

11.10 Should any of the PARTIES transfer, under the terms of sub-clause 11.5, part of its BOUND SHARES to an AFFILIATE, the following rules shall be observed: (I) for the purposes provided under sub-clauses 11.1 to 11.4, inclusive, the PARTY
transferring the BOUND SHARES and its AFFILIATE shall be deemed a sole shareholder of COMPANY, and, in case of disposal of BOUND SHARES by such PARTY or its AFFILIATE, the offer ruled under subclause 11.3 shall be made effective to the other
PARTIES, which shall hold the first refusal right assured under sub-clause 11.1; (II) the acquisition of shares, in case of sales offer ruled under sub-clause 11.9, shall be made by the PARTY or AFFILIATE holding the larger quantity of BOUND SHARES
on the date of the notice to COMPANY of the arrest, seizure or judicial pledge.

11.11 In case of sale, assignment or transfer, by 521 and VBC, of the BOUND SHARES belonging to same, which result, after such transaction, in an interest share inferior to 20% and 30%, respectively, of the BOUND SHARES, and provided BONAIRE has not
exercise its first refusal right for the acquisition of such shares, under the terms of this clause 11, BONAIRE shall be entitled to, at its exclusive discretion, sell the totality of the BOUND SHARES belonging to same together with the BOUND SHARES
owned by 521 or VBC object of the sale, assignment or transfer, for the same price, term and other conditions agreed upon. In order to implement the provisions of this sub-clause, 521 and VBC shall, whenever they aim at selling BOUND SHARES
pertaining to them, include the BOUND SHARES pertaining to BONAIRE in the corresponding negotiation.

11.12 The restrictions stipulated in this clause do not apply to the transfers of one (1) SHARE to each person to be appointed as member of the Board of Directors of COMPANY, which is not a shareholder, provided the beneficiary is bound to return
the SHARE received as soon as it ceases being a COMPANY manager. The SHARES so transferred shall be computed in the lot of SHARES of the disposing PARTY, which shall be responsible before the other PARTIES for the compliance of the obligations
arising from the present AGREEMENT by the buyer of the SHARE, under the terms of this sub-clause.

11.13 It is a condition precedent to any transfer of BOUND SHARES that the corresponding buyer unconditionally adheres to the present AGREEMENT, keeping the acquired SHARES bound hereto.

11.14 The PARTIES shall be prohibited of selling SHARES in the market, after the start-up of the public distribution of common shares of COMPANY, for the term defined together with the Global Coordinator of the primary share offer.

CLAUSE TWELVE – CHANGE OF CORPORATE CONTROL OF A PARTY

12.1 In case of direct or indirect change of the corporate control of any PARTY (the OFFEROR) the other PARTIES shall be entitled to acquire all BOUND SHARES pertaining, directly or indirectly, to the OFFEROR, by the ECONOMIC VALUE.

12.1.1 For the purposes of this clause, change of corporate control will be evidenced by the acquisition — under whatever form and title — by a third party (which, at the date of execution HEREOF was not part of the PARTY control group) of
shares, quotas or partner rights assuring same the prevalence in the corporate resolutions of the PARTY.

12.2 The provisions of sub-clause 12.1 also applies to the change of corporate control resulting from:

a) admission of a new partner upon capital increase of the OFFEROR or of a company holding, directly or indirectly, its control;

b) merger, incorporation or scission of the OFFEROR or of a company holding, directly or indirectly, its control;

c) disposal of shares of the corporate capital of the OFFEROR, of a company holding, directly or indirectly its control or of company controlled by OFFEROR owner of BOUND SHARES.

12.3 In the case of 521 and BONAIRE, the corporate control of which are held by Investment Funds – to wit de Investimento em Ações BB Carteira Livre I and Fundo de Investimento Financeiro BB Renda Fixa IV (521) and Icatu Energia
São Paulo Fundo Mútuo de Investimento em Ações — Carteira Livre (BONAIRE) – the provisions of this clause shall apply to any change implying that a third party becomes the holder of the absolute majority of its
quotas. The shareholding composition of 521 and BONAIRE and the composition of the Investment Funds controlling same constitute attachments 1 and 2 hereof.

12.4 Should there be changes of the corporate control of the OFFEROR, including under the terms of sub-clauses 12.2 and 12.3, the following rules will be observed:

		
	 	a) the OFFEROR shall notify in writing the other PARTIES of this fact, as well as the Chairman of the Board of Directors of COMPANY, within maximum thirty (30) days counted from the date of the change of control, informing, in such notice, (i) the identity of the new controller and (ii) the ECONOMIC VALUE of the SHARES, determined by a specialized company to be chosen by same (referred below as FIRST EVALUTION); in case of change of control resulting from merger, incorporation or scission, the notice covered by this item shall be made by the surviving company; 
	 	 
	 	(b) the other PARTIES shall, within thirty (30) days counted from the receipt of the notice mentioned under (a) above, notify in writing the OFFEROR and the Chairman of the Board of Directors of COMPANY whether they accept or reject the value of the FIRST EVALUATION of the SHARES, and, should they accept it, such acceptance shall imply the exercise of the right assured them by this Clause; 
	 	 
	 	(c) should they not accept the value of the FIRST EVALUATION, they may request the procedure of determination of the new ECONOMIC VALUE of the BOUND SHARES of the OFFEROR (this new evaluation hereinafter called SECOND EVALUATION), as provided under sub-clause 12.5 below; 

		
	 	(d) once the first refusal right is exercised, the purchase and sale of BOUND SHARES shall be hired during the fifteen (15) days subsequent to the date of the exercise and the price shall be paid cash simultaneously with the transfer of title of the SHARES; 
	 	 
	 	(e) Should the OFFEROR or its new controller, be bound to sell its BOUND SHARES as a consequence of change of control, fail to make the transfer of title of such SHARES, the other PARTY(IES) exercising their first refusal right under the terms of this Clause may (i) make a judicial deposit of the price of the BOUND SHARES, and (ii) request an Arbitral Award or Judicial Ruling producing the same effect of a purchase and sale agreement. 

12.4.1 A delay of over sixty (60) days of the notice mentioned under “a” of sub-clause 12.4 shall imply the charge of a fine at one half per cent (0,5%) of the ECONOMIC VALUE of the SHARES, for each month of delay, being the fine
discounted from the price payable by the PARTY(IES) exercising the first refusal right.

12.5 The procedure of determination of the value of the SECOND EVALUATION of the SHARES shall be done as follows:

		
	 	(a) the interested PARTIES shall appoint a specialized company in Corporate Evaluation, with national reputation, to determine the amount of the SECOND EVALUATION, the award of which shall be delivered within sixty (60) days from the notice mentioned under “a” of sub-clause 12.4. The purchase price of the BOUND SHARES shall be the average of the amounts of the FIRST EVALUATION and of the SECOND EVALUATION, provided the difference between the two evaluations does not exceed twenty percent (20%). Should the two evaluations show values with differences over 20%, the purchase price of the BOUND SHARES shall be determined by a third specialized first line company, chosen by the companies preparing the awards corresponding to the FIRST EVALUATION and to the SECOND EVALUATION, and the amount determined in the untie report shall be the final sales price of the BOUND SHARES. In case of conflict in the choice of the company to prepare the
 untie report, the matter will be solved by arbitration, according to clause 16. 
	 	 
	 	b) each interested PARTY shall bear the cost of the evaluation ordered by same; and the cost of the untie report shall be borne in equal parts by the OFFEROR (50%) and the remaining interested PARTIES (50%). 
	 	 
	 	(c) once determined the purchase price of the BOUND SHARES under the terms of this sub-clause, the Chairman of the Board of Directors of COMPANY shall notify the interested PARTIES so that they exercise the first refusal right within fifteen (15) days. 

12.5.1 The interested PARTIES shall loose the first refusal right ruled by this Clause if they do not provide for its evaluation report on the purchase price of the BOUND SHARES within the terms foreseen under sub-clause 12.5 “a”, nor
exercise their first refusal right within the terms and conditions defined under this Clause.

12.6 The provisions of the above sub-clauses do not apply to the corporate restructures where the ownership of the BOUND SHARES is transferred by singular or universal succession, provided the corresponding successors give written notice to the
other PARTIES and to the Executive Officers of COMPANY of their unrestricted adhesion to the AGREEMENT within the thirty (30) days subsequent to the acquisition of the BOUND SHARES, however always before exercising any right arising herefrom. Should
there occur the case covered by this subclause, the successors of the PARTY shall be deemed, for the purpose of exercise of the rights and compliance of the obligations stipulated herein, as jointly constituting one sole PARTY.

12.6.1 In the absence of the notice foreseen in the previous sub-clause, within the term define, the PARTIES interested in exercising the first refusal right shall notify the successor of the PARTY undergoing reorganization to, within fifteen (15)
days after the notice, manifest on its unrestricted adhesion to the AGREEMENT. After the term covered by this sub-clause without there being no written manifest of adhesion, the interested PARTIES may exercise the first refusal right anytime
according to the following procedure:

		
	 	(a) any of the interested PARTIES shall notify the OFFEROR (understood as such, for the purpose of this sub-clause, the singular or universal successor of the PARTY which fails to adhere to the AGREEMENT under the terms of sub-clause 12.6), the Chairman of the Board of Directors of COMPANY and the remaining PARTIES of its intent of acquiring the BOUND SHARES and requesting COMPANY to order an evaluation report on the ECONOMIC VALUE which shall be the final purchase price of the BOUND SHARES. 
	 	 
	 	(b) within thirty (30) days after the receipt of the notice of COMPANY informing the sales value of the BOUND SHARES the interested PARTIES shall confirm to the Chairman of the Board of Directors of COMPANY and to the OFFEROR its decision of acquiring the OFFERED SHARES. 
	 	 
	 	(c) once the first refusal right is exercised, the purchase and sale of BOUND SHARES shall be implemented during the fifteen (15) days subsequent to the date of the exercise and the price shall be paid cash simultaneously with the transfer of title of the SHARES; 

CLAUSE THIRTEEN – LIEN OF THE BOUND SHARES

13.1 The BOUND SHARES shall not be object of whatever type of lien, except in the following cases:

		
	 	(a) if the creditor is BNDES and/or BNDESPAR and the guaranteed debt arises, directly or indirectly, from finance granted (i) to investments in the CONTROLLED or ASSOCIATED COMPANIES or (ii) to COMPANY itself; or 
	 	 
	 	(b) if the creditor, by letter written to the COMPANY Executive Officers and to the other PARTIES, before the constitution of the material lien, (i) subordinates its right of enforcing the guarantee to the first refusal right of the PARTIES as ruled under Clause 11 and (ii) undertake not to interfere in the voting rights of the encumbered shares, even in case of default of the guaranteed debt; or 
	 	 
	 	(c) should all other PARTIES notify COMPANY that they agree with the lien intended by one of them. 

13.2 In case of constitution of material lien on behalf of BNDES/BNDESPAR made under the terms of item (a) of the previous sub-clause, the PARTIES agree to subordinate the voting rights of the BOUND SHARES encumbered to the conditions adjusted with
the BNDES/BNDESPAR by the interested PARTY.

13.3 The constitution of material liens on the BOUND SHARES without observing the provisions of this Clause shall not be valid nor shall it produce any effects before COMPANY and other PARTIES.

13.4 521 and BONAIRE are aware that:

		
	 	a) VBC has incurred debts within the Federal Privatization Program by means of different issues of debentures (3rd, 6th and 8th issues) which were subscribed by the BNDESPAR (hereinafter referred to as “debentures”) for the purpose of participating of the privatization of projects of the electrical area; 
	 	 
	 	b) currently, shares issued by CPFL-D and CPFL-G owned by VBC were given as guarantee of the payment of the “debentures” and/or bound to the exercise of the BNDESPAR right of “converting” part of its “debentures” in shares of such companies; 
	 	 
	 	c) in order to enable the public distribution of COMPANY shares (as referred to in the WHEREAS (iv), it is necessary to release the CPFL-D and CPFL-G shares of the above mentioned liens; 
	 	 
	 	d) for such purpose, VBC : (i) sill substitute the CPFL-D and CPFL-G shares given as guarantee of the payment of the “debentures” for BOUND SHARES belonging to VBC, which shall be subject to the transfer limitation of shares ruled under clause 11, and (ii) shall substitute, by COMPANY shares not bound hereto, the CPFL-D and CPFL-G shares blocked to cover for the (possible) exercise of the BNDESPAR right of converting part of its “debentures” in shares of such incorporations. 

CLAUSE FOURTEEN – TERM

14.1 The duration hereof is twenty-five (25) years, being automatically renewed for equal and successive periods of five (5) years, should none of the PARTIES denounce it with the minimum advance of six (6) months prior to the end of the contractual
term than in force.

CLAUSE FIFTEEN – SPECIFIC ENFORCEMENT

15.1 The PARTIES hereby acknowledge and state that the mere payment of losses and damages shall not constitute adequate compensation for the default of obligations undertaken hereby.

15.2 The PARTIES shall be entitled to request to the President of the General Meeting and the Members of the Board elected by appointment of the PARTIES shall be entitled to request to the Chairman of the Board of Directors to declare the invalidity
of vote issued against or in disagreement of the provisions hereof.

CLAUSE SIXTEEN – DIVERGENCIES AND ARBITRATION

16.1 Any controversy arising from the performance or interpretation of the AGREEMENT which is not amicably resolved within thirty (30) days after one of the PARTIES having informed the other PARTIES in writing on the existence of such controversy,
shall be subject to the judgment of the Market Arbitration Chamber instituted by BOVESPA (Securities Exchange of the State of São Paulo) (hereinafter simply called “Arbitration Court”). The Arbitration Court shall be comprised of as
many referees as the diverging PARTIES and of one other referee who shall act as President of the Arbitration Court, to be chosen by the other referees. The choice of the referees shall be done by the PARTIES involved in the dispute, being each
PARTY sustaining a diverging position the appointment of a representative in the Arbitration Court. The President of the Arbitration Court shall have, in addition to his vote, the quality vote in case of tie.

16.2 The Arbitration Court shall observe the procedural rules of the Market Arbitration Chamber Regulation as instituted by BOVESPA. The Arbitration Court shall meet in the City of São Paulo, State of São Paulo, and its decision shall be final, obliging the PARTIES and their successors at whatever title. The Arbitral award shall constitute an executive extrajudicial security, for the purpose of enforcing its
content against the PARTIES refusing to comply with its ruling.

16.3 The arbitral award shall determine that the arbitration costs or costs of whatever legal proceedings referring to the arbitration or arising therefrom, including legal counsel fees, experts, referees and court costs shall be borne by the
defeated PARTY(IES). Should the arbitral award be partially favorable to all PARTIES, the Arbitration Court shall specify the form and proportion whereby each PARTY shall bear the costs and expenses.

16.4 Without prejudice of the provisions of this Clause, the PARTIES hereby acknowledge and state reciprocately their legitimate interest in exercising the right to sue before the Judicial Power, provided this is exclusively addressed to urgent
protective injunction, to, by means of the obligation of the legal ruling, assure the effectiveness of the arbitration judgment whenever this is necessary, through strict caution preventive and restrictive measures, with a preparation or incidental
character.

CLAUSE SEVENTEEN – GENERAL PROVISIONS

17.1 The PARTIES hereby undertake, by itself or its successors at whatever title, to comply with the present AGREEMENT such as contained herein.

17.2 The failure to exercise, in whole or part, the rights attributed hereby to any of the PARTIES shall not imply waiver or novation, being characterized as mere liberality act.

17.3 Any amendment hereto shall only be valid if made by written instrument, executed by all PARTIES.

17.4 Should any provision hereof be deemed undemandable as a consequence of arbitral award or legal ruling, the PARTIES hereby undertake to proceed to the substitution of such provision by another leading to equivalent result, so as to preserve, to
the maximum possible extent, the integrity of the commitments reciprocately undertaken hereby.

17.5 The monetary values expressed herein shall be updated on January 1st of each year, according to the fluctuation of the General Market Price Rate – IGP-M, published by Getúlio Vargas Foundation, or, in its absence, of another rate
published by the same Foundation, reflecting the loss of acquisition power of the local currency occurring during the period.

17.5.1 Should the rates reflected herein fail to reflect the evolution of the relative prices in the country, the PARTIES shall proceed to review the monetary values expressed herein for the purpose of adjust them to the actual evolution of
prices.

17.6 All notices provided for herein shall be done in writing and deemed actually given when transmitted by cable, facsimile or electronic data transmission (in each case, subject to the receipt of the appropriate receipt code or any receipt
confirmation by the receiving PARTY) or when delivered by hand or sent by certified letter to the address of the PARTIES, as indicated below:

If to VBC:

VBC ENERGIA S.A.

Avenida Engenheiro Luís Carlos Berrini, no 1297-1307, 13o andar, conjunto 132

ZIP CODE 04571-010 São Paulo, SP 

Attn: Marcelo Maia de Azevedo Corrêa (President) 

Phone: (11) 5102-7050 

Fax: (11) 5505-9161 

e-mail: mcorrea@vbcenergia.com.br; and

Attn.: José Said de Brito (Director) 

Phone: (11) 3225-3168 

Fax: (11) 3361-3624 

e-mail: said@votorantim-energia.com.br

If to 521:

521 PARTICIPAÇÕES S.A., 

Praia de Botafogo, 501 — 4o andar — Botafogo 

ZIP CODE: 22.250 -040 — Rio de Janeiro — RJ

Attn: Gilberto Audelino Correa (Director of Relations with Investors) 

Phone: (21) 3870-1011 

Fax: (21) 3870-1951 

e-mail: dirin@previ.com.br 

Attn: Sergio da Silva Rosa (Director of Interests of PREVI)  

Phone: (21) 3870-1021 

Fax: (21) 3870-1051 

e-mail:
dipar@previ.com.br 

Attn: Aloisio Macário de Souza (Team Manager – Interest Management)  

Phone: (21) 3870-1202 

Fax: (21) 3870-1220 

e-mail: macario@previ.com.br

If to BONAIRE

BONAIRE PARTICIPAÇÕES S.A., 

Attn: Carlos Eduardo Reich 

Av. Presidente Wilson, 231 — 9o andar 

ZIP CODE 20.030 -021 — Rio de Janeiro — RJ 

Phone: (21) 3804-8722 

Fax: (21) 2533-3136 

e-mail: creich@icatu.com.br

17.7 Under the terms of article 118 of Law No. 6404 of 1976, the present AGREEMENT shall be filed at the COMPANY headquarters and recorded into the books of the financial institution depository of the of record shares of COMPANY, which shall take
note in the deposit account of the BOUND SHARES and corresponding statement provided to the PARTIES of the following text:

		
	 	“The shares represented by the present certificate or object of the present deposit account, are subject to the system of the Shareholders Agreement executed between VBC Energia S.A., 521 Participações S.A. and Bonaire Participações S.A. on [day] of [month] of [year], ruling the disposal and encumbrance of such shares and of the subscription rights arising therefrom. This shareholders’ agreement is filed at COMPANY’s headquarters for all purposes and effects of article 119 of Law number 6404/76.” 

17.8 After the registration for negotiation of COMPANY shares within Stock Exchanges, should it be further decided to cancel their registration of open company for negotiation of shares in the market, the minority shareholders shall be entitled to
sell its shares for their economic value as ruled under articles 4 and 4-A of Law 6404/76, with the wording given by Law 10.303/2001.

17.9 COMPANY attends the present AGREEMENT to become aware of its terms, obliging to observe it and to file it within its headquarters.

17.10 The SUBSIDIARIES shall, for the purposes and effects of article 118 of Law 6404/76, notified of the existence hereof, and a certified copy shall be sent thereto to be filed in its headquarters.

17.11 All and any matter arising from the performance hereof shall be decided at the Courts of COMPANY’s headquarters.

IN WITNESS WHEREOF, the PARTIES execute the present AGREEMENT in six (6) counterparts of equal tenor and for one sole effect, in the presence of the two undersigned witnesses.

São Paulo, March 22, 2002

 

VBC ENERGIA S.A.

			
	 		 
	Name: 	 	Name: 
	Title: 	 	Title: 

521 PARTICIPAÇÕES S.A.,

			
	 		 
	Name: 	 	Name: 
	Title: 	 	Title: 

Continuation of the signatures of the Shareholders’ Agreement of Draft II Participações S.A. executed on March 22, 2002.

BONAIRE PARTICIPAÇÕES S.A.,

			
	 		 
	Name: 	 	Name: 
	Title: 	 	Title: 
	 	 	 
	DRAFT II PARTICIPAÇÕES S.A. 	 	 
	 
	 		 
	Name: 	 	Name: 
	Title: 	 	Title: 
	 	 	 
	 
	Witnesses: 	 	 
	 	 	 
	 		 
	Name: 	 	Name: 
	ID: 	 	ID: 

AMENDMENT No. 1 TO THE SHAREHOLDERS AGREEMENT 

OF CPFL ENERGIA S.A. (former Draft II Participações S.A.) 

By this private instrument, the parties: 

     VBC ENERGIA S.A., former Serra da Mesa Energia S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Engenheiro Luís Carlos Berrini No.
1297/1307, 13rd floor, suite 132, enrolled with the National Register of Legal Entities (“CNPJ/MF”) under No. 00.095.147/0001 -02, hereinafter simply referred to as “VBC”; 

     521 PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of Rio de Janeiro, State of Rio de Janeiro, at Praia de Botafogo No. 501 – 4th floor, enrolled with the
National Register of Legal Entities (“CNPJ/MF”) under No. 01.547.749/0001 -16, hereinafter simply referred to as “521”; 

     BONAIRE PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Paulista No. 37, 10th floor– part occupancy,
enrolled with the National Register of Legal Entities (“CNPJ/MF”) under No. 02.117.801/0001 -67, hereinafter simply referred to as “BONAIRE”; and they may be individually referred to as PARTY, or collectively PARTIES; 

and, as Intervening Consenting Party, 

     CPFL ENERGIA S.A., former Draft II Participações S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Rua Ramos Batista No. 444, enrolled with
the National Register of Legal Entities (“CNPJ/MF”) under No. 02.429.144/0001 -93, hereinafter simply referred to as “COMPANY”; the PARTIES and COMPANY being represented according to their respective bylaws, 

WHEREAS: 

	
(a)      		
On March 22, 2002 the PARTIES executed the Shareholders Agreement of Draft II Participações S.A. (the “AGREEMENT”), by which the PARTIES (i) were bound to increase the capital of COMPANY; (ii) expressed their wish to list
COMPANY’s shares in Brazilian stock exchanges, according to the rules of the New Market, and abroad; and (iii) regulated the exercise of the voting right inherent to their shares, the restriction on the circulation, the mutual relations as
controlling shareholders, and established the general principles to exercise of the controlling power and management if COMPANY and its subsidiaries.	
	 
	
(b)      		
the parties wish to amend the AGREEMENT to (i) specify the new quantity of BOUND SHARES of each PARTY, and update the table in sub-clause 3.1.; (ii) amend sub-clauses 1.1(c), 5.4, 8.9.6, 8.9.7, 8.10, 8.10.2, 8.12, 12.3, and 17.6; and (iii) add
sub-clauses 5.8.1, 8.9.2.1, and 17.7.1, of the AGREEMENT;	

Have agreed to enter into this Amendment No. 1 to the Shareholders Agreement of CPFL Energia S.A., former Draft II Participações S.A. (the “AMENDMENT”), as follows: 

Unless as otherwise indicated, the other capitalized terms and expressions herein shall have the same meanings attributed thereto in the text or in the AGREEMENT.

1. CONFIRMATION

1.1. Considering the increase of capital of COMPANY resolved in the Extraordinary General Meeting (“AGE”) of August 6, 2002, and in compliance with the provision of sub-clause 3.1.2 of the AGREEMENT, the PARTIES determine, in the
table below, which shall substitute the table contained in sub-clause 3.1, the new quantity of shares bound to the agreement:

							
	 	 	 	 	PERCENTAGE 
	 		 		 
	 	 	 	 	 	 	IN THE
	 	 	 	 	IN THE ENTIRE 	 	CONTROL 
	PARTY	 	 NUMBER OF COMMON SHARES	 	CAPITAL 	 	BLOCK 
	 		 		 		 
	VBC 	 	 1,229,453,666 	 	 36.26% 	 	 45.32 %
	521 	 	 1,030,872,091 	 	 30.40% 	 	 38.00 %
	BONAIRE 	 	 452,473,000 	 	 13.34% 	 	 16.68 %
	              Total Shares 	 	2,712,798,757 	 	80.00% 	 	100.00% 

	
1.2.      		
The PARTIES hereby mutually agree to (i) amend sub-clauses 1.1(c), 5.4, 8.9.6, 8.9.7, 8.10, 8.10.2, 8.12, 12.3, and 17.6; and (ii) add sub-clauses 5.8.1 and 8.9.2.1 and 17.7.1, of the AGREEMENT; as follows:	
	 
	 (a) sub-clause 1.1(c) shall be read as follows: 
	 
	
     “(c) AGREEMENT – means this Shareholders Agreement.”	
	 
	 (b) sub-clause 5.4 shall be read as follows: 
	 
	
       “5.4 A PREVIOUS MEETING shall be mandatory for all matters requiring the approval of the General Meeting of COMPANY, its SUBSIDIARIES or ASSOCIATED COMPANIES, or those in which the Board of Directors of COMPANY or its SUBSIDIARIES can only
resolve by the qualified majority (pursuant to sub-clause 7.4 of the AGREEMENT). Either PARTY, however, shall be entitled to require the holding of a PREVIOUS MEETING, called according to sub-clause 5.2., to define the orientation of vote of the
representatives of the PARTIES in the Board of Directors of COMPANY or its SUBSIDIARIES, in relation to any other matter rather than those listed in sub-clause 7.4 hereof. A PREVIOUS MEETING shall also be required for the Board of Directors (of
COMPANY and its SUBSIDIARIES) to resolve on the following matters:	
	 
	
          a) approval of the other members of the Staff of Officers, appointed by the	Chief Executive Officer previously elected by the Board of Directors; and
	 
	
          b) execution of agreement of any nature in a total amount higher than R$	20 million, even if such agreement is related to the expenses set forth in the ANNUAL BUDGET or in the 5-YEAR BUSINESS PLAN.” 
	 
	 (c) sub-clause 8.9.6 shall be read as follows: 
	 
	
       “8.9.6 Any member of the Committee who may have, actual or potential conflict of interests or which are related to a RELATED PARTY whose main activities imply the	actual or potential existence of conflict of interests, with a certain matter to be examined by the Committee, shall not participate in the Committee Meeting, in which such matter is analyzed. Notwithstanding, upon request of the Committee, the
member in situation of conflict of interests may be called to provide specific information.”

(d) sub-clause 8.9.7 shall be read as follows: 

     “8.9.7 The matters analyzed by each of the Committees shall be subject of reports and proposals, which do not bind the resolution of the Board of Directors. They should be included in the reports and proposals
mentioned above, including, eventual dissidence, if so required by any of the members of the respective Committee, as well as the grounds for the dissidence.”

(e) sub-clause 8.10 shall be read as follows: 

     “8.10 EXECUTIVE BOARD – The Executive Board, chosen for a three (3) year term, shall be comprised of six (6) members, being one (1) Chief Executive Officer, one (1) Strategy Vice-President, one (1)
Financial Vice-President (also responsible for Relations with Investors), one (1) Vice-President Director of Power Management, one (1) Distribution Vice-President Director, and one (1) Generation Vice-President Director.”

(f) sub-clause 8.10.2 shall be read as follows: 

     “8.10.2 The Chief Executive Officer of COMPANY shall also act as such in the SUBSIDIARIES, and shall be incumbent, according to item 8.10.1, to submit the names of the professionals who will shall fill in the
other Executive Officers positions of the SUBSIDIARIES. The Power Vice-President Directors, Distribution and Generation Vice-President Directors shall be, respectively, the Superintendents (and main executives) of the SUBSIDIARIES by means of which
the activities of power management, distribution and generation will shall be exercised.”

(g) sub-clause 8.12 shall be read as follows: 

     “8.12 During the period while the new Chief Executive Officer  is being selected, the Chairman of the Board of Directors shall take over as interim Chief Executive Officer, or, if this is not possible, the
Financial Vice-President Director shall take over.”

(h) sub-clause 12.3 shall be read as follows: 

     “12.3 In the case of 521 and BONAIRE, the corporate control of which are held by Investment Funds – i.e., Fundo de Investimento em Ações BB Carteira Livre I and Fundo de Investimento
Financeiro BB Renda Fixa IV (521) and Mellon Energia São Paulo Fundo de Investimento em Ações (BONAIRE) – the provisions of this clause shall apply to any change implying that a third party becomes the holder of the
absolute majority of its quotas. The shareholding composition of 521 and BONAIRE and the composition of the Investment Funds controlling same constitute attachments 1 and 2 hereof.”

(i) sub-clause 17.6 shall be read as follows: 

     “17.6 All notices provided for herein shall be done in writing and deemed actually given when transmitted by cable, facsimile or electronic data transmission (in each case, subject to the receipt of the
appropriate receipt code or any receipt confirmation by the receiving PARTY) or when delivered by hand or sent by certified letter to the address of the PARTIES, as indicated below:”

...............

If to BONAIRE

BONAIRE PARTICIPAÇÕES S.A.,

Attn.: Carlos Eduardo Reich 

Av. Almirante Barroso 52, 33o andar 

CEP 20.031 -000 — Rio de Janeiro — RJ 

Phone: (21) 2510-9990 

Fax: (21) 2510-9901 

e-mail: carlosreich@mellonbrascan.com.br

Attn.: Presidente da Fundação CESP 

Alameda Santos, no 2.477 

CEP 01419-907 – São Paulo — SP 

Phone: (11) 3068-3221 

Fax: (11) 3068-3051 

e-mail: presidencia@funcesp.com.br

Attn.: Presidente da PETROS — Fundação Petrobras de Seguridade Social 

Rua do Ouvidor, no 98 

CEP 20040-030 — Rio de Janeiro — RJ 

Phone: (21) 2506-0577 

Fax: (21) 2506-0510 

e-mail: cflory@petros.com.br

Attn.: Presidente da Fundação Sistel 

SEPS EQ 702/902, 2o andar 

CEP 70390-025 — Brasília — DF 

Phone: (61) 317-7242 

Fax: (61) 322-4475 

e-mail: pimentel@sistel.com.br”

(j) added sub-clause 5.8.1, which shall be read as follows: 

     “5.8.1 Notwithstanding the provision in sub-clause 5.8 above, in the resolutions made in PREVIOUS MEETINGS the PARTIES shall be bound to comply with the provisions of art. 115, Law 6.404/76, which provides for
the abuse of voting right and conflict of interests.”

(l) added sub-clause 8.9.2.1, which shall be read as follows: 

     “8.9.2.1 Upon the request of either PARTY, substitute members shall also be appointed by the Board of Directors for the Committees referred to in sub-clause 8.9.2 above (PARTY entitled to appoint the first
appointed member also being incumbent to appoint the respective substitute). The substitute member shall substitute the first appointed member in meetings of the Committee, in which, by the tenor of the matter to be analyzed, the first appointed member has actual or potential conflict of interests, — because of the personal situation of the first appointed member,
or by that fact that s/he is bound to the RELATED PARTY, whose preponderant activities imply the actual or potential existence of conflict of interests with the matter submitted for the Committee. Staff individuals of VBC, BONAIRE, 521 or Previ
— Caixa de Previdência dos Funcionários do Banco do Brasil (in the case of the latter including both its employees and that of the sponsors assigned thereto) may be appointed for the Committees – without any potential or
effective conflict of interests resulting therefrom—.”

(m) added sub-clause 17.7.1, which shall be read as follows: 

     “17.7.1. The PARTIES shall be bound not to execute, except jointly, any other agreement of the same nature (agreement of vote) during the effectiveness of this AGREEMENT.”

1.3. Considering the change of name of the investments funds controlling BONAIRE, as reflected in the new wording of sub-clause 12.3 approved in letter (h), item 1.2 above, Attachment 2 of the AGREEMENT is hereby adapted, and substituted for
the document attached hereto.

2. CONFIRMATION 

2.1. All other clauses and provisions of the Agreement that have not been expressly changed hereby shall remain unchanged and are hereby confirmed. 

IN WITNESS WHEREOF, the PARTIES execute this Amendment in six (6) counterparts of equal content and form, in the presence of the two undersigned witnesses. 

São Paulo, August 27, 2002. 

VBC ENERGIA S.A. 

			
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	521 PARTICIPAÇÕES S.A. 	 	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	BONAIRE PARTICIPAÇÕES S.A. 	 	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	CPFL ENERGIA S.A. 	 	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	Witnesses 	 	 
	 
	 		 
	Name: 	 	Name: 
	IDENTIFICATION CARD (“RG”): 	 	IDENTIFICATION CARD (“RG”): 

AMENDMENT No. 2 TO THE SHAREHOLDERS AGREEMENT 

OF CPFL ENERGIA S.A. (former Draft II Participações S.A.) 

By this private instrument, the parties: 

     VBC ENERGIA S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Engenheiro Luís Carlos Berrini, No. 1297/1307, 13th floor, suite
132, enrolled with the National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 00.095.147/0001 -02, hereinafter simply referred to as “VBC”; 

     521 PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of Rio de Janeiro, State of Rio de Janeiro, at Praia de Botafogo, 501 — 4th floor, enrolled with the
National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 01.547.749/0001 -16, hereinafter simply referred to as “521”; 

     BONAIRE PARTICIPAÇÕES S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Avenida Paulista, 37, 10th floor - part occupancy,
enrolled with the National Register of Legal Entities of the Ministry of Finance (“CNPJ/MF”) under No. 02.117.801/0001 -67, hereinafter simply referred to as “BONAIRE”; and they may be individually referred to as PARTY, or
collectively PARTIES; 

and, as Intervening Consenting Party, 

     CPFL ENERGIA S.A., a joint-stock corporation with offices in the city of São Paulo, State of São Paulo, at Rua Ramos Batista, 444, enrolled with the National Register of Legal Entities of the
Ministry of Finance (“CNPJ/MF”) under No. 02.429.144/0001 -93, hereinafter simply referred to as “COMPANY”; the PARTIES and COMPANY being represented according to their respective bylaws; 

WHEREAS: 

	
(a)      		
The PARTIES, by means of the Shareholders Agreement of COMPANY executed on March 22, 2002, and amended on August 27, 2002 (the “AGREEMENT”) (i) were bound to increase the capital of COMPANY; (ii) expressed their wish to list COMPANY’s
shares in Brazilian stock exchanges, according to the rules of the New Market, and abroad; and (iii) regulated the exercise of the voting right inherent to their shares, the restriction on the circulation, the mutual relations as controlling
shareholders, and established the general principles to exercise of the controlling power and management if COMPANY and its subsidiaries.	
	 
	
(b)      		
In a meeting held on October 20, 2003, the Board of Directors of CPFL ENERGIA resolved to increase the capital of the company, subject to the limits of its authorized capital, from R$ 3,390,998,447.00 to R$ 4,940,998,445.90, upon the
issuance of 727,699,530 new shares; and	
	 
	
(c)      		
the PARTIES wish to amend the AGREEMENT to (i) revoke clauses 3.1.1 and 3.1.2, by virtue of its compliance and loss of object; and (ii) amend sub-clause 3.1., in order to specify the new relation between the BOUND SHARES held by each of the PARTIES
and their respective shares in the capital of COMPANY;	

Have agreed to enter into this Amendment # 2 to the Shareholders Agreement of CPFL Energia S.A. (the “AMENDMENT”), as follows: 

Unless as otherwise indicated, the other capitalized terms and expressions herein shall have the same meanings attributed thereto in the text or in the AGREEMENT. 

1. CORRECTION 

1.1. The PARTIES have hereby mutually agreed to: (i) revoke sub-clauses 3.1.1 and 3.1.2 of the AGREEMENT; and (ii) amend sub-clause 3.1 of the AGREEMENT, which shall be read as follows: 

“3.1 The following SHARES of each PARTY are bound to the AGREEMENT, which comprise the participation percentage in the entire capital of COMPANY and in the CONTROL BLOCK, as shown in the table below: 

							
	 	 	NUMBER OF COMMON 	 	PERCENTAGE 
	 		 		 
	 	 	SHARES 	 	 	 	IN THE 
	 	 	BOUND TO THE 	 	 	 	CONTROL 
	PARTY	 	AGREEMENT	 	IN THE ENTIRE 	 	BLOCK 
	 		 		 		 
	VBC 	 	                          1,229,453,666 	 	29.85% 	 	45.32 % 
	521 	 	                          1,030,872,091 	 	25.03% 	 	38.00 % 
	BONAIRE 	 	                          452,473,000 	 	10.99% 	 	16.68 % 
	Total Shares 	 	                          2,712,798,757 	 	65.87% 	 	100.00% 

2. CONFIRMATION 

2.1. All other clauses and provisions of the AGREEMENT that have not been expressly changed hereby shall remain unchanged and are hereby confirmed. 

IN WITNESS WHEREOF, the PARTIES execute this Amendment in six (6) counterparts of equal tenor and form, in the presence of the two (2) undersigned witnesses. 

São Paulo, November 5, 2003. 

			
	VBC ENERGIA S.A. 	 	 
	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	521 PARTICIPAÇÕES S.A. 	 	 
	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 

Continuation of the signatures of the Amendment # 2 to the Shareholders Agreement of CPFL Energia S.A. executed on November 5, 2003. 

			
	BONAIRE PARTICIPAÇÕES S.A. 	 	 
	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	CPFL ENERGIA S.A. 	 	 
	 
	 
	 		 
	Name: 	 	Name: 
	Title 	 	Title 
	 	 	 
	Witnesses 	 	 
	 
	 
	 		 
	Name: 	 	Name: 
	IDENTIFICATION CARD (“RG”): 	 	IDENTIFICATION CARD (“RG”): 

AMENDMENT No. 3 TO THE SHAREHOLDERS AGREEMENT 

OF CPFL ENERGIA S.A. (former Draft II Participações S.A.) 

By this private instrument, 

VBC ENERGIA S.A., a joint-stock corporation with its head office in the city of São Paulo, State of São Paulo, at Avenida Engenheiro Luís Carlos Berrini, 1297/1307, 14th floor, suite 142, enrolled in the Corporate
Taxpayers Register of the Ministry of Finance (“CNPJ/MF”) under no 00.095.147/0001 -02, herein represented in accordance with its bylaws, hereinafter simply referred to as “VBC”; 

521 PARTICIPAÇÕES S.A., a joint-stock corporation with its head office in the city of Rio de Janeiro, State of Rio de Janeiro, at Rua Senador Dantas no 105, 37th floor, enrolled in the Corporate Taxpayers Register of the
Ministry of Finance (“CNPJ/MF”) under no 01.547.749/0001 -16, herein represented in accordance with its bylaws, hereinafter simply referred to as “521”; 

BONAIRE PARTICIPAÇÕES S.A., a joint-stock corporation with its head office in the city of São Paulo, State of São Paulo, at R. Iguatemi no 192 , suite 243, enrolled in the Corporate Taxpayers Register of the
Ministry of Finance (“CNPJ/MF”) under no 02.117.801/0001 -67, herein represented in accordance with its bylaws, hereinafter simply referred to as “BONAIRE”; 

VBC, 521 and BONAIRE, hereinafter referred to collectively as “PARTIES”, or individually as “PARTY”; 

And also, as Intervening Consenting Party, 

CPFL ENERGIA S.A., a joint-stock corporation with its head office in the city of São Paulo, State of São Paulo, at Rua Gomes de Carvalho no 1510, suite 02, 14th floor, enrolled in the Corporate Taxpayers Register of the
Ministry of Finance (“CNPJ/MF”) under n.o 02.429.144/0001 -93, herein represented in accordance with its bylaws, hereinafter simply referred to as “COMPANY”; 

WHEREAS: 

	
(a)      		
the PARTIES, by means of the COMPANY's Shareholders Agreement, signed on March 22, 2002 and amended on August 27, 2002 (“1st AMENDMENT”) and November 5, 2003 (“2nd
AMENDMENT”) (the “AGREEMENT”), regulated the exercise of the voting right inherent to their shares, the restriction on the circulation, the mutual relations as controlling shareholders and established the
general principles for the exercise of the controlling power and management of the COMPANY, its SUBSIDIARIES and ASSOCIATED	COMPANIES;	
	 
	
(b)      		
the PARTIES wish to amend subclause 3.1. of the AGREEMENT, as a result of the reverse split of shares of the COMPANY and the processes of the merger of shares issued by Companhia Paulista de Força e Luz (“Paulista”), Companhia
Piratininga de Força e Luz (“Piratininga”) and CPFL Geração de Energia S.A.(“CPFL G”);	
	 
	
(c)      		
the PARTIES wish to amend the composition of the Board of Directors of the COMPANY, its SUBSIDIARIES and ASSOCIATED COMPANIES;	
	 
	
(d)      		
the PARTIES wish to amend the matters which, pursuant to the AGREEMENT, require the holding of PRIOR MEETINGS, which precede the General Meetings and the meetings of	the Board of Directors of the COMPANY, its SUBSIDIARIES and ASSOCIATED COMPANIES;	
	 

	
(e)      		
the PARTIES wish to amend the structure of the COMPANY's advisory committees, in accordance with the Corporate Governance Model approved by Board of Directors in a meeting held on September 27, 2006.	
	 
	
(f)      		
the PARTIES wish to amend subclause 17.6. of the AGREEMENT, in order to update the addresses for dispatch of communications to the PARTIES; and	
	 
	
(g)      		
the PARTIES are interested in amending the AGREEMENT to reflect the matters set forth above;	
	 

They herewith sign the Third Amendment to the Shareholders Agreement of CPFL Energia S.A. (“3rd AMENDMENT”), in accordance with the following clauses and conditions: 

Unless otherwise indicated, the other capitalized terms and expressions in this 3rd AMENDMENT shall have the same meanings attributed thereto in the text or in the AGREEMENT. 

1. RECTIFICATION 

1.1. The PARTIES, by mutual agreement, herewith resolve to amend subclause 3.1. of the AGREEMENT, which shall now read as follows: 

 “3.1. The following SHARES of each PARTY are bound to the AGREEMENT, and comprise the participation percentage in the CONTROL BLOCK of the COMPANY, as shown in the table below: 

			
	PARTY 	NUMBER OF 

    COMMON SHARES 

    BOUND TO THE 

    AGREEMENT 	PERCENTAGE
	   IN THE 

    CONTROL

	 BLOCK 
	VBC 	122,945,367 	45.32% 
	521 	103,087,209 	38.00% 
	BONAIRE 	45,247,300 	16.68% 
	Total Shares 	271,279,876 	100.00% ” 

1.2. The PARTIES herewith resolve to amend subclause 7.4. to exclude the following letters: 

(g) issuance of subscription bonus within the limit of the authorized capital; 

(r) details of the matters to be submitted to previous analysis of each of the Committees, as provided for in sub-clause 8.9.4; and

(s) compensation of the members of the Committees (sub-clause 8.9.2) that are not part of the COMPANY staff; 

1.2.1. The PARTIES herewith resolve to amend the wording of items (i) and (m) of clause 7.4, which shall come into effect with the following new wording: 

 “(i) execution of an agreement of any nature of a total amount higher than R$ 20 million, unless the agreement in question is foreseen in the ANNUAL BUDGET;” 

 “(m) selection and substitution of the COMPANY’s independent accountants, if the company selected is not regarded as first class and does not have international operations;” 

As a result of the above amendment, the other letters of the above-mentioned subclause 7.4 were renamed. 

1.3. In view of the change in the composition of the Board of Directors of the COMPANY, the PARTIES resolve to amend subclauses 8.2. and 8.2.1, 8.2.1.1. , 8.2.2. and 8.7. of the AGREEMENT, which shall now read as follows: 

 “8.2. BOARD OF DIRECTORS – The Board of Directors of the COMPANY shall be comprised of at least 7 (seven) members and a maximum of 9 (nine) members, one of whom will be the Chairman, elected for a mandate of one 01 (one) year, who may
be reelected.” 

 “8.2.1. The PARTIES shall elect, jointly, 6 (six) members for the Board of Directors (except under the circumstances dealt with in subclause 8.2.2.1 below). The number of members of the Board of Directors that each PARTY is entitled to
appoint shall be in accordance with the participation of the PARTIES in the CONTROL BLOCK, it being incumbent on: 

a) VBC, to appoint 3 (three) members; 

b) 521, to appoint 2 (two) members; 

c) BONAIRE, to appoint 1 (one) member. 

8.2.1.1 The number of members of the Board of Directors that each PARTY is entitled to appoint, pursuant to subclause 8.2.1 above, takes into account the current participation of the PARTIES in the CONTROL BLOCK. In the event of amendment of the
participation of any of the PARTIES in the total BOUND SHARES, the number of Board Members that the PARTY in question will be entitled to appoint shall be adapted to reflect this change, however, the number of Board Members that the PARTY whose
relative interest in the total BOUND SHARES has not changed shall remain unaltered.”

“8.2.2. If the minority shareholders, exercising the rights granted to them under art. 141 main clause and 141, §§ 4 and 5, of Law 6.404/76, elect one member to the Board of Directors, who, pursuant to the BOVESPA (Stock Exchange
of the State of São Paulo) New Market Regulations, meets the requirements for classification as an independent board member and is designation as such, VBC, 521 and BONAIRE shall abstain from proposing to the General Meeting a name or names
that meet this definition.

8.2.2.1 If the situation described in subclause 8.2.2 does not arise, in order to comply with the definition of independent board member, pursuant to the BOVESPA New Market regulations, VBC, 521 and Bonaire, by mutual agreement, shall propose to
the General Meeting, (a) a name or names that meet this definition. 

"8.7. The meetings of the Board of Directors of the COMPANY shall be held at least once every month,  and may, however, be held more frequently, should the Chairman of the Board of Directors so request, on his own initiative or at the request of
any member of the Board of Directors. The meetings of the Board of Directors shall be called 9 (nine) days in advance, by notice sent by the Chairman of the Board, indicating the matters to be discussed and accompanied by any necessary supporting documentation. The presence of all members shall allow the meetings of the Board of Directors to be held irrespectively of a call notice." 

1.4. The PARTIES herewith resolve to change the structure of COMPANY's advisory Committees, and therefore amend subclauses 8.9. , 8.9.1. , 8.9.2. , 8.9.3. , 8.9.4. , 8.9.5. , 8.9.6. and 8.9.7 of the AGREEMENT, and add subclauses 8.9.1.2. ,
8.9.1.3. , 8.9.2.1. , 8.9.2.2. and 8.9.7.1. to that document which shall come into effect with the following wording: 

 “8.9. Committees The Board of Directors, in the resolutions covering the activities both of the COMPANY and its SUBSIDIARIES or ASSOCIATED COMPANIES, shall be assisted by 3 (three) Committees, as follows: (a) Management
Processes; (b) Human Resources Management; and (c) Related Parties.” 

 “8.9.1. The Human Resources Management Committee shall be permanent, meeting at least once every half-year, with one meeting in February and another in July.  The  Management Processes and Related Parties Committees shall not be permanent
and shall meet at the request of the Board of Directors, whenever it is necessary to analyze and state an opinion on the matters under their jurisdiction, in accordance with the internal regulations laid down in subclause 8.9.4 it being understood
that, if the matters relate to transactions involving RELATED PARTIES, the Board of Directors must call the competent Committee to consider them.” 

 “8.9.1.2. The Related Parties and Management Processes Committees shall be called by notice from the Secretary of the Board of Directors, who shall forward to the Committee in question, prior to discussion by the Board of Directors, the
matters to be considered by the Board, with the knowledge of the Chairman of the Board of Directors and of the Chief Executive Officer of the COMPANY.” 

 “8.9.1.3. The meetings of the Committees shall only be held with the presence of all their members. Any member who is unable to attend shall advise the Secretary of the Board, prior to the date of the meeting, the name of his substitute,
who will represent him only at that meeting. The Secretary shall inform the other members about his absence and the name of the substitute.” 

 “8.9.2. The Management Processes and Related Parties Committees shall each be comprised of 3 (three) members, and at least 01 (one) member of each Committee should be a standing or alternate member of the Board of Directors of the COMPANY.
The Human Resources Management Committee shall be comprised of 3 (three) members, should all be standing or alternate members of the Board of Directors of CPFL.

 “8.9.2.1. It will be incumbent on VBC, 521 and BONAIRE to nominate one member each, for each of the Committees mentioned in clause 8.9. , for subsequent appointment by the Board of Directors of the COMPANY. The members of the Committees
shall have a mandate of 1 (one) year, as from the date of their appointment, and may be reappointed.” 

 “8.9.2.2. The members of the Committees shall not have alternates bound to them, and each member may invite only one specialist to assist them in the specific work, by prior agreement of the other members. Proposals for the participation of
specialists shall be forwarded via the Secretary of the Board, and the specialists shall not be considered permanent members of the Committees in question.” 

 “8.9.2.3. The Meetings of the Management Processes and Related Parties Committees shall only be installed with the presence of their 3 (three) members; if there is no quorum for installation of the meeting, a new call shall be made with at
least 2 (two) days notice.

8.9.2.4. After being installed with the presence of its 3 (three) members, the Related Parties Committee may validly decide by the vote of only 2 (two) of its members if the matter to be discussed relates to one of the shareholders
VBC, 521 and BONAIRE, and the undecided member (the member that has been appointed by the undecided shareholder) shall not take part in the decision." 

 “8.9.3. In the first meeting held after the appointment of members of the Committees by the Board of Directors, 1 (one) Coordinator shall be chosen for each committee, by consensus of all its members, who shall necessarily be a standing or
alternate member of the Board of Directors of the COMPANY.” 

 “8.9.4  The details of the matters to be submitted for the prior analysis of each of the Committees shall be defined internally, duly approved by the Board of Directors, it being established, however that it will be incumbent
on.” 

	
a)	
the Management Processes Committee: to assure the quality of the information received by the Board of Directors; to submit proposals for improvement in the Management Processes of the COMPANY, its Subsidiaries and Associated Companies; to assess the
main critical and risk areas for the business of the COMPANY, its Subsidiaries and Associated Companies; to direct the internal audit processes, preparing proposals for improvement and supervising their execution internally;	
	 
	
b)	
the Human Resources Management Committee: to define the performance targets for assessment of the Executive Board; to conduct the appraisal of the Executive Board; to define the remuneration criteria of the Executive Board, including short and long
term incentive plans; to prepare and conduct the succession plan of the Executive Board; to coordinate the process of choice of the COMPANY's Chief Executive Officer; to approve the officers appointed by the Chief Executive Officer of the COMPANY to
join the Executive Board; to monitor execution of the COMPANY's human resources policies and practices, preparing proposals for improvement;	
	 
	
c)	
Related Parties Committee: to assess the process of selection of suppliers and service providers to carry out works, for acquisition of consumables and services where the contract amount is equal to or greater than the minimum amount in the
jurisdiction of the Board of Directors, pursuant to the COMPANY's bylaws, for contracts that involve RELATED PARTY	(PARTIES), issuing an opinion as to the best offer; to monitor closing of new power energy sales contracts where the contract amount is equal to or greater than the minimum amount in the jurisdiction of the Board of Directors, pursuant to the
COMPANY's bylaws, for contracts that involve RELATED PARTY (PARTIES), ensuring that market conditions are observed; to analyze the operation that might, in any way, result in benefit or advantage, of any kind, to a RELATED PARTY.	

 “8.9.5. Any member of the Committees who effectively or potentially has conflicts of interest with a certain matter shall withdraw from the room and shall not participate in the meeting during the period in which the matter is being
considered, but may be invited to provide information.” 

 “8.9.6. The matters analyzed by each of the Committees shall be the subject of reports and/or proposals to the Board of Directors. The Report and/or Proposals forwarded to the Board of 

Directors do not bind the decision Board Members, and such reports and/or proposals shall report any disagreements and the grounds for such disagreements.” 

 “8.9.7. In addition to the activities performed by the Committees, the Board of Directors may, when necessary, set up Work Commissions to supervise the study and conducting of matters of great relevance for the COMPANY.” 

 “8.9.7.1. The Work Commissions will be temporary, shall be established for a specific purpose and must be coordinated by a member of the COMPANY's Board of Directors. The other members of the Work Commissions, the number of whom it shall be
decided by the Board of Directors at the time of setting up each Work Commission, shall be representatives of the shareholders, and each member may invite only one additional member to assist them in conducting the specific work.” 

1.5. The PARTIES herewith resolve to amend subclause 9.1. and add subclauses 9.1.1. , 9.1.2 and 9.4. , which shall come into effect with the following wording: 

 “9.1. The composition, operation and resolutions of the Board of Directors and Executive Officers of the SUBSIDIARIES shall observe the provisions set forth in this AGREEMENT, and the statutory directors of the COMPANY shall be elected to
join the Board of Directors of the SUBSIDIARIES.” 

 “9.1.1. With regard, specifically, to the Boards of Directors of Companhia Paulista de Força e Luz, Companhia Piratininga de Força e Luz, CPFL Geração de Energia S.A. and Rio Grande Energia S.A., for as long as
these, pursuant to art. 138 §2, of Law 6.404/76 continue to be publicly quoted corporations, they will be comprised of 3 (three) members, in being incumbent on: 

a) the COMPANY, to appoint 2 (two) members, who should be statutory directors of the COMPANY; and 

b) the employees of Companhia Paulista de Força e Luz, Companhia Piratininga de Força e Luz, CPFL Geração de Energia S.A. and Rio Grande Energia S.A., to appoint 1 (one) member, in accordance with the pertinent
provisions of the bylaws”. 

 “9.4. It is a prior condition for election as the COMPANY representative on the Board of Directors of SUBSIDIARIES and ASSOCIATED COMPANIES that the person appointed sign a term of concurrence with this AGREEMENT, in which (i) he declares
that he is fully aware of its content and undertakes to fulfill it, especially in respect of the obligation of uniform block vote as decided in the PRIOR MEETINGS.” 

1.6. The PARTIES herewith resolve to add subclauses 10.3. , 10.3.1. and 10.3.2, which shall come into effect with the following wording: 

 “10.3. The number of members of the Audit Committee that each PARTY is entitled to appoint shall be in accordance with the participation of the PARTIES in the CONTROL BLOCK, it being incumbent on: 

a) VBC, to appoint 2 (two) members; 

b) 521, to appoint 2 (two) members; 

c) BONAIRE, to appoint 1 (one) member. 

10.3.1 The number of members of the Audit Committee that each PARTY is entitled to appoint, pursuant to subclause 10.3 above, takes into account the current participation of the PARTIES in the CONTROL BLOCK. In the event of
amendment of the participation of any of the PARTIES in the total BOUND SHARES, the number of Audit Committee members that the PARTY in question will be entitled to appoint shall be adapted to reflect this change, however, the
number of Audit Committee members that the PARTY whose relative interest in the total BOUND SHARES has not changed shall remain unaltered.  

10.3.2 If the minority shareholders, exercising the rights granted to them under art. 161, § 4 (a) of Law 6.404/76: 

- elect one member of the Audit Committee, VBC, 521 and BONAIRE shall each appoint one member and VBC and 521, by mutual agreement, shall appoint the other member; 

- elect two members of the Audit Committee, VBC and 521 shall each appoint one member and VBC, 521 and Bonaire, by mutual agreement, shall appoint the other member.” 

1.7. The PARTIES herewith resolve to amend subclause 17.6. , which shall come into effect with the following wording: 

 “17.6. All notices provided for in this AGREEMENT shall be made in writing and deemed to have been made when transmitted by cable, facsimile or electronic data transmission (in each case, subject to the receipt of the appropriate receipt
code or any receipt confirmation by the receiving PARTY) or when delivered by carrier against a receipt slip or sent by registered letter to the address of the PARTIES, as indicated below: 

If to VBC 

VBC Energia S.A. 

Avenida Engenheiro Luís Carlos Berrini no 1297/1307, 14o andar, conj.142 

CEP 04571-010, Brooklin - São Paulo, SP 

Attn.: Luiz Aníbal de Lima Fernandes (Director Superintendent) 

Phone: (11) 5102.7050 

Fax: (11) 5505.9161 

E-mail: lalfernandes@vbcenergia.com.br 

Attn.: Nelson Koichi Shimada (Finance Director) 

Phone: (11) 5102.7050 

Fax: (11) 5505.9161

E-mail: nelson.shimada@vpar.com.br 

If to 521 

521 Participações S.A. 

Rua Senador Dantas no 105, 37o andar 

20031-204 Rio de Janeiro, RJ 

Attn.: José Ricardo do Carmo 

Phone: (21) 3808-3211 

Fax: (21) 3808-3193 

E-mail: 521@521participacoes.com.br

Caixa de Previdência dos Funcionários do Banco do Brasil – PREVI 

Diretoria de Participações 

Praia de Botafogo no 501, 4o andar 

22250-040 Rio de Janeiro, RJ 

Phone: (21) 3870-1006 

Fax: (21) 3870-1951 

E-mail: dipar@previ.com.br and gepar3@previ.com.br 

If to BONAIRE 

BONAIRE PARTICIPAÇÕES S.A. 

Attn.: Carlos Eduardo Reich 

Av. President Wilson, 231 - 11o andar 

CEP 20030-021, Centro - Rio de Janeiro, RJ 

Phone: (21) 3974-4540 

Fax: (21) 3974-4501 

E-mail: carlosreich@bnymellon.com.br 

Attn.: President of Fundação CESP 

Mr. Martin Roberto Glogowsky 

Al. Santos, 2477 - 10o andar 

CEP 01419-907 - São Paulo, SP 

Phone: (11) 3068-3100 

Fax: (11) 3068-3049 

E-mail:
martin.glogowsky@funcesp.com.br 

Attn.: President of PETROS – Fundação Petrobrás de Seguridade Social 

Mr. Wagner Pinheiro de Oliveira 

Rua do Ouvidor, 98 - 8o andar 

CEP 20040-030, Centro - Rio de Janeiro, RJ 

Phone: (21) 2506-0577 

Fax: (21) 2506-0570 

E-mail: presidencia@petros.com.br 

Attn.: President of Fundação SISTEL 

Mr. Wilson Carlos Duarte Delfino 

SEPS EQ 702/902 - 1o andar 

CEP 70390-025 - Brasília - DF 

Phone: (61) 3317-7242 

Fax: (61) 3317-7109 

E-mail: delfino@sistel.com.br

1. 7. Considering the amendments made to the text of the AGREEMENT, as well as those set forth in the previous items, the PARTIES resolve to consolidate the Shareholders Agreement of the COMPANY, which is attached to this Amendment. 

2. CONFIRMATION 

All other clauses and provisions of the AGREEMENT that have not been expressly changed by this 3rd AMENDMENT are hereby confirmed. 

And, being in agreement, the PARTIES sign this 3rd AMENDMENT in 4 (four) counterparts of equal tenor and form, in the presence of the two undersigned witnesses. 

São Paulo, December 6, 2007 

			
	VBC ENERGIA S.A. 
	 
	 
	 		 
	Name: 	 	 Name: 
	Title: 	 	 Title: 
	 
	 
	521 PARTICIPAÇÕES S.A. 
	 
	 
	 		 
	Name: 	 	 Name: 
	Title: 	 	 Title: 
	 
	 
	BONAIRE PARTICIPAÇÕES S.A. 
	 
	 
	 		 
	Name: 	 	 Name: 
	Title: 	 	 Title: 
	 
	 
	CPFL ENERGIA S.A. 
	 
	 
	 		 
	Name: 	 	 Name: 
	Title: 	 	 Title: 
	 
	 
	Witnesses: 	 	 
	 	 	 
	 		 
	Name: 	 	 Name: 
	CPF: 	 	 CPF:EX-10.1

EXECUTION VERSION

PURCHASE AND SALE AGREEMENT

by and among

JEN I, L.P.

and

MUNICIPAL MORTGAGE & EQUITY, LLC

and

MMA EQUITY CORPORATION

and

MMA FINANCIAL TC CORP.

and

MUNIMAE TEI HOLDINGS LLC

Dated as of June 26, 2009

PURCHASE AND SALE AGREEMENT

PURCHASE AND SALE AGREEMENT, dated as of June 26, 2009, by and among JEN I, L.P., a Delaware
limited partnership (“Purchaser”), Municipal Mortgage & Equity, LLC, a Delaware limited
liability company (“Parent”), MMA Equity Corporation, a Florida Corporation and an indirect
wholly owned Subsidiary of Parent (“MMAEC”), MMA Financial TC Corp., a Delaware corporation
and an indirect wholly owned Subsidiary of Parent (together with MMAEC, the “Sellers” and,
each, a “Seller” and Parent and the Sellers, collectively, the “Seller Parties”),
and MuniMae TEI Holdings LLC, a Maryland limited liability company and a wholly owned Subsidiary of
Parent (“Guarantor”).

RECITALS:

WHEREAS, the Sellers are or will be the direct or indirect owners of all of the outstanding
common stock or other equity or ownership interests in the Subject Entities, except for equity
interests equal to 10% of the outstanding equity interests in MMA Financial BFG Investments, LLC
that are held by certain former employees of the Business (as described herein) (such common stock
or other equity interests, excluding such equity interests held by such former employees, the
“Entity Interests”);

WHEREAS, Sellers are or will be the direct or indirect owners of the equity or other ownership
interests in the LIHTC Funds as set forth on Exhibit B to Section 3.4(b) of the Seller
Disclosure Schedule (the “Fund Interests”);

WHEREAS, the Sellers, through certain of their direct and indirect Subsidiaries, operate a
housing and community investment business (the “Business”) that (i) aggregates, syndicates
and manages portfolios of low income housing tax credit and assisted multi family properties and
(ii) manages such properties and other assets related to the operation of such properties and the
investment vehicles through which such properties and other assets are owned and/or operated;

WHEREAS, Parent, through its representatives and agents, including Lazard Freres & Co. LLC
(“Lazard”), as its financial advisor, engaged in a multi stage competitive auction sale
process through which potential acquirors of the Business were contacted and solicited to submit
proposals to acquire the Business;

WHEREAS, in connection with such sale process, bids to acquire the Business were submitted by
potential acquirors, including Purchaser;

WHEREAS, after extensive negotiations and discussions between representatives of Parent and
such potential acquirors and careful consideration by Parent’s Board of Directors (the “Parent
Board”), the Parent Board determined that Purchaser’s proposal was the most attractive of the
submitted proposals and instructed representatives of Parent to pursue a sale of the Business
substantially on the terms outlined in such proposal;

WHEREAS, the Seller Parties and Purchaser have engaged in extensive arms length negotiations
and discussions with respect to the final terms and conditions upon which Purchaser would acquire
the Business, which terms and conditions are set forth in this Agreement;

WHEREAS, the Seller Parties desire to sell or cause the sale of, and Purchaser wishes to
purchase, the Business through the acquisition of the Entity Interests and the Fund Interests upon
the terms and subject to the conditions set forth in this Agreement;

WHEREAS, in connection with such purchase and sale, the parties hereto desire to make certain
representations, warranties, covenants and agreements as set forth in this Agreement; and

WHEREAS, the respective Boards of Directors of the Seller Parties have determined that this
Agreement and the transactions contemplated hereby are advisable and in the best interests of their
respective stockholders and equity holders and, accordingly, such Boards of Directors have approved
this Agreement and the transactions contemplated hereby;

NOW, THEREFORE, in consideration of foregoing premises, the mutual promises hereinafter set
forth and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, the parties hereto hereby agree as follows:

ARTICLE I.

DEFINITIONS

Section 1.1. Definitions.

(a) As used in this Agreement, the following terms shall have the following meanings:

“Acquired Remainder Fund” means a Remainder Fund that is directly or indirectly owned
(in whole or in part) through Second Closing Interests.

“Affiliate” means, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with the Person specified; provided that, for the purposes of this definition, the
term “control” (including the terms “controlling,” “controlled by” and “under common control with”)
means the direct or indirect possession of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise; provided, further, that the LIHTC Funds and any other Person, the majority
of the outstanding equity interests of which are not directly or indirectly owned by the Seller
Parties shall not be considered “Affiliates” for purposes of Section 7.2 of this Agreement.

“Agreement” means this Purchase and Sale Agreement, together with the Exhibits and
Schedules attached hereto and the Seller Disclosure Schedule.

“Bankruptcy Event” means the occurrence of any of the following: (i) the commencement
of an involuntary proceeding or the filing of an involuntary petition (A) seeking liquidation,
reorganization or other relief in respect of any Seller Party or any of its Affiliates that are
involved in the Business (including any Subject Entity or any Subsidiaries of a Subject Entity), or
of a substantial part of their respective assets, under any federal, state or foreign bankruptcy,
insolvency, receivership or similar Law now or hereafter in effect, or (B) effecting the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
any Seller Party or any of its Affiliates that are involved in the Business (including any Subject
Entity or any Subsidiaries of a Subject Entity), or for a substantial part of their respective
assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days
or an order or decree approving or ordering any of the foregoing shall have been entered; or (ii)
if any Seller Party or any of its Affiliates that are involved in the Business (including any
Subject Entity or any Subsidiaries of a Subject Entity) (A) voluntarily commences any proceeding or
files any petition seeking liquidation, reorganization or other relief under any federal, state or
foreign bankruptcy, insolvency, receivership or similar Law now or hereafter in effect, (B)
consents to the institution of, or fails to contest in a timely and appropriate manner, any
proceeding or petition described in the immediately preceding clause (i), (C) applies for or
consents to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for it or for a substantial part of its assets, (D) files an answer admitting the material
allegations of a petition filed against it in any such proceeding, (E) makes a general assignment
for the benefit of creditors or (F) takes any action for the purpose of effecting any of the
foregoing described in the immediately preceding clause (i) or this clause (ii).

“Bridge Loan Interest Expense” means the interest costs of the LIHTC Funds known as
MMA Financial Institutional Tax Credits XXX, LP (“ITC30”), MMA Financial Institutional Tax
Credits XXXI, LP (“ITC31”) and MMA Financial Institutional Tax Credits XXXII, LP
(“ITC32”) which are in excess of the interest costs allowable under the applicable
documents relating to loans or borrowings by such LIHTC Funds previously accrued and in
anticipation of, and which are secured by, limited partner, member or other investor commitments to
contribute capital, or to otherwise invest in, such LIHTC Funds.

“Bridging Issue” means the lack of available bridge loan financing for each of the
equity contribution obligations of Symetra Life Insurance Company in the LIHTC Fund known as ITC32
(the “Bridge Fund”).

“Bridge Resolution” shall mean, with respect to a Bridging Issue, the completion by
the Seller Parties or their Affiliates of one of the following alternatives (it being understood
that any, all or any combination of the following alternatives may be used in respect of the Bridge
Fund in the sole discretion of the Sellers or their Affiliates), all upon terms and conditions
reasonably acceptable to Purchaser: (i) securing a bridge facility on commercially reasonable
terms with respect to the capital or other investment commitments to the Bridge Fund in respect of
which there is no bridge financing in place; or (ii) modifying the documentation for any Person in
which the Bridge Fund has invested, to the extent the modification of such documentation is
reasonably required, in order that the equity contributions of the Bridge Fund to such Person are
delayed in a manner which will permit the Bridge Fund to generate a set of cash flow projections
that reasonably demonstrate (after taking into account the amount and timing of all future equity
contribution obligations of the Bridge Fund’s investors, then existing bridge financing facilities,
equity contribution obligations of the Bridge Fund, and the funding of Bridge Loan Interest Expense
reimbursement by Purchaser at the Second Closing and thereafter) that there will be sufficient cash
available to the Bridge Fund to satisfy its equity contribution obligations to all Persons in which
it has made an investment, to fund its reserves consistent with its Organizational Documents and to
pay all other third party expenses of the Bridge Fund on a timely basis; or (iii) all of the equity
contribution obligations to all Persons in which the Bridge Fund has made a direct or indirect
investment shall have been satisfied and at such time the Bridge Fund shall have funded its
reserves in accordance with its Organizational Documents.

“Business Day” means any day other than a Saturday, Sunday or any day on which banks
located in the State of New York are authorized or required to be closed for the conduct of regular
banking business.

“Business Employees” means those individuals listed on Schedule II.

“Business Material Adverse Effect” means any of: (i) any change, fact, circumstance
or event that is, has, has had or would reasonably be likely to have, a material adverse effect on
the business, assets, results of operations or condition (financial or otherwise) of the Subject
Entities, their respective Subsidiaries and the LIHTC Funds, taken as a whole, or the Business,
taken as a whole, other than any such effects due to or resulting from (except, in the case of the
immediately following clause (A), (B), (E) or (F), to the extent that any such effect has a
materially disproportionate effect on the Subject Entities, their respective Subsidiaries and the
LIHTC Funds, taken as a whole, or the Business, taken as a whole, as compared to other comparable
businesses in the industries in which the Subject Entities, their respective Subsidiaries, and the
LIHTC Funds operate or the Business operates) (A) changes in general economic, political or
financial or securities market conditions in the United States, (B) any change generally affecting
the industries in which the Subject Entities, the LIHTC Funds, or the Business operate, (C) the
execution and delivery of this Agreement or the consummation of the transactions contemplated by
this Agreement in accordance with its terms, or in each case the announcement thereof, (D) any act
or omission by the Seller Parties or any of their Subsidiaries taken with, and in accordance with,
the written consent, direction or request of Purchaser, (E) changes in Laws applicable to the
Subject Entities, the LIHTC Funds, or the Business or changes to GAAP, in each case occurring after
the date of this Agreement, (F) acts of war, armed hostilities or terrorism or any escalation or
worsening of any acts of war, armed hostilities or terrorism, or (G) any failure of the Business to
meet projections, forecasts, or revenue earning predictions for any period that are prepared by
Parent or its Subsidiaries for their internal use or are published thereby; (ii) the occurrence of
a Bankruptcy Event; or (iii) a material adverse effect on the enforceability of any Seller Party’s
or any of its Affiliate’s obligations under this Agreement or the other Transaction Documents or
any Seller Party’s or any of its respective Affiliate’s ability to perform its obligations under
this Agreement or the other Transaction Documents or to consummate the transactions contemplated by
this Agreement or the other Transaction Documents without material delay.

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

“Company Plan” means a Plan that any of the Seller Parties or any of their respective
Affiliates or any ERISA Affiliate sponsors, maintains, has any obligation to contribute to, has or
may have liability under, or is otherwise a party to, or that otherwise provides benefits for
current or former Business Employees, or current or former independent contractors who are or were
primarily engaged in the Business, or in either case their dependents and beneficiaries.

“Deferred Compensation Agreements” means the deferred compensation agreements of the
Transferred Employees set forth on Schedule III.

“Encumbrances” means any and all liens, charges, security interests, mortgages,
pledges or other encumbrances, including any conditional sale agreement, preemptive rights, right
of first refusal or right of first offer.

“Environmental Law” means any and all federal, state, local, foreign and international
law relating to the protection of human health and safety, the environment or natural resources or
the handling, use, storage, transport, disposal or Release of any Hazardous Substances, in each
case as in effect from time to time prior to the First Closing.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
rules and regulations promulgated thereunder.

“ERISA Affiliate” means any Person required at any particular time to be aggregated
with any Seller Party under Sections 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA.

“Escrow Agent” means the “Escrow Agent” under the Escrow Agreement.

“Escrow Agreement” means an Escrow Agreement, substantially in the form attached as
Exhibit C hereto, with such other and additional terms thereof as shall have been
reasonably agreed to by Parent and Purchaser.

“Expenses” means any and all costs and expenses accrued by, or on behalf of, any
Subject Entity or its respective Subsidiaries, or any LIHTC Fund with respect to the operation of
the Business; provided, that the costs and expenses set forth on Schedule 1.1(a) which
would otherwise be considered as Expenses of any Subject Entity or its respective Subsidiaries, or
any LIHTC Fund shall not be considered “Expenses” for purposes of this definition.

“First Closing” means the closing of the sale and purchase of the First Closing
Interests as contemplated by this Agreement.

“First Closing Collection Period” means the period from and including January 1, 2009
through and including the First Closing Date.

“First Closing Date” means (i) July 17, 2009, provided that, in the event that the
conditions set forth in Sections 6.1(a) and 6.1(b) are satisfied or waived after
July 17, 2009, the First Closing shall take place on the second Business Days after the date on
which such conditions are satisfied or waived, or (ii) as mutually agreed to by Parent and
Purchaser, such other date on which the First Closing occurs.

“First Closing Fund” means a Person that is directly or indirectly owned (in whole or
in part) through First Closing Interests.

“First Closing Interests” means: (i) the Entity Interests with respect to which any
and all third party and Governmental Authority consents and approvals required to directly or
indirectly transfer such interests to Purchaser (or its designee) at the First Closing as
contemplated by this Agreement shall have been obtained on or prior to the third Business Day prior
to the First Closing Date; (ii) the Newco Interests of each Newco to which any Fund Interests shall
have been directly or indirectly transferred prior to the First Closing; (iii) the Non-Consent Fund
Interests; and (iv) the Required Consent Fund Interests with respect to which any and all third
party and Governmental Authority consents and approvals required to directly or indirectly transfer
such interests to Purchaser (or its designee) at the First Closing as contemplated by this
Agreement shall have been obtained on or prior to the third Business Day prior to the First Closing
Date.

“First Closing Ticking Fee Amount” means $53,002.

“Fund Cash Balances” means cash reserves set aside by each LIHTC Fund for the purpose
of funding, among other things, its operations, commitments, obligations and debts, including the
payment of asset management fees, loan repayments and property maintenance costs and expenses.

“GAAP” means accounting principles generally accepted in the United States as in
effect from time to time, consistently applied, except that (i) the Seller Parties and their
respective Subsidiaries involved in the Business do not apply the consolidation accounting
requirements of FIN 46 (R), “Consolidation of Variable Interest Entities – An Interpretation of ARB
No. 51” and EITF 04 5, “Determining Whether a General Partner, or the General Partners as a Group,
controls a Limited Partnership or Similar Entity When the Limited Partners have Certain Rights”,
(ii) the Seller Parties and their respective Subsidiaries involved in the Business prepare their
financial statements on a pre tax basis of accounting; therefore there is no provision for income
tax expense reflected in their financial statements, (iii) the Seller Parties have general
corporate overhead that would normally be allocated to their wholly owned Subsidiaries; however
these allocations were not made to their financial statements as the Seller Parties have not
finalized their allocation methodologies, (iv) the Seller Parties have not prepared the necessary
additional financial statements (i.e. income statement, cash flow statement, statement of changes
in stockholders’ equity) and footnotes that would be a requirement of GAAP and (v) the Seller
Parties have not presented any measures representing the likelihood of collection of any
receivables.

“Governmental Authority” means any government or governmental or regulatory entity,
body thereof, or political subdivision thereof, whether federal, state, local, foreign, or
supranational, or any agency, instrumentality or authority thereof (including HUD), or any court or
arbitrator (public or private).

“GP Takeback Management Agreement” means a Management Agreement, containing such terms
as shall have been reasonably agreed to by Parent and Purchaser, pursuant to which, among other
things, Purchaser (or its designee) will manage each Holdover GP Takeback and be entitled to all
economic benefits or costs relating thereto unless and until the Seller Parties exercise a GP
Takeback Put Option with respect to such Holdover GP Takeback.

“Hazardous Substance” means any substances defined as “hazardous” or “toxic” or any
other term of similar import under any Environmental Laws.

“HUD” means the U.S. Department of Housing and Urban Development.

“Indebtedness” means, with respect to any Subject Entity, LIHTC Fund or any of its
respective Subsidiaries, without duplication: (i) all outstanding indebtedness of such Person for
borrowed money, whether current or funded, or secured or unsecured; (ii) all outstanding
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments or
debt securities; (iii) all outstanding indebtedness of such Person created or arising under any
conditional sale or other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property); (iv) all outstanding
indebtedness of such Person secured by a purchase money mortgage or other Encumbrance to secure all
or part of the purchase price of the property subject to such Encumbrance; (v) all outstanding
obligations under leases which shall have been or must be, in accordance with GAAP, recorded as
capital leases in respect of which such Person is liable as lessee; (vi) any outstanding liability
or other obligation of such Person in respect of letters of credit; (vii) all interest, fees,
prepayment premiums and other expenses owed with respect to the indebtedness referred to above;
(viii) all indebtedness referred to above which is directly or indirectly guaranteed by such Person
or which such Person has agreed (contingently or otherwise) to purchase or otherwise acquire or in
respect of which it has otherwise assured a creditor against loss; and (ix) any payments, fines,
fees, penalties or other amounts applicable to or otherwise incurred in connection with or as a
result of any prepayment or early satisfaction of any obligation described in clauses (i) through
(viii) above.

“Indemnified Party” means any Person claiming indemnification under any provision of
Article VII.

“Indemnifying Party” means any Person against whom a claim for indemnification is
being asserted under any provision of Article VII.

“Information Technology Transition Costs” means all costs and expenses, including but
not limited to all consulting costs, licensing fees, royalties or lease buy out fees incurred by
the Seller Parties or Purchaser or any of their respective Affiliates arising from the
implementation, licensing, migration, set up, assignment or transfer of the data, information
technology hardware, Intellectual Property and Software licenses, and subscriptions used in
connection with the Business, in connection with the transfer of the Business to Purchaser under
this Agreement, other than the costs incurred by Parent or any of its Affiliates in relation to the
provision of information technology and data migration consulting services to be provided by Parent
(or its Affiliates) to Purchaser (or its Affiliates) pursuant to the Transitional Services
Agreement.

“Intellectual Property” means any or all of the following: (i) all inventions
(whether patentable or unpatentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations in part, revisions, extensions and reexaminations
thereof; (ii) all trademarks, service marks, trade dress, logos, trade names, and corporate names,
together with all translations, adaptations, derivations, and combinations thereof and including
all goodwill associated therewith, and all applications, registrations and renewals in connection
therewith; (iii) all copyrightable works, all copyrights, and all applications, registrations and
renewals in connection therewith; (iv) all trade secrets and confidential business information and
all ideas, research and development, know how, formulas, compositions, technical data, proprietary
tools, designs, drawings, specifications, technology, systems, databases, customer and supplier
lists, pricing and cost information, and business and marketing plans and proposals; (v) all
computer software, including object code, source code, data and related documentation
(collectively, “Software”); (vi) all domain name registrations and internet web sites and
content and Software included therein; (vii) all other proprietary rights; (viii) all rights to
recover for past infringements of any of the foregoing; and (ix) all copies and tangible
embodiments thereof (in whatever form or medium).

“Interim Measurement Date” means the date that Parent and Purchaser reasonably
calculate as being 17 days prior to the First Closing Date.

“Interim Paid Management Fees” means any and all Management Fee Amounts paid to or for
the benefit of, or otherwise received by, any Seller Party or any of its Affiliates (including any
Subject Entity, LIHTC Fund or any of their respective Subsidiaries) from the commencement of the
First Closing Collection Period through and including the Interim Measurement Date.

“IRS” means the United States Internal Revenue Service.

“knowledge” means: (i) with respect to any Seller Party, the actual knowledge, after
due and diligent inquiry, of any of Michael L. Falcone, Stephen A. Goldberg, Dara Hewat, Timothy
Tarrant, Gregory B. Judge, James S. Dailey Jr., David E. Robbins, Marie Reynolds, Anthony Bertoldi,
Armando Perez, Michael H. Gladstone; and (ii) with respect to Purchaser, the actual knowledge,
after due and diligent inquiry, of any of Allen J. Anderson, Kenneth J. Cutillo and Daniel Rubin.

“Landlord” means SP 101 Arch, LLC as the landlord under the Real Property Lease.

“Law” means any foreign, federal, state or local law, statute, code, ordinance, rule
or regulation of any Governmental Authority.

“Lease Estoppel” means a form of estoppel certificate relating to the Real Property
Lease, in form and substance reasonably satisfactory to Purchaser.

“Lease Resolution Documents” means any and all documents, agreements or instruments
that are reasonably necessary to consummate the Lease Resolution, including, without limitation,
the Lease Estoppel and any applicable consents of the Landlord and (a) if the Sublease Resolution
shall occur in accordance with and pursuant to the terms of Section 5.6(b) of this
Agreement, the Sublease and the Non-Disturbance Agreement, or (b) if the Direct Lease Resolution
shall occur in accordance with and pursuant to the terms of Section 5.6(a) of this
Agreement, the Partial Assignment or the New Lease.

“Leased Real Property” means the premises that are leased under the Real Property
Lease.

“LIHTC Funds” means the entities set forth in Schedule I.

“Losses” means any and all losses, fines, fees, penalties, deficiencies, liabilities,
claims, demands, judgments, settlements and costs and expenses (including reasonable attorneys’
fees and disbursements); provided, however, that, except as otherwise provided in the immediately
following proviso, in no event shall any Losses include special, speculative, punitive, indirect or
consequential damages or lost profits; provided, further, however, that, notwithstanding anything
to the contrary contained in this Agreement, (a) any diminution in value, and any other adverse
effect, suffered, incurred or experienced by or with respect to (i) any equity or other ownership
interests in any LIHTC Fund or any other Person, the majority of the outstanding equity interests
of which are not directly or indirectly acquired by Purchaser (or its designee) pursuant to this
Agreement, that are directly or indirectly acquired by Purchaser (or its designee) pursuant to this
Agreement, or (ii) any Second Closing Interests (for the avoidance of doubt, whether suffered,
incurred or experienced before, at or after the Second Closing) shall be deemed Losses for all
purposes under this Agreement, and (b) any adverse effect on the ability of any LIHTC Fund, or of
any other Person, the majority of the outstanding equity interests of which are not directly or
indirectly owned by the Seller Parties or otherwise directly or indirectly acquired by Purchaser
pursuant to this Agreement, to pay any Management Fee Amounts or any other amounts payable to any
general partner (or Person in a similar capacity), manager or operator (or Person in a similar
capacity) of such LIHTC Fund or of any such other Person when due (for the avoidance of doubt,
whether before, at or after the First Closing).

“LP Sale Proceeds” means the distributions in the aggregate amount of $2,000,000
directly or indirectly received by Parent in connection with the sale of Desert Palms (Coachella
Investors) in Coachella, California and Mountain View Apartments (Beaumont Investors) in Beaumont,
California by BF California, L.P., a Subsidiary of the Seller Parties.

“Management Agreement” means a Management Agreement, containing such terms as shall
have been reasonably agreed to by Parent and Purchaser, pursuant to which an Affiliate of Purchaser
that is reasonably acceptable to Parent will manage the Remainder Funds, the Subject Entities
(other than the Newcos), certain Merrill Lynch guaranteed funds, certain Project Partnerships, and
certain bond financed assets, in each case as described in such Management Agreement.

“Management Fee Amounts” means any and all asset management fees, fund salary
reimbursement and third party asset management fees or other distributions or payments payable by
any LIHTC Fund, other than the LP Sale Proceeds, to the general partner, managing member (or Person
in a similar position), as applicable, of such LIHTC Fund.

“Newco Interests” means all of the outstanding equity or other ownership interests in
the Newcos.

“Newcos” means, collectively, WCM Newco, LLC, BFG Newco, LLC, MEC Newco, LLC, MAH
Newco, LLC and BFRP Newco, LLC, each of which is a Delaware limited liability company.

“Non-Consent Fund Interests” means the Fund Interests set forth on Schedule
VI.

“Organizational Documents” means, with respect to any Person, the certificate of
formation, certificate of incorporation, certificate of limited partnership, bylaws, limited
liability company or operating agreement, limited partnership agreement or other governing or
constituent documents of such Person.

“Permit” means any permit, license, franchise, approval, consent, registration,
clearance, variance, exemption, order, certificate or authorization issued or granted by, under the
authority of or pursuant to any Governmental Authority or Law.

“Permitted Encumbrances” means (i) Encumbrances for Taxes or other governmental
charges not yet due and payable, or which are being contested in good faith and described on
Schedule 1.1(b), (ii) mechanics’, carriers’, warehousemen’s, workers’ and other similar
Encumbrances arising or incurred in the ordinary course of business or that are being contested in
good faith, (iii) Encumbrances on assets incurred to finance the acquisition of such assets or the
construction of improvements thereon, (iv) easements, rights of way, building, zoning and other
similar encumbrances or title defects, (v) restrictions on transfers of the First Closing Interests
after the First Closing and restrictions on transfers of the Second Closing Interests after the
Second Closing, in each case, as set forth in the Organizational Documents of the Subject Entities,
the LIHTC Funds and their respective Subsidiaries or as otherwise imposed by the applicable
requirements of HUD or state housing agencies, (vi) restrictions on transfers of the Assets after
the First Closing pursuant to the contracts and agreements governing the rights in or to such
Assets, and (vii) Encumbrances on assets that are not material to the Business which are incurred
in the ordinary course of business.

“Person” means any natural person, corporation, general partnership, limited
partnership, limited or unlimited liability company, proprietorship, trust, joint venture, other
business entity or Governmental Authority.

“Plan” means any employment, consulting, bonus, incentive compensation, deferred
compensation, pension, profit sharing, retirement, stock purchase, stock option, stock ownership,
stock appreciation rights, phantom stock, equity (or equity based), leave of absence, layoff,
vacation, day or dependent care, legal services, cafeteria, life, health, medical, dental, vision,
welfare, accident, disability, workmen’s compensation or other insurance, severance, separation,
termination, change of control, collective bargaining or other benefit plan, understanding,
agreement, practice, policy or arrangement of any kind, and whether or not subject to ERISA,
including any “employee benefit plan” within the meaning of Section 3(3) of ERISA.

“Pre-Closing Tax Period” means: (i) with respect to the Subject Entities, the First
Closing Funds and their respective Subsidiaries that are directly or indirectly acquired by
Purchaser (or its designee) at the First Closing, any taxable period ending on or before the First
Closing Date and, with respect to any taxable period that includes (but does not end on) the First
Closing Date, the portion ending on and including the First Closing Date; and (ii) with respect to
the Subject Entities, the Acquired Remainder Funds and their respective Subsidiaries that are
directly or indirectly acquired by Purchaser (or its designee) at the Second Closing, any taxable
period ending on or before the Second Closing Date and, with respect to any taxable period that
includes (but does not end on) the Second Closing Date, the portion ending on and including the
Second Closing Date.

“Project Partnerships” means any Person in which any LIHTC Fund has a direct or
indirect investment and which directly or indirectly owns any interest in any low income housing
tax credit project.

“Purchaser Leased Space” means the entire 13th and 14th floors of the Leased Real
Property as more particularly described in the Real Property Lease.

“Purchaser Material Adverse Effect” means a material adverse effect on the
enforceability of Purchaser’s obligations under this Agreement or the other Transaction Documents
or Purchaser’s ability to perform its obligations under this Agreement or the other Transaction
Documents or to consummate the transactions contemplated by this Agreement or the other Transaction
Documents without material delay.

“Real Property Lease” means the lease agreement, dated as of June 1, 2005 and entered
into between Parent (as tenant) and Landlord.

“Release” means any releasing, spilling, leaking, discharging, disposing of, pumping,
pouring, emitting, emptying, injecting, leaching, dumping or allowing to escape in violation of any
Environmental Law.

“Remainder Agreements” means the Material Contracts requiring consent as set forth on
Schedule VI with respect to which all third party consents and approvals required to
transfer such Material Contracts to Purchaser (or its designee) as contemplated by this Agreement
shall not have been obtained on or prior to the Third Business Day prior to the First Closing Date.

“Remainder Funds” means: (i) the Required Consent Fund Interests set forth on
Schedule V with respect to which all third party and Governmental Authority consents and
approvals required to transfer such interests to Purchaser (or its designee) as contemplated by
this Agreement shall not have been obtained on or prior to the third Business Day prior to the
First Closing Date; and (ii) the LIHTC Funds known as Fund 2040 — MMAFGAFH1 — MMA Affordable
Housing Fund 1 and 2041 — MMAFGAFH2 — MMA Financial Guaranteed Affordable Housing Fund 2.

“Remainder Funds Restructuring” means the actions to be taken and the transactions to
be effected by the Seller Parties and their respective Affiliates to cause the Remainder Funds to
not be transferred to Purchaser (or its designee) at the First Closing, which actions and
transactions shall be taken and effected on terms and conditions reasonably satisfactory to
Purchaser.

“Remainder Fund Valuation Amount” means, with respect to each LIHTC Fund and Subject
Entity set forth on Schedule V, the amount set forth opposite the name of such LIHTC Fund
or Subject Entity on Schedule V in the column titled “Fund Valuation Amount.”

“Remainder Fund Withholding Amount” means an amount equal to the sum of the Remainder
Fund Valuation Amounts with respect to all of the Remainder Funds

“Required Consent Fund Interests” means the Fund Interests set forth on Schedule
V.

“Restructuring” means the actions to be taken and the transactions to be effected by
the Seller Parties and their respective Affiliates set forth on Exhibit B (subject to
modifications thereto, as necessary, to exclude or include Entity Interests and Required Consent
Fund Interests dependant upon whether all third party and Governmental Authority consents and
approvals required to directly or indirectly transfer such interests to Purchaser (or its designee)
as contemplated by this Agreement shall have been obtained), which actions and transactions shall
be taken and effected on terms and conditions reasonably satisfactory to Purchaser.

“Second Closing” means the closing of the sale and purchase of the Second Closing
Interests as contemplated by this Agreement.

“Second Closing Date” means August 31, 2009 or, as mutually agreed to by Parent and
Purchaser, such other date on which the Second Closing occurs.

“Second Closing Interests” means: (i) the Entity Interests that are not First Closing
Interests and with respect to which any and all third party and Governmental Authority consents and
approvals required to directly or indirectly transfer such interests to Purchaser (or its designee)
at the Second Closing as contemplated by this Agreement shall have been obtained on or prior to the
third Business Day prior to the Second Closing Date; (ii) the Remainder Funds, in each case, with
respect to which all third party and Governmental Authority consents and approvals required to
directly or indirectly transfer such interests to Purchaser (or its designee) as contemplated by
this Agreement shall have been obtained on or prior to the third Business Day prior to the Second
Closing Date; and (iii) any Holdover GP Takeback with respect to which all third party and
Governmental Authority consents and approvals required to directly or indirectly transfer such
Holdover GP Takeback to Purchaser (or its designee) as contemplated by this Agreement shall have
been obtained on or prior to the third Business Day prior to the Second Closing Date.

“Second Closing Restructuring” means the actions to be taken and the transactions to
be effected by the Seller Parties and their respective Affiliates to cause the Remainder Funds with
respect to which Second Closing Interests will not be directly or indirectly acquired by Purchaser
(or its designee) at the Second Closing to not be transferred to Purchaser (or its designee) at the
Second Closing, which actions and transactions shall be taken and effected on terms and conditions
reasonably satisfactory to Purchaser.

“SLP” means MMA Special Limited Partner, Inc. or SLP, Inc. (as applicable).

“Subject Entities” means the companies set forth on Schedule IV and the
Newcos.

“Subsidiary” means, with respect to any specified Person, any other Person: (i) of
which such specified Person owns, directly or indirectly, more than 50% of the equity or other
ownership interests in such other Person; (ii) of which such specified Person or any other
Subsidiary of such specified Person is a general partner; or (iii) of which securities, or equity
or other ownership interests, having ordinary voting power to elect a majority of the board of
directors (or other governing body) thereof or other Persons performing similar functions with
respect to such other Person are owned, directly or indirectly, by such specified Person and/or one
or more of such specified Person’s Subsidiaries; provided, that entities which would otherwise be
considered as Subsidiaries of the LIHTC Funds (including the Project Partnerships) shall not be
considered “Subsidiaries” for purposes of this Agreement, other than for purposes of Section
3.11(d) (under which Section such entities shall be considered “Subsidiaries” of the LIHTC
Funds); provided, further, that, subject to the provisions of the definition of “Losses” (above),
the LIHTC Funds and any other Person, the majority of the outstanding equity interests of which are
not directly or indirectly owned by the Seller Parties shall not be considered “Subsidiaries” for
purposes of Section 7.2 of this Agreement.

“Tax” and “Taxes” means: (i) any and all taxes, levies, fees, duties and
charges of any kind, whether or not imposed including U.S. federal, state, county, local and
foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental, capital stock, franchise, profits, withholding, social
security (or similar, including FICA), unemployment, disability, real property, personal property,
sales, use, transfer, registration, value added and alternative minimum taxes, as well as any
interest, penalty, or addition to such taxes, imposed by a Governmental Authority in connection
therewith or with respect thereto, whether or not disputed; (ii) liability for the payment of any
amounts of the type described in the immediately preceding clause (i) as a result of being a member
of an affiliated, consolidated, combined, unitary or aggregate group; and (iii) liability for the
payment of any amounts as a result of an express or implied obligation to indemnify any other
Person with respect to the payment of any amounts described in the immediately preceding clause (i)
or (ii).

“Tax Return” means any return, declaration, report, claim for refund or information
return or statement relating to Taxes required to be filed with a Governmental Authority (a
“Tax Authority”), including any schedule or attachment thereto, and including any amendment
thereof.

“Transaction Documents” means this Agreement, the Transitional Services Agreement, the
Management Agreement, the Lease Resolution Documents, the Escrow Agreement, each Letter of Credit,
each Substitute Letter of Credit, the GP Takeback Management Agreement and any other document,
agreement or instrument executed and/or delivered pursuant to or in connection with this Agreement
or the transactions contemplated hereby.

“Transitional Services Agreement” means a Transitional Services Agreement,
substantially in the form attached as Exhibit A hereto, with such other and additional
terms thereof as shall have been reasonably agreed to by Parent and Purchaser.

Section 1.2. Other Defined Terms.

(a) Other terms defined are in the other parts of this Agreement indicated below:

	 	 	 
	“10% Holders”

“Accrued Expenses”

“Acquisition Proposal”

“Adjustment Amounts”

“Advance Loans”

“Ambac Funds”

“Ambac Letter of Credit”

“Assignee”

“Assets”

“Assumed Liabilities”

“BLIE Amount”

“BLIE Objection Notice”

“BLIE Objection Period”

“BLIE Statement”

“Bridge Fund”

“Business”

“Business Intellectual Property”

“COBRA”

“Collateral Amount”

“Collateral Amount Escrow”

“Confidential Information”

“Credit Support Arrangements”

“De Minimis Claim”

“Deductible”

“Direct Lease Resolution”

“Entity Interests”

“Environmental Liabilities”

“Escrow Agent”

“Escrow Agreement”

“Escrow Substitution”

“Excluded Assets”

“Excluded Liabilities”

“February Cumulative Interest Amount”

“Fiduciary Duty Action”

“Fiduciary Duty Action Dispute Notice”

“Fiduciary Duty Action Notice”

“Financial Statement”

“Firm”

“First Closing Purchase Price”

“Fundamental Representations”

“Fund Cash Balance Certificate”

“Fund Interests”

“Future Interest Amount”

“GP Takebacks”

“GP Takeback Consent”

“GP Takeback Put Option”

“Guarantor”

“Holdover GP Takebacks”

“Indemnity Amount”

“Interest Rate”

“Interim Accrued Expenses”

	 	3.3(a)

2.3(c)

5.12

2.3(c)

3.5(c)

5.9(c)

5.9(c)

5.6(a)

2.1(a)(i)

2.1(a)(ii)

2.3(j)

2.3(j)

2.3(j)

2.3(j)

Definition of Bridging Issue

RECITALS

3.12(a)

5.7(i)

2.4(a)(i)

2.4(a)(i)

5.13

5.9(b)

7.4

7.4

5.6(a)

RECITALS

3.14

2.3(b)

2.4(a)(i)

2.4(c)

2.1(a)(iii)

2.1(a)(iv)

2.3(a)

5.1(q)

5.1(q)

5.1(q)

3.5(a)

2.3(e)

2.2(a)

7.1(a)

5.14

RECITALS

2.3(a)

2.5

2.5

2.5(c)

Preamble

2.5(a)

7.4

2.3(l)

2.3(a)
	“ITC30”Definition of Bridge Loan Interest Expense

	“ITC31”Definition of Bridge Loan Interest Expense

	“ITC32”Definition of Bridge Loan Interest Expense

	“ITC35”Definition of Bridge Loan Interest Expense

	“Lazard”

“LC Substitution”

“Lease Resolution”

“Letter of Credit”

“Licensed Software”

“Material Contract”

“MMAEC”

“New Lease”

“Non-Disturbance Agreement”

“Objection Notice”

“Objection Period”

“Option Exercise Fee”

“Option Period”

“Owned Business Intellectual Property”

“Owned Proprietary Software”

“Paid Expense Amount”

“Paid Interim Expense Amount”

“Paid Interest Amount”

“Paid Management Fees”

“Parent”

“Partial Assignment”

“Parent Board”

“Parent’s Savings Plan”

“Preliminary First Closing Statement”

“Proposed First Closing Statement”

“Purchaser’s Savings Plan”

“Allocation Statement”

“Purchaser”

“Purchaser Indemnified Parties”

“Put Option Closing”

“Put Option Fund”

“Put Option Notice”

“Put Option Purchase Price”

“Remainder Fund Put Option”

“Remainder Fund Put Option Period”

“Representative”

“Second Closing Purchase Price”

“Seller”

“Seller Disclosure Schedule”

“Seller Indemnified Parties”

“Seller Parties”

“Seller Representative”

“Sellers”

“Software”

“Stock Awards”

“Straddle Period”

“Sublease”

“Sublease Resolution”

“Substitute Letter of Credit”

“Subtenant”

“Tax Authority”

“Termination Option”

“Ticking Fee Escrow”

“Transferred Employees”

	 	RECITALS

2.4(b)

5.6(b)

2.4(a)(i)

3.12(c)

3.11(a)

Preamble

5.6(a)

5.6(b)

2.3(d)

2.3(d)

8.3

8.3

3.12(a)

3.12(c)

2.3(c)

2.3(a)

2.3(a)

2.3(c)

Preamble

5.6(a)

RECITALS

5.7(e)

2.3(a)

2.3(c)

5.7(e)

2.6(a)

Preamble

7.2

5.20(a)

5.20(a)

5.20(b)

5.20(a)

5.20(a)

5.20(a)

5.2

2.2(b)

Preamble

Article III

7.3

Preamble

5.13

Preamble

Definition of Intellectual Property

5.7(b)

5.5(c)

5.6(b)

5.7(b)

2.4(b)

5.6(b)

Definition of Tax Return

8.3

2.3(b)

5.7(a)

(b) For the purposes of this Agreement, except to the extent that the context otherwise
requires:

(i) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule,
such reference is to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless
otherwise indicated;

(ii) the table of contents and headings for this Agreement are for reference purposes only and
do not affect in any way the meaning or interpretation of this Agreement;

(iii) whenever the words “include,” “includes” or “including” (or similar terms) are used in
this Agreement, they are deemed to be followed by the words “without limitation”;

(iv) the words “hereof,” “herein” and “hereunder” and words of similar import, when used in
this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement;

(v) all terms defined in this Agreement have their defined meanings when used in any
certificate or other document made or delivered pursuant hereto, unless otherwise defined therein;

(vi) the definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms;

(vii) if any action is to be taken by any party hereto pursuant to this Agreement on a day
that is not a Business Day, such action shall be taken on the next Business Day following such day;

(viii) references to a Person are also to its permitted successors and assigns;

(ix) the use of “or” is not intended to be exclusive unless expressly indicated otherwise; and

(x) references to “$” shall mean U.S. dollars.

(c) This Agreement is the product of negotiation by the parties having the assistance of
counsel and other advisors. It is the intention of the parties that neither party shall be
considered the drafter hereof and that this Agreement not be construed more strictly with regard to
one party than to any other.

ARTICLE II.

PURCHASE AND SALE

Section 2.1. Restructuring; Purchase and Sale.

(a) Restructuring; Assets; Assumed Liabilities; Excluded Assets; Excluded Liabilities.
At or prior to the First Closing, the Seller Parties shall, and shall cause their respective
Affiliates, to consummate the Restructuring and pursuant thereto:

(i) to contribute, assign, transfer, convey and deliver, free and clear of all Encumbrances
(other than Permitted Encumbrances), to one or more Subject Entities or their Subsidiaries that are
to be directly or indirectly acquired by Purchaser at the First Closing all of each Seller Party’s
and its respective Affiliates’ right, title and interest in, to and under the assets, properties
and rights of such Seller Party and such Affiliates that are primarily used in, or associated with,
the Business (other than Entity Interests and Fund Interests), including the assets, properties and
rights set forth on Schedule 2.1(a)(i) (all such assets, properties and rights are referred
to herein as the “Assets”);

(ii) to cause the assumption by one or more Subject Entities or one or more of their
Subsidiaries that are to be directly or indirectly acquired by Purchaser at the First Closing of,
and such Subject Entities and their Subsidiaries (as applicable) shall thereafter be obligated to
pay, perform or discharge, as the case may be, when due from and after such assignment the Future
Interest Amount and the liabilities set forth on Schedule 2.1(a)(ii) (the “Assumed
Liabilities”);

(iii) to cause the assignment, transfer and delivery or distribution by the Subject Entities
and/or one or more of their Subsidiaries (as applicable) to the Sellers (or their designated
transferees), free and clear of all Encumbrances, all of the Subject Entities’ and their
Subsidiaries’ right, title and interest in, to and under only the assets, properties and rights of
the Subject Entities and their Subsidiaries set forth on Schedule 2.1(a)(iii) (the
“Excluded Assets”); and

(iv) to cause the assumption by one or more Seller Parties or one or more of their respective
Affiliates (other than any Subject Entity, LIHTC Fund or any of their respective Subsidiaries) of,
and such Seller Parties and their Affiliates (as applicable) shall thereafter be obligated to pay,
perform or discharge, as the case may be, when due, whether prior to, from or after such
assignment, (A) any and all liabilities or obligations arising from or otherwise related to or
associated with any Excluded Asset and (B) the liabilities and obligations set forth on
Schedule 2.1(a)(iv) (such liabilities and obligations described in the immediately
preceding clauses (A) and (B), the “Excluded Liabilities”).

(b) Remainder Funds. From and after the First Closing, and subject to compliance with
applicable Law, Parent and/or the Sellers shall retain title to the Required Consent Fund Interests
of any Remainder Fund that shall have not become First Closing Interests that are transferred to
Purchaser (or its designee) at the First Closing. Purchaser shall manage such Remainder Funds
pursuant to the Management Agreement, under which, subject to the terms and conditions thereof,
from and after the First Closing, Purchaser shall receive all the benefits and bear all the costs,
liabilities and burdens with respect to such Remainder Funds. Without limiting, and in furtherance
of, the foregoing, the Seller Parties, on the one hand, and Purchaser, on the other hand, shall
reasonably cooperate in good faith to establish and implement such arrangements as any such party
reasonably may request of the other(s) to ensure that, to the greatest extent permitted by
applicable Law, from and after the First Closing, the economic benefits and burdens of the
Remainder Funds and the entire Business (including the Remainder Funds) are held and borne by
Purchaser, subject to the provisions of the Management Agreement. From and after the Second
Closing, and subject to compliance with applicable Law, Parent and/or the Sellers shall retain
title to the Required Consent Fund Interests of any Remainder Fund that shall have not become (A)
First Closing Interests that are directly or indirectly acquired by Purchaser (or its designee) at
the First Closing or (B) Second Closing Interests that are directly or indirectly acquired by
Purchaser (or its designee) at the Second Closing. Purchaser shall continue to manage such
Remainder Funds from and after the Second Closing pursuant to the Management Agreement.

(c) Sale of the First Closing Interests. At the First Closing, and after the
consummation of the Restructuring and the Remainder Funds Restructuring, upon the terms and subject
to the conditions set forth in this Agreement, the Sellers will, and Parent will cause the Sellers
to, directly or indirectly sell, transfer, assign, convey and deliver to Purchaser or its designee
(or the Seller Parties will otherwise cause the sale, transfer assignment, conveyance and delivery
to Purchaser or its designee), and Purchaser will, or will cause such designee to, purchase and
accept from the Sellers, the First Closing Interests.

(d) Sale of the Second Closing Interests. At the Second Closing, and after the
consummation of the Second Closing Restructuring, upon the terms and subject to the conditions set
forth in this Agreement, the Sellers will, and Parent will cause the Sellers to, directly or
indirectly sell, transfer, assign, convey and deliver to Purchaser or its designee (or the Seller
Parties will otherwise cause the sale, transfer assignment, conveyance and delivery to Purchaser or
its designee), and Purchaser will, or will cause such designee to, purchase and accept from the
Sellers, the Second Closing Interests.

Section 2.2. Purchase Price.

(a) The purchase price (the “First Closing Purchase Price”) to be paid to the Sellers
for the First Closing Interests at the First Closing shall be $18,670,000, which First Closing
Purchase Price shall be subject to adjustment as set forth in Section 2.3 and shall be
payable as set forth in Sections 2.3 and 2.9(a).

(b) The purchase price to be paid to the Sellers for the Second Closing Interests at the
Second Closing shall be an amount equal to the sum of the Remainder Fund Valuation Amounts with
respect to all of the Acquired Remainder Funds, which amount shall bear interest for the benefit of
the Seller Parties at an annual rate equal to 8%, calculated based on a 365 day year from the First
Closing Date until the Second Closing Date (such sum of the Remainder Fund Valuation Amounts with
respect to all of the Acquired Remainder Funds, together with such interest thereon, the
“Second Closing Purchase Price”). The Second Closing Purchase Price shall be payable as
set forth in Section 2.11(a).

Section 2.3. Purchase Price Adjustments.

(a) Not more than ten Business Days, nor less than five Business Days, prior to the First
Closing Date, Parent shall deliver to Purchaser a statement (the “Preliminary First Closing
Statement”), duly executed by the Chief Financial Officer or Chief Executive Officer of Parent,
setting forth in reasonable detail, and certifying to Purchaser, the Seller Parties’ good faith
calculation (including the methods of calculation) of: (A) the cumulative amount of the Bridge
Loan Interest Expense accrued or incurred since inception through and including February 28, 2009,
whether or not due and payable (the “February Cumulative Interest Amount”); (B) the
aggregate amount (the “Paid Interest Amount”) of any portion of such Bridge Loan Interest
Expense actually paid by the Seller Parties or their respective Affiliates (other than any Subject
Entity, LIHTC Fund or any of their respective Subsidiaries) to or on behalf of any LIHTC Fund since
inception to February 28, 2009; (C) the actual and projected aggregate amount of the Bridge Loan
Interest Expense to be incurred after February 28, 2009 (the “Future Interest Amount”); (D)
any and all Interim Paid Management Fees; (E) any and all Expenses incurred or accrued by, or on
behalf of, any Subject Entity, or LIHTC Fund and outstanding as of May 31, 2009 (the “Interim
Accrued Expenses”); and (F) the aggregate amount (the “Paid Interim Expense Amount”) of
any portion of such Interim Accrued Expenses actually paid by the Seller Parties or their
respective Affiliates as of May 31, 2009. The Seller Parties shall consult with Purchaser with
respect to the preparation of the Preliminary First Closing Statement and the calculations set
forth therein and shall consider in good faith any comments to the Preliminary First Closing
Statement or the calculation set forth therein that may be provided to Parent by Purchaser. At the
First Closing, the First Closing Purchase Price shall be adjusted as follows:

(i) in the event that the aggregate amount of the Interim Paid Management Fees (excluding any
Interim Paid Management Fees paid to or for the benefit of, or otherwise received by, any Subject
Entity, LIHTC Fund or any of their respective Subsidiaries) exceeds an amount equal to (A) the
First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed days from and including
January 1, 2009 through and including the Interim Measurement Date, the First Closing Purchase
Price shall be decreased by an amount equal to such excess;

(ii) in the event that the aggregate amount of the Interim Paid Management Fees (excluding any
Interim Paid Management Fees paid to or for the benefit of, or otherwise received by, any Subject
Entity, LIHTC Fund or any of their respective Subsidiaries) is less than an amount equal to (A) the
First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed days from and including
January 1, 2009 through and including the Interim Measurement Date, the First Closing Purchase
Price shall be increased by an amount equal to such shortfall;

(iii) in the event that the aggregate amount of the Paid Interim Expense Amount is less than
the amount of Interim Accrued Closing Expenses, the First Closing Purchase Price shall be decreased
by an amount equal to such shortfall; and

(iv) the First Closing Purchase Price shall be decreased by an amount equal to the Remainder
Fund Withholding Amount.

(b) In addition to paying the First Closing Purchase Price in accordance with
Section 2.9(a), Purchaser shall deposit, on the First Closing Date, an amount in cash equal
to (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed calendar days
from and including the day immediately after the Interim Measurement Date up to and including the
First Closing Date (the “Ticking Fee Escrow”) into an escrow account with the Escrow Agent,
such Ticking Fee Escrow to be held in, and released from, escrow pursuant to, and in accordance
with, the Escrow Agreement.

(c) As soon as practicable, but in no event later than 45 days, after the First Closing Date,
Purchaser shall deliver, or cause to be delivered, to Parent a statement (the “Proposed First
Closing Statement”) setting forth Purchaser’s good faith calculation of: (i) the February
Cumulative Interest Amount; (ii) the Paid Interest Amount; (iii) the Future Interest Amount;
(iv) the Interim Paid Management Fees (excluding any Interim Paid Management Fees paid to or for
the benefit of, or otherwise received by, any Subject Entity, LIHTC Fund or any of their respective
Subsidiaries); (v) the amount of any and all Management Fee Amounts paid to or for the benefit of,
or otherwise received by, any Seller Party or any of its Affiliates (other than any Subject Entity,
LIHTC Fund or any of their respective Subsidiaries) from and including the date immediately
following the Interim Measurement Date through and including the First Closing Date (such
Management Fee Amounts, together with such Interim Paid Management Fees, the “Paid Management
Fees”); (vi) the amount of any and all Expenses incurred or accrued by, or on behalf of, any
Subject Entity or LIHTC Fund from and including June 1, 2009 through and including the First
Closing Date (such Expenses, together with the Interim Accrued Expenses, the “Accrued
Expenses”); and (vii) the aggregate amount of any portion of the Accrued Expenses actually paid
by the Seller Parties or their respective Affiliates as of the First Closing Date (the “Paid
Expense Amount” and together with the February Cumulative Interest Amount, the Paid Interest
Amount, the Future Interest Amount, the Paid Management Fees and the Accrued Expenses,
collectively, the “Adjustment Amounts”).

(d) For 30 days following Parent’s receipt of the Proposed First Closing Statement (such 30
day period, the “Objection Period”), Parent shall have the right to notify Purchaser in
writing (such notice, an “Objection Notice”) as to Parent’s objections to the calculations
and/or amounts of the Adjustment Amounts set forth in the Proposed First Closing Statement. After
delivery of the Proposed First Closing Statement, Purchaser shall provide Parent and its
representatives reasonable access to the financial books and records pertaining to the Business for
the purpose of allowing Parent to confirm the calculations and/or amounts of the Adjustment Amounts
set forth in the Proposed First Closing Statement.

(e) If Parent fails to deliver an Objection Notice to Purchaser during the Objection Period,
each of the Adjustment Amounts set forth in the Proposed First Closing Statement shall be the
Adjustment Amounts for all purposes hereunder and shall be deemed conclusive and binding upon each
of the parties hereto. If Parent delivers an Objection Notice during the Objection Period,
Purchaser and Parent shall use commercially reasonable efforts to resolve any such objection and to
agree upon the Adjustment Amounts. If Purchaser and Parent fail to resolve any such objection and
do not agree upon the Adjustment Amounts within 30 days after Purchaser’s receipt of the Objection
Notice, Purchaser and Parent shall refer such remaining objection to Ernst & Young (the
“Firm”) to resolve such objection. Purchaser and Parent shall instruct such Firm to
resolve such objection (based solely on the presentations by Purchaser and Parent as to whether any
disputed matter had been determined in accordance with this Agreement), and to calculate the
Adjustment Amounts (which shall reflect and take into account any resolved objections that had been
agreed upon by Purchaser and Parent prior to the referral of such matter to the Firm), within 30
days after its selection, which resolution will be conclusive and binding upon the parties hereto.
The parties shall make reasonably available to the Firm all relevant books and records and other
items reasonably requested by the Firm. If Purchaser and Parent submit any unresolved objections
to the Firm for resolution as provided in this Section 2.3(e), the fees and expenses of the
Firm shall be borne (i) 50% by Parent and the Sellers (jointly and severally), and (ii) 50% by
Purchaser.

(f) After the Adjustment Amounts are determined pursuant to this Section 2.3, the
First Closing Purchase Price shall be adjusted as follows:

(i) in the event that (A) the February Cumulative Interest Amount, less (B) the Paid Interest
Amount exceeds $8,210,000, the First Closing Purchase Price shall be reduced by an amount equal to
such excess;

(ii) in the event that (A) the February Cumulative Interest Amount, less (B) the Paid Interest
Amount is less than $8,210,000, the First Closing Purchase Price shall be increased by an amount
equal to such difference;

(iii) in the event that the First Closing Purchase Price shall have been decreased pursuant to
Section 2.3(a)(i) and the aggregate amount of the Paid Management Fees exceeds an amount
equal to (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed days of
the First Closing Collection Period, the First Closing Purchase Price shall be decreased by an
amount equal to such excess, less the amount by which the First Closing Purchase Price was so
decreased pursuant to Section 2.3(a)(i);

(iv) in the event that the First Closing Purchase Price shall have been decreased pursuant to
Section 2.3(a)(i) and the aggregate amount of the Paid Management Fees is less than an
amount equal to (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed
days of the First Closing Collection Period, the First Closing Purchase Price shall be increased by
an amount equal to such shortfall, plus the amount by which the First Closing Purchase Price was so
decreased pursuant to Section 2.3(a)(i);

(v) in the event that the First Closing Purchase Price shall have been increased pursuant to
Section 2.3(a)(ii) and the aggregate amount of the Paid Management Fees is less than an
amount equal to (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed
days of the First Closing Collection Period, the First Closing Purchase Price shall be increased by
an amount equal to such shortfall, less the amount by which the First Closing Purchase Price was so
increased pursuant to Section 2.3(a)(ii);

(vi) in the event that the First Closing Purchase Price shall have been increased pursuant to
Section 2.3(a)(ii) and the aggregate amount of the Paid Management Fees exceeds an amount
equal to (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed days of
the First Closing Collection Period, the First Closing Purchase Price shall be decreased by an
amount equal to such excess, plus the amount by which the First Closing Purchase Price was so
increased pursuant to Section 2.3(a)(ii);

(vii) in the event that the aggregate amount of the Paid Management Fees is equal to the
amount of (A) the First Closing Ticking Fee Amount, multiplied by (B) the number of elapsed days of
the First Closing Collection Period, the First Closing Purchase Price shall be: (Y) decreased by
an amount equal to any prior increase in the First Closing Purchase Price pursuant to Section
2.3(a)(ii), or (Z) increased by an amount equal to any prior decrease in the First Closing
Purchase Price pursuant to Section 2.3(a)(i);

(viii) in the event that the aggregate amount of the Paid Expense Amount is less than the
amount of the Accrued Expenses, and such shortfall is in excess of the amount (if any) by which the
First Closing Purchase Price shall have been decreased pursuant to Section 2.3(a)(iii), the
First Closing Purchase Price shall be decreased by an amount equal to such excess amount; and

(ix) in the event that the First Closing Purchase Price shall have been decreased pursuant to
Section 2.3(a)(iii) and the amount by which the First Closing Purchase Price shall have
been decreased is in excess of the difference between the Paid Expense Amount and the Accrued
Expenses, the First Closing Purchase Price shall be increased by an amount equal to such excess
amount.

(g) In the event that the net amount of all adjustments to the First Closing Purchase Price
pursuant to Section 2.3(f) results in: (i) an increase of the First Closing Purchase
Price, within five Business Days after the final determination of the Adjustment Amounts pursuant
to this Section 2.3, Purchaser shall pay to Parent (for the benefit of the Sellers), by
wire transfer of immediately available funds to one or more accounts specified by Parent in
writing, an amount equal to such increase; or (ii) a decrease of the First Closing Purchase Price,
within five Business Days after the final determination of the Adjustment Amounts pursuant to this
Section 2.3, Parent and the Sellers (jointly and severally) shall pay to Purchaser, by wire
transfer of immediately available funds to one or more accounts specified by Purchaser in writing,
an amount equal to such decrease.

(h) In the event that Purchaser is in breach of its payment obligation owing to Parent (for
the benefit of the Sellers) pursuant to Section 2.3(g)(i), Parent (for the benefit of the
Sellers) shall be entitled to withdraw such amount from the Ticking Fee Escrow in accordance with
the Escrow Agreement, in full and final satisfaction of the outstanding payment obligations owing
to Parent (for the benefit of the Sellers) under Section 2.3(g)(i); provided, however,
that, if the amount payable to Parent (for the benefit of the Sellers) pursuant to
Section 2.3(g)(i) exceeds the then remaining balance of the Ticking Fee Escrow, Purchaser
shall remain liable to Parent (for the benefit of the Sellers) for an amount equal to such excess.

(i) In the event that the Seller Parties are in breach of their payment obligation owing to
Purchaser pursuant to Section 2.3(g)(ii), Purchaser shall be entitled to set off and
withdraw such amount from the Ticking Fee Escrow in accordance with the Escrow Agreement, in full
and final satisfaction of the outstanding payment obligations owing to Purchaser under
Section 2.3(g)(ii); provided, however, that, that, if the amount payable to Purchaser
pursuant to Section 2.3(g)(ii) exceeds the then remaining balance of the Ticking Fee
Escrow, Parent and the Sellers shall remain jointly and severally liable to Purchaser for an amount
equal to such excess; provided, further, that, without limiting, and in furtherance of, the
provisions of the foregoing proviso, if the aggregate amount of the Ticking Fee Escrow is
insufficient to satisfy the entire payment obligation owing to Purchaser under
Section 2.3(g)(ii), then Purchaser shall have the right (but not the obligation) to
(i) withdraw or collect such shortfall from the Collateral Amount Escrow (including any Escrow
Substitution) in accordance with the Escrow Agreement and/or (ii) draw an amount equal to such
shortfall under any Letter of Credit or Substitute Letter of Credit. For the avoidance of doubt,
in the event Purchaser deducts any funds from the Collateral Amount Escrow pursuant to the
preceding sentence, the Seller Parties will have no obligation whatsoever to replenish such amounts
so deducted by Purchaser in order to satisfy their obligations under Section 2.4.

(j) In addition to the foregoing adjustments to the First Closing Purchase Price under this
Section 2.3, in the event that the aggregate amount of the Bridge Loan Interest Expense
accrued with respect to the period from and including March 1, 2009 through and including December
31, 2009 is less than $3,645,000, Purchaser shall pay to the Sellers by wire transfer of
immediately available funds, on the earlier of (i) the date on which Purchaser makes all payments
of all Bridge Loan Interest Expenses to all bridge funds; and (ii) March 31, 2010, an amount equal
to such shortfall. Any payment by Purchaser pursuant to this Section 2.3(j) shall be
treated as an adjustment to the First Closing Purchase Price including for Tax purposes and, at the
time of such payment, Purchaser shall deliver, or cause to be delivered, to Parent a statement (the
“BLIE Statement”) setting forth Purchaser’s good faith calculation of the aggregate amount
of the Bridge Loan Interest Expense accrued with respect to the period from and including March 1,
2009 through and including December 31, 2009 (the “BLIE Amount”). In the event Purchaser
determines that no such BLIE Amount is payable to Parent, Purchaser shall deliver or cause to be
delivered the BLIE Statement to the Parent no later than January 31, 2010.

For 30 days following Parent’s receipt of the BLIE Statement (such 30 day period, the
“BLIE Objection Period”), Parent shall have the right to notify Purchaser in writing (such
notice, an “BLIE Objection Notice”) as to Parent’s objections to the calculations and/or
amounts of the BLIE Amount set forth in the BLIE Statement. After delivery of the BLIE Statement,
Purchaser shall provide Parent and its representatives reasonable access to the financial books and
records pertaining to the Business for the purpose of allowing Parent to confirm the calculations
and/or amounts of the BLIE Amount set forth in the BLIE Statement. If Parent fails to deliver an
BLIE Objection Notice to Purchaser during the BLIE Objection Period, the BLIE Amount shall be the
final BLIE Amount for all purposes hereunder and shall be deemed conclusive and binding upon each
of the parties hereto. If Parent delivers a BLIE Objection Notice during the BLIE Objection
Period, Purchaser and Parent shall use commercially reasonable efforts to resolve any such
objection and to agree upon the BLIE Amount. If Purchaser and Parent fail to resolve any such
objection and do not agree upon the BLIE Amount within 30 days after Purchaser’s receipt of the
BLIE Objection Notice, Purchaser and Parent shall refer such matter to the Firm. Purchaser and
Parent shall instruct the Firm to resolve such objection (based solely on the presentations by
Purchaser and Parent as to whether any disputed matter had been determined in accordance with this
Agreement), and to calculate the BLIE Amount within 30 days after its selection, which resolution
will be conclusive and binding upon the parties hereto. The parties shall make reasonably
available to the Firm all relevant books and records and other items reasonably requested by the
Firm. If Purchaser and Parent submit any unresolved objections to the Firm for resolution as
provided in this Section 2.3(j), the fees and expenses of the Firm shall be borne (A) 50%
by Parent and the Sellers (jointly and severally), and (B) 50% by Purchaser.

(k) In the event Purchaser is in breach of any payment obligation owing to the Seller Parties
pursuant to Sections 2.3(g)(i) or 2.3(j), the Seller Parties shall be entitled to
set off such amounts due to Parent (or its Affiliates) against any amounts payable to Purchaser or
its Affiliates under the Management Agreement.

(l) Any and all payments under this Section 2.3 shall be made by wire transfer of
immediately available funds and shall, in respect of any payments due after the First Closing Date,
bear interest for the benefit of the receiving party at an annual rate (the “Interest
Rate”) equal to the “Prime Rate” as reported in The Wall Street Journal as in effect on
the First Closing Date plus 1%, calculated based on a 365 day year from the First Closing Date
until the date of the applicable payment, except for any payments due to Seller Parties under
Section 2.3(j) which shall accrue interest at the Interest Rate from December 31, 2009
until such payment is made.

Section 2.4. Collateral for Bridging Issue.

(a) In the event that the Bridge Resolution shall have not occurred at or prior to the Second
Closing, Parent shall, at its sole option and on behalf of the Seller Parties, take one of the
following actions at or prior to the Second Closing:

(i) Parent shall direct Purchaser, in writing, to deduct from the Second Closing Purchase
Price an amount in cash equal to $2,200,000 (the “Collateral Amount”) (if the Second
Closing Purchase Price exceeds the Collateral Amount) and to deposit such cash amount (the
“Collateral Amount Escrow”) into an escrow account, with a financial institution or other
escrow agent reasonably acceptable to Purchaser and Parent (the “Escrow Agent”), such
Collateral Amount Escrow to be held in escrow pursuant to, and in accordance with, the terms and
conditions of the Escrow Agreement, until: (A) a Bridge Resolution or an LC Substitution shall
have occurred, in which case, the portion of the Collateral Amount Escrow which is the subject of
the Bridge Resolution or LC Substitution shall be released to Parent; or (B) the Bridge Fund shall
fail to satisfy its equity contribution obligations to all Persons in which it has made an
investment to fund its reserves consistent with its Organizational Documents or to pay all other
third party expenses of the Bridge Fund on a timely basis, in which case, a portion of the
Collateral Amount Escrow corresponding to any such Loss (when and as paid or funded by or on behalf
of the Bridge Fund) shall be released to Purchaser; or

(ii) Parent shall cause to be issued and delivered to Purchaser (or its designee), and shall
cause to be maintained and remain in place until a Bridge Resolution or an Escrow Substitution
shall have occurred, in which case, the aggregate amount of any Letters of Credit shall be reduced
by an amount equal to the portion of the Collateral Amount relating to the Bridging Issue which is
the subject of such Bridge Resolution or the Escrow Substitution, one or more letters of credit in
an aggregate amount equal to the Collateral Amount drawn on a financial institution rated A minus
or greater by Standard & Poor’s or its equivalent, the only conditions to the effectuation of draws
thereunder by any beneficiary thereof shall be those conditions set forth on Exhibit D
hereto (each, a “Letter of Credit”).

(b) After the Second Closing, and in the event the Seller Parties have deposited Collateral
Amount Escrow with the Escrow Agent in accordance with Section 2.4(a)(i), the Seller
Parties may from time to time, and at their sole option, cause to be issued and delivered to
Purchaser (or its designee), and shall cause to be maintained and remain in place until a Bridge
Resolution or an Escrow Substitution shall have occurred, one or more Letters of Credit (a
“Substitute Letter of Credit”) for an amount representing all or part of the Collateral
Amount Escrow drawn on a financial institution rated A minus or greater by Standard & Poor’s or its
equivalent, the only conditions to the effectuation of draws thereunder by any beneficiary thereof
shall be those conditions set forth on Exhibit D hereto (an “LC Substitution”).
Upon Purchaser’s receipt of such LC Substitution representing all or part of the Collateral Amount
Escrow, Purchaser and Parent shall execute and deliver to the Escrow Agent joint instructions to
promptly release the corresponding amount from the Collateral Amount Escrow held by the Escrow
Agent to Seller Parties.

(c) After the Second Closing, and in the event the Seller Parties have delivered one or more
Letters of Credit to Purchaser in accordance with Section 2.4(a)(ii), the Seller Parties
may from time to time, and at their sole option, deposit with the Escrow Agent, cash equal to all
or any part of the Collateral Amount represented by the Letters of Credit held by Purchaser (an
“Escrow Substitution”), and upon Purchaser’s receipt of written confirmation from the
Escrow Agent of such Escrow Substitution and a Letter of Credit for the remaining balance, if any,
of the Substitute Letters of Credit, Purchaser shall promptly release the aggregate amount
represented by the Letter of Credit.

Section 2.5. GP Takeback Put Option. Schedule 2.5 hereto sets forth the
Project Partnerships in which an Affiliate of the Seller Parties is a general partner
(collectively, the “GP Takebacks”) and for which prior approval and consent is required
from Governmental Authorities (including HUD and state housing agencies) or lenders (each such
consent, a “GP Takeback Consent”) in order to transfer such general partner interests in
respect of such GP Takebacks to Purchaser (or its designee hereunder). The Seller Parties and
Purchaser shall use commercially reasonable efforts to obtain such GP Takeback Consents as soon as
practicable, but acknowledge that such GP Takeback Consents in respect of the GP Takebacks might
not be obtained prior to the First Closing and as such, further agree as follows:

(a) Any GP Takebacks for which GP Takeback Consent is not obtained prior to the First Closing
(each, a “Holdover GP Takeback”), shall not be included in the interests directly or
indirectly transferred to Purchaser at the First Closing under Section 2.1 and all legal
right, title and interests of the Seller Parties or their Affiliates in such Holdover GP Takebacks
shall remain with such Seller Party or Affiliate (as applicable);

(b) The Seller Parties shall, effective as of the First Closing, and for no additional
consideration, appoint Purchaser (or its designee) as agent to manage, exercise control over and
otherwise be responsible for the Holdover GP Takebacks, and Purchaser (or its designee) shall
accept such appointment at the First Closing and thereafter manage the Holdover GP Takebacks
pursuant to the GP Takeback Management Agreement; and

(c) Upon Purchaser or Seller Parties receiving all GP Takeback Consents after the Second
Closing with respect to any individual Holdover GP Takeback that is not directly or indirectly
acquired by Purchaser at the Second Closing, the Seller Parties (or their Affiliates) shall have
the option (a “GP Takeback Put Option”) to require Purchaser to purchase such Holdover GP
Takeback for which GP Takeback Consent has been so obtained, and Purchaser shall in accordance
with, and pursuant to the terms of the GP Takeback Management Agreement, purchase from the Seller
Parties (or their Affiliates) such Holdover GP Takeback for the amount set forth opposite such
Holdover GP Takeback’s name in Schedule 2.5.

(d) The Seller Parties and Purchaser further agree that all direct or indirect costs
(including, without limitation, any consent, refinancing or other fees or amounts paid or payable
to any third party or to Parent or any of its Affiliates) incurred in connection with transferring
the GP Takebacks to Purchaser pursuant to this Section 2.5 shall be borne solely by Parent
and the Sellers (jointly and severally), provided that each party hereto shall bear all legal costs
and expenses incurred by such party in connection with transferring the GP Takebacks to Purchaser
(or its designee hereunder) pursuant to this Section 2.5.

Section 2.6. Purchase Price Allocation.

(a) For U.S. federal income tax purposes, (a) the First Closing Purchase Price and Second
Closing Purchase Price shall be allocated among (i) the shares, equity or other ownership interests
of the First Closing Interests, Second Closing Interests, and any other interests in Remainder
Funds or Holdover GP Takebacks which are treated for U.S. Federal income tax purposes as having
been purchased by Purchaser pursuant to the transactions contemplated by this Agreement
(collectively, the “Purchased Interests”), which Purchased Interests have been issued by
entities that are treated as corporations for U.S. federal income tax purposes, and (ii) the
Purchased Interests which have been issued by entities that are treated as partnerships or
disregarded entities for U.S. federal income tax purposes; and (b) the First Closing Purchase Price
and Second Closing Purchase Price shall be further allocated among (i) the assets of any such
entity that is treated as a partnership to the extent required by Sections 743 and 751 of the Code,
and (ii) the assets of any such entity that is treated as a disregarded entity. Within 120 days
after the Second Closing, Sellers will provide to Purchaser a statement (the “Allocation
Statement”) with Sellers’ proposed allocation of the First Closing Purchase Price and Second
Closing Purchase Price. Within 60 days after the receipt of each such Allocation Statement,
Purchaser will propose to Sellers in writing any changes to such Allocation Statement (and in the
event no such changes are proposed in writing to the Sellers within such time period, Purchaser
will be deemed to have agreed to, and be bound by, the Allocation Statement). Purchaser and
Sellers will negotiate in good faith, using commercially reasonable efforts, to resolve any
differences with respect to the Allocation Statement within 30 days after Sellers’ receipt of
written notice of changes from Purchaser. If the parties are unable to resolve any such
differences within such time period, each party shall be entitled to use its own allocation
statement.

Section 2.7. Closing.

(a) The First Closing shall be held at the offices of Clifford Chance US LLP, 31 West 52nd
Street, New York, New York 10019, at 10:00 a.m. local time, on the First Closing Date, provided
that all of the conditions set forth in Section 6.1, 6.2 and 6.3 shall have
been satisfied or waived as of the First Closing Date (other than conditions that, by their nature,
are to be satisfied at the First Closing, but subject to the satisfaction or waiver of those
conditions), or at such other time on the First Closing Date or place as Purchaser and Parent shall
mutually agree.

(b) The Second Closing (if any) shall be held at the offices of Clifford Chance US LLP, 31
West 52nd Street, New York, New York 10019, at 10:00 a.m. local time, on the Second Closing Date,
provided that all of the conditions set forth in Section 6.4, 6.5 and 6.6
shall have been satisfied or waived as of the Second Closing Date (other than conditions that, by
their nature, are to be satisfied at the Second Closing, but subject to the satisfaction or waiver
of those conditions), or at such other time on the Second Closing Date or place as Purchaser and
Parent shall mutually agree.

Section 2.8. Remainder Agreements. From and after the First Closing, and subject to
compliance with applicable Law, the Seller Parties shall remain parties (as applicable) to the
Remainder Agreements that shall have not been transferred to Purchaser (or its designee) at the
First Closing. The Seller Parties, on the one hand, and Purchaser, on the other hand, shall
reasonably cooperate in good faith to establish and implement such arrangements as any such party
reasonably may request of the other(s) to ensure that, to the greatest extent permitted by
applicable Law, from and after the First Closing, the economic benefits and burdens of the
Remainder Agreements are held and borne by Purchaser, subject to the provisions of the Management
Agreement. From and after the Second Closing, and subject to compliance with applicable Law, the
Seller Parties shall remain parties (as applicable) to the Remainder Agreements that shall have not
been directly or indirectly acquired by Purchaser (or its designee) at the Second Closing.
Purchaser shall continue to manage such non-transferred Remainder Agreements from and after the
Second Closing pursuant to the Management Agreement.

Section 2.9. First Closing Deliveries by Purchaser. At the First Closing, Purchaser
will deliver or cause to be delivered:

(a) to the Sellers, the First Closing Purchase Price, as adjusted pursuant to
Section 2.3(a), by wire transfer of immediately available funds to such account(s) as
Parent (on behalf of the Sellers) shall direct by written notice to Purchaser, which notice shall
be provided not less than two Business Days prior to the First Closing Date;

(b) to Parent and the Sellers, a counterpart to the Transitional Services Agreement, duly
executed by Purchaser;

(c) (i) to Parent and the Escrow Agent, a counterpart to the Escrow Agreement, duly executed
by Purchaser, and (ii) to the Escrow Agent, an amount in cash equal to the Ticking Fee Escrow;

(d) to Parent and the Landlord under the Real Property Lease, each Lease Resolution Document
to which Purchaser or its designee is a party, in each case duly executed by Purchaser and/or such
designee (as applicable);

(e) to Parent and the Sellers, a counterpart to the Management Agreement, duly executed by
Purchaser;

(f) in the event that there are any Holdover GP Takebacks as contemplated under
Section 2.5, to Parent and the Sellers, a counterpart to the GP Takeback Management
Agreement duly executed by Purchaser (or its designee); and

(g) the officer’s certificate referred to in Section 6.3(c) of this Agreement.

Section 2.10. First Closing Deliveries by the Seller Parties. At the First Closing,
the Seller Parties will deliver or cause to be delivered:

(a) to Purchaser, evidence reasonably acceptable to Purchaser of the consummation of the
Restructuring;

(b) to Purchaser, evidence reasonably acceptable to Purchaser of the consummation of the
Remainder Funds Restructuring;

(c) to Purchaser, evidence reasonably acceptable to Purchaser of the direct or indirect
transfer of good and valid title to the First Closing Interests to Purchaser or its designee;

(d) to Purchaser, letters of resignation, in each case effective as of the First Closing, of
such members of the boards of directors (and any similar governing bodies) of the Newco and their
respective Subsidiaries as are designated by Purchaser;

(e) to Purchaser, a counterpart to the Transitional Services Agreement, duly executed by
Parent and the Sellers;

(f) to Purchaser and the Landlord, each Lease Resolution Document to which Parent and/or any
of its Affiliates is a party, in each case duly executed by Parent and/or such Affiliates (as
applicable);

(g) to Purchaser, a counterpart to the Management Agreement, duly executed by Parent and each
of its Affiliates that is a party thereto;

(h) the officer’s certificate referred to in Section 6.2(c) of this Agreement;

(i) in the event that there are any Holdover GP Takebacks as contemplated under
Section 2.5, to Purchaser, a counterpart to the GP Takeback Management Agreement duly
executed by each of the Seller Parties and their Affiliates that are parties thereto; and

(j) to Purchaser and the Escrow Agent, a counterpart to the Escrow Agreement, duly executed by
Parent (on behalf of the Sellers).

Section 2.11. Second Closing Deliveries by Purchaser. At the Second Closing,
Purchaser will deliver or cause to be delivered to the Sellers:

(a) to the Sellers, the Second Closing Purchase Price, less any amounts deposited in escrow
pursuant to Section 2.11(b); and

(b) in the event that Parent (on behalf of the Sellers) exercises the escrow rights under
Section 2.4(a)(i), to the Escrow Agent, a portion of the Second Closing Purchase Price, in
cash, equal to the applicable Collateral Amount.

Section 2.12. Second Closing Deliveries by the Seller Parties. At the Second Closing,
the Seller Parties will deliver or cause to be delivered to Purchaser:

(a) evidence reasonably acceptable to Purchaser of the direct or indirect transfer of good and
valid title to the Second Closing Interests to Purchaser or its designee;

(b) evidence reasonably acceptable to Purchaser of the consummation of the Second Closing
Restructuring;

(c) evidence reasonably acceptable to Purchaser of the transfer of the Remainder Agreements
for which the third party consents to transfer such Remainder Agreements to Purchaser (or its
designee) at the First Closing shall have been obtained and are in full force and effect;

(d) to Purchaser, letters of resignation, in each case effective as of the Second Closing, of
such members of the boards of directors (and any similar governing bodies) of the Subject Entities
(other than the Newcos) and their respective Subsidiaries as are designated by Purchaser; and

(e) in the event that Parent (on behalf of the Sellers) exercises the rights under
Section 2.4(a)(ii), to Purchaser, one or more Letters of Credit in an amount equal to the
aggregate Collateral Amount, in each case duly executed by the issuer thereof.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

OF THE SELLER PARTIES

The Seller Parties hereby jointly and severally represent and warrant to Purchaser that,
except as set forth in the disclosure schedule delivered by Parent and the Sellers to Purchaser
simultaneously with the execution and delivery of this Agreement (the “Seller Disclosure
Schedule”) (it being understood that a disclosure made in any part of the Seller Disclosure
Schedule shall be deemed to have been disclosed in each other part of the Seller Disclosure
Schedule for which such disclosure is reasonably apparent on its face):

Section 3.1. Organization and Qualification.

(a) Parent is a limited liability company duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation and has all requisite corporate or
other power and authority to own, license, use, lease and operate its assets and properties and to
carry on its business as it is now being conducted. Each Seller is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation and
has all requisite corporate or other power and authority to own, license, use, lease and operate
its assets and properties and to carry on its business as it is now being conducted.

(b) Each of the Subject Entities, the LIHTC Funds and their respective Subsidiaries is a
corporation, limited partnership or limited liability company duly organized, validly existing and
in good standing under the laws of the jurisdiction of its formation or incorporation and has all
requisite corporate or other power and authority to own, license, use, lease and operate its assets
and properties and to carry on its business (including the Business) as it is now being conducted,
except where the failure to be in good standing would not have a Business Material Adverse Effect.

Section 3.2. Authority; Non-Contravention; Approvals.

(a) Each Seller Party and each of its respective Affiliates has all requisite corporate and
other power and authority to execute and deliver each Transaction Document to which it is a party
and to perform the transactions contemplated by each such Transaction Document. The execution and
delivery of the Transaction Documents by each Seller Party and its Affiliates (as applicable) and
the performance by the Seller Parties and their respective Affiliates of the transactions
contemplated by the Transaction Documents have been approved by all necessary corporate and other
action, and no other corporate or other proceedings on the part of the Seller Parties or any of
their respective Affiliates are necessary to authorize the execution and delivery of the
Transaction Documents by the Seller Parties and their Affiliates and the performance by the Seller
Parties and their Affiliates of the transactions contemplated by the Transaction Documents. This
Agreement has been, and upon their execution the other Transaction Documents will be, duly executed
and delivered by the Seller Parties and their Affiliates (as applicable) and, assuming the due
authorization, execution and delivery of the Transaction Documents by Purchaser (or its designee),
constitutes, and upon their execution the other Transaction Documents will constitute, valid and
binding obligations of the Seller Parties and their Affiliates (as applicable), enforceable against
the Seller Parties and their Affiliates (as applicable) in accordance with their respective terms,
except as may be subject to applicable bankruptcy, insolvency or other similar laws, now or
hereinafter in effect, affecting creditors’ rights generally or general principles of equity.

(b) The execution and delivery by the Seller Parties and their Affiliates (as applicable) of
this Agreement and the other Transaction Documents and the performance by them of the transactions
contemplated by this Agreement and the other Transaction Documents will not (i) conflict with or
result in a breach of any provision of the Organizational Documents of any Seller Party, Subject
Entity, any Subsidiary of a Subject Entity or any LIHTC Fund, (ii) result in a violation or breach
of or constitute a default (or an event which, with or without notice or lapse of time or both,
would constitute a default) under, or result in the termination of, or the loss of a benefit under
or accelerate the performance required by, or result in a right of termination, modification,
cancellation or acceleration under, the terms, conditions or provisions of any contract or other
instrument of any kind to which any Seller Party, Subject Entity or any Subsidiary of a Subject
Entity is a party or by which any of their respective assets is bound or otherwise relating to the
Business, or (iii) violate any order, writ, injunction, decree or Law applicable to any Seller
Party, Subject Entity, any Subsidiary of a Subject Entity or any LIHTC Fund or any of their
respective assets or otherwise relating to the Business, other than, in the case of clauses (ii)
and (iii) above, as would not have, or be reasonably likely to have, a material and adverse effect
to any Subject Entity, LIHTC Fund or any of their respective Subsidiaries, individually or in the
aggregate.

(c) Except pursuant to the applicable requirements of HUD or state housing agencies set forth
in Section 3.2(c) of the Seller Disclosure Schedule, no declaration, filing or registration
with, or notice to, or authorization, consent, order or approval of, any Governmental Authority or
other Person is required to be obtained or made in connection with or as a result of the execution
and delivery of this Agreement and the other Transaction Documents by the Seller Parties and their
respective Affiliates (as applicable) or the performance by any of them of the transactions
contemplated by this Agreement and the other Transaction Documents, other than such declarations,
filings, registrations, notices, authorizations, consents, orders or approvals which, if not made
or obtained, as the case may be, would not, and would not reasonably be likely to, be material and
adverse to the Business.

Section 3.3. Ownership of Entity Interests, Fund Interests and Assets; Sufficiency of
Assets.

(a) The Sellers are, or will be at the First Closing, the sole direct and indirect beneficial,
record and legal owners of the First Closing Interests free and clear of all Encumbrances, except
for certain interests in MMA Financial BFG Investments, LLC held by those individuals (“10%
Holders”) as set out in Section 3.4(a) of the Sellers Disclosure Schedule and except
for any Encumbrances created by this Agreement and restrictions on transfer under federal and state
securities Laws, pursuant to any contractual restriction contained in the Organizational Documents
of the LIHTC Funds or applicable restrictions of HUD or applicable state housing agencies. Upon
the delivery of the First Closing Interests by the Sellers to Purchaser or its designee, and the
payment of the First Closing Purchase Price to the Sellers, as contemplated under Article
II, Purchaser or such designee will acquire sole beneficial, record and legal title to all of
the First Closing Interests, in each case free and clear of all Encumbrances, except for
restrictions on transfer under federal and state securities laws, Encumbrances created or incurred
by Purchaser or its Affiliates or applicable restrictions of HUD or applicable state housing
agencies and restrictions expressly contained in the Organizational Documents of the Subject
Entities or LIHTC Funds. The Sellers are, or will be at the Second Closing, the sole direct and
indirect beneficial, record and legal owners of the Second Closing Interests free and clear of all
Encumbrances, except for any Encumbrances created by this Agreement and restrictions on transfer
under federal and state securities Laws, pursuant to any contractual restriction contained in the
Organizational Documents of the Remainder Funds or applicable restrictions of HUD or applicable
state housing agencies. Upon the delivery of the Second Closing Interests by the Sellers to
Purchaser or its designee, and the payment of the Second Closing Purchase Price to the Sellers, as
contemplated under Article II, Purchaser or such designee will acquire sole beneficial,
record and legal title to all of the Second Closing Interests, in each case free and clear of all
Encumbrances, except for restrictions on transfer under federal and state securities laws,
Encumbrances created or incurred by Purchaser or its Affiliates or applicable restrictions of HUD
or applicable state housing agencies and restrictions expressly contained in the Organizational
Documents of the Remainder Funds.

(b) The Seller Parties, Subject Entities or one or more Subsidiaries of the Subject Entities
have, and upon consummation of the Restructuring and the Remainder Funds Restructuring and as of
the First Closing, only the Subject Entities or one or more of their respective Subsidiaries will
have, good and valid title to all of the Assets and all other assets and properties (whether real,
personal, tangible, intangible or mixed) that are material to the operations of the Business, and
the Assets and such other assets and properties are so owned, and upon consummation of the
Restructuring and the Remainder Funds Restructuring and as of the First Closing will be so owned,
free and clear of all Encumbrances, except for Permitted Encumbrances. Without limiting, and in
furtherance of, the foregoing, the Assets and such other assets and properties are sufficient to
conduct the Business materially in the manner currently conducted and in which it has been
conducted during the past 12 months.

Section 3.4. Capitalization; Subsidiaries.

(a) Section 3.4(a) of the Seller Disclosure Schedule sets forth a true and correct
list of the Subject Entities and each holder of any equity or other ownership interests therein and
the amount of such equity or ownership interests held by such holder and the respective percentage
interests represented thereby. Except as set forth in Section 3.4(a) of the Seller Disclosure
Schedule, the Entity Interests constitute all of the issued and outstanding equity or other
ownership interests in the Subject Entities. There are no outstanding options, warrants or other
rights of any kind to acquire from any of the Subject Entities any equity or other ownership
interests in any of the Subject Entities or securities convertible into or exchangeable for, or
which otherwise confer on the holder thereof any right to acquire, any such equity or ownership
interests, nor are any of the Subject Entities committed or otherwise obligated in any respect to
issue any such option, warrant, right or security.

(b) Section 3.4(b) of the Seller Disclosure Schedule sets forth a true and correct
list of the LIHTC Funds and each holder of any equity or other ownership interests therein and the
amount of such equity or ownership interests held by such holder and the respective percentage
interests represented thereby. Except as set forth in Section 3.4(b) of the Seller Disclosure
Schedule, the equity and ownership interests described in Section 3.4(b) of the Seller
Disclosure Schedule constitute all of the issued and outstanding equity or other ownership
interests in the LIHTC Funds. There are no outstanding options, warrants or other rights of any
kind to acquire from any of the LIHTC Funds any equity or other ownership interests in any of the
LIHTC Funds or securities convertible into or exchangeable for, or which otherwise confer on the
holder thereof any right to acquire, any such equity or ownership interests, nor are any of the
LIHTC Funds committed or otherwise obligated in any respect to issue any such option, warrant,
right or security.

(c) Section 3.4(c) of the Seller Disclosure Schedule sets forth a true and correct
list all Subsidiaries of the Subject Entities and the LIHTC Funds, their respective jurisdictions
of formation, organization or incorporation (as applicable), and each holder of any equity or other
ownership interests therein and the amount of such equity or ownership interests held by such
holder and the respective percentage interests represented thereby. Other than as set forth in
Section 3.4(b) of the Seller Disclosure Schedule, no Subject Entity or LIHTC Fund owns
beneficial, record or legal title to any equity or other ownership interest in, or any investment
in, any other Person.

(d) All outstanding equity and other ownership interests of the Subject Entities and the LIHTC
Funds and their respective Subsidiaries are duly authorized, validly issued, fully paid and non
assessable and were not issued in violation of any purchase option, call option, right of first
refusal, preemptive right, subscription right or any similar right under any provision of
applicable Law, the respective Organizational Documents of the Subject Entities or the LIHTC Funds
or any contract or agreement to which any Seller Party, Subject Entity or LIHTC Fund or any of
their respective Subsidiaries is a party or is otherwise bound.

Section 3.5. Financial Information; Undisclosed Liabilities; Indebtedness.

(a) Section 3.5(a) of the Seller Disclosure Schedule sets forth (i) an unaudited pro
forma balance sheet of the Business as of December 31, 2008 (the “Financial Statement”).
The Financial Statement (A) has been prepared in accordance with GAAP consistently applied, (B) is
consistent with the books and records of the Seller Parties and their respective Subsidiaries
involved in the Business, and (iii) fairly presents, in all material respects, the financial
condition of the Business as of the date thereof, subject to normal year end adjustments that are
or would not be material in amount or effect and the lack of footnotes. The Management Fee Amounts
shown on the Financial Statement (Y) arose solely out of bona fide transactions in the ordinary
course of business, and (Z) are not subject to any valid defenses, set offs or counter claims,
except pursuant to the terms thereof. Section 3.5(a) of the Seller Disclosure Schedule
sets forth gross receivable Management Fee Amounts that are unpaid as of December 31, 2008.
Section 3.5(a) of the Seller Disclosure Schedule sets forth the amounts of the Fund Cash
Balance for each of the LIHTC Funds as of June 21, 2009 and, from and after such date through and
including the date hereof, no such Fund Cash Balance (or any portion thereof) has been released or
distributed.

(b) Except (i) as and to the extent set forth in the Financial Statement, (ii) for liabilities
that were incurred in the ordinary course of business and consistent with past practice after
December 31, 2008 and that are not material in nature or amount or (iii) for liabilities that,
individually or in the aggregate, would not have, have not had and would not reasonably be likely
to have a Business Material Adverse Effect, neither any Subject Entity or LIHTC Fund nor any of
their respective Subsidiaries has, nor will any of them have upon consummation of the
Restructuring, the Remainder Funds Restructuring and the Second Closing Restructuring and as of the
First Closing or Second Closing, any liabilities, whether accrued or contingent, either matured or
unmatured or known or unknown.

(c) Section 3.5(c) of the Seller Disclosure Schedule sets forth a list (including each
related contract or agreement, the principal amount, the maturity date and the administrative agent
or Person serving in a similar capacity thereunder) of all outstanding Indebtedness of the Subject
Entities and the LIHTC Funds and their respective Subsidiaries, including any Indebtedness included
within the Assumed Liabilities. Neither any Subject Entity or LIHTC Fund nor any of their
respective Subsidiaries is in material breach or default under or with respect to any of the
contracts or agreements listed in Section 3.5(c) of the Seller Disclosure Schedule and, to
the knowledge of the Seller Parties, no other party thereto is in material breach or default with
respect to any such contract or agreement, and no event has occurred which, with due notice or
lapse of time or both, would constitute such a default. Upon consummation of the Restructuring and
as of the First Closing, neither any Subject Entity or LIHTC Fund nor any of their respective
Subsidiaries will have any outstanding Indebtedness other than as set forth in Section 3.5(c)
of the Seller Disclosure Schedule. Without limiting the foregoing, Section 3.5(c) of the
Seller Disclosure Schedule shall also set forth the outstanding principal amount and any
accrued and unpaid interest under the applicable documents relating to loans or borrowings by any
of Boston Financial Institutional Tax Credits XIV, LP, MMA Financial Institutional Tax Credits
XXIV, LP, MMA Financial Institutional Tax Credits XXVII, LP, MMA Financial Affordable Housing Fund
IV — Citibank, Boston Financial Private Label Tax Credits II — Fleet National Bank, Boston
Financial Equity Tax Credits III, BFMM2, A Limited Partnership (Mass Mutual II), and Midland
Corporate Tax Credits X — Illinois Tool (the “Advanced Loans”).

Section 3.6. Absence of Certain Changes. Since December 31, 2008, neither any Subject
Entity, any Subsidiary of a Subject Entity, LIHTC Fund nor the Business has:

(a) suffered a material adverse effect, either individually or in the aggregate, or otherwise
suffered or experienced any change, circumstance or event that, individually or in the aggregate,
would reasonably be likely to have a material adverse effect;

(b) other than as contemplated by the Restructuring, the Remainder Funds Restructuring or the
Second Closing Restructuring and except in connection with the transactions contemplated by this
Agreement, conducted its business (including the Business) and operations in any material respect
not in the ordinary course of business and consistent with past practice;

(c) suffered any loss, damage or destruction or other casualty loss, in an aggregate amount
exceeding $100,000 and not covered by insurance, affecting any assets or properties that are
material to the operations of the Business;

(d) incurred any liability or obligation (whether absolute, accrued, contingent or otherwise)
other than in the ordinary course of business which exceeds, individually or in the aggregate,
$25,000;

(e) paid, discharged or satisfied any claim, liability or obligation (whether absolute,
accrued, contingent or otherwise) other than the payment, discharge or satisfaction in the ordinary
course of business of liabilities and obligations reflected or reserved against in the Financial
Statement or incurred in the ordinary course of business since December 31, 2008;

(f) cancelled any debts or waived any claims or rights that are material to the Business;

(g) sold, transferred, or otherwise disposed of any of its assets or properties (whether real,
personal, tangible, intangible or mixed) other than, with respect to any such assets or properties
that are not material to the Business, in the ordinary course of business or as is contemplated by
the Restructuring, the Remainder Funds Restructuring or the Second Closing Restructuring;

(h) declared, set aside or paid any dividend or distribution (other than (i) dividends and
distributions paid or payable to a Subject Entity, LIHTC Fund or any of their respective
Subsidiaries, (ii) dividends or distributions of Paid Management Fees that will be disclosed in the
Preliminary Closing Statement and will be fully reflected in the calculation of the Interim Paid
Management Fees; or (iii) the LP Sale Proceeds);

(i) written off any Management Fee Amounts as uncollectible; or

(j) except for the transactions necessary to consummate the Restructuring, the Remainder Funds
Restructuring or the Second Closing Restructuring or the other transactions contemplated by this
Agreement, taken any action described in Section 5.1 hereof that, if such action were taken
after the date hereof and prior to the Closing Date without the prior written consent of Purchaser,
would breach in any material respect the provisions of Section 5.1.

Section 3.7. Tax Matters.

(a) All material Tax Returns required to be filed by each Subject Entity and/or their
respective Subsidiaries have been filed. Such Tax Returns are consistent with the Schedules
K-1 received by the Sellers, the Subject Entities and their Subsidiaries and otherwise, in all
material respects, are in accordance with applicable Law and are correct and complete. All
material Taxes due and payable with respect to each Subject Entity and their Subsidiaries (whether
or not shown as due and payable on such Tax Returns) or to which any Subject Entity or any of their
respective Subsidiaries may be liable under Treasury Regulations § 1.1502 6 (or analogous state or
foreign provisions) by virtue of having been a member of any affiliated group (or other group
filing on a combined or unitary basis) the common parent of which was MMA Financial, Inc. at any
time on or prior to the First Closing Date (or in the case of Second Closing Interests, the Second
Closing Date) have been paid, and any material liability of a Subject Entity or any of its
Subsidiaries for Taxes not yet due and payable, or which are being contested in good faith, for
periods (or portions thereof) through the First Closing Date (or in the case of the Subject
Entities or any of their Subsidiaries that are directly or indirectly acquired by Purchaser (or its
designee) at the Second Closing, the Second Closing Date) do not exceed the amount shown on the
face of the Financial Statement (disregarding timing differences) as adjusted for the period
thereafter through the First Closing Date (or in the case of the Subject Entities or any of their
Subsidiaries that are directly or indirectly acquired by Purchaser (or its designee) at the Second
Closing, the Second Closing Date) assuming the Business is operated in the ordinary course.

(b) No audit or other administrative proceeding is pending or threatened in writing, and no
judicial proceeding is pending or threatened in writing, that involves any material Tax or material
Tax Return filed or paid by any Subject Entity or any of its Subsidiaries.

(c) None of the Sellers nor any of the Subject Entities or any of their respective
Subsidiaries have waived any statute of limitations or agreed to any extension of time for
assessment of Taxes with respect to any Subject Entity or any of its Subsidiaries. No Subject
Entity or any of its Subsidiaries has waived any statute of limitations or agreed to any extension
of time for assessment of Taxes.

(d) None of the Sellers nor any of the Subject Entities or any of their respective
Subsidiaries has requested or received any Tax rulings from, or entered into any closing agreements
with, any Tax Authority with respect to any of the Subject Entities or any of their Subsidiaries
that would be binding, from and after the First Closing (or in the case of the Subject Entities or
any of their Subsidiaries that are directly or indirectly acquired by Purchaser (or its designee)
at the Second Closing, the Second Closing Date), on Purchaser or any of the Subject Entities or any
of their respective Subsidiaries.

(e) No Subject Entity or any of its Subsidiaries is or has been a member of any consolidated,
combined or unitary group for Tax purposes for any Tax period as to which the statute of
limitations for assessment of Tax has not expired, other than a group of which the Sellers or one
of the Subject Entities is the parent. No Subject Entity or any of its Subsidiaries is a party to
any tax sharing or tax allocation agreement.

(f) No material claim has been made by any Tax Authority in a jurisdiction where any Subject
Entity or any of its Subsidiaries has not filed a Tax Return that it is or may be subject to Tax by
such jurisdiction, nor to the Seller Parties’ knowledge, is any such assertion threatened.

(g) Each Subject Entity and its Subsidiaries has withheld and paid all material Taxes required
to be withheld in connection with any amounts paid or owing to any employee, creditor, independent
contractor or other third party.

(h) There are no Encumbrances for Taxes (other than Permitted Encumbrances) upon the assets of
any Subject Entity or any of its Subsidiaries.

(i) No Subject Entity or any of its Subsidiaries has engaged in a listed transaction within
the meaning of Section 6707A(c) of the Code.

(j) Each Subject Entity set forth in Section 3.7(j) of the Seller Disclosure Schedule
is, and has been since formation, treated as a partnership or disregarded entity for U.S. federal,
state and local income tax purposes.

(k) All income with respect to Management Fee Amounts have been properly included in the
income of the general partner or managing member (or any Person in similar position), as
applicable, of each LIHTC Fund in accordance with the method of tax accounting properly used by
such Person.

All representations and warranties provided in this Section 3.7 with respect to the
LIHTC Funds are limited to the knowledge of the Seller Parties. For purposes of the preceding
sentence, notwithstanding the definition of “knowledge” set forth in Section 1.1 of this
Agreement, the knowledge of any Seller Party with respect to Taxes, Tax Returns or other Tax
matters of any Project Partnership shall be limited to the actual knowledge, without inquiry, of
such Seller Party; provided that such knowledge shall include any notice provided to or obtained by
any LIHTC Fund related to an audit or other administrative or judicial proceeding with respect to
Taxes of any Project Partnership.

Section 3.8. ERISA and Employee Benefits.

(a) Section 3.8 of the Seller Disclosure Schedule contains a true and complete list of
each Company Plan. Each Company Plan is, and its administration (including with respect to
reporting and disclosure), is materially in compliance with, and none of the Seller Parties, the
Subject Entities or any of their respective Subsidiaries has received any claim or notice that any
such Company Plan is not materially in compliance with, the terms of the applicable Plan, ERISA,
the Code (including all Tax rules compliance with which is required for any intended favorable Tax
treatment) or any and all other applicable Laws. No Company Plan is subject to Title IV or Section
302 of ERISA or Section 412 or 4971 of the Code.

(b) Each of the Company Plans that is intended to be tax qualified under Section 401(a) of the
Code has been determined by the IRS to be so qualified, and such determination has not been
modified, revoked or limited, and no circumstances have occurred that would materially adversely
affect the tax qualified status of any such Company Plan.

(c) There is no suit, action, dispute, claim, arbitration or legal, administrative or other
proceeding, or governmental investigation pending or, to the knowledge of the Seller Parties,
threatened alleging any breach of the terms of any Company Plan, or of any fiduciary duties
thereunder, or violation of any applicable law with respect to any such Company Plan.

(d) Neither the execution and delivery of this Agreement or the other Transaction Documents,
nor the performance of the transactions contemplated thereby, will, either alone or in combination
with a subsequent termination of employment, result in any payments subject to Section 280G of the
Code.

(e) The Seller Parties have provided timely notice to Michael Murray to not renew, and to
terminate, his employment agreement with MMA Financial, LLC (now MMA Financial, Inc.), which
non-renewal and termination will become effective prior to the First Closing.

Section 3.9. Litigation. Except as set forth in Section 3.9 of the Seller
Disclosure Schedule, there is no action, suit, investigation (to the knowledge of the Seller
Parties) or proceeding pending or, to the knowledge of the Seller Parties, threatened against any
of the Subject Entities or LIHTC Funds or any of their respective Subsidiaries, or otherwise
against any Seller Party or any of its Affiliates (other than the Subject Entities, the LIHTC Funds
or any of their respective Subsidiaries) in respect of, relating to or involving the Business,
that, if determined adversely to any of the Subject Entities or LIHTC Funds or any of their
respective Subsidiaries, or adversely to any of such Seller Parties or their respective Affiliates,
would be, or would reasonably be likely to be, materially adverse to the operations of the
Business. There are no outstanding orders, writs, judgments, decrees, injunctions or settlements
with or of any Governmental Authority to which any of the Subject Entities or LIHTC Funds or any of
their respective Subsidiaries or, with respect to the Business, any of the Seller Parties or any of
their respective Affiliates (other than the Subject Entities, the LIHTC Funds or any of their
respective Subsidiaries), are subject or to which any of their respective properties is bound that
would be, or would reasonably be likely to be, materially adverse to the operations of the
Business.

Section 3.10. No Violation of Law; Governmental Authorization.

(a) The operations of the Subject Entities, LIHTC Funds and their respective Subsidiaries, and
the operations of the Business, comply in all material respects with all applicable Laws. Neither
the Subject Entities, LIHTC Funds or their respective Subsidiaries, nor, with respect to the
Business, any of the Seller Parties or any of their respective Affiliates (other than the Subject
Entities, the LIHTC Funds or any of their respective Subsidiaries) has received any written notice
from any Governmental Authority within the past two years asserting or otherwise giving notice that
any of the Subject Entities, LIHTC Funds or any of their respective Subsidiaries, or any of the
operations of the Business, fails to comply in any material respect with applicable Law.

(b) The Subject Entities, LIHTC Funds and their respective Subsidiaries have obtained and
possess, and upon consummation of the Restructuring and the Remainder Funds Restructuring and as of
the First Closing (or in the case of the Second Closing Interests, upon consummation of the Second
Closing Restructuring and as of the Second Closing) will possess, all material Permits necessary to
conduct the Business as presently conducted. None of the Subject Entities, LIHTC Funds or their
respective Subsidiaries is in default or violation (and no event has occurred which, with notice or
the lapse of time or both, would reasonably be expected to constitute a default or violation) of
any term, condition or provision of any such Permit.

Section 3.11. Contracts and Other Agreements.

(a) Section 3.11 of the Seller Disclosure Schedule contains a true and complete list
of all of the contracts and agreements (each, a “Material Contract”):

(i) the rights under which are included in the Assets;

(ii) the liabilities and obligations under which are included in the Assumed Liabilities;

(iii) comprising Organizational Documents of any of the Subject Entities, LIHTC Funds or their
respective Subsidiaries or otherwise provides for or governs any joint venture or partnership
involving the sharing of the revenue, income, earning or profits of any entity with any Person
other than a Subject Entity or a LIHTC Fund or any of their respective Subsidiaries;

(iv) which are material to the Business and to which any of the Subject Entities, LIHTC Funds
or their respective Subsidiaries is a party, including any contract or agreement providing for
bridge loan financing to or for the benefit of any of the Subject Entities, LIHTC Funds or their
respective Subsidiaries;

(v) to which any of the Subject Entities, LIHTC Funds or their respective Subsidiaries, on the
one hand, and any Seller Party or any of its Affiliates (other than any of the Subject Entities,
LIHTC Funds or their respective Subsidiaries), on the other hand, is a party and which will not be
terminated at or prior to the First Closing (or in the case of Second Closing Interests, the Second
Closing);

(vi) which contain covenants not to compete, engage in any line or type of business or conduct
business in any geographical area or with any Person that are, or from and after the First Closing
(or in the case of Second Closing Interests, the Second Closing) will be, applicable to or binding
on the Business or any Subject Entity, LIHTC Fund or any of their respective Subsidiaries;

(vii) is currently in effect with any current or former officer (or individual in a similar
position), director (or individual in a similar position) or employee of the Business or any
Subject Entity, LIHTC Fund or any of their respective Subsidiaries;

(viii) provides for any Subject Entity, LIHTC Fund or any of their respective Subsidiaries to
acquire or dispose of assets other than in the ordinary course of business and consistent with past
practice;

(ix) which is the Real Property Lease; or

(x) which are otherwise material to the Business.

(b) Except as not would be, and would not reasonably be likely to be, materially adverse to
the Business, each Material Contract is in full force and effect and constitutes a legal, valid,
binding agreement, enforceable, in accordance with its terms, subject to applicable bankruptcy,
insolvency or other similar laws, now or hereinafter in effect, affecting creditors’ rights
generally or general principles of equity. The Subject Entities, LIHTC Funds and their respective
Subsidiaries, and the Seller Parties and their respective Affiliates (other than the Subject
Entities, LIHTC Funds or their respective Subsidiaries), as applicable, have performed all material
obligations required to be performed by each of them to date under the Material Contracts, and none
of them is (with or without the lapse of time or the giving of notice, or both) in breach or
default in any material respect thereunder and, to the knowledge of the Seller Parties, no other
party to any Material Contract is (with or without the lapse of time or the giving of notice, or
both) in breach or default in any material respect thereunder.

(c) The Sellers have made available to Purchaser true and complete copies (or if none exist,
reasonably detailed, complete and accurate written descriptions) of each Material Contract,
together with all amendments, modifications and supplements thereto.

(d) To the knowledge of the Seller Parties, no LIHTC Fund or any of its Subsidiaries is in
breach or default in any material respect of any provision of (i) its or any other Person’s
Organizational Documents or (ii) any contract or agreement to which any LIHTC Fund or any of its
Subsidiaries is a party or is otherwise bound which governs or relates to the Indebtedness of any
LIHTC Fund or any of its Subsidiaries.

Section 3.12. Intellectual Property.

(a) Seller Parties own all right, title and interest in and to, or have valid and enforceable
licenses to use, all the Intellectual Property owned, used, or held for use in connection with, and
material to, the conduct and operation of, the Business as now conducted (the “Business
Intellectual Property” and, the portion thereof that is owned by any Seller Party, the
“Owned Business Intellectual Property”), including all Intellectual Property set forth in
Section 3.12(a) of the Seller Disclosure Schedule, which represents all registered and
applied for Owned Business Intellectual Property. Seller Parties are in compliance in all material
respects with all contractual obligations relating to the Business Intellectual Property used
pursuant to any license or other agreement. To the knowledge of the Seller Parties, there is no
unauthorized use, disclosure, infringement or misappropriation of any Business Intellectual
Property by any third party. Neither the Owned Business Intellectual Property nor, to the
knowledge of the Seller Parties, the other Business Intellectual Property, nor the use,
development, manufacture, marketing, license, sale or the intended use of any Business product or
service currently licensed, utilized, sold, provided or furnished by Seller Parties infringes,
misappropriates or otherwise violates any Intellectual Property or other proprietary right of any
other person. There is no pending or, to the knowledge of the Seller Parties, threatened claim or
litigation contesting the validity, enforceability or ownership of the Owned Business Intellectual
Property or, to the knowledge of the Seller Parties, other Business Intellectual Property. No
Seller Parties has received any notice asserting that any Business Intellectual Property or the
proposed use, sale, license or disposition thereof infringes, misappropriates or otherwise violates
the Intellectual Property rights of any other person.

(b) Section 3.12(b) of the Seller Disclosure Schedule sets forth a complete list of
all (i) material licenses, sublicenses and other contracts pursuant to which Seller Parties or any
sublicensee thereof has granted to any person, or receives from any person, the right to use any
Business Intellectual Property, and (ii) all consents, indemnifications, forbearances to sue,
settlement agreements to which Seller Parties is a party relating to the Business Intellectual
Property. No other material limitations or restrictions on the use or enforceability of any of the
Owned Business Intellectual Property have been agreed to by any Seller Party with any third party,
pursuant to a settlement agreement or otherwise, and no Owned Business Intellectual Property is
subject to any exclusive license agreement. No present or former employee, officer, director or
other affiliate of Seller Parties, or agent or outside contractor of Seller Parties, holds any
right, title or interest, directly or indirectly, in whole or in part, in or to any Business
Intellectual Property.

(c) The Software owned by Seller Parties that is material to the conduct of the Businesses as
now conducted (collectively, the “Owned Proprietary Software”) is listed on Section
3.12(c)(i) of the Seller Disclosure Schedule. The Software used (but not owned) by Seller
Parties that is material to the conduct of the Business as now conducted (collectively, the
“Licensed Software”) is listed on Section 3.12(c)(ii) of the Seller Disclosure
Schedule. Seller Parties have taken commercially reasonable steps to protect their right,
title and interest in and to the Owned Proprietary Software and the Licensed Software, including,
without limitation, the execution of appropriate confidentiality agreements and payment of all
royalties and licensing fees.

(d) None of the Owned Proprietary Software incorporates, is distributed, integrated or bundled
with, or was developed using any open source software. None of the Owned Proprietary Software is
subject to any “copyleft” or other obligation or condition (including any obligation or condition
under any “open source” license such as the GNU Public License, Lesser GNU Public License or
Mozilla Public License) that: (i) requires or conditions the use or distribution of such Owned
Proprietary Software on the disclosure, licensing or distribution of any source code for any
portion of such Owned Proprietary Software; or (ii) otherwise imposes any material limitation,
restriction or condition on the right or ability of Seller Parties to use or distribute any Owned
Proprietary Software. Seller Parties have not disclosed, and are not under any obligation to
disclose, the Owned Proprietary Software in source code to any Person.

(e) To the knowledge of the Seller Parties, the Business as now conducted does not violate any
terms of the license agreements for any Licensed Software. All of Seller Parties’ computer
hardware has legitimately licensed software installed therein. Reasonable steps have been taken to
back up electronically stored information used in the business, and Seller Parties have in place
disaster recovery and security arrangements in relation to the Owned Proprietary Software and the
Licensed Software.

(f) Seller Parties have taken all commercially reasonable steps to protect the Business
Intellectual Property and maintain the confidentiality of their material trade secrets. To the
knowledge of Seller Parties, no employee, independent contractor, consultant or agent of Seller
Parties has used, infringed, misappropriated or disclosed any material trade secrets or other
Business Intellectual Property, or material confidential information of any other Person, in the
course of the performance of his or her duties as an employee, independent contractor, consultant
or agent of Seller Parties.

(g) Upon consummation of the Restructuring and the Remainder Funds Restructuring, and as of
immediately prior to the First Closing, one or more of the Subject Entities, LIHTC Funds or their
respective Subsidiaries will exclusively own all Seller Parties’ right, title and interest in and
to the Business Intellectual Property free and clear of all Encumbrances, other than Permitted
Encumbrances.

(h) The transactions contemplated by this Agreement and the other Transaction Agreements will
not result in the termination of, or otherwise require the consent of any party to, the continued
use, from and after the First Closing, of any Business Intellectual Property by Purchaser or any of
its Affiliates (including, from and after the First Closing, the Subject Entities, LIHTC Funds and
their respective Subsidiaries).

Section 3.13. Real Property.

(a) Other than the Leased Real Property, no real property is used in the operations of the
Business. No Subject Entity owns, leases, licenses or otherwise occupies any real property.

(b) Seller has made available to Purchaser a complete copy of the Real Property Lease
including all modifications, amendments, supplements, waivers and side letters thereto). The
Parent is the tenant under the Real Property Lease, the Real Property Lease is valid, binding and
in full force and effect, all rent and other sums and charges payable by Parent, as tenant
thereunder are current and no termination event or condition (other than expiration of such Real
Property Lease by its terms on the scheduled termination date, rather than an accelerated
termination date) exists under the Real Property Lease. The Parent has not received any notice of
any, and has no knowledge of any, default under the Real Property Lease and, to the Seller’s
knowledge, there has not occurred any event that with the lapse of time or the giving of notice or
both would constitute such a default under the Real Property Lease. The Parent has not
transferred, mortgaged, pledged or otherwise encumbered its leasehold interest in the Real Property
Lease. The Parent has not entered into any subleases, arrangements, licenses or other agreements
that materially affect all or any portion of the Leased Real Property or the use of it and, to the
Seller Parties’ knowledge, the Leased Real Property is free of any right of possession or claim of
right of possession of any party other than the Parent or the Sellers.

(c) Parent has not received any payment nor requested any reimbursement from Landlord in
respect of the Landlord’s Contribution as such term is defined pursuant to Section 5.2(b) of the
Real Property Lease.

Section 3.14. Environmental Matters. Except as would not, and would not reasonably be
likely to, have a Business Material Adverse Effect: (i) the Leased Real Property is, and the
operations of the Business are, in compliance with all Environmental Laws; (ii) to the knowledge of
the Seller Parties, no Hazardous Substances have been Released at, on or under any Leased Real
Property; (iii) there are no claims, notices, orders or proceedings from any person, including any
Governmental Authority, pending or, to the Seller Parties’ knowledge, threatened against any Seller
Party or any of its respective Affiliates (including any Subject Entity, LIHTC Fund or any of their
respective Subsidiaries) alleging any violation of Environmental Laws or the existence of any
material liabilities arising under any Environmental Laws (“Environmental Liabilities”) in
respect of the Leased Real Property or the Business; and (iv) neither any Subject Entity or LIHTC
Fund or any of their respective Subsidiaries nor any of their respective assets or properties is,
and the operations of the Business are not, subject to any order, decree, injunction or other
directive of any Governmental Authority, and none of the Seller Parties or the Subject Entities,
the LIHTC Funds or their respective Subsidiaries nor any of their respective assets or properties
is, and the operations of the Business are not, subject to any agreement that requires any of them
to pay to, reimburse, guarantee, pledge, defend, indemnify or hold harmless any Person for or
against any Environmental Liabilities, in each case in respect of the Leased Real Property or the
Business.

Section 3.15. Brokers. No agent, broker, investment banker, financial advisor or
other firm or Person is entitled to any brokerage, finder’s, financial advisor’s or other similar
fee or commission for which Purchaser or any of its Subsidiaries would become liable in connection
with the transactions contemplated by this Agreement as a result of any action taken by or on
behalf of any Seller Party or any of its Affiliates, other than Lazard, all fees and expenses of
which will be paid by solely the Seller Parties.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to the Seller Parties that:

Section 4.1. Organization and Qualification. Purchaser is a Delaware limited
partnership duly organized, validly existing and in good standing under the laws of its
jurisdiction of formation and has all requisite corporate or other power and authority to own,
license, use or lease and operate its assets and properties and to carry on its business as it is
now conducted.

Section 4.2. Authority; Non-Contravention; Approvals.

(a) Purchaser has all requisite corporate and other power and authority to execute and deliver
this Agreement and the other Transaction Documents to which it will be a party and to perform the
transactions contemplated by this Agreement and such other Transaction Documents. The execution
and delivery of this Agreement and the other Transaction Documents to which Purchaser is a party
and the performance by Purchaser of the transactions contemplated by this Agreement and such other
Transaction Documents have been approved by all necessary corporate and other action on the part of
Purchaser, and no other corporate or other proceedings on the part of Purchaser are necessary to
authorize the execution and delivery of this Agreement or the other Transaction Documents to which
Purchaser is a party and the performance by Purchaser of the transactions contemplated by this
Agreement and the other Transaction Documents to which Purchaser is a party. This Agreement has
been, and upon their execution the other Transaction Documents to which Purchaser is a party will
be, duly executed and delivered by Purchaser, and, assuming the due authorization, execution and
delivery of this Agreement and such other Transaction Documents by the Seller Parties and their
respective Affiliates (as applicable), constitutes, and upon their execution such other Transaction
Documents will constitute, valid and binding obligations of Purchaser enforceable against Purchaser
in accordance with their respective terms.

(b) The execution and delivery by Purchaser of this Agreement and the other Transaction
Documents to which Purchaser will be a party and the performance of the transactions contemplated
by this Agreement and such other Transaction Documents do not and will not (i) conflict with or
result in a breach of any provisions of the Organizational Documents of Purchaser, (ii) result in a
violation or breach of or constitute a default (or an event which, with or without notice or lapse
of time or both, would constitute a default) under, or result in the termination of, or the loss of
a benefit under or accelerate the performance required by, or result in a right of termination,
modification, cancellation or acceleration under, the terms, conditions or provisions of any
contract or other instrument of any kind to which Purchaser is now a party or by which Purchaser or
any of its properties or assets may be bound or affected, or (iii) violate any order, writ,
injunction, decree or Law applicable to Purchaser, other than, in the case of clauses (ii) and
(iii) above, as would not result in a Purchaser Material Adverse Effect.

(c) Except pursuant to the applicable requirements of HUD or state housing agencies, no
declaration, filing or registration with, or notice to, or authorization, consent, order or
approval of, any Governmental Authority is required to be obtained or made in connection with or as
a result of the execution and delivery by Purchaser of this Agreement and the other Transaction
Documents to which Purchaser is a party or the performance by Purchaser of the transactions
contemplated by this Agreement and such other Transaction Documents, other than such declarations,
filings, registrations, notices, authorizations, consents, orders or approvals which, if not made
or obtained, as the case may be, would not result in a Purchaser Material Adverse Effect.

Section 4.3. Financing. Purchaser (a) will have at the First Closing immediately
available funds available to it which are sufficient to pay the First Closing Purchase Price to the
Sellers at the First Closing in accordance with the terms of this Agreement; (b) will have at the
Second Closing immediately available funds available to it which are sufficient to pay the Second
Closing Purchase Price to the Sellers at the Second Closing in accordance with the terms of this
Agreement; (c) has provided to the Seller Parties the excerpts of Purchaser’s financial statements
set forth in Schedule 4.3(a), which financial statements, except as set forth in
Schedule 4.3(a), (i) have been prepared in accordance with generally accepted accounting
principles in the United States, (ii) are consistent with the books and records of Purchaser, and
(iii) fairly present in all material respects the financial condition of Purchaser as of the date
thereof subject to normal year end adjustments that are or would not be material in amount or
effect and the lack of footnotes; and (d) has the contractual right to require its limited partner
investors to fund any capital calls which may be made by Purchaser pursuant to the applicable
contracts and agreements with such investors and, to the knowledge of Purchaser, no such investor
has notified Purchaser of any reason why it would not fund any such capital calls that are made in
connection with the consummation of the First Closing or the Second Closing.

Section 4.4. Brokers. No agent, broker, investment banker, financial advisor or other
firm or Person is entitled to any brokerage, finder’s, financial advisor’s or other similar fee or
commission for which the Seller Parties or any of their Subsidiaries would become liable in
connection with the transactions contemplated by this Agreement as a result of any action taken by
or on behalf of Purchaser or any of its Affiliates.

Section 4.5. Investment Intent. Purchaser is acquiring the Entity Interests and the
Fund Interests for its own account, for the purpose of investment only and not with a view to, or
for sale in connection with, any distribution thereof in violation of applicable securities Laws.

Section 4.6. HUD Approvals. Purchaser has no knowledge of any fact or circumstances
relating to Purchaser or any of its Affiliates which would reasonably be likely to prevent or
materially delay any approvals, consents or other actions required by HUD in connection with the
transactions contemplated in this Agreement from being obtained.

Section 4.7. No Other Representations.

(a) Notwithstanding anything contained in this Agreement to the contrary, Purchaser
understands and agrees that the Seller Parties have not made, and are not making, any
representation or warranty whatsoever, express or implied, with respect to the Seller Parties,
their Affiliates, the Subject Entities or their Subsidiaries, the Business, the LIHTC Funds, the
transactions contemplated hereby or any other matter, other than those representations and
warranties of the Seller Parties expressly set forth in Article III.

(b) Purchaser acknowledges that it has been given such access to the premises, books, records
and officers of the Subject Entities and their Subsidiaries and the Business and has had the
opportunity to review such other data and other information with respect to the Subject Entities
and their Subsidiaries and the Business as Purchaser has deemed necessary in its sole judgment to
evaluate the transactions contemplated by this Agreement.

ARTICLE V.

COVENANTS

Section 5.1. Conduct of the Business. During the period from the date of this
Agreement to the First Closing, except as otherwise expressly permitted under the terms of this
Agreement or provided on Schedule 5.1, or upon receipt of Purchaser’s prior written consent
(such consent not to be unreasonably withheld, conditioned or delayed), the Seller Parties shall,
and shall cause the Subject Entities, the LIHTC Funds and their respective Subsidiaries to, conduct
the Business only in the ordinary course consistent with past practice and shall, and shall cause
the Subject Entities, the LIHTC Funds and their respective Subsidiaries to, use their commercially
reasonable efforts to preserve intact the present organization of the Subject Entities, the LIHTC
Funds and their respective Subsidiaries and the Business, keep available the services of the
Business Employees, and to preserve relationships with customers, suppliers, licensors, licensees,
contractors, distributors, investors and others having business dealings with any of the Subject
Entities, the LIHTC Funds or their respective Subsidiaries or with the Business. Without limiting
the generality of the foregoing, from the date of this Agreement to the First Closing, except as
otherwise expressly permitted under the terms of this Agreement or as may be required to effect the
transactions contemplated by this Agreement (including the Restructuring, the Remainder Funds
Restructuring and the Second Closing Restructuring), the Seller Parties shall not, and shall cause
the Subject Entities, the LIHTC Funds and their respective Subsidiaries not to, do any of the
following without Purchaser’s prior written consent (such consent not to be unreasonably withheld,
conditioned or delayed):

(a) sell, lease, transfer or dispose of any Assets, any assets of the Subject Entities, the
LIHTC Funds or their respective Subsidiaries or any assets otherwise primarily used in the Business
except in the ordinary course of business and as would not be material to the Business;

(b) any acquisition by the Subject Entities, the LIHTC Funds or their respective Subsidiaries,
or otherwise by any Seller Party or any of its Affiliates (other than the Subject Entities, the
LIHTC Funds or their respective Subsidiaries) for use primarily in the Business, of assets or
properties for an aggregate purchase price in excess of $150,000;

(c) incur, create or assume any Indebtedness relating to the Business, or of the Subject
Entities, the LIHTC Funds or their respective Subsidiaries, which exceeds $25,000 individually, or
$100,000 in the aggregate, except as may be required to effect a Bridge Resolution in accordance
with this Agreement, or take any action that results in an Encumbrance, other than a Permitted
Encumbrance, being imposed on any Assets, any assets of the Subject Entities, LIHTC Funds or their
respective Subsidiaries or any assets otherwise primarily used in the Business;

(d) enter into, adopt, amend or terminate any Company Plan as it applies to the Business
Employees or the Business or any of the Subject Entities, the LIHTC Funds or their respective
Subsidiaries;

(e) materially increase the compensation or benefits of any Business Employee or pay or
otherwise grant any material benefit not required by any such Company Plan to a Business Employee;

(f) except as provided in Section 5.7 of this Agreement, enter into or offer to enter
into or amend, terminate or waive any right under any employment or consulting agreement or
arrangement with any Business Employee;

(g) make or commit to make capital expenditures by the Subject Entities, the LIHTC Funds or
their respective Subsidiaries in excess of $25,000 individually or $150,000 in the aggregate;

(h) enter into any contract or agreement that, if it were in effect as of the date hereof,
would constitute a Material Contract, or amend or terminate any Material Contract;

(i) amend the Organizational Documents of any of the Subject Entities, the LIHTC Funds or
their respective Subsidiaries;

(j) merge or consolidate any of the Subject Entities, the LIHTC Funds or their respective
Subsidiaries with any other Person;

(k) liquidate or dissolve or adopt any plan of complete or partial liquidation or dissolution;

(l) issue, sell, otherwise dispose of, repurchase or redeem any capital stock or other equity
or ownership interests or securities of, or Indebtedness of, any of the Subject Entities, the LIHTC
Funds or their respective Subsidiaries, or grant any options, warrants, calls, rights or
commitments or any other agreements of any character obligating any of the Subject Entities, the
LIHTC Funds or their respective Subsidiaries to issue any capital stock or other equity or
ownership interests or securities, or any Indebtedness, thereof;

(m) declare, set aside or pay any dividend or other distribution with respect to any capital
stock or other equity or ownership interests or securities of any of the Subject Entities, the
LIHTC Funds or their respective Subsidiaries, other than (i) dividends or other distributions
payable to any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries, (ii)
dividends or other distributions of Paid Management Fees (which, for the avoidance of doubt, shall
reduce the First Closing Purchase Price as provided in Section 2.3), or (iii) the LP Sale
Proceeds;

(n) change any accounting or Tax procedure or practice, make or change any Tax election or
settle or compromise any Tax liability, or amend any material Tax Return, in each case relating to
the Business or any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries and
that may adversely affect Purchaser, the Business, or any of the Subject Entities, the LIHTC Funds
or their respective Subsidiaries after the First Closing Date (or, in the case of the Acquired
Remainder Funds, the Second Closing Date) with respect to taxable periods or portions thereof
beginning after the First Closing Date (or, in the case of the Acquired Remainder Funds, the Second
Closing Date), in each case except as required by Law or by the independent auditors of such
Persons;

(o) waive or release any material claim or right relating to the Business or of any of the
Subject Entities, the LIHTC Funds or their respective Subsidiaries;

(p) redeem, repurchase, prepay, defease, incur or otherwise acquire any indebtedness for
borrowed money, or otherwise make an advance or payment with respect to the Advanced Loans, except
for the payment of accrued interest;

(q) request or accept or acknowledge receipt of any reimbursement from Landlord in respect of
any Landlord Contribution, as such term is defined pursuant to Section 5.2(b) of the Real Property
Lease;

(r) release or otherwise utilize Fund Cash Balances other than in the ordinary course of
business consistent with past practice; or

(s) agree or otherwise commit to do any of the foregoing.

Notwithstanding any of the foregoing, the Seller Parties, Subject Entities, LIHTC Funds or
their respective Subsidiaries shall be permitted to take any action (a “Fiduciary Duty
Action”), or cause any action to be taken, which, the Seller Parties, Subject Entities, LIHTC
Funds or their respective Subsidiaries reasonably believe would be required to prevent the Seller
Parties, the Subject Entities or their respective Subsidiaries from violating any fiduciary duty
owed by them in their capacity as the general partner of any of the LIHTC Funds, provided that (i)
the Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries provide
Purchaser with electronic or written notice (a “Fiduciary Duty Action Notice”) four
Business Days prior to taking any Fiduciary Duty Action, (ii) the Fiduciary Duty Action does not
involve or result in any payment or disbursement to the Seller Parties or their respective
Subsidiaries and (iii) the Seller Parties, Subject Entities, LIHTC Funds or their respective
Subsidiaries (as the case may be) take only the actions required to be taken in order to not
violate any fiduciary duty owed by them in their capacity as the general partner of any of the
LIHTC Funds. If Purchaser reasonably believes such Fiduciary Duty Action is materially adverse to
the Business or the value of the LIHTC Funds, Purchaser shall provide electronic or written notice
(a “Fiduciary Duty Action Dispute Notice”) to the Seller Parties within four Business Days
of receipt of a Fiduciary Duty Action Notice indicating that Purchaser believes the Fiduciary Duty
Action will be materially adverse to the Business or the value of the LIHTC Funds. In the event
that Purchaser does not provide a timely Fiduciary Duty Action Dispute Notice, the Fiduciary Duty
Action taken by the Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries
shall not have any effect on the First Closing Purchase Price and shall not result in a First
Closing Purchase Price adjustment. If Purchaser timely delivers a Fiduciary Duty Action Dispute
Notice, the Seller Parties and Purchaser will enter into good faith negotiations regarding a First
Closing Purchase Price adjustment.

Section 5.2. Access to Information. The Seller Parties shall, and shall cause their
respective Affiliates to, provide Purchaser and its officers (or individuals in similar positions),
directors (or individuals in similar positions), employees, agents, counsel, accountants, financial
advisors, consultants and other representatives (each, a “Representative”) with reasonable
access during normal business hours, upon reasonable prior notice, to all Representatives, assets
and properties, and the books and records, of the Subject Entities and the LIHTC Funds and their
respective Subsidiaries and the books and records of the Seller Parties and their respective
controlled Affiliates (other than the Subject Entities, the LIHTC Funds and their respective
Subsidiaries) relating to the Subject Entities, the LIHTC Funds and their respective Subsidiaries,
the Assets, the Assumed Liabilities and the Business; provided, that such access does not
unreasonably interfere with the normal operations of the Seller Parties. The Seller Parties shall,
and shall cause their respective Subsidiaries to, furnish Purchaser and its Representatives with
all such information and data (including copies of contracts, Company Plans and other books and
records) concerning the Subject Entities, LIHTC Funds and their respective Subsidiaries, the
Assets, the Assumed Liabilities and the Business and their respective operations as Purchaser or
any of its Representatives may reasonably request in connection with such investigation or its
rights under this Section 5.2; provided, however, that (i) the auditors and outside
accountants of the Seller Parties shall not be obligated to make work papers available unless
Purchaser has signed a customary agreement relating to access to such work papers in form and
substance reasonably acceptable to such auditors or accountants, as applicable, (ii) the Seller
Parties shall not be obligated to make any information available that would, in the reasonable
judgment of Parent, violate or jeopardize any applicable attorney client privilege or any
applicable contractual confidentiality obligation (it being understood that the Seller Parties
shall use commercially reasonable efforts to cause such contractual obligation to be waived with
respect to the exercise of Purchaser’s rights under this Section 5.2 and the access to
information hereunder). All such information shall be kept confidential in accordance with the
terms of the Confidentiality Agreement, dated as of July 9, 2008, between JEN Partners LLC and
Parent.

Section 5.3. Reasonable Efforts.

(a) Upon the terms and subject to the conditions of this Agreement, each of the parties hereto
shall use its commercially reasonable efforts to take, or cause to be taken, all actions, and to
do, or cause to be done, all things necessary, proper or advisable under applicable Laws to
consummate and make effective the transactions contemplated by this Agreement and the other
Transaction Documents. Each of the Seller Parties and Purchaser shall comply as promptly as
practicable with any other Laws that are applicable to any of the transactions contemplated hereby
or by the other Transaction Documents and pursuant to which any consent, approval, order or
authorization of, or registration, declaration or filing with, any Governmental Authority or any
other Person in connection with such transactions is necessary. Each of the Seller Parties and
Purchaser shall furnish to the others such information and assistance as the other may reasonably
request in connection with their preparation of any filing, registration or declaration which is
necessary under Laws in connection with the transaction contemplated by the Transaction Documents.
Purchaser and the Seller Parties shall keep each other apprised of the status of any communications
with, and any inquiries or requests for additional information from, any Governmental Authority (or
other Person regarding any of the transactions contemplated by this Agreement or the other
Transaction Documents) in respect of any such filing, registration or declaration, and shall comply
promptly with any such inquiry or request (and, unless precluded by Law, provide copies of any such
communications that are in writing). The parties hereto shall use their respective commercially
reasonable efforts and take all necessary action to obtain any consent, approval, order or
authorization of any Governmental Authority under United States antitrust or competition laws,
necessary in connection with the transactions contemplated hereby or to resolve any objections that
may be asserted by any Governmental Authority with respect to the transactions contemplated hereby.

(b) Subject to the terms and conditions of this Agreement, each party shall use its
commercially reasonable efforts to cause the First Closing and the Second Closing to occur as
promptly as practicable.

(c) Purchaser shall use its commercially reasonable efforts to obtain as promptly as
practicable all Permits required by Law for Purchaser to conduct the Business following the First
Closing. The Seller Parties shall, and shall cause their respective Affiliates to, provide
reasonable assistance to Purchaser to obtain such Permits, but shall not be required to incur any
material out of pocket expenses in providing such assistance.

(d) The Seller Parties shall, and shall cause their respective Affiliates to, obtain as
promptly as practicable all consents, approvals and waivers required to be obtained from any third
Persons in connection with the consummation of the First Closing, the Second Closing and the other
transactions contemplated by this Agreement and the other Transaction Documents and so that all
Permits, contracts and other agreements of the Subject Entities and their Subsidiaries will remain
in full force and effect from and after the First Closing, and Purchaser shall reasonably cooperate
with the Seller Parties and their respective Affiliates in connection with obtaining such consents,
approvals and waivers. The Seller Parties shall keep Purchaser fully informed of any
communications with, and any inquiries or requests for additional information from, and any offers
made, any conditions imposed or required, by any such third Person in connection with so obtaining
such Person’s consent, as well as the status thereof. In the event that any such Person imposes or
requires any conditions to the receipt of such Person’s consent that is required in connection with
the consummation of the First Closing, the Second Closing or any of the other transactions
contemplated by this Agreement and the other Transaction Documents, the Seller Parties, on the one
hand, and Purchaser, on the other hand, shall reasonably cooperate with each other in good faith to
agree upon the manner in which such conditions shall be satisfied. Nothing in this Section
5.3(d) shall require Purchaser or any of its Affiliates to incur any material out of pocket
expenses, make any material financial commitment or grant or agree to any material concession to
any third Person to obtain any such consent, approval or waiver.

(e) Notwithstanding anything to the contrary in this Agreement, Purchaser acknowledges and
agrees that it shall be responsible for and assume all Informational Technology Transition Costs
and the Seller Parties shall have no responsibility therefor.

(f) Parent shall provide or cause to be provided, certain information technology and migration
consulting services as more specifically described in the Transitional Services Agreement. For the
avoidance of doubt, the obligation of Parent to provide such services up to an aggregate value of
$90,000 pursuant to, and in accordance with, the Transitional Services Agreement will not in any
way abrogate or diminish Purchaser’s obligation to assume and discharge the Information Technology
Transition Costs.

Section 5.4. Notification.

(a) From time to time prior to the First Closing, the Seller Parties shall notify Purchaser
with respect to any matter hereafter arising or any information obtained after the date hereof
that, if existing, occurring or known at or prior to the date of this Agreement, would have been
required to be set forth or described in the Seller Disclosure Schedule or that is necessary to
complete or correct any information in such schedule or in any representation and warranty that has
been rendered inaccurate thereby.

(b) No notice given pursuant to this Section 5.4 shall have any effect on the
representations, warranties, covenants or agreements contained in this Agreement, including for
purposes of determining the satisfaction of any condition contained herein, or shall in any way
limit or affect any party’s rights or obligations under Article VII.

Section 5.5. Tax Matters.

(a) Parent shall, to the maximum extent that it or any of its Affiliates is authorized, or
otherwise has the right or ability, to do so, timely prepare and file (or cause to be timely
prepared and filed) (i) all Tax Returns that are required to be filed by or with respect to a
Subject Entity or a Subsidiary of a Subject Entity on a consolidated, combined or unitary basis
with at least Parent or one Affiliate of Parent that is not a Subject Entity or a Subsidiary of a
Subject Entity for taxable years or periods beginning on or before the First Closing Date (or in
the case of the Subject Entities or any of their Subsidiaries that are directly or indirectly
acquired by Purchaser (or its designee) at the Second Closing, the Second Closing Date) and (ii)
all other Tax Returns required to be filed with respect to any Subject Entity, Subsidiary of a
Subject Entity or the Business that are due (taking into account requests for extensions to file
such returns) on or before the First Closing Date (or in the case of the Subject Entities or any of
their Subsidiaries that are directly or indirectly acquired by Purchaser (or its designee) at the
Second Closing, the Second Closing Date). In the case of the Tax Returns described in this
Section 5.5(a), Parent shall prepare (or cause to be prepared) such Tax Returns in
accordance with applicable law and past practices of the Subject Entities, the Subsidiaries of the
Subject Entities or the Business, as applicable. In each case, Parent shall timely remit (or cause
to be timely remitted) any Taxes shown as due on such Tax Returns to the extent such Taxes are
attributable to a consolidated, combined or unitary group described in clause (i) of the preceding
sentence or to the extent such Taxes are allocable to a Pre-Closing Tax Period. Notwithstanding
the foregoing or anything else in this Section 5.5 to the contrary, Parent shall be
obligated under this Section 5.5 with respect to Taxes, Tax Returns or other Tax matters of
any LIHTC Fund to the maximum extent Parent or any of its Affiliates is so authorized, or otherwise
has the right, under the applicable Organizational Documents of such LIHTC Fund (as such
Organizational Documents are in effect on, with respect to any such LIHTC Fund comprising First
Closing Interests, the First Closing Date and, with respect to any such LIHTC Fund comprising
Second Closing Interests, the Second Closing Date) to perform such obligations (and doing so would
not conflict with the authority or rights of any other Person to perform such obligations and such
Person shall have timely performed such obligations under such Organizational Documents); provided
that Parent and its Affiliates shall be obligated under this Section 5.5 to pay or make any
payment on account of any Taxes of such LIHTC Fund to the extent obligated to do so under such
Organizational Documents.

(b) Except as described in Section 5.5(a), Purchaser shall timely prepare and file (or
cause to be timely prepared and filed) all Tax Returns with respect to the Subject Entities, and
Subsidiaries of the Subject Entities or the Business. Purchaser shall remit (or cause to be
remitted) any Taxes due with respect to such Tax Returns, provided, however, that Parent shall
promptly (and, in any event, within twenty (20) Business Days of a written request made by
Purchaser therefor) reimburse Purchaser for the portion of such Tax that relates to a Pre-Closing
Tax Period; provided, further, that Purchaser shall file any Tax Return that relates (in whole or
in part) to a Pre-Closing Tax Period in accordance with applicable law and past practices of the
Seller Parties, and shall, at least twenty (20) Business Days prior to the due date of any such Tax
Return, provide a copy of such Tax Return for Parent’s review. Purchaser shall not file or cause
its Affiliates (including the Subject Entities and their Subsidiaries) to file any Tax Return that
relates (in whole or in part) to a Pre-Closing Tax Period without Parent’s prior approval, such
approval not to be unreasonably withheld, conditioned or delayed.

(c) In the case of Taxes that are payable with respect to a taxable period beginning on or
prior to and ending after the First Closing Date (or in the case of Taxes that are payable with
respect to the Subject Entities and their Subsidiaries that are directly or indirectly acquired by
Purchaser (or its designee) at the Second Closing, the Second Closing Date) (a “Straddle
Period”), the portion of any such Tax that is allocable to the portion of the Straddle Period
ending on the First Closing Date (or in the case of the Subject Entities or any of their
Subsidiaries that are directly or indirectly acquired by Purchaser (or its designee) at the Second
Closing, the Second Closing Date) shall be: (i) in the case of Taxes imposed on a periodic basis
with respect to one or more assets or otherwise measured by the level of any item, deemed to be the
amount of such Taxes for the entire period, multiplied by a fraction the numerator of which is the
number of calendar days in the period ending on the First Closing Date (or in the case of the
Subject Entities or any of their Subsidiaries that are directly or indirectly acquired by Purchaser
(or its designee) at the Second Closing, the Second Closing Date) and the denominator of which is
the number of calendar days in the entire Straddle Period; and (ii) in the case of Taxes other than
those described in (i) deemed equal to the amount which would be payable if the taxable year ended
on the First Closing Date (or in the case of the Subject Entities or any of their Subsidiaries that
are directly or indirectly acquired by Purchaser (or its designee) at the Second Closing, the
Second Closing Date) (and for such purpose, the taxable period of any partnership or other pass
through entity in which the Subject Entities or their Subsidiaries holds a beneficial interest
shall be deemed to terminate at such time).

(d) All transfer, registration, stamp, documentary, sales, use and similar Taxes (including
all applicable real estate transfer or gains Taxes and transfer Taxes), any penalties, interest and
additions to Tax, and fees incurred in connection with the transactions contemplated by this
Agreement shall be borne jointly and severally by the Seller Parties. The Seller Parties and
Purchaser shall reasonably cooperate with each other in the timely making of all filings, returns,
reports and forms as may be required in connection therewith.

(e) Purchaser and the Seller Parties shall (and shall cause their Affiliates to) reasonably
cooperate with each other, as and to the extent reasonably requested by any other party hereto, in
connection with the preparation and filing of any Tax Return and any audit or other proceeding with
respect to Taxes. Such cooperation shall include the retention and (upon the request of any other
party hereto) the provision of records and information which are reasonably relevant to any such
audit or other proceeding and making employees available on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder. Without limiting
Section 5.11(b), Purchaser and the Seller Parties agree to, for a period of seven years,
(x) retain all material books and records with respect to Tax matters pertinent to the Subject
Entities and their Subsidiaries, in each case relating to any Tax period beginning on or before the
First Closing Date (or in the case of the Subject Entities or any of their Subsidiaries that are
directly or indirectly acquired by Purchaser (or its designee) at the Second Closing, the Second
Closing Date), and to abide by all record retention agreements entered into with any Tax Authority,
and (y) give the other party at least 10 days written notice prior to destroying or discarding any
such books and records and, if the other party so requests within 10 days following such notice,
Purchaser or the Seller Parties, as the case may be, shall allow the other party (or parties) to
take possession of such books and records.

(f) To the maximum extent permitted by applicable Law, Purchaser shall cause the Subject
Entities and their Subsidiaries not to carry back losses, credits or other items arising after the
First Closing Date (or in the case of the Subject Entities or any of their Subsidiaries that are
directly or indirectly acquired by Purchaser (or its designee) at the Second Closing, the Second
Closing Date) to periods beginning before the First Closing Date (or in the case of the Subject
Entities or any of their Subsidiaries that are directly or indirectly acquired by Purchaser (or its
designee) at the Second Closing, the Second Closing Date) in which such Subject Entity or
Subsidiary of a Subject Entity was included in a consolidated, combined or unitary Tax group but,
instead, to carry forward such losses, credits or other items. Purchaser shall and shall cause its
Affiliates (including, following the First Closing or the Second Closing, as applicable, the
Subject Entities and each of their Subsidiaries) to complete and execute such waivers and elections
as are necessary under applicable Law for such purpose.

(g) The Seller Parties shall, and shall cause their respective Affiliates to, cause any tax
sharing agreement or similar arrangement with respect to Taxes involving a Subject Entity or any of
their respective Subsidiaries to be terminated effective at or prior to the First Closing Date (or
in the case of the Subject Entities or any of their Subsidiaries that are directly or indirectly
acquired by Purchaser (or its designee) at the Second Closing, the Second Closing Date), to the
extent any such agreement or arrangement relates to a Subject Entity or any of their respective
Subsidiaries and after the First Closing no Subject Entity or any of their respective Subsidiaries
shall have any liability or obligation under any such agreement or arrangement for any past,
present or future period.

(h) Purchaser shall have the right (but not the obligation) to request that an election under
Section 754 of the Code be made in connection with the direct or indirect acquisition by Purchaser
(or its designee) of an interest in any Subject Entity or Subsidiary of a Subject Entity that is
treated as a partnership for U.S. federal income tax purposes. In the event that Purchaser
requests that any such election be made, the Seller Parties shall cooperate with Purchaser to cause
an election under Section 754 of the Code and the Treasury Regulations thereunder (and any
correlative election under applicable state and local law) to be made by each such Subject Entity
or any of their respective Subsidiaries.

Section 5.6. Leased Real Property.

(a) Each party will reasonably cooperate with each other and use its commercially reasonable
efforts (but without any obligation on the part of any of them to make any payment of money) from
the date of this Agreement to the First Closing Date to obtain the consent of such Persons to the
assignment or novation of the rights and obligations of the Seller Parties and their Affiliates (as
applicable), or to the ability to take any other action necessary to achieve an assignment of such
Seller Parties’ and their Affiliates’ rights and obligations, under the Real Property Lease with
respect to the Purchaser Leased Space only and a corresponding assumption by Purchaser (or its
designee as approved by Landlord) of such rights and obligations under the Real Property Lease with
respect to the Purchaser Leased Space only, such that Purchaser or its designee will have direct
privity of contract with the Landlord with respect to such assigned rights and obligations relating
to the Purchaser Leased Space and the Seller Parties and their Affiliates will thereupon be
released from all liability and obligations under the Real Property Lease with respect to the
Purchaser Leased Space that accrue following the date of such assignment and assumption (any such
assignment, novation or assumption pursuant to this Section 5.6(a), the “Direct Lease
Resolution”). Purchaser shall have no obligation to effect the Direct Lease Resolution and the
Direct Lease Resolution shall not be deemed to have occurred unless and until (A) either (i) The
tenant under the Real Property Lease and Purchaser or its permitted designee (the
“Assignee”) have entered into a partial assignment of the Real Property Lease with respect
to the Purchased Leased Space in form reasonably satisfactory to Landlord and Purchaser and that
includes the terms set forth on Exhibit E attached hereto (the “Partial
Assignment”) and the Landlord has consented in writing to such partial assignment or
(ii) Landlord and Assignee have entered into a new direct lease for the Purchaser Leased Space, in
form reasonably satisfactory to Landlord and Purchaser (the “New Lease”), (B) Purchaser has
received the Lease Estoppel, duly executed by Landlord on or after the day that is thirty (30) days
prior to the First Closing, or other assurances reasonably acceptable to Purchaser and Parent, each
evidencing that there are no defaults or breaches under the Real Property Lease or other conditions
that will adversely affect in any respect Assignee’s right to possess, access or otherwise quietly
enjoy the Purchaser Leased Space and that Assignee will not be responsible for any rights,
obligations or liabilities of Parent or its Affiliates with respect to the Leased Real Property
other than the Purchaser Leased Space. Notwithstanding the foregoing, or anything to the contrary
in this Agreement, Purchaser may, in its sole and absolute discretion, but shall have no obligation
to, waive receipt of the Lease Estoppel in order to effectuate the Direct Lease Resolution.

(b) If consent to the Direct Lease Resolution is not obtained as contemplated by
Section 5.6(a) or an attempted assignment of the rights and obligations under the Real
Property Lease with respect to the Purchaser Leased Space would materially and adversely affect the
rights and obligations of the Seller Parties or their Affiliates hereunder, in Seller Parties’
reasonable discretion, or would materially and adversely affect Purchaser or any of its Affiliates
hereunder or otherwise, in Purchaser’s reasonable discretion, the Seller Parties and Purchaser
shall reasonably cooperate to seek the consent of Landlord to a sublease of the Purchaser Leased
Property (the “Sublease”) from the Seller Parties or their Affiliates to Purchaser or its
designee (the “Subtenant”) from and after the First Closing as provided in this Section
5.6(b) and to enter into such Sublease (the execution of such Sublease pursuant to and in
accordance with, and the satisfaction of the other requirements set forth in this Section
5.6(b), the “Sublease Resolution”). In the event the parties mutually agree to
sublease the Purchaser Leased Space to Purchaser from the Parent, as soon as reasonably practicable
after such determination, the parties will enter into good faith discussions with respect to such
Sublease (including the terms related thereto) and shall prepare one or more agreements to be
entered into by the parties (or their respective Affiliates) with respect to such Sublease, which
shall: (1) incorporate all material terms and obligations of the Real Property Lease relating to
the Purchaser Leased Space, including the terms set forth on Exhibit E attached hereto, (2)
provide that in the event of any default of a payment obligation to be made by any Seller Party or
any of its Affiliates pursuant to the Transitional Services Agreement, Purchaser (or its designee)
will be entitled to a direct and equal offset against any amounts payable to any Seller Party or
any of its Affiliates under the Sublease, (3) provide that in the event of any material default of
a payment obligation to be made by Purchaser (or its designee) to the Seller Parties (or their
Affiliates) pursuant to the Sublease, Seller Parties (or their Affiliates) will be entitled to a
direct and equal offset against any amounts payable to Purchaser (or its Affiliates) under the
Management Agreement, and (4) contain such other terms and conditions as shall be reasonably
acceptable to Purchaser and Parent; provided, however, that neither Purchaser nor its designee
shall have any obligation to enter into the Sublease and the Sublease Resolution shall not be
deemed to have occurred unless and until Purchaser has received: (A) the Lease Estoppel, duly
executed by Landlord on or after the day that is thirty (30) days prior to Closing, or other
assurances reasonably acceptable to Purchaser, each evidencing that there are no defaults or
breaches under the Real Property Lease or other conditions that will adversely affect in any
respect Purchaser’s or its designee’s right to possess, access or otherwise quietly enjoy the
Purchaser Leased Space, (B) written consent of Landlord to the Sublease, and (C) a non-disturbance
agreement, in form reasonably satisfactory to Purchaser, executed by Landlord, providing that, in
the event of a default by Seller or its Affiliates under the Real Property Lease or a termination
thereof, that Landlord will not disturb Subtenant’s tenancy under the Sublease and that such
Sublease shall become a direct tenancy between Landlord and Subtenant, so long as Subtenant is not
in default under its obligations under the Sublease beyond any notice and cure periods (the
“Non-Disturbance Agreement”). Notwithstanding the foregoing, Purchaser may, in its sole
and absolute discretion, but shall have no obligation to, waive receipt of the Lease Estoppel in
order to effectuate the Sublease Resolution. The Sublease Resolution and the Direct Lease
Resolution, shall be referred to in this Agreement as the “Lease Resolution”.

(c) Purchaser (and its Affiliates) and the Seller Parties shall cooperate in good faith in
negotiating and determining the Lease Resolution with the Landlord and shall provide each other
with reasonable assistance to ensure a Lease Resolution is resolved to the reasonable satisfaction
of the parties, including, without limitation, using commercially reasonable efforts to obtain or
effect the Lease Estoppel and, if applicable, the Non-Disturbance Agreement. Purchaser and the
Parent shall use commercially reasonable efforts to involve the other party in any and all
significant discussions and negotiations with the Landlord concerning the Lease Resolution.

Section 5.7. Employee Matters.

(a) Purchaser (or any Affiliate) shall offer to hire, effective as of the First Closing Date,
substantially all of the Business Employees, in each case on terms and conditions of employment
that shall include generally employee benefits no less favorable to such Business Employees than
those provided to similarly situated employees of Purchaser. All such offers of employment shall
be made at a time that is mutually agreeable to Purchaser and Parent, provided that such offers
shall be made at least five Business Days prior to the First Closing Date, and all offers shall be
subject to the consummation of the First Closing. The Business Employees who accept such offers
and commence employment with Purchaser (or any of its Affiliates) pursuant to this Section
5.7(a) shall be referred to herein as “Transferred Employees”.

(b) At or prior to the First Closing Date, the Seller Parties or their Affiliates shall settle
all awards payable in the common stock of Parent (“Stock Awards”) granted to any
Transferred Employee in relation to the Deferred Compensation Agreements, whether such Stock Awards
are due or payable before or after the First Closing Date, in full satisfaction of all then
outstanding obligations under all such Stock Awards.

(c) Other than with respect to those portions of Deferred Compensation Agreements not relating
to Stock Awards, which shall be assumed by Purchaser, neither Purchaser nor its Affiliates shall
assume or have any direct or indirect liability of any nature, whether matured or unmatured,
accrued or contingent, due or to become due, or otherwise, to any Transferred Employee (or to any
dependent, survivor, or beneficiary thereof) arising out of or in relation to such Transferred
Employee’s employment with the Seller Parties or their Affiliates or the termination of such
employment, in either case prior to the First Closing, or any other event or circumstance occurring
prior to the First Closing. The Seller Parties or their Affiliates (other than the Subject
Entities) shall retain responsibility for and continue to pay all medical, life insurance,
disability, and other welfare plan expenses and benefits for each Transferred Employee with respect
to claims incurred by such Transferred Employee or his covered dependents prior to the First
Closing Date. For purposes of this Section 5.7(c), a claim is deemed incurred (i) in the
case of medical or dental benefits, when the services that are the subject of the claim are
performed, (ii) in the case of life insurance, when the death occurs, (iii) in the case of workers’
compensation benefits, when the event giving rise to the benefits occurs, and (iv) otherwise, at
the time the Transferred Employee or covered dependent becomes entitled to payment of a benefit
(assuming that all procedural requirements are satisfied and claims applications are properly and
timely completed and submitted). The Seller Parties or their Affiliates (other than the Subject
Entities) shall retain all, and neither Purchaser nor its Affiliates shall assume any, such
liabilities or responsibilities described in this Section 5.7(c) relating to any Business
Employee who does not become a Transferred Employee, regardless of when such liabilities or
responsibilities arise.

(d) Without limiting any provision of this Section 5.7, Purchaser shall take (or cause
to be taken) the following actions with respect to each Transferred Employee under any Plans for
which such employee may become eligible after the First Closing: (i) waiving any limitations
regarding pre existing conditions and eligibility waiting periods under any welfare Plan maintained
by Purchaser or any of its Affiliates on and after the Closing to the extent such pre existing
condition or waiting period did not apply to the Transferred Employee under a comparable Plan
applicable to such Transferred Employee immediately prior to the First Closing and to the extent
permitted under the terms of the applicable Plan, (ii) providing each Transferred Employee with
credit for any co payments and deductibles paid prior to the First Closing for the calendar year in
which the First Closing occurs, in satisfying any applicable deductible or out of pocket
requirements under such welfare Plan, (iii) assuming from the Seller Parties or their Affiliates
the liabilities for accrued sick leave or paid time off to which such Transferred Employee is
entitled as of immediately prior to the First Closing as set forth on Schedule II as of
June 19, 2009 and subject to adjustments thereto by the Sellers Parties (which adjustments shall be
subject to the reasonable approval of Purchaser) at the First Closing only to reflect any such
liability for sick leave or paid time off that shall have accrued, or shall have been used, after
June 19, 2009 through immediately prior to the First Closing; provided, however, that, in the event
that any Transferred Employee terminates their employment with Purchaser or its Affiliate on or
before December 31, 2009, Guarantor shall reimburse Purchaser for any and all amounts actually paid
to or for the benefit of such Transferred Employee with respect to any unused accrued sick leave or
paid time off in an amount not to exceed ten (10) days worth of such leave or time; and (iv) for
all purposes (other than for purposes of benefit accruals under any defined benefit pension plan)
under all Plans applicable to the Transferred Employees, treating all service by the Transferred
Employees with the Sellers or their Affiliates before the First Closing as service with Purchaser
and its Subsidiaries, except to the extent such recognition of service results in a duplication of
benefits.

(e) Prior to the First Closing, Parent shall take all action necessary under Parent’s 401(k)
Savings Plan (the “Parent’s Savings Plan”) to permit each Transferred Employee who is a
participant in the Parent’s Savings Plan to have any portion of an “eligible rollover distribution”
(as defined in Section 402(c)(4) of the Code) transferred in a “direct rollover” (as defined in A 3
of Treasury Regulation § 1.401(a)(31) 1) to a tax qualified defined contribution plan maintained by
Purchaser (the “Purchaser’s Savings Plan”), to the extent such Transferred Employee is then
a participant in Purchaser’s Savings Plan, including a “direct rollover” of any note evidencing a
participant loan under the Parent’s Savings Plan. Any rollover contemplated by this Section
5.7(e) shall be subject to the terms and conditions of Purchaser’s Savings Plan. In addition,
prior to the First Closing, Parent shall take all action necessary under the Parent’s Savings Plan
to cause the account of each Transferred Employee who is a participant in the Parent’s Savings Plan
to be fully vested and nonforfeitable.

(f) As of the First Closing Date, Purchaser shall agree to cause Purchaser’s employee benefit
plans to accept a “spin off” of the flexible spending reimbursement accounts (comprising the health
care spending account plan and dependent care expense account plan) for Transferred Employees from
the applicable Seller’s flexible spending plan and to honor and continue through the end of the
calendar year in which the First Closing Date occurs the elections made by each Transferred
Employee under the applicable Seller’s flexible spending plan in respect of each flexible spending
reimbursement account, to the extent Seller transfers to Purchaser all of the Transferred
Employee’s dependent care expense account or health care spending account balance, in each case
that has been withheld or funded but not distributed to the applicable Transferred Employee as of
the First Closing Date.

(g) Nothing herein is intended to limit the right of Purchaser or its Affiliates to (i)
terminate the employment of any Transferred Employee at any time, (ii) change or modify any Plan or
arrangement at any time and in any manner, or (iii) change or modify the terms or conditions of
employment for any employees. Nothing herein shall be construed (x) to confer on any Person, other
than the parties hereto, their successors, and permitted assigns, any benefit under or right to
enforce the provisions of this Section 5.7, (y) to cause any Person to be a third party beneficiary
of this Agreement, or (z) as an amendment or waiver of any Plan.

(h) Upon the First Closing, Parent shall transfer to Purchaser (or any Affiliate) master
copies of all personnel files relating to Transferred Employees, including without limitation
current and historic payroll information and information relating to flexible spending account
balances and deductible and out of pocket balances for medical benefit plan participants.

(i) The Seller Parties shall provide, or cause to be provided, to each Transferred Employee
(and each such individual’s “qualified beneficiaries” within the meaning of Consolidated Omnibus
Budget Reconciliation Act (“COBRA”)) whose “qualifying event” (within the meaning of COBRA)
occurs on or prior August 31, 2009 with such COBRA continuation coverage as any such individual has
elected or may elect. Purchaser shall provide, or cause to be provided, COBRA continuation
coverage to any Transferred Employee (and each such individual’s qualified beneficiaries) whose
qualifying event occurs after August 31, 2009.

Section 5.8. Public Announcements. Each party’s initial press release with respect to
the execution of this Agreement shall be subject to the prior review of the other. Prior to the
First Closing, neither Purchaser nor any Seller Party nor any of their respective Affiliates shall
issue or cause the dissemination of any press release or other public announcements or statements
with respect to this Agreement or the transactions contemplated hereby without, in the case of any
such release, announcement or statement by Purchaser or any of its Affiliates, the consent of
Parent and, with respect to any such release, announcement or statement by any Seller Party or any
of its Affiliates, the consent of Purchaser, in each such case which consent will not be
unreasonably withheld; provided, that, notwithstanding the foregoing, any party hereto may make any
disclosure with respect to this Agreement or the transactions contemplated hereby to the extent
that such disclosure is required by Law or by any listing agreement with a national securities
exchange or trading market (it being understood that, prior to making any such disclosure, such
party shall use all reasonable efforts to consult the other parties hereto with respect to such
disclosure).

Section 5.9. Credit Support.

(a) Following the First Closing, Purchaser shall use commercially reasonable efforts to cause
itself (or an Affiliate reasonably acceptable to Parent) to be substituted as a guarantor or
obligor, only with respect to periods after the First Closing, under any guarantee (including for
performance under any contract), support agreement, credit agreement, letter of credit or the like
for the benefit of the Subject Entities and their Subsidiaries that are set forth on
Schedule 5.9 and relate to the First Closing Funds and, in furtherance thereof, Purchaser
agrees to indemnify and hold harmless the Seller Parties and their Affiliates from any liability
incurred by the Seller Parties or their Affiliates and arising after the First Closing with respect
to any such guarantee, support agreement, credit agreement, letter of credit or like item.
Following the Second Closing, Purchaser shall use commercially reasonable efforts to cause itself
(or an Affiliate reasonably acceptable to Parent) to be substituted as a guarantor or obligor, only
with respect to periods after the Second Closing, under any guarantee (including for performance
under any contract), support agreement, credit agreement, letter of credit or the like for the
benefit of the Subject Entities and their Subsidiaries that are set forth on Schedule 5.9
and relate to the Acquired Remainder Funds and, in furtherance thereof, Purchaser agrees to
indemnify and hold harmless the Seller Parties and their Affiliates from any liability incurred by
the Seller Parties or their Affiliates and arising after the Second Closing with respect to any
such guarantee, support agreement, credit agreement, letter of credit or like item.

(b) Purchaser acknowledges that the Seller Parties or their Affiliates (other than the Subject
Entities and their Subsidiaries) have entered into the arrangements listed in Schedule 5.9,
pursuant to which (i) guarantees (including of performance under contracts, leases or agreements),
letters of credit or other credit arrangements, including surety and performance bonds, have been
issued by or for the account of the Seller Parties or their Affiliates (other than the Subject
Entities and their Subsidiaries) or (ii) the Seller Parties or their Affiliates (other than the
Subject Entities and their Subsidiaries) are the primary or secondary obligors on debt instruments,
financing or other contracts or agreements, in any case to support or facilitate business
transactions by the Subject Entities and their Subsidiaries. Such arrangements are referred to
herein as the “Credit Support Arrangements.” With respect to such Credit Support
Arrangements: (i) that relate to the First Closing Funds, prior to the First Closing, Purchaser
shall (A) obtain replacement Credit Support Arrangements therefor, (B) repay, or cause the
repayment of, all debt and other obligations to which such Credit Support Arrangements relate (and
cause the cancellation of such Credit Support Arrangements) or (C) arrange for Purchaser or one of
its Affiliates to be substituted as the obligor thereunder; and (ii) that relate to the Acquired
Remainder Funds, prior to the Second Closing, Purchaser shall (A) obtain replacement Credit Support
Arrangements therefor, (B) repay, or cause the repayment of, all debt and other obligations to
which such Credit Support Arrangements relate (and cause the cancellation of such Credit Support
Arrangements) or (C) arrange for Purchaser or one of its Affiliates to be substituted as the
obligor thereunder.

(c) The Sellers shall (and shall cause their Affiliates to) satisfy and perform their
obligations with respect to Ambac Guaranteed Funds 2030 (MMA Financial Ambac Affordable Housing III
A, L.P.) and 2039 (MMA Financial Ambac Affordable Housing V, L.P.) (collectively, the “Ambac
Funds”), including, without limitation the obligations under the letter of credit (including
any replacement or additional letter of credit, the “Ambac Letter of Credit”), and the
parties acknowledge that these obligations shall remain the obligations of the Sellers or their
Affiliates after the First Closing and shall be deemed Excluded Liabilities for all purposes under
this Agreement and the other Transaction Documents. Notwithstanding the foregoing obligations of
the Sellers and their Affiliates to maintain the obligations with respect to the Ambac Letter of
Credit and the Ambac Funds, Purchaser or its Affiliates shall, in connection with its managerial
and operational oversight of the applicable properties within the Ambac Funds, manage the Ambac
Funds after the First Closing in a manner that is consistent in all material respects with the
manner in which Purchaser and its Affiliates manage similar LIHTC Funds comprising the Business.

Section 5.10. Certain Actions. The Seller Parties shall, and shall cause their
respective Affiliates to, use their respective commercially reasonable efforts to consummate, at or
prior to the First Closing, the Restructuring, the Remainder Funds Restructuring, and a Bridge
Resolution.

Section 5.11. Further Assurances; Post Closing Covenants.

(a) From time to time after the First Closing, without additional consideration, each of the
parties hereto will (or, if appropriate, cause its Affiliates to) execute and deliver such further
instruments and take such other action as may be necessary to make effective the transactions
contemplated by this Agreement and the other Transaction Documents. If any party to this Agreement
following the First Closing shall have in its possession any asset or right that under this
Agreement should have been delivered to the other, such party shall promptly deliver such asset or
right to the other.

(b) Following the First Closing, each party will afford the other party and its
Representatives (i) such access as the other party may reasonably request to all books, records and
other data and information relating to the Subject Entities and their Subsidiaries and the LIHTC
Funds; and (ii) the right to make copies and extracts therefrom at the cost of the party requesting
such copies and extracts. Further, each party agrees for a period extending seven years after the
First Closing Date not to destroy or otherwise dispose of any such books, records and other data
unless such party shall first offer in writing to surrender such books, records and other data to
the other party and such other party shall not agree in writing to take possession thereof during
the ten day period after such offer is made.

(c) Following the First Closing, Purchaser shall provide (or cause to be provided) to the
Seller Parties, their Affiliates and their respective Representatives reasonable access to all
personnel, offices, employees and properties of the Subject Entities, the LIHTC Funds and their
respective Affiliates and the books and records and other data and information relating to the
Subject Entities, their Subsidiaries, the LIHTC Funds, the Project Partnerships and their
respective Affiliates for purposes of allowing the Seller Parties and their Affiliates to prepare,
investigate or restate financial statements of the Seller Parties or their Affiliates (including
the LIHTC Funds and the Project Partnerships) at no cost to the Seller Parties or their Affiliates;
provided, however, that the total number of employee hours that Purchaser must commit in connection
with the performance of its obligations under this Section 5.11(c) shall not exceed 4,000
hours in the aggregate and such obligations shall not extend past the date that is 18 months after
the First Closing Date.

Section 5.12. Exclusive Dealings. During the period from the date of this Agreement
through the earlier of the Second Closing and August 31, 2009, or the earlier termination of this
Agreement pursuant to the terms hereof, no Seller Party shall, and the Seller Parties shall cause
their respective Affiliates and Representatives not to, directly or indirectly take any action to
encourage (by way of furnishing information or otherwise), initiate or engage in discussions or
negotiations (whether preliminary or definitive) with, or provide any information to, participate
in or facilitate in any manner any effort or attempt by, or enter into any agreement with, any
Person (other than Purchaser and its Affiliates or Representatives) concerning (each of the
following, an “Acquisition Proposal”): (a) any direct or indirect acquisition of the
equity or other ownership interests of any Subject Entity or LIHTC Fund or any of their respective
Subsidiaries; (b) any direct or indirect merger, share or equity or ownership interest exchange,
sale of a material portion of the assets or similar transaction or any business combination or
change of control of any Subject Entity, LIHTC Fund or any of their respective Subsidiaries or of
any portion of the Business; or (c) otherwise seek to directly or indirectly do any of the
foregoing. The Seller Parties shall, and shall cause their respective Affiliates and
Representatives to, deal exclusively with Purchaser and its Affiliates and Representatives with
respect to the transactions contemplated by this Agreement or any other direct or indirect sale,
transfer or disposition of any portion of the Business or the equity or other ownership interests
in, or the assets and properties of, any Subject Entity, LIHTC Fund or any of their respective
Subsidiaries during the term of this Agreement. Promptly after the execution of this Agreement,
the Seller Parties shall, and shall cause their respective Affiliates and Representatives to, cease
any existing discussions or negotiations, if any, with any Persons (other than Purchaser and its
Affiliates and Representatives) conducted heretofore with respect to any Acquisition Proposal and
request the return or destruction of any confidential information concerning the Business or any
Subject Entity, LIHTC Fund or any of their respective Subsidiaries that has been provided to any
such Person in connection therewith.

Section 5.13. Confidentiality. For a period of two years following the First Closing
Date, the Seller Parties shall, and shall cause their respective Affiliates, directors, managers,
officers, employees, agents, attorneys, accountants, consultants, advisors, financing sources or
other representatives (each a “Seller Representative”) to, maintain in confidence any
information concerning the Subject Entities, the LIHTC Funds and their respective Subsidiaries, the
Assets, the Assumed Liabilities, the Business and their respective operations, and all terms and
conditions of this Agreement or the negotiations relating to this Agreement (the “Confidential
Information”). Such Confidential Information shall not be disclosed or used by the Seller
Parties or a Seller Representative without Purchaser’s prior written consent unless (i) required to
disclose such Confidential Information pursuant to any judicial order or applicable Law or at the
request of any regulatory authority or (ii) such Confidential Information is disclosed in an
action or proceeding brought by a party to this Agreement in pursuit of its rights or in the
exercise of its remedies under this Agreement. If the Seller Parties or a Seller Representative
become legally compelled to disclose any such information or documents, the Seller Party or Seller
Representative, as applicable, shall use commercially reasonable efforts to provide Purchaser with
prompt written notice before such disclosure to enable Purchaser either to seek, at its expense, a
protective order or other appropriate remedy preventing or prohibiting such disclosure or to waive
compliance with the provisions of this Section 5.13 or both.

Section 5.14. Fund Cash Balance Certificate. At the First Closing, Parent shall
deliver to Purchaser a certificate (the “Fund Cash Balance Certificate”), duly executed by
an authorized officer of Parent in form and substance reasonably satisfactory to Purchaser,
(a) certifying the amount of the Fund Cash Balance for each of the LIHTC Funds as of the First
Closing Date, (b) providing a list, by LIHTC Fund, of all outstanding Fund Cash Balances as of the
First Closing Date and the controlling depository account owner, and (c) attaching true, correct
and complete copies of the supporting bank report as of the First Closing Date. At the First
Closing, Parent shall deliver to Purchaser all applicable monthly bank statements, for the six
months preceding the month in which the First Closing occurs and, if available, for the month in
which the First Closing occurs, supporting the Fund Cash Balances for the LIHTC Funds that are
described in the Fund Cash Balance Certificate. In the event that all applicable monthly bank
statements for the month in which the First Closing occurs are not available, and shall have not
been delivered to Purchaser at the First Closing pursuant to the immediately preceding sentence, as
promptly as practicable after such monthly bank statements become available, Parent shall deliver
such monthly bank statements to Purchaser.

Section 5.15. Management Agreement. On, or prior to the First Closing Date, the
Seller Parties shall cause their relevant Subsidiaries to enter into the Management Agreement with
an Affiliate of Purchaser which is reasonably acceptable to Parent.

Section 5.16. Escrow Substitution. Following the Second Closing, in the event that
(i) the Seller Parties exercise their right to substitute the entire amount of one or more Letters
of Credit with cash in accordance with Section 2.4(c) hereof, the Seller Parties will cause
the cash to be deposited into the Collateral Amount Escrow Funds and Purchaser will release the
relevant Letter(s) of Credit upon receipt of confirmation from the Escrow Agent that such deposit
is made; (ii) the Seller Parties exercise their right to substitute cash in the Collateral Amount
Escrow with one or more Letters of Credit in accordance with Section 2.4(b) hereof, upon
Purchaser’s receipt of such Letter(s) of Credit, Purchaser and Parent will execute and deliver to
the Escrow Agent joint instructions to release a corresponding amount of the Collateral Amount
Escrow to Seller Parties; and (iii) the Seller Parties exercise their right to substitute a portion
of one or more Letters of Credit with cash in accordance with Section 2.4(c) hereof, the
Seller Parties will cause the cash to be deposited into the Collateral Amount Escrow and Letter(s)
of Credit for the remaining balance of the Substituted Letter(s) of Credit to be delivered to
Purchaser, and Purchaser will release the relevant Letter(s) of Credit upon receipt of confirmation
from the Escrow Agent that such deposit is made and Purchaser’s receipt of the Letter(s) of Credit
for the remaining balance of the Substituted Letter(s) of Credit.

Section 5.17. Restructuring Transactions. At or prior to the First Closing, the
Seller Parties shall, and shall cause their respective Affiliates, to consummate the Restructuring
and the Remainder Funds Restructuring. At or prior to the Second Closing, the Seller Parties
shall, and shall cause their respective Affiliates, to consummate the Second Closing Restructuring.

Section 5.18. Guarantee. Until the third anniversary of the First Closing Date,
Guarantor hereby unconditionally and irrevocably guarantees any and all obligations of each of the
Seller Parties under, pursuant to or in connection with Section 7.2(g) of this Agreement.

Section 5.19. Special Limited Partner Substitutions.

(a) In the event that, at any time prior to such time that Purchaser shall have directly or
indirectly acquired SLP, the general partner of any Project Partnership in which a First Closing
Fund or Acquired Remainder Fund holds, directly or indirectly, limited partnership interests
breaches the partnership agreement of any such Project Partnership and such breach gives rise to
the right of SLP, as special limited partner in such Project Partnership, to elect a substitute
general partner of such Project Partnership, the Seller Parties shall, promptly (but not more than
two Business Days) after becoming aware of such breach, provide written notice thereof to Purchaser
(which notice shall include a certification by the Seller Parties to Purchaser of the occurrence of
such a breach and the triggering of such right) and, upon receipt of such notice or otherwise
becoming aware of such breach, Purchaser may deliver written instructions to the Seller Parties
directing them to, and upon receipt of such instructions from Purchaser the Seller Parties shall,
cause (including, without limitation, by granting the Purchase or its designee a proxy over the
exercise of such right) SLP, as special limited partner in such Project Partnership, to exercise
such right to elect a substitute general partner to such Project Partnership (which substitute
general partner shall be identified by Purchaser in such notice to the Seller Parties) as soon as
reasonably practicable after receipt by the Seller Parties of such notice from Purchaser.

(b) In the event that Purchaser shall have not directly or indirectly acquired SLP at the
First Closing, from and after the First Closing and until such time as Purchaser shall have
directly or indirectly acquired SLP, any and all funds received by, or on behalf of, SLP as the
special limited partner in a Project Partnership in which a First Closing Fund holds, directly or
indirectly, limited partnership interests shall be directed by the Seller Parties to one or more
accounts designated by Purchaser in writing from time to time. In the event that Purchaser shall
have not directly or indirectly acquired SLP at the Second Closing, from and after the Second
Closing and until such time as Purchaser shall have directly or indirectly acquired SLP, any and
all funds received by, or on behalf of, SLP as the special limited partner in a Project Partnership
in which an Acquired Remainder Fund holds, directly or indirectly, limited partnership interests
shall be directed by the Seller Parties to one or more accounts designated by Purchaser in writing
from time to time.

(c) In the event that, at any time after such time that Purchaser shall have directly or
indirectly acquired SLP, the general partner of any Project Partnership in which a Remainder Fund
(other than any Remainder Fund that becomes an Acquired Remainder Fund) holds, directly or
indirectly, limited partnership interests breaches the partnership agreement of any such Project
Partnership and such breach gives rise to the right of SLP, as special limited partner in such
Project Partnership, to elect a substitute general partner of such Project Partnership, the Seller
Parties may provide written notice thereof to Purchaser (which notice shall include a certification
by the Seller Parties to Purchaser of the occurrence of such a breach and the triggering of such
right) instructing Purchaser to cause SLP, and Purchaser shall thereupon use its commercially
reasonable efforts to cause (including, without limitation, by granting the Seller Parties or their
designee a proxy over the exercise of such right) SLP, as special limited partner in such Project
Partnership, to exercise such right to elect a substitute general partner to such Project
Partnership (which substitute general partner shall be identified by the Seller Parties in such
notice to Purchaser) as soon as reasonably practicable after receipt by Purchaser of such notice
from the Seller Parties.

(d) From and after such time that Purchaser shall have directly or indirectly acquired SLP,
any and all funds received by, or on behalf of, SLP as the special limited partner in a Project
Partnership in which a Remainder Fund that does not become an Acquired Remainder Fund holds,
directly or indirectly, limited partnership interests shall be directed by Purchaser to one or more
accounts designated by the Seller Parties in writing from time to time.

Section 5.20. Remainder Fund Put Option.

(a) From and after the Second Closing and until December 31, 2009 (the “Remainder Fund Put
Option Period”), the Seller Parties (or their Affiliates) shall have the option (the
“Remainder Fund Put Option”) to require Purchaser (or its designee) to purchase therefrom
each Remainder Fund (a “Put Option Fund”) that shall have not become an Acquired Remainder
Fund. The purchase price which Purchaser (or its designee) shall pay for the Fund Interests of
each Put Option Fund shall be an amount equal to the Remainder Fund Valuation Amount with respect
to such Put Option Fund, which amount shall bear interest for the benefit of the Seller Parties (or
their Affiliates) at an annual rate equal to 8%, calculated based on a 365 day year from the First
Closing Date until the date of the closing (the “Put Option Closing”) of the purchase and
sale of the Fund Interests of such Put Option Fund pursuant to this Section 5.20 (such
Remainder Fund Valuation Amount with respect to such Put Option Fund, together with such interest
thereon, the “Put Option Purchase Price”).

(b) The Seller Parties (or their Affiliates) shall exercise the Remainder Fund Put Option by
delivering written notice thereof to Purchaser (the “Put Option Notice”) at any time and
from time to time during the Remainder Fund Put Option Period, which Put Option Notice shall set
forth: (i) each Put Option Fund with respect to which such exercise of the Remainder Fund Put
Option shall apply; and (ii) the date, which date shall be not less than 30 nor more than 45 days
after the date on which Purchaser shall have received such Put Option Notice, on which the Put
Option Closing with respect to the Put Option Funds identified in such Put Option Notice shall
occur, provided that the Purchaser shall have the right to accelerate the date of such Put Option
Closing to any date that is sooner than the date set forth in such Put Option Notice.

(c) The respective obligations of each party to effect any Put Option Closing are subject to
the satisfaction or waiver at or prior to such Put Option Closing of the following conditions:

(i) all material consents and approvals of any Governmental Authority, including any consents
and approvals of HUD or other applicable state housing agency, required for the consummation of
such Put Option Closing as contemplated by this Agreement shall have been obtained; and

(ii) no Law, order, decree or injunction shall have been enacted, entered, promulgated or
enforced by a Governmental Authority that prohibits or renders illegal the consummation of such Put
Option Closing as contemplated by this Agreement.

(d) The obligations of Purchaser (or its designee) to effect any Put Option Closing and to pay
the Put Option Purchase Price are further subject to the satisfaction or waiver at or prior to such
Put Option Closing of the following conditions:

(i) any and all third party and Governmental Authority consents and approvals required to
directly or indirectly transfer to Purchaser (or its designee) the Fund Interests of the Put Option
Funds to be directly or indirectly acquired by Purchaser (or its designee) at such Put Option
Closing shall have been obtained and shall be in full force and effect; and

(ii) the Seller Parties shall have delivered or caused to be delivered the following:

	 	(A)	 	evidence reasonably acceptable to Purchaser of
the transfer to Purchaser (or its designee) of good and valid title to
the Fund Interests of the Put Option Funds to be directly or indirectly
acquired by Purchaser (or its designee) at such Put Option Closing; and

	 	(B)	 	a certification, dated as of the date of such
Put Option Closing, in the form contained in Treasury Regulations
Section 1.1445-2(b)(2)(iv) to the effect that no transferor of the Fund
Interests of the Put Option Funds to be directly or indirectly acquired
by Purchaser (or its designee) at such Put Option Closing is a “foreign
person.”

(e) The obligations of the Seller Parties (or their Affiliates) to effect any Put Option
Closing are further subject to the satisfaction or waiver at or prior to such Put Option Closing of
the following condition:

(i) Purchaser shall have delivered or caused to be delivered to the Seller Parties (or their
Affiliates) the Put Option Purchase Price with respect to each Put Option Fund to be directly or
indirectly acquired by Purchaser at such Put Option Closing.

(f) From and after each Put Option Closing, each Put Option Fund the Fund Interests of which
shall have been directly or indirectly acquired by Purchaser (or its designee) at such Put Option
Closing shall be deemed to be an Acquired Remainder Fund, and such Fund Interests shall be deemed
to be Second Closing Interests, for all purposes under this Agreement (other than
Section 2.2(b)) and the other Transaction Documents.

(g) From and after January 1, 2010, any Remainder Funds which do not become Acquired Remainder
Funds will be managed by Purchaser (or its designee) pursuant to the Management Agreement in a
manner similar to the Merrill Lynch guaranteed funds described therein with an annual, market-based
fee to be determined by good faith negotiation based on the particular funds to be managed.

ARTICLE VI.

CONDITIONS

Section 6.1. Conditions to Each Party’s Obligations to Effect the First Closing. The
respective obligations of each party to effect the First Closing are subject to the satisfaction or
waiver at or prior to the First Closing of the following conditions:

(a) All material consents and approvals of any Governmental Authority, including any consents
and approvals of HUD or other applicable state housing agency, required for the consummation of the
First Closing as contemplated by this Agreement shall have been obtained.

(b) The Lease Resolution shall have occurred and shall be in full force and effect.

(c) No Law, order, decree or injunction shall have been enacted, entered, promulgated or
enforced by a Governmental Authority that prohibits or renders illegal the consummation of the
transactions contemplated by this Agreement.

Section 6.2. Conditions to Purchaser’s Obligations to Effect the First Closing. The
obligations of Purchaser to effect the First Closing are further subject to the satisfaction or
waiver at or prior to the First Closing of the following conditions:

(a) Each of the representations and warranties made by the Seller Parties in this Agreement
disregarding all materiality and Business Material Adverse Effect qualifications, shall be true and
correct as of the date of this Agreement and at, and as of, the First Closing Date as if made on
the First Closing Date (except that representations and warranties that expressly speak as of a
specified date or time need only be true and correct as of such specified date or time), except
where the failure of such representations and warranties to be so true and correct would not,
individually or in the aggregate have, or reasonably be likely to have, a Business Material Adverse
Effect.

(b) The Seller Parties shall have performed and complied in all material respects with the
agreements, covenants and obligations required by this Agreement to be so performed or complied
with by the Seller Parties at or before the First Closing.

(c) The Seller Parties shall have delivered to Purchaser a certificate, dated the First
Closing Date and duly executed by an authorized officer of each Seller Party, in form and substance
reasonably satisfactory to Purchaser, in which the Seller Parties shall have jointly and severally
certified to Purchaser that the conditions specified in Section 6.2(a), (b),
(e), and (f) have been satisfied.

(d) The Sellers shall have provided to Purchaser a certification, dated as of the First
Closing Date, in the form contained in Treasury Regulations Section 1.1445-2(b)(2)(iv) to the
effect that no Seller is a “foreign person.”

(e) Since the date of this Agreement, no Business Material Adverse Effect shall have occurred.

(f) The Restructuring shall have been consummated and shall be in full force and effect.

(g) The Remainder Funds Restructuring shall have been consummated and shall be in full force
and effect.

(h) The Seller Parties shall have delivered or caused to be delivered the documents,
agreements, instruments and other items required to be delivered pursuant to Section 2.11
in accordance with the terms thereof.

Section 6.3. Conditions to the Seller Parties’ Obligations to Effect the First
Closing. The obligations of the Seller Parties to effect the First Closing are further subject
to the satisfaction or waiver at or prior to the First Closing of the following conditions:

(a) Each of the representations and warranties made by Purchaser in this Agreement
disregarding materiality and Purchaser Material Adverse Effect qualifications, shall be true and
correct as of the date of this Agreement and at, and as of, the First Closing Date as if made on
the First Closing Date (except that representations and warranties that expressly speak as of a
specified date or time need only be true and correct as of such specified date or time), except
where the failure of such representations and warranties to be so true and correct would not,
individually or in the aggregate have, or reasonably be likely to have, a Purchaser Material
Adverse Effect.

(b) Purchaser shall have performed and complied with, in all material respects, the
agreements, covenants and obligations required by this Agreement to be so performed or complied
with by Purchaser at or before the First Closing.

(c) Purchaser shall have delivered to the Seller Parties a certificate, dated the First
Closing Date and duly executed by an authorized officer of Purchaser, in form and substance
reasonably satisfactory to Parent, in which Purchaser shall have certified to each of the Seller
Parties that the conditions specified in Section 6.3(a) and (b) have been
satisfied.

(d) Purchaser shall have delivered or caused to be delivered the documents, agreements,
instruments and other items required to be delivered pursuant to Section 2.9 in accordance
with the terms thereof.

Section 6.4. Conditions to Each Party’s Obligations to Effect the Second Closing. The
respective obligations of each party to effect the Second Closing are subject to the satisfaction
or waiver at or prior to the Second Closing of the following conditions:

(a) All material consents and approvals of any Governmental Authority, including any consents
and approvals of HUD or other applicable state housing agency, required for the consummation of the
Second Closing as contemplated by this Agreement shall have been obtained.

(b) No Law, order, decree or injunction shall have been enacted, entered, promulgated or
enforced by a Governmental Authority that prohibits or renders illegal the consummation of the
transactions contemplated by this Agreement.

Section 6.5. Conditions to Purchaser’s Obligations to Effect the Second Closing. The
obligations of Purchaser to effect the Second Closing are further subject to the satisfaction or
waiver at or prior to the Second Closing of the following conditions:

(a) The Second Closing Restructuring shall have been consummated and shall be in full force
and effect.

(b) The Sellers shall have provided to Purchaser a certification, dated as of the Second
Closing Date, in the form contained in Treasury Regulations Section 1.1445-2(b)(2)(iv) to the
effect that no Seller is a “foreign person.”

(c) The Seller Parties shall have delivered or caused to be delivered the documents,
agreements, instruments and other items required to be delivered pursuant to Section 2.12
in accordance with the terms thereof.

Section 6.6. Conditions to the Seller Parties’ Obligations to Effect the Second
Closing. The obligations of the Seller Parties to effect the Second Closing are further
subject to the satisfaction or waiver at or prior to the Second Closing of the following condition:

(a) Purchaser shall have delivered or caused to be delivered the documents, agreements,
instruments and other items required to be delivered pursuant to Section 2.12 in accordance
with the terms thereof.

ARTICLE VII.

SURVIVAL; INDEMNIFICATION

Section 7.1. Survival of Representations, Warranties, Covenants and Agreements.

(a) The representations and warranties of the Sellers and Purchaser contained in this
Agreement will survive the First Closing: (i) indefinitely, with respect to the representations
and warranties contained in Sections 3.1, 3.2(a), 3.3, 3.4,
4.1 and 4.2(a) (collectively, the “Fundamental Representations”); (ii)
until 60 days following the expiration of all applicable statutes of limitation, with respect to
the representations and warranties contained in Section 3.7; and (iii) until the 15 month
anniversary of the First Closing Date, in the case of all other representations and warranties;
provided, however, that any representation or warranty that would otherwise terminate in accordance
with clause (ii) or (iii) above will continue to survive if a notice of a claim shall have been
given under this Article VII on or prior to such date on which it otherwise would
terminate, until the related claim for indemnification has been satisfied or otherwise resolved as
provided in this Article VII. Except as otherwise expressly provided in this Agreement,
each covenant hereunder shall survive until it is fully performed.

(b) For purposes of this Agreement, the Seller Parties’ representations and warranties shall
be deemed to include the Seller Disclosure Schedule.

Section 7.2. Indemnification by the Seller Parties. The Seller Parties shall, jointly
and severally, indemnify and hold harmless Purchaser, its Affiliates (including, from and after the
First Closing, the Subject Entities and their respective Subsidiaries that are directly or
indirectly acquired by Purchaser (or its designee) at the First Closing and, from and after the
Second Closing, the other Subject Entities and their respective Subsidiaries) and their respective
successors and their respective shareholders, officers (or individuals in similar positions),
directors (or individuals in similar positions), employees and agents (collectively, the
“Purchaser Indemnified Parties”) from and against any and all Losses that may be asserted
against, or paid, suffered or incurred by any Purchaser Indemnified Party that arise out of or
result from or relate to:

(a) any inaccuracy in or any breach of any representation and warranty made by the Seller
Parties (or any of them) in this Agreement;

(b) any failure by the Seller Parties (or any of them) to perform or fulfill any of their
covenants or agreements under this Agreement;

(c) any failure of the Seller Parties or any of their Affiliates to satisfy or perform their
obligations with respect to the Ambac Funds or the Ambac Letter of Credit, including, without
limitation, any failure of the Seller Parties or any of their Affiliates to maintain and keep
outstanding the Ambac Letter of Credit during any period that any of them is required to do so
pursuant to the terms of such obligations of the Seller Parties or any of their Affiliates with
respect to the Ambac Funds;

(d) any Excluded Asset or Excluded Liability;

(e) Taxes of any Subject Entity or (to the extent allocable or attributable to any of the
Seller Parties’ direct or indirect economic interest therein which is transferred pursuant to this
Agreement) any of their respective Subsidiaries, in each case for all Pre-Closing Tax Periods, it
being understood for the avoidance of doubt that the sole Losses for which the Seller Parties shall
have an indemnification obligation under this Section 7.2(e) shall be the Taxes described
in this Section 7.2(e) and any reasonable costs or expenses incurred in connection with an
audit or other administrative or judicial proceeding with respect to such Taxes;

(f) Taxes imposed on any Subject Entity or (to the extent allocable or attributable to any of
the Seller Parties’ direct or indirect economic interest therein which is transferred pursuant to
this Agreement) any of their respective Subsidiaries resulting by reason of the several liability
of any Subject Entity or any of their respective Subsidiaries pursuant to Treasury Regulations §
1.1502 6 or any analogous state, local or foreign Law or by reason of any Subject Entity or any of
their respective Subsidiaries having been a member of any consolidated, combined or unitary group
on or prior to the First Closing Date, it being understood for the avoidance of doubt that the sole
Losses for which the Seller Parties shall have an indemnification obligation under this Section
7.2(f) shall be the Taxes described in this Section 7.2(f) and any reasonable costs or
expenses incurred in connection with an audit or other administrative or judicial proceeding with
respect to such Taxes; or

(g) any liability or obligation on the part of MMA Special Limited Partner, Inc. to indemnify
any other Person pursuant to any agreement set forth on Schedule 7.2(g).

Section 7.3. Indemnification by Purchaser. Purchaser shall indemnify and hold
harmless the Seller Parties and their Affiliates and their respective successors and their
respective shareholders, officers (or individuals in similar positions), directors (or individuals
in similar positions), employees and agents (collectively, the “Seller Indemnified
Parties”) from and against any and all Losses that may be asserted against, or paid, suffered
or incurred by any Seller Indemnified Party that arise out of or result from or relating to (a) the
inaccuracy of any representation or warranty made by Purchaser in this Agreement, or (b) any
failure by Purchaser to perform or fulfill any of its covenants or agreements required to be
performed by Purchaser under this Agreement.

Section 7.4. Limitations. No amounts of indemnity shall be payable as a result of any
claim arising under Section 7.2(a) (excluding claims thereunder in respect of any
inaccuracy or breach of any Fundamental Representation for which no Deductible shall apply), unless
and until the Purchaser Indemnified Parties have suffered, incurred, sustained or become subject to
Losses under Section 7.2(a) in excess of $250,000 in the aggregate (the
“Deductible”), in which case the Purchaser Indemnified Parties may bring a claim for all
Losses in excess of such Deductible; provided, that the amount of Losses with respect to such claim
exceeds $10,000 (any claim involving Losses equal to or less than such amount being referred to as
a “De Minimis Claim”) and that no such De Minimis Claims shall be taken in to account in
aggregating Losses under this Agreement to satisfy the Deductible. The maximum liability of the
Seller Parties under Section 7.2(a) (excluding claims thereunder in respect of any
inaccuracy or breach of any Fundamental Representation for which no maximum liability amount shall
apply) shall not exceed $2,500,000 in the aggregate (the “Indemnity Amount”). No amounts
of indemnity shall be payable as a result of any claim arising under Section 7.3(a)
(excluding claims thereunder in respect of any inaccuracy or breach of any Fundamental
Representation, for which no Deductible amount shall apply), unless and until the Seller
Indemnified Parties have suffered, incurred, sustained or become subject to Losses referred to
under Section 7.3(a) in excess of the Deductible in the aggregate (other than De Minimis
Claims), in which case the Seller Indemnified Parties may bring a claim for all Losses in excess of
such Deductible and the maximum liability of Purchaser under Section 7.3 shall not exceed
the Indemnity Amount.

Section 7.5. Method of Asserting Claims. All claims for indemnification by any
Indemnified Party under this Article VII shall be asserted and resolved as follows:

(a) If an Indemnified Party intends to seek indemnification under this Article VII, it
shall promptly notify the Indemnifying Party in writing of such claim. The failure to provide such
notice will not affect any rights hereunder except to the extent the Indemnifying Party is
materially prejudiced thereby.

(b) If such claim involves a claim by a third party against the Indemnified Party, the
Indemnifying Party may, within ten days after receipt of such notice and upon notice to the
Indemnified Party, assume, with counsel reasonably satisfactory to the Indemnified Party, at the
sole cost and expense of the Indemnifying Party, the settlement or defense thereof (in which case
any Loss associated therewith shall be the sole responsibility of the Indemnifying Party);
provided, that the Indemnified Party may participate in such settlement or defense through counsel
chosen by it at its sole expense. If the Indemnified Party determines in good faith that
representation by the Indemnifying Party’s counsel of both the Indemnifying Party and the
Indemnified Party may present such counsel with a conflict of interest, then the Indemnifying Party
shall pay the reasonable fees and expenses of the Indemnified Party’s counsel. Notwithstanding the
foregoing, (i) the Indemnified Party may take over the control of the defense or settlement of a
third party claim at any time if it irrevocably waives its right to indemnity under this
Article VII with respect to such claim and (ii) the Indemnifying Party may not, without the
consent of the Indemnified Party, settle or compromise any action or consent to the entry of any
judgment, such consent not to be unreasonably withheld. The Indemnified Party shall not pay or
settle any such claim without the Indemnifying Party’s consent, such consent not to be unreasonably
withheld.

Section 7.6. Additional Matters Relating to Indemnification.

(a) The parties agree that any indemnification payments made with respect to this Agreement
shall be treated for all Tax purposes as an adjustment to the First Closing Purchase Price and the
Second Closing Purchase Price (as applicable).

(b) Any Losses shall be computed net of any insurance, tax or other benefits actually
recognized by the Indemnified Party.

(c) In determining whether any Losses have been sustained or incurred, and in calculating the
amount of such Losses, due to any inaccuracy or breach of any representation, warranty or covenant
of the Seller Parties or Purchaser set forth in this Agreement, the terms “material,” “in all
material respects,” “Business Material Adverse Effect”, “Purchaser Material Adverse Effect” and
words of similar import are to be disregarded and given no effect.

(d) Each Indemnified Party shall use its commercially reasonable efforts to mitigate its
Losses hereunder.

Section 7.7. Exclusive Remedy, etc. This Article VII shall be the exclusive
remedy following the First Closing for any matters in connection with this Agreement and the
transactions contemplated hereby, other than any remedies for fraud.

ARTICLE VIII.

TERMINATION OF AGREEMENT

Section 8.1. Termination. This Agreement may be terminated, and the transactions
contemplated by this Agreement may be abandoned, at any time prior to the First Closing by:

(a) the mutual written agreement of Parent and Purchaser;

(b) either Parent or Purchaser if any court of competent jurisdiction or other competent
Governmental Authority shall have enacted or issued a Law, order, decree or injunction or taken any
other action permanently restraining, enjoining or otherwise prohibiting or rendering illegal all
or any material portion of the transactions contemplated by this Agreement and such Law, order,
decree or injunction or other action shall have become final and nonappealable;

(c) Purchaser, in the event (i) of a material breach of this Agreement by any Seller Party
that is not cured within 30 days following notification thereof by Purchaser to Parent or (ii) the
satisfaction of any condition set forth in Section 6.1 or 6.2 becomes incapable,
provided, that the failure of such condition to be satisfied is not caused by a breach of this
Agreement by Purchaser;

(d) Parent, in the event (i) of a material breach of this Agreement by Purchaser that is not
cured within 30 days following notification thereof by Parent to Purchaser or (ii) the satisfaction
of any condition set forth in Section 6.1 or 6.3 becomes incapable; provided, that
the failure of such condition to be satisfied is not caused by a breach of this Agreement by any
Seller Party;

(e) Purchaser, if a Bankruptcy Event shall have occurred;

(f) Parent, if all of the conditions set forth in Section 6.1 and 6.2 shall
have been satisfied or waived and Purchaser shall have failed for any reason to consummate the
First Closing within three Business Days after the date on which such conditions shall have been so
satisfied or waived (provided, that such conditions remain satisfied or waived on such third
Business Day);

(g) Parent, if the First Closing shall not have occurred on or before July 17, 2009, unless
the failure to consummate the First Closing is due to the failure to act by any of the Seller
Parties, provided that, in the event that the conditions set forth in Sections 6.1(a) and
6.1(b) shall have not been satisfied on or before July 17, 2009, Parent shall not have the
right to terminate this Agreement pursuant to this Section 8.1(g) until after August 14,
2009, unless the failure to consummate the First Closing on or before such date is due to the
failure to act by any of the Seller Parties; or

(h) Purchaser, if the First Closing shall not have occurred on or before August 14, 2009,
unless the failure to consummate the First Closing is due to the failure to act by Purchaser,
provided that, in the event that the conditions set forth in Sections 6.1(a) and
6.1(b) shall have not been satisfied on or before August 14, 2009, Purchaser shall not have
the right to terminate this Agreement pursuant to this Section 8.1(h) until after August
31, 2009, unless the failure to consummate the First Closing on or before such date is due to the
failure to act by Purchaser.

Section 8.2. Effect of Termination. If this Agreement is terminated pursuant to
Section 8.1, this Agreement will forthwith become null and void, and have no further force
or effect, without any liability on the part of any party hereto or its Affiliates, directors,
officers or stockholders; provided, that (a) the provisions of this Section 8.2 and
Article IX hereof shall survive any such termination and (b) nothing contained in this
Section 8.2 shall relieve any party from liability for any breach of this Agreement
occurring prior to any such termination.

Section 8.3. Termination Option. Without limiting the provisions of Section
8.1 or 8.2, Purchaser shall have the option to terminate this Agreement (the
“Termination Option”) at any time from and after the date of this Agreement until the
earlier of (i) the day that is ten Business Days after the date on which all of the conditions set
forth in Section 6.1 and 6.2 shall have been satisfied or waived (other than such
conditions that, by their nature, are to be satisfied at the First Closing); (ii) the day on which
any Seller Party receives written notice from Purchaser that a Business Material Adverse Effect has
occurred; or (iii) the day Purchaser or any of its Affiliates commences an action or files a claim
in any court in relation to any action, suit or proceeding arising out of or in connection with
this Agreement or any other Transaction Document, or the transactions contemplated hereby or
thereby (the “Option Period”). The Termination Option will become null and void, and have
no further force or effect, and Purchaser’s right to terminate this Agreement pursuant to the
Termination Option will cease, immediately upon the expiration of the Option Period. From and
after the expiration of the Option Period, unless prior thereto Purchaser shall have terminated
this Agreement in accordance with Section 8.1 or (subject to the payment of the Option
Exercise Fee as provided below in this Section 8.3) this Section 8.3, in the event
that all of the conditions set forth in Section 6.1 and 6.2 shall have been
satisfied or waived and Purchaser shall have failed to effect the First Closing, (a) the sole and
exclusive remedy available to the Seller Parties and their Affiliates in respect of such failure to
effect the First Closing will be $1,000,000 plus an amount equal to all reasonable and documented
legal fees and expenses of the Seller Parties incurred in connection with any action or claim
brought by Purchaser in any court in relation to any action, suit or proceeding arising out of or
in connection with this Agreement or any other Transaction Document, or the transactions
contemplated hereby or thereby, provided that, for the avoidance of doubt, neither any Seller Party
nor of its Affiliates shall seek, or be entitled in any respect to, punitive, exemplary,
consequential, incidental or special damages, and (b) Purchaser shall no longer be entitled to seek
specific performance of the Seller Parties’ obligations hereunder pursuant to Section 9.10.
For the avoidance of doubt, Purchaser’s right to seek specific performance of the Seller Parties’
obligations under Section 9.10 shall remain unaffected and in full force and effect except
in the limited circumstances set forth in the immediately preceding sentence of this Section
8.3. Purchaser may exercise the Termination Option at any time during the Option Period by
delivering notice in accordance with Section 9.1 to the Seller Parties, and simultaneously
paying to the Seller Parties, by wire transfer of immediately available funds to one or more
accounts specified by Parent in writing (or, if no such written specification is given by Parent to
Purchaser prior to Purchaser’s exercise of the Termination Option, by check payable to Parent), an
amount in cash equal to $1,000,000, without deduction or set off (the “Option Exercise
Fee”), in which case the payment of the Option Exercise Fee shall be the sole and exclusive
remedy available to the Seller Parties and their Affiliates with respect to any termination of this
Agreement pursuant to this Section 8.3 or any breach by Purchaser or any of its Affiliates
under this Agreement or any of the other Transaction Documents or any failure by Purchaser to
effect or consummate any of the transactions contemplated by this Agreement.

ARTICLE IX.

MISCELLANEOUS

Section 9.1. Notices. All notices, requests and other communications under this
Agreement must be in writing and will be deemed to have been duly given upon receipt to the parties
at the following addresses or facsimiles (or at such other address or facsimile for a party as
shall be specified by the notice):

If to the Seller Parties:

Municipal Mortgage & Equity LLC

Pier IV Building

621 East Pratt Street, 3rd Floor

Baltimore, MD 21202

Attn: General Counsel

Facsimile: (410) 727 5387

MMA Equity Corporation

621 E. Pratt St., Ste 300

Baltimore, MD 21202

Attention: General Counsel

Facsimile: (410) 727 5387

MMA Financial TC Corp.

621 E. Pratt St., Ste 300

Baltimore, MD 21202

Attention: General Counsel

Facsimile: (410) 727 5387

With a copy (which shall not constitute notice) to:

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Attention: Brian Hoffmann

Facsimile: (212) 878-8375

If to Purchaser:

JEN I, L.P.

c/o JEN Partners, LLC

551 Madison Avenue

New York, NY 10022

Attention: Reuben S. Leibowitz

Facsimile: (212) 755-3066

With a copy (which shall not constitute notice) to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention:

Steven A. Seidman

A. Mark Getachew

Facsimile: (212) 728 8111

Section 9.2. Entire Agreement. This Agreement, the Exhibits and Schedules hereto
(including the Seller Disclosure Schedule), the other Transaction Documents and the Confidentiality
Agreement dated as of July 9, 2008 between JEN Partners, LLC (an Affiliate of Purchaser) and Parent
constitute the entire agreement among the parties hereto, and supersede all prior and
contemporaneous discussions and agreements, both written and oral, among such parties, with respect
to the subject matter hereof.

Section 9.3. Expenses. Except as otherwise expressly provided in this Agreement
(including as provided in Sections 5.3(d), 8.2, and 8.3), whether or not
the transactions contemplated by this Agreement are consummated, each party will pay its own costs
and expenses incurred in connection with the negotiation, execution, delivery, consummation and
performance of this Agreement and the other Transaction Documents and the transactions contemplated
by this Agreement and the other Transaction Documents.

Section 9.4. Waiver. Any term or condition of this Agreement may be waived at any
time by the party that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a written instrument duly executed by or on behalf of the party waiving such
term or condition. No waiver by any party of any term or condition of this Agreement, in any one
or more instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion.

Section 9.5. Amendment. This Agreement may be amended, supplemented or modified only
by a written instrument duly executed by or on behalf of Parent and Purchaser.

Section 9.6. No Third Party Beneficiary. The terms and provisions of this Agreement
are intended solely for the benefit of each party hereto and their respective successors or
permitted assigns, and it is not the intention of the parties to confer third party beneficiary
rights upon any other Person.

Section 9.7. Assignment; Binding Effect. Neither this Agreement nor any right,
interest or obligation under this Agreement may be assigned by any party to this Agreement by
operation of law or otherwise without the prior written consent of each other party to this
Agreement; provided, however, that Purchaser may, without the consent of any other party hereto,
assign (in whole or in part) this Agreement and any and all of its rights and obligations hereunder
to one or more of its Affiliates; provided, further, that no such assignment shall relieve
Purchaser of its obligations under this Agreement. Any attempted or purported assignment of this
Agreement or any rights or obligations hereunder other than in accordance with this Section
9.7 shall be void. Subject to the foregoing, this Agreement is binding upon, inures to the
benefit of and is enforceable by the parties to this Agreement and their respective successors and
assigns.

Section 9.8. CONSENT TO JURISDICTION AND SERVICE OF PROCESS. EACH PARTY HEREBY
IRREVOCABLY SUBMITS TO THE NON EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK OR ANY COURT OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW
YORK IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING IN CONNECTION WITH THIS AGREEMENT AND THE
OTHER TRANSACTION DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND AGREES THAT
ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE BROUGHT ONLY IN SUCH COURT (AND WAIVES ANY OBJECTION
BASED ON FORUM NON CONVENIENS OR ANY OTHER OBJECTION TO VENUE THEREIN); PROVIDED, HOWEVER, THAT
SUCH CONSENT TO JURISDICTION IS SOLELY FOR THE PURPOSE REFERRED TO IN THIS SECTION 9.8 AND
SHALL NOT BE DEEMED TO BE A GENERAL SUBMISSION TO THE JURISDICTION OF SAID COURTS OR IN THE STATE
OF NEW YORK OTHER THAN FOR SUCH PURPOSE. Any and all process may be served in any action, suit or
proceeding arising in connection with this Agreement or the other Transaction Documents by
complying with the provisions of Section 9.1. Such service of process shall have the same
effect as if the party being served were a resident in the State of New York and had been lawfully
served with such process in such jurisdiction. The parties hereby waive all claims of error by
reason of such service. Nothing herein shall affect the right of any party to service process in
any other manner permitted by law or to commence legal proceedings or otherwise proceed against the
other in any other jurisdiction to enforce judgments or rulings of the aforementioned courts.

Section 9.9. Waivers.

(a) EXCEPT IN THE CASE OF A WILLFUL BREACH, THE PARTIES TO THIS AGREEMENT EXPRESSLY WAIVE AND
FOREGO ANY RIGHT TO RECOVER PUNITIVE, EXEMPLARY, LOST PROFITS, CONSEQUENTIAL OR SIMILAR DAMAGES IN
ANY ARBITRATION, LAWSUIT, LITIGATION OR PROCEEDING ARISING OUT OF OR RESULTING FROM ANY CONTROVERSY
OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

(b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR CLAIM WHICH MAY ARISE OUT OF OR
RELATE TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

(c) EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (ii) IT UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF SUCH WAIVERS, (iii) IT MAKES SUCH WAIVERS VOLUNTARILY AND (iv) IT HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 9.9.

Section 9.10. Specific Performance. The Seller Parties hereby agree that if any of
the provisions of this Agreement were not performed by any Seller Party in accordance with their
specific terms or were otherwise breached by any Seller Party, Purchaser would suffer irreparable
damages, no adequate remedy for such damages at Law would exist and such damages would be difficult
to determine, and that Purchaser shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at Law or equity.

Section 9.11. Invalid Provisions. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future applicable Law, and if the rights or
obligations of any party hereto under this Agreement will not be materially and adversely affected
thereby, (a) such provision will be fully severable, (b) this Agreement will be construed and
enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof,
(c) the remaining provisions of this Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (d) in
lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a
part of this Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.

Section 9.12. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD FOR THE CONFLICTS OF LAWS
PRINCIPLES THEREOF.

Section 9.13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed to be an original copy of this Agreement and all of
which, when taken together, will be deemed to constitute one and the same agreement.

Section 9.14. Disclosure Schedules. The disclosure of any item or matter in the
Seller Disclosure Schedule shall not be deemed to constitute an admission by the Seller Parties
that such item or matter is material for purposes of this Agreement.

[Signatures begin on the next page]

IN WITNESS WHEREOF, the parties have duly executed this Purchase and Sale Agreement as
of the date first above written.

JEN I, L.P.

By: JEN Partners, LLC,

its general partner

By: /s/ Ruben S. Leibowitz

Name: Reuben S. Leibowitz

Title: Managing Member

MUNICIPAL MORTGAGE & EQUITY, LLC

By: /s/ Michael L. Falcone

Name: Michael L. Falcone

Title: President and CEO

MMA EQUITY CORPORATION

By: /s/ Michael L. Falcone

Name: Michael L. Falcone

Title: President and CEO

MMA FINANCIAL TC CORP.

By: /s/ Michael L. Falcone

Name: Michael L. Falcone

Title: President and CEO

MUNIMAE TEI HOLDINGS LLC

By: /s/ Michael L. Falcone

Name: Michael L. Falcone

Title: President and CEO

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