Document:

exv10w15

Exhibit 10.15

Confidential Treatment Requested. Confidential portions of this document have been
redacted

and have been separately filed with the Commission.

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT COVERING
SUCH SECURITIES OR IF THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT.

WARRANT

of

GREEN DOT CORPORATION

			
	Number W-041
	 	March 3, 2009

     THIS CERTIFIES THAT, for value received, PayPal, Inc., a Delaware corporation (as used in the
context of this Warrant as the holder of this Warrant, the “Holder”) is entitled to
purchase up to the Maximum Number (as defined below) of shares (the “Shares”) of Common
Stock (the “Common Stock”) of Green Dot Corporation, a Delaware corporation (the
“Company”). Capitalized terms used herein and not defined shall have the meanings set forth
in that certain Master Services Agreement between the Company and PayPal, Inc., a Delaware
corporation (as used in the context of this Warrant other than as the Holder, “PayPal”)
dated as of February 18, 2009 (the “Master Services Agreement”). As used herein the
“Maximum Number” shall mean 4,283,456, subject to adjustment as set forth herein and
subject to the terms and conditions set forth herein; provided, however, that the Maximum Number
shall be increased by 50,000 shares on September 2, 2009 if the GE Warrant (as defined below) has
not been repurchased by the Company on or before September 1, 2009.

     1. Exercise of Warrant. The terms and conditions upon which this Warrant may be
exercised, and the Shares may be purchased, are as follows:

          1.1 Term.

               (a) Subject to the terms hereof, this Warrant shall be exercisable in whole or in part with
respect to any Exercisable Shares (as defined below) only, at any time prior to the Expiration
Date. The term “Expiration Date” means the earliest to occur of the following: (i) 11:59
p.m., Pacific Time, on March 3, 2017; provided, that if no Shares have vested by March 3, 2014,
such expiration date shall be March 3, 2014; (ii) the date of a Standard Termination (as defined
below); (iii) upon determination of Cash Value (as defined below) pursuant to and in compliance
with Section 2.3 of this Warrant following an event that gives rise to Holder’s right to a Cash
Value Payout; (iv) upon the consummation of an Underwater Cash Transaction (as defined in Section 2.1);

 

 

(v) upon the consummation of an eBay Change of Control Transaction (as defined below); (vii)
upon the consummation of a Vested In-the-Money Change of Control Transaction (as defined below); or
(vii) the date upon which PayPal’s obligations under Section 6.3(a) of the Master Services
Agreement are released with respect to a Competing Service in accordance with Section 6.3(b) of the
Master Services Agreement as a result of its [***] (an
“[***] Opt-Out”). As used herein, a “Standard Termination” shall mean a
termination of the Master Services Agreement other than a termination by (i) PayPal pursuant to
Sections 4.4(b), 10.6, 10.8(b) (only to the extent such breach by the Company results in or is
reasonably expected to result in material harm to PayPal), 10.8(c), 10.8(d), 10.8(e), 10.8(f),
10.8(g) or 10.10 of the Master Services Agreement or (ii) the Company pursuant to Sections 10.2,
10.4 (to the extent the termination is not mutual, the governmental action, law, rule or regulation
does not directly or indirectly prohibit either party’s performance under the Master Services
Agreement and the Company’s termination is exclusively based on [***]), 10.7(b) (only
to the extent the breach by PayPal is not willful and does not result in or is not reasonably
expected to result in material harm to the Company) or 15.7 of the Master Services Agreement. As
used herein, an “eBay Change of Control Transaction” shall mean a Change of Control
Transaction (as defined below) where either eBay Inc. (“eBay”) or a Subsidiary thereof is
the other party to the Change of Control Transaction. As used herein, a “Vested In-The-Money
Change of Control Transaction” shall mean a Change of Control Transaction which is consummated
following the full and complete vesting of the Tranche A Shares pursuant to Section 1.3 in which
the consideration per share paid to the holders of the Company’s Common Stock in such Change of
Control Transaction is in excess of the Exercise Price. As used herein, a “Change of Control
Transaction” shall mean (i) a merger, consolidation or reorganization of the Company with or
into any other entity or entities in which the holders of the Company’s capital stock prior to the
consummation of such event hold less than 50% of the voting power of the surviving entity (or, if
the surviving entity is a wholly owned Subsidiary, its parent) immediately after such
consolidation, merger or reorganization; (ii) any transaction or series of related transactions to
which the Company is a party in which a majority of the Company’s outstanding voting power is
transferred (not including any new issuances of securities of the Company in a bona fide financing
transaction in exchange for cash or evidence of indebtedness); or (iii) a sale or other disposition
of all or substantially all of the assets of the Company. As used herein, a “Subsidiary”
shall mean an entity which a person directly or indirectly owns or purports to own, beneficially or
of record: (i) an amount of voting securities of or other interest in such entity that is
sufficient to enable such person to elect at least a majority of the members of such entity’s board of
directors or other governing body; or (ii) at least 50% of the outstanding equity, voting or financial
interests in such entity.

               (b) Notwithstanding anything to the contrary set forth herein, in the event that acquisition
of any Shares by Holder upon exercise of this Warrant shall require the receipt of any federal,
state , local or foreign governmental order, permission, consent, approval or authorization (a
“Permit”) or the expiration of any waiting periods applicable to the acquisition of the
Shares under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR
Act”) or any other applicable statute, rule, regulation, order or restriction of any domestic
or foreign government or any instrumentality or agency thereof, then the Expiration Date and all
rights of Holder hereunder

 

			
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to exercise this Warrant shall be extended until the (10th) business day
following receipt of all such applicable Permits and expiration of all such applicable waiting
periods; provided that the Holder shall have provided written notice prior to the Expiration Date
as defined in clause (a) above (without giving effect to the extension set forth in this clause
(b)) of Holder’s intent to exercise the Warrant and acquire all or part of the Exercisable Shares
subject to the receipt of such Permits or the expiration of such waiting periods. Holder and the
Company shall use best efforts to file, as soon as practicable after notice by Holder of its intent
to exercise this Warrant in whole or in part and acquire any Exercisable Shares, all notices,
reports and other documents required to be filed by such party with any governmental body with
respect to such exercise and acquisition. Without limiting the generality of the foregoing, the
Company and Holder shall, promptly after such notice, prepare and file any notifications,
applications or filings required under any Permit including the notifications required under the
HSR Act or under any other applicable statute, rule, regulation, order or restriction of any
domestic or foreign government or any instrumentality or agency thereof that is designed to
prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint
of trade in connection with such exercise and acquisition. The Company and Holder shall use best
efforts to respond as promptly as practicable to: (i) any inquiries or requests (including any
“second request”) received from the Federal Trade Commission or the U.S. Department of Justice for
additional information or documentation; and (ii) any inquiries or requests received from any state
attorney general, foreign antitrust authority or other governmental body in connection with
antitrust or related matters or in connection with any Permit. Holder shall pay the documented
filing fees and reasonable expenses associated with any filings pursuant to the HSR Act or any
Permit related to any such exercise and acquisition.

          1.2 Exercise Price. This Warrant shall have a per share exercise price equal to $23.70
per Share (subject to adjustment as set forth herein) (the “Exercise Price”); provided,
however, that the Exercise Price shall be decreased to $23.43 per Share on September 2, 2009 if the
GE Warrant has not been repurchased by the Company on or before September 1, 2009. The Company
agrees to provide written notice to Holder promptly after the repurchase of the GE Warrant and upon
such notice, the foregoing adjustment to the Exercise Price and the increase in the Maximum Number
set forth in the preamble hereto shall have no further force and effect.

          1.3 Vesting.

               (a) 80% of the Shares (“Tranche A Shares”) subject to this Warrant will vest at such
time, if any, prior to the earlier of (i) the Expiration Date (without giving effect to any
extension of the Expiration Date pursuant to Section 1.1(b) above); (ii) any termination of the
Master Services Agreement; or (iii) March 3, 2014 as: (A) the Annualized Aggregate Funding Amount (as
defined below) has at any time equaled or exceeded $[***]; OR (B) the Company
generates $[***] or more in PayPal-Generated EBITDA (as determined below) in any
consecutive [***] period. As used herein, “Annualized Aggregate Funding Amount”
shall mean an amount equal to the product of (i) the aggregate Funding Amount of all Funding
Transactions completed within the most recently completed two fiscal quarters; and (ii) 2;
provided, however, that for purposes of calculating the

 

			
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foregoing, the portion of the Funding Amount of any individual MoneyPak in excess of $[***]
shall be disregarded. “PayPal-Generated EBITDA” for any period shall be determined by adjusting PayPal Net Income for
such period (as determined below) for the following (for such period):

	 	(i)	 	add back Revenue Pro Rata Percentage (as
defined below) of income tax expense (and subtract Revenue Pro Rata
Percentage of income tax benefit)
	 
	 	(ii)	 	add back Revenue Pro Rata Percentage of
interest expense (and subtract Revenue Pro Rata Percentage of interest
income)
	 
	 	(iii)	 	add back Revenue Pro Rata Percentage of
depreciation and/or amortization of assets
	 
	 	(iv)	 	add back Revenue Pro Rata Percentage of
stock-based compensation expense
	 
	 	(v)	 	add back Revenue Pro Rata Percentage of any
increase in expenses or reduction to revenues due to warrants,
convertible preferred shares, convertible debt or other issuances of
equity other than this Warrant;
	 
	 	(vi)	 	add back any increase in expenses or reduction
to revenues due to this Warrant;
	 
	 	(vii)	 	add back Revenue Pro Rata Percentage of
provision for losses related to transactions in excess of a
cardholder’s balance
	 
	 	(viii)	 	add back Revenue Pro Rata Percentage of deductions from revenues for
fees assessed on overdrawn accounts
	 
	 	(ix)	 	add back Revenue Pro Rata Percentage of
amortization of deferred expenses (to the extent such expenses are not
included in cost of revenues used to determine PayPal Gross Margin for
such period); and
	 
	 	(x)	 	add back Revenue Pro Rata Percentage of any
impairment of assets.
	 

			
	 “PayPal Net Income” for any period shall
be determined by determining PayPal Gross Margin for such period and
(i) subtracting the Revenue Pro Rata Percentage of all items of loss or
expense for such period (other than cost of revenues) which would be
required to be reflected on the Company’s consolidated statement of
income for such period as determined in accordance with United States
generally accepted accounting principles applied on a consistent
basis (“GAAP”); and (ii) adding back all items of income (other
than revenues) which would be required to be reflected on the
Company’s consolidated statement of income for such period as
determined in accordance with GAAP. “PayPal Gross Margin” for any
period shall be determined by subtracting the Company’s cost of
revenues, which would be required to be reflected on the Company’s
consolidated statement of income for such period as determined in
accordance with GAAP, for all revenues associated with the Joint
Service, the Master Services Agreement and any other commercial
transaction entered 

 

			
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	into after the Effective Date pursuant to a
written agreement entered into by or between, eBay, PayPal or their
respective affiliates, on the one hand, and the Company and its
affiliates, on the other hand (a “Subsequent Arrangement”), which
would be required to be reflected on the Company’s consolidated
statement of income for such period as determined in accordance with
GAAP, but excluding any interchange revenues earned by the Company
except as provided for in a Subsequent Arrangement (“PayPal
Revenue”) from PayPal Revenue. “Revenue Pro Rata
Percentage” shall mean the percentage determined by multiplying
(i) the quotient obtained by dividing PayPal Revenue for a period by
the Company’s total consolidated revenues for such period which would
be required to be reflected on the Company’s consolidated statement
of income for such period as determined in accordance with GAAP by
(ii) 100.

               (b) 20% of the Shares (“Tranche B Shares”) subject to this Warrant will vest at such
time, if any, prior to the earlier of (i) the Expiration Date (without giving effect to any
extension of the Expiration Date pursuant to Section 1.1(b) above); (ii) any termination of the
Master Services Agreement; or (iii) March 3, 2014 that: (A) the Tranche A Shares become fully
vested pursuant to Section 1.3(a) above; AND (B) [***] promotes and designates
[***] (a “Direct Cash Funding Method”), provided that the foregoing condition
may be satisfied notwithstanding eBay’s or an applicable eBay affiliate’s acceptance or promotion
of the funding of payments by eBay Users on eBay.com or an applicable eBay affiliate’s website
through (1) [***]; (2) [***]; or (3) [***], in each case
notwithstanding that such accounts and/or cards may, in turn, have been funded or purchased with
Cash (each of (1), (2), and (3) above an “Accepted Alternative Funding Method”);
AND (C) in addition to the MoneyPak and Accepted Alternative Funding Methods, no more than
[***] additional vendors (the “Other Vendors”) offer a Direct Cash Funding Method, subject
to the following requirements: (1) [***]; (2) [***]; (3) [***];
and (4) [***].

               (c) Notwithstanding the foregoing, in the event of an eBay Change of Control Transaction prior
to the vesting of the Tranche A Shares, immediately prior to the consummation of such transaction
(i) a portion of the Tranche A Shares equal to the product obtained by multiplying (A) the quotient
calculated by dividing (1) the Annualized Aggregate Funding Amount by (2) $[***] (such
quotient, the “Pro Rata Fraction”), by (B) the Tranche A Shares, will automatically vest
and become exercisable by Holder; and (ii) if all the requirements for the vesting

 

			
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of Tranche B Shares as set forth in Section 1.3(b) above have been satisfied, a portion of the Tranche B Shares
equal to the product obtained by multiplying the Pro Rata Fraction by the Tranche B Shares will
automatically vest and become exercisable by Holder.

               (d) Shares which have vested in accordance with the foregoing provisions shall be referred to
herein as “Exercisable Shares.”

          1.4 Method of Exercise.

               (a) The exercise of this Warrant shall be effected by (i) the surrender of this Warrant,
together with a duly executed copy of the form of subscription attached hereto as Schedule A, to
the Company at its principal offices and (ii) the delivery of the Exercise Price by check or bank
draft payable to the Company’s order or by wire transfer of same day funds to the Company’s account
for the number of Shares for which the Warrant is being exercised. The exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business on the day on
which this Warrant shall have been surrendered to the Company as provided herein or at such later
date as may be specified in the executed form of subscription, and at such time, the person or
persons in whose name or names any certificate or certificates for Shares issuable upon such
exercise, as provided herein, shall be deemed to have become the holder or holders of record
thereof.

               (b) In addition to and without limiting the rights of the Holder under the terms of this
Warrant, the Holder shall have the right to convert this Warrant into Shares (the “Conversion
Right”) through the net exercise procedure described below by the surrender of this Warrant,
together with a duly executed copy of the form of subscription attached hereto as Schedule
A, to the Company at its principal offices. Upon exercise of the Conversion Right with respect
to the number of Shares that are exercised pursuant to this Warrant, the Company shall deliver to
the Holder (without payment by the Holder of the Exercise Price or any cash or other consideration)
that number of Shares equal to the quotient obtained by dividing (i) the Fair Market Value (as
defined below) of the aggregate number of Shares exercised pursuant to this Warrant on the date of
conversion, which value shall be equal to (A) the aggregate Fair Market Value of such Shares less
(B) the aggregate Exercise Price of such Shares by (ii) the Fair Market Value of one Share. Fair
Market Value shall be determined by the Company’s Board of Directors in good faith; provided,
however, that (i) that in the event that this Warrant is exercised pursuant to this Section 1.4(b)
in connection with the Company’s initial public offering of its Common Stock pursuant to a
registration statement under the Securities Act of 1933, as amended (or any successor statute) (an
“IPO”), the fair market value per share shall be the per share offering price to the public
of a share of the Company’s Common Stock in such IPO; (ii) where there otherwise exists a public
market for the Company’s Common Stock at the time of such exercise, the Fair Market Value shall be
the average of the closing bid and asked prices per share of the Company’s Common Stock quoted in
the Over-The-Counter Market Summary or the last reported sale price of the Common Stock or the
closing price quoted on any NASDAQ market or on any exchange on which the Common Stock is listed,
whichever is applicable, for the five (5) trading days prior to the date of determination of Fair
Market Value (or such shorter period of time during which the Company’s Common Stock was traded
over-the-counter or on such market or exchange).

 

 

               (c) Subject to the receipt of any applicable Permit and expiration of any waiting
periods applicable to the acquisition of the Shares under the HSR Act or any other applicable
statute, rule, regulation, order or restriction of any domestic or foreign government or any
instrumentality or agency thereof, as promptly as practicable on or after the exercise of this
Warrant (and in any event within five business days thereafter) the Company shall issue and deliver
to the person or persons entitled to receive the same a certificate for the number of shares
issuable upon such exercise and, if this Warrant has not been fully exercised or converted and has
not expired, a new Warrant representing the Shares not so acquired or converted, provided, subject
to the receipt of any such Permit and expiration of such waiting periods, the person in whose name
any certificate or certificates for Shares are to be issued upon exercise of this Warrant shall be
deemed to have become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of
such certificate or certificates. No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the
Holder would otherwise be entitled, the Company shall make a cash payment equal to the Fair Market
Value of a share of Common Stock less the Exercise Price, multiplied by such fraction. All Shares
(including fractions) issuable upon exercise of this Warrant shall be aggregated for purposes of
determining whether the exercise would result in the issuance of any fractional share.

     2.Cash Value Payout.

          2.1 Company Option Upon a Change of Control. Notwithstanding anything to the contrary
set forth herein, in the event the Company enters into a definitive agreement with respect to a
Change of Control Transaction (other than an eBay Change of Control Transaction), the Company shall
have the option, conditioned upon (i) closing of the Change of Control Transaction; and (ii)
payment of the Cash Value Payout, if any, (as defined below) in cash or wire of immediately
available funds to Holder at the later of the closing of such Change of Control Transaction or
within five (5) days following the determination of the Cash Value in accordance with Section 2.3,
to pay (or the Company’s successor in such Change of Control Transaction shall pay) Holder an
amount (the “Cash Value Payout”) equal to the Cash Value, if any (as defined below), of
this Warrant as of (and giving effect to) such Change of Control Transaction; provided, however,
this provision shall not apply (and this Warrant shall terminate with no payment required from the
Company to the Holder) in the event the Change of Control Transaction is an all-cash transaction
(which shall include a transaction in which there is a cash payment at the closing and additional
cash consideration to be paid post-closing) and the consideration per share to be paid to the holders of the Company’s
Common Stock in the Change of Control Transaction is less than the Exercise Price (an
“Underwater Cash Transaction”). To exercise the option set forth in this Section 2.1, the
Company shall provide written notice to the Holder prior to the consummation of such Change of
Control. If no such notice is provided, Company’s right to exercise the option provided pursuant to
this Section 2.1 shall terminate and be of no further force or effect upon the consummation of such
Change of Control.

          2.2 Termination of Master Services Agreement. Notwithstanding anything to the contrary
set forth herein, in the event the Master Services Agreement is terminated (other than pursuant to
a Standard Termination) and the Tranche A Shares have not become fully vested, the Holder shall be
entitled to a Cash Value Payout equal to the Cash Value of this Warrant, if any, as of

 

 

the date of such termination which shall be paid in cash or wire of immediately available funds to Holder
within five (5) days following the determination of the Cash Value in accordance with Section 2.3;
provided; however, that if the payment of the Cash Value Payout (after a determination of the Cash
Value has been made in accordance with Section 2.3 below) would result in a violation of law or
cause the Company to materially violate any covenant in any agreement with a financial institution
pursuant to which the Company (A) has incurred indebtedness in the original principal amount in
excess of $2,000,000 and (B) with respect to which either (1) there is a contractual prohibition on
prepayment of outstanding principal, (2) the amount of principal outstanding for which there is no
contractual prohibition on prepayment is in excess of $500,000 or (3) the Company would be required
to pay, in addition to the outstanding principal amount plus accrued interest, a payment in excess
of $500,000 to prepay any outstanding principal or accrued interest (“Loan Covenant”), such
payment shall be delayed until the earlier of (i) the date upon which payment of the Cash Value
Payout no longer results in a violation of law or causes the Company to materially violate any Loan
Covenant, as applicable; (ii) a Change of Control Transaction; (iii) an IPO; or (iv) the date four
(4) years following the date of determination of the Cash Value in connection with such termination
(a “Payment Delay”); provided, further, that if such Payment Delay occurs, during such time
period between the determination of the Cash Value and the actual payment of the Cash Value Payout,
interest shall accrue on the principal amount of Cash Value at an annual rate of [***]
(as defined below) [***] percent ([***]%). As used herein, [***]
shall mean [***]. Notwithstanding anything to the contrary set forth herein, if such
Cash Value Payout is subject to a Payment Delay, the Holder shall be entitled to assign or
otherwise transfer the right to receive the Cash Value Payout at its sole discretion. Holder shall
provide prior written notice to the Company of any such assignment or transfer, including evidence
of such assignment or transfer promptly thereafter.

          2.3 Determination of Cash Value. The Cash Value shall equal the fair market value of
this Warrant on the date a Change of Control Transaction is consummated or the Master Services
Agreement is terminated, as applicable pursuant to Section 2.1 or 2.2 (the “Cash Value”).
In order to determine the Cash Value, the Company and Holder shall, within ten (10) days of either
the Company’s notice to the Holder of its election to exercise the option set forth in Section 2.1
or the termination date of the Master Services Agreement as contemplated in Section 2.2, as
applicable, reasonably agree upon an independent appraiser (an “Agreed Appraiser”) to
conduct an appraisal of the Cash Value, who shall use best efforts to complete such appraisal
within 45 days following its selection. Such appraiser’s determination of the Cash Value shall be
binding upon the Company and the Holder. If the Company and the Holder are unable to agree on the
selection of an independent appraiser within such ten (10) day period, the Company and the Holder
shall each select an independent appraiser. The two selected independent appraisers shall then
choose a third independent appraiser. All three independent appraisers shall then conduct
appraisals to determine the Cash Value, and shall use best efforts to complete such appraisals
within 45 days following the selection of the third independent appraiser. The Cash Value shall be
the average of the two such appraisal values

 

			
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that are closest to one another and such determination
of Cash Value shall be binding upon the Company and the Holder. Each of Holder and the Company
shall pay 50% of all fees and expenses associated with any such appraisals; provided, however, that
if the Master Services Agreement is terminated pursuant to Section 2.2, the parties concur on an
Agreed Appraiser, and the Cash Value is determined to be equal to or less than [***]
dollars ($[***]), Holder shall pay 100% of all fees and expenses of the appraisal conducted
by the Agreed Appraiser. The appraisal of the Cash Value shall take into consideration the per
share consideration in the proposed Change of Control Transaction to be received by the Company
relative to the Exercise Price, Holder’s proximity to achieving the vesting thresholds set forth in
Section 1.3 hereof and the likelihood of Holder achieving such vesting thresholds in the future.
The appraisal of the Cash Value shall not take into account the termination of Holder’s right to
exercise this Warrant pursuant to Section 2.4.

          2.4 Termination of Exercise Rights. Upon the determination of Cash Value pursuant to
and in accordance with this Section 2.3 the Holder’s right to exercise this Warrant and purchase
the Shares shall immediately terminate (provided, however, for avoidance of doubt, that nothing in
this Section 2.4 shall be deemed to terminate Holder’s rights to receive the Cash Value Payout
pursuant to this Warrant).

     3. Adjustments to Exercise Price. The number of and kind of securities purchasable
upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to
time as follows:

          3.1 Subdivisions, Combinations and Other Issuances. If the Company shall at any time
prior to the expiration of this Warrant subdivide its outstanding shares of Common Stock, by
split-up or otherwise, or combine its outstanding shares of Common Stock, or issue additional
shares of its Common Stock as a dividend, the number of Shares issuable on the exercise of this
Warrant shall forthwith be proportionately increased in the case of a subdivision or stock
dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall
also be made to the Exercise Price payable per Share, but the aggregate Exercise Price payable for
the total number of Shares purchasable under this Warrant (as adjusted) shall remain the same. Any
adjustment under this Section 3.1 shall become effective at the close of business on the date the
subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that
no record date is fixed, upon the making of such dividend.

          3.2 Reclassification, Reorganization and Consolidation. Subject to Section 1.1(a) and
Section 2 hereof, in case of any Change of Control Transaction, reclassification, capital
reorganization, or change in the capital stock of the Company (other than as a result of a
subdivision, combination, or stock dividend provided for in Section 3.1 above), then the Company
shall make appropriate provision so that the holder of this Warrant shall have the right at any
time prior to the expiration of this Warrant to purchase, at a total price equal to that payable
upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and
property receivable in connection with such Change of Control Transaction, reclassification,
reorganization, or change by a

 

			
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holder of the same number of Shares as were issuable pursuant to
this Warrant (without regard to the vesting of such Shares but without limiting any requirement
otherwise hereunder to vest in such shares thereafter prior to exercise) immediately prior to such
Change of Control Transaction, reclassification, reorganization, or change. In any such case
appropriate provisions shall be made with respect to the rights and interest of the holder of this
Warrant so that the provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and appropriate
adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate
purchase price shall remain the same.

          3.3 Notice of Adjustments and Record Dates. The Company shall promptly notify the
Holder in writing of each adjustment or readjustment of the Exercise Price hereunder and the number
or kind of securities purchasable upon exercise of the Warrant. Such notice shall state the
adjustment or readjustment and show in reasonable detail the facts on which that adjustment or
readjustment is based.

          3.4 No Impairment. The Company shall not avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder by the Company, but shall at
all times in good faith assist in the carrying out of all the provisions of this Warrant. Without
limiting the generality of the foregoing, the Company (a) shall at all times reserve and keep
available, free from preemptive rights, a number of its authorized shares of Common Stock, which
shall be sufficient to permit the exercise of this Warrant and (b) shall take all such action as
may be necessary or appropriate in order that all shares of Common Stock as may be issued pursuant
to the exercise of this Warrant shall, upon issuance, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the issue thereof. If at
any time during the term of this Warrant, the number of authorized but unissued shares of the
Company’s Common Stock shall not be sufficient to permit exercise of this Warrant, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purposes.

     4. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Holder as follows:

          4.1 Organization, Good Standing and Qualification. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. The Company has the requisite corporate power to own and operate its properties and
assets and to carry on its business as now conducted. The Company is duly qualified and is
authorized to do business and is in good standing as a foreign corporation in all jurisdictions in
which the nature of its activities and of its properties (both owned and leased) makes such
qualification necessary, except for those jurisdictions in which failure to do so would not have a
material adverse effect on the Company or its business. The Company has all requisite corporate
power to issue this Warrant and to carry out and perform its obligations under this Warrant.

          4.2 Authorization. All corporate action on the part of the Company, its directors and
its stockholders necessary for the authorization, execution, issuance and delivery of this Warrants
and the reservation of the Shares issuable upon exercise of the Warrants has been taken. This

 

 

Warrant, when executed, issued and delivered by the Company, shall constitute a valid and binding
obligation of the Company enforceable in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency, and the relief of debtors. The Shares, when issued
in compliance with the provisions of this Warrant will be validly issued, fully paid and
nonassessable, and will be free of any liens or encumbrances; provided, however, that the Shares
may be subject to restrictions on transfer under state and/or federal securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed.

          4.3 Compliance. Except for any Permits or any approvals that may be required under the
HSR Act, no governmental orders, permissions, consents, approvals or authorizations are required to
be obtained and no registrations or declarations are required to be filed in connection with the
execution, issuance and delivery of this Warrant or the issuance of the Shares, except such as have
been duly and validly obtained or filed, or with respect to any filings that may be made after the
issuance of this Warrant, as will be filed in a timely manner. The execution, issuance, delivery,
and performance of and compliance with this Warrant, and the consummation of the transactions
contemplated hereby, will not, with or without the passage of time or giving of notice, result in
any violation or default of any term of the Company’s charter documents, or of any provision of any
mortgage, indenture, contract, agreement, instrument or contract to which it is party or by which
it is bound or of any judgment, decree, order or writ, or result in the creation of any mortgage,
pledge, lien, encumbrance or charge upon any of the properties or assets of the Company or the
suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization
or approval applicable to the Company, its business or operations or any of its assets or
properties.

          4.4 Capitalization. The authorized capital stock of the Company consists of 50,000,000
shares of Common Stock, par value $0.001, 11,765,139 shares of which are issued and outstanding,
and 25,553,267 shares of Preferred Stock, par value $0.001, 6,519,575 shares of which are
designated Series A Preferred Stock, 6,481,272 of which are issued and outstanding, 3,197,667
shares of which are designated Series B Preferred Stock, 3,176,719 of which are issued and
outstanding, 10,113,638 shares of which are designated Series C Preferred Stock, 9,938,812 of which
are issued and outstanding, 4,540,569 shares of which are designated Series C-1 Preferred Stock,
4,239,718 of which are issued and outstanding, and 1,181,818 shares of which are designated Series
C-2 Preferred Stock, all of which are issued and outstanding. Each share of the Company’s Preferred
Stock is convertible into one share of the Company’s Common Stock. The Company also has reserved an
aggregate of 9,943,134 shares of the Company’s Common Stock for issuance to
employees and consultants pursuant to the Company’s existing stock option and equity incentive
plans, under which (i) 4,132,568 shares have been issued and are reflected in the currently
outstanding Common Stock (as a result of exercises), (ii) options to purchase 5,500,278 shares are
presently outstanding and (iii) 267,023 shares remain available for future grant. All issued and
outstanding shares of the Company’s capital stock have been duly authorized and validly issued, are
fully paid and nonassessable and have been issued in compliance with all applicable federal and
state securities laws. Other than a warrant held by Gold Hill Venture Lending 03, LP for 283,786
shares of Series C-1 Preferred Stock and a warrant held by GE Capital Equity Investments, Inc. for
500,000 shares of common stock (the “GE Warrant”) and other than as set forth above or in
the Investors’ Rights Agreement between the Company and the holders of Preferred Stock, there are
no other outstanding rights, options, warrants, preemptive rights, rights of first refusal, or
similar rights for the

 

 

purchase or acquisition from the Company of any securities of the Company
nor are there any commitments to issue or execute any such rights, options, warrants, preemptive
rights or rights of first refusal. Other than the repurchase right with respect to the GE Warrant
(which the Company intends to exercise prior to September 1, 2009), there are no outstanding rights
or obligations of the Company to repurchase or redeem any of its securities. The respective rights,
preferences, privileges, and restrictions of the Company’s Preferred Stock and the Company’s Common
Stock are as stated in the Company’s Certificate of Incorporation.

          4.5 Offering. Assuming the accuracy of the representations and warranties of the
Holder contained in Section 10.1 hereof, the offer, issue, and sale of this Warrant and the Shares
issuable upon exercise of this Warrant are and will be exempt from the registration and prospectus
delivery requirements of the Securities Act of 1933, as amended (the “Securities Act”), and
have been registered or qualified (or are exempt from registration and qualification) under the
registration, permit, or qualification requirements of all applicable state securities laws.

     5. Replacement of the Warrant. On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form to the Company or, in the case of any such mutilation, on
surrender and cancellation of the Warrant, the Company shall execute and deliver to the Holder, in
lieu thereof, a new Warrant of like tenor and denomination.

     6. No Rights or Liability as a Stockholder. This Warrant does not entitle the Holder
hereof to any voting rights or other rights as a stockholder of the Company. No provisions hereof,
in the absence of affirmative action by the Holder to purchase or acquire the Shares pursuant to
the terms of this Warrant, and no enumeration herein of the rights or privileges of the Holder,
shall give rise to any liability of the Holder as a stockholder of the Company.

     7. Information Rights; Registration Rights.

          7.1 Financial Statements. Upon vesting of the Warrant in accordance with Section 1.3
hereof, provided that the Holder agrees to maintain the confidentiality of the following
information, the Company shall furnish to Holder (i) within forty-five (45) days after the end of
the first, second and third fiscal quarters of the Company an unaudited consolidated statement of
income of the Company for such fiscal quarter and an unaudited consolidated balance sheet of the
Company as of the end of such fiscal quarter, all prepared in accordance with GAAP, consistently
applied and (ii) within one hundred twenty (120) days after the end of each fiscal year of the
Company, an audited consolidated statement of income of the Company for such fiscal year and an
audited consolidated balance sheet of the Company as of the end of such fiscal year, all prepared
in accordance with GAAP, consistently applied, and accompanied by a report and opinion thereon by
the Company’s independent public accountants.

          7.2 Registration Rights. The Holder shall become a party to, and have registration
rights as set forth in, the Sixth Amended and Restated Registration Rights Agreement dated as of
December 19, 2008, as amended from time to time (the “Registration Rights Agreement”)
pursuant to an amendment to the amendment of such agreement entered into and effective as of the
Effective Date.

 

 

          7.3 Report on PayPal-Generated EBITDA.

               (a) Upon written request by the Holder (not to exceed once per six month period), the Company
shall provide to Holder, within thirty (30) days of such request, a detailed calculation (the
“EBITDA Report”) of PayPal-Generated EBITDA (including a determination of PayPal Revenues,
PayPal Gross Margin, Revenue Pro Rata Percentage, PayPal Net Income and a breakdown of the
adjustments from PayPal Net Income) specifying the amount of PayPal-Generated EBITDA (and related
adjustments from net income) that the Company has generated in the [***] period prior to
the request of the Holder; provided that if any previously-provided EBITDA Report (as may be
amended pursuant to any audit in accordance with the terms of Section 7.3(b) below) reflects
PayPal-Generated EBITDA in excess of $[***], Holder may thereafter request an EBITDA
Report once per fiscal quarter.

               (b) Upon written request by the Holder (not to exceed once per 12-month period), Holder shall
have the right to have an independent auditor of national standing chosen by Holder (the
“EBITDA Auditor”) audit and review the EBITDA Report (the “Audit”) delivered by the
Company and the underlying data and adjustments provided that such EBITDA Auditor enters into a
non-disclosure agreement as reasonably requested by the Company prior to commencing the Audit which
non-disclosure agreement shall not prevent the EBITDA Auditor from disclosing the results of such
Audit or the EBITDA Auditor’s work papers related to such Audit to Holder. During the conduct of
the Audit, the EBITDA Auditor shall have reasonable access to the Company’s financial records,
personnel, working papers, schedules and calculations used in the preparation of the EBITDA Report,
as reasonably necessary to assess the accuracy of the EBITDA Report. The EBITDA Auditor shall
provide the Company and the Holder its written determination (the “Auditor Determination”)
as to whether any adjustment should be made to the EBITDA Report promptly following completion of
the Audit. If the Company does not dispute any portion of such Auditor Determination or does not
engage a Dispute Auditor (as defined below) prior to the Dispute Termination Date, the Auditor
Determination shall be final, conclusive and binding on the Company
and the Holder and the EBITDA Report shall be amended to reflect such Auditor Determination,
provided, however, that in no event shall the EBITDA Report be amended to decrease the amount of
PayPal-Generated EBITDA reflected on the EBITDA Report originally delivered by the Company. The
Holder and the Company agree to use their best efforts to resolve any disputes arising from the
Auditor Determination. In the event that the Holder and the Company can not resolve any such
dispute within 30 days following the delivery of the Auditor Determination (the “Negotiation
Period”), the Company shall have the right, within 10 days following the completion of such
Negotiation Period to engage an independent auditor of national standing (other than the EBITDA
Auditor) (the “Dispute Auditor”) to audit and review the EBITDA Report (the “Dispute
Audit”) delivered by the Company and the underlying data and adjustments. The Dispute Auditor
shall provide the Company and the Holder its written determination (the “Dispute
Determination”) as to

 

			
	***	 	 Confidential material redacted and filed separately with the Commission

 

 

whether any adjustment should be made to the EBITDA Report promptly
following completion of the Dispute Audit. The average of the amount of PayPal-Generated EBITDA as
determined by the EBITDA Auditor and the Dispute Auditor in the Auditor Determination and Dispute
Determination, as applicable, shall be final, conclusive and binding on the Company and the Holder
and the EBITDA Report shall be amended to reflect such amount; provided, however, that if the
EBITDA Auditor agrees with the Dispute Determination, the amount of PayPal-Generated EBITDA as
determined by the Dispute Auditor in the Dispute Determination shall be final, conclusive and
binding on the Company and the Holder and the EBITDA Report shall be amended to reflect such
amount; provided further, that in no event shall the EBITDA Report be amended to decrease the
amount of PayPal-Generated EBITDA reflected on the EBITDA Report originally delivered by the
Company. The fees and expenses of any Dispute Auditor with respect to any Dispute Audit shall be
paid by the Company. The fees and expenses of the EBITDA Auditor with respect to the Audit shall be
paid by the Holder; provided, however, that if as a result of the procedures set forth in this
Section 7.3(b), the EBITDA Report is amended to increase the amount of PayPal-Generated EBITDA from
the amount reflected on the EBITDA Report originally delivered to the Holder by the Company such
that a vesting of Tranche A Shares occurs (which Shares otherwise would not have vested pursuant to
the EBITDA Report originally delivered by the Company), the fees and expenses of the EBITDA Auditor
with respect to such Audit shall be borne by the Company.

     8. Notices. The Company shall give notice to the Holder if at any time prior to the
expiration or exercise in full of the Warrant, any of the following events shall occur: (i) the
Company shall authorize the payment of any dividend upon shares of Common Stock or authorize the
making of any distribution to all holders of Common Stock; (ii)the Company shall authorize the
issuance to all holders of Common Stock of any additional shares of Common Stock or stock
equivalents or of rights, options or warrants to subscribe for or purchase Common Stock or stock
equivalents or of any other subscription rights, options or warrants; (iii) a dissolution,
liquidation or winding up of the Company shall be proposed; (iv) a capital reorganization or
reclassification of the Common Stock (other than a subdivision or combination of the outstanding
Common Stock); or (v) a Change of Control Transaction. Such giving of notice shall be initiated at
least 10 business days prior to the date fixed as a record date or effective date or the date of
closing of the Company’s stock transfer books for the determination of the stockholders entitled to
such dividend, distribution or subscription rights, or for the determination of the stockholders
entitled to vote on such proposed Change of Control Transaction, reorganization, reclassification,
dissolution, or liquidation. Such notice shall specify such record date or the date of closing the
stock transfer books, as the case may be.

     9. Repurchase Rights. In the event the Holder’s right to exercise this Warrant expires
pursuant to Section 1.1(a) due to: (i) a Standard Termination (other than a Standard Termination by
either party pursuant to Section 10.1 of the Master Services Agreement), or (ii) an Exclusivity
Opt-Out (each a “Repurchase Termination”), the Company shall have the right (which right
shall be assignable by the Company without the consent of Holder), but not the obligation, to
repurchase, all or any portion of the Shares previously issued to Holder upon exercise of this
Warrant by delivery to the Holder of: (i) written notice (the “Repurchase Notice”) of its exercise
of the repurchase rights set forth in this Section 9 within sixty (60) days following such
Repurchase Termination accompanied by (ii) the aggregate Repurchase Price (as defined below) for
the Shares being repurchased by the Company in cash or by wire in immediately available funds. The
“Repurchase Price” per Share

 

 

pursuant to such repurchase shall equal the [***]
plus [***] percent ([***]%) [***] upon exercise of this Warrant. The Company’s
repurchase rights hereunder shall lapse and be of no further force or effect upon the earlier of:
(i) two (2) years from the vesting of any Tranche A Shares; (ii) sixty (60) days following a
Repurchase Termination; (iii) the effective date of a registration statement pursuant to the
Securities Act relating to an IPO; (iv) the consummation of a Change of Control in which the
consideration paid to the stockholders of the Company consists of cash, securities of class that
are publicly traded or a combination of the foregoing (each of the events described in clause (iii)
above and this clause (iv) a “Liquidity Event;” (v) the termination of the Master Services
Agreement other than pursuant to a Standard Termination; (vi) the termination of the Master
Services Agreement pursuant to Section 10.1 of the Master Services Agreement; or (vii) March 3,
2014. Upon receipt of the Repurchase Notice and aggregate Repurchase Price pursuant to and in
compliance with this Section 9, the Holder shall assign the Shares being repurchased in a form and
substance reasonably acceptable to the Company. The repurchase rights set forth herein shall in no
way restrict or limit Holder’s right to transfer, in compliance with Section 10.2, any Shares
acquired upon exercise of this Warrant prior to its receipt of a valid Repurchase Notice pursuant
to and in compliance with this Section 9; provided that any transfer of such Shares shall be
subject to, and the transferee will agree to be bound by, the repurchase rights set forth herein.
In the event of the declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, a stock split, a recapitalization or a similar
transaction affecting the Company’s outstanding securities without receipt of consideration, any
new, substituted or additional securities or other property (including money paid other than as an
ordinary cash dividend) which are by reason of such transaction distributed with respect to the
Shares issued under this Warrant, shall immediately be subject to the right of repurchase set forth
in this Section 9. Appropriate adjustments to reflect the distribution of such securities or
property shall be made to the Repurchase Price per Share to be paid upon the exercise of the
repurchase rights in order to reflect any such transaction.

     10. Miscellaneous.

          10.1 Compliance with Securities Laws. The Holder of this Warrant, by acceptance
hereof, acknowledges that (i) it is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D under the Securities Act; (ii) it has knowledge and experience in financial and
business matters such that it is capable of evaluating the merits and risks of acquiring this Warrant
and the Shares issuable hereunder; (iii) it is acquiring this Warrant and any Shares to be issued
upon exercise hereof solely for its own account, not as a nominee or agent, and not with a view to,
or for resale in connection with, any distribution thereof, and that it will not offer, sell or
otherwise dispose of this Warrant or any Shares to be issued upon exercise hereof or conversion
thereof except under circumstances that will not result in a violation of the Securities Act or any
applicable state securities laws; (iv) it understands that no public market now exists for this
Warrant, or for the Shares to be issued upon exercise thereof, and that the Company has made no
assurances that a public market will ever exist for this Warrant or any Shares so issued; (v) it
has had an opportunity to discuss the tax consequences of its acquisition of this Warrant with its
own tax advisor, that it is relying solely on

 

			
	*** 	 	Confidential material redacted and filed separately with the Commission

 

 

such advisors and not on any statements or representations of the Company or any of the
Company’s agents with respect to such tax consequences, and that it understands that it, and not
the Company, shall be responsible for its own tax liability that may arise as a result of its
acquisition or exercise of this Warrant; and (vi) the Holder either has a preexisting personal or
business relationship with the Company, its officers or its directors or, by reason of its business
or financial experience, or the business or financial experience of its professional advisors
(being unaffiliated with and not compensated by the Company or any affiliate or selling agent of
the Company) can reasonably be assumed to have the capacity to protect its interests in connection
with its acquisition or exercise of the Warrant.

          10.2 Transfer of Warrant. This Warrant may not be assigned, sold, pledged or otherwise
transferred by Holder without the prior written consent of the Company, not to be unreasonably
withheld, provided, however, that the Holder may, upon written notice to the Company and without
the consent of the Company: (i) assign or otherwise transfer this Warrant to its successor (by
merger, consolidation or otherwise) or to a purchaser of all or substantially all of its assets;
(ii) assign or otherwise transfer this Warrant to any parent or Subsidiary of Holder, or prior to
any Spin-Out Event (as defined below), eBay, PayPal or any parent or Subsidiary of eBay or PayPal
(each, a “Related Entity”); provided that any such transferee pursuant to this clause (ii)
shall agree to transfer or assign this Warrant to a Related Entity prior to any event occurring
prior to a Spin-Out Event that would cause it to no longer be a Related Entity; or (iii) assign or
otherwise transfer its right to acquire (A) the Tranche A Shares issuable pursuant to this Warrant
to PayPal or any parent or Subsidiary of PayPal; and (B) the Tranche B shares issuable pursuant to
this Warrant to eBay or any parent or Subsidiary of eBay, in each case upon a Spin-Out Event (as
defined below) (each of (i), (ii) and (iii), an “Exempt Warrant Transfer”). Any transfers
of this Warrant and the Shares issued upon exercise hereof shall be made in compliance with
applicable securities laws and, if requested by the Company, the Holder shall provide, at the
Holder’s expense, either (i) a written opinion addressed to the Company of legal counsel who shall
be, and whose legal opinion shall be, reasonably satisfactory to the Company, to the effect that
the proposed transfer of the securities may be effected without registration under the Securities
Act, or (ii) a “no action” letter from the Securities and Exchange Commission (the
“Commission”) to the effect that the transfer of such securities without registration will
not result in a recommendation by the staff of the Commission that action be taken with respect
thereto, whereupon the Holder shall be entitled to transfer such securities in accordance with the
terms of the notice delivered by the holder to the Company. Notwithstanding anything to the
contrary set forth herein, no opinion of counsel or no-action letter from the Commission shall be
required with respect to any transfer of this Warrant or any Shares issued upon exercise of this
Warrant by the Holder if (i) there is then in effect a registration statement under the Securities
Act covering such proposed disposition and such disposition is made in accordance with such
registration statement; (ii) such disposition is in compliance with Rule 144 promulgated under the
Securities Act (so long as the Company is furnished with satisfactory evidence of compliance with
such Rule); or (ii) if such transfer is to a party to whom this Warrant may be transferred pursuant
to an Exempt Warrant Transfer. Any transferee will agree to be bound by the terms of this Warrant
consistent with the rights and obligations of the Holder hereunder, including, without limitation,
the repurchase rights set forth in Section 9 of this Warrant. Notwithstanding the above, Holder
shall transfer and assign its rights to acquire the Tranche A Shares issuable pursuant to this
Warrant to PayPal (or a Subsidiary or parent of PayPal) and transfer and assign its rights to
acquire the Tranche B Shares issuable pursuant

 

 

to this Warrant to eBay (or a Subsidiary or parent of eBay) in the event that (i) PayPal
ceases to be a direct or indirect Subsidiary of eBay (a “Spin-Out Event”) and (ii) the
Master Services Agreement is effective at the time of such Spin-Out Event. In the event of the
transfer of such rights in connection with a Spin-Out Event, the Company agrees to issue new
Warrants to each of the Holder and the entity to whom such rights were assigned in such Spin-Out
Event to appropriately reflect the rights, restrictions and obligations of the Holder and such
entity following such transfer.

     10.3 Lock Up. Holder, and any transferee of this Warrant and the Shares issued upon
exercise hereof, shall be subject to the lock up provisions set forth in the Registration Rights
Agreement.

     10.4 Restrictive Legends. The certificates representing the Shares and any securities
of the Company issued with respect thereto shall be imprinted with legends restricting transfer
except in compliance with the terms hereof and with applicable Federal and state securities laws
and reflecting all other restrictions on transfer as set forth herein.

     10.5 Titles and Subtitles. The titles and subtitles used in this Warrant are for
convenience only and are not to be considered in construing or interpreting this Warrant.

     10.6 Notices. Except as otherwise provided herein, any notices and other
communications required or permitted under this Warrant shall be effective if in writing and
delivered personally or sent by fax, overnight by Federal Express or other generally recognized
overnight carrier, or by First Class U.S. Mail, with postage prepaid, addressed to the Company or
the Holder, as the case may be, at the address set forth below, or such other address as either the
Company or the Holder, as the case may be, may notify the other in writing from time to time.
Unless otherwise specified herein, such notices or other communications shall be deemed effective
(and to have been received): (a) on the Banking Day delivered, or the date delivery is refused, if
delivered personally; (b) on the Banking Day delivered, if delivered by fax (or the following
Banking Day, if delivered by fax after the close of Normal Business Hours); (c) one (1) Banking Day
after being sent overnight, if sent by Federal Express or other generally recognized overnight
carrier; or (d) three (3) Banking Days after being deposited in the U.S. Mail, First Class, with
postage prepaid. Notices shall be addressed as follows:

	 	 	 
	If to the Company:

	 	Green Dot Corporation
	 

	 	605 E. Huntington Drive, Suite 205
	 

	 	Monrovia, California 91016
	 

	 	Attention: General Counsel
	 

	 	Facsimile: 626-739-2002
	 
	 	 
	If to the Holder:

	 	PayPal, Inc.
	 

	 	2211 North First Street
	 

	 	San Jose, California 95131
	 

	 	Attention: Vice President Business Development
	 

	 	Facsimile: 408-967-9911

 

 

	 	 	 
	with a copy to:

	 	eBay Inc.
	 

	 	2145 Hamilton Ave.
	 

	 	San Jose, California 95125
	 

	 	Attention: General Counsel
	 

	 	Facsimile: 408-376-7514

and with respect to any other Holder, such address as is provided by such Holder to the Company.
Any party may change its address for the purpose of this Section 10.6 by giving the other party
written notice of its new address in the manner set forth above.

          10.7 Attorneys’ Fees. Each party shall bear its own expenses in connection with the
transactions contemplated hereby; provided, however that if any action at law or in equity is
necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled
to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which
such party may be entitled.

          10.8 Amendments and Waivers. Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a particular instance
and either retroactively or prospectively), with the written consent of the Company and the Holder.
Any amendment or waiver effected in accordance with this Section 10.8 shall be binding upon the
Holder of this Warrant, each future Holder of this Warrant, and the Company.

          10.9 Binding Effect on Successors. This Warrant shall be binding upon any corporation
or other entity succeeding the Company by merger or consolidation. The Company shall use its
commercially reasonable efforts to take such steps as may be necessary or appropriate to insure
that any business entity which acquires all or substantially all of the Company’s assets will
assume the Company’s obligations hereunder. All of the obligations of the Company relating to the
Shares shall survive the exercise, conversion and termination of this Warrant and all of the
covenants and agreements of the Company shall inure to the benefit of the permitted successors and
assigns of the Holder.

          10.10 Severability. If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from this Warrant and the
balance of the Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

          10.11 Governing Law. This Warrant shall be governed by and construed and enforced in
accordance with the laws of the State of California, without giving effect to its conflicts of laws
principles.

[Signature Pages Follow]

 

 

	 	 	 	 	 
	 	GREEN DOT CORPORATION,

A Delaware corporation

 	 
	 	/s/ Steve Streit
 	 
	 	By: Steve Streit

Its:  Chief Executive Officer 	 

	 	 	 	 	 
	 	
PayPal, Inc.

A Delaware corporation

 	 
	 	By:  	/s/ Mary Hentges
 	 
	 	 	Its:	         VP, CFO 	 

 

 

	 	 	 	 	 

SCHEDULE A

FORM OF SUBSCRIPTION

(To be signed only on exercise of Warrant)

To: Green Dot Corporation

     (1) o
The undersigned hereby elects to purchase                      shares of the Common Stock of
Green Dot Corporation (the “Company”) pursuant to the terms of the attached Warrant, and tenders
herewith payment of the exercise price in full, together with all applicable transfer taxes, if
any.

          o
The undersigned hereby elects to purchase                      shares of the Common Stock of Green
Dot Corporation (the “Company”) pursuant to the terms of the net exercise provisions set forth in
Section 1.4(b) of the attached Warrant, and shall tender payment of all applicable transfer taxes,
if any.

     (2) Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below:

      

(Name)

 

(Address)

 

(Social Security Number/Taxpayer ID)

(Signature must conform in all respects to name of the Holder as specified on the face of the
Warrant)

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 
	 

	 	 	 	 	 	(Print Name)
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	Address:Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

PURCHASE AND SALE AGREEMENT

BY AND AMONG

C-III CAPITAL PARTNERS LLC,

CENTERLINE HOLDING COMPANY,

CENTERLINE CAPITAL GROUP INC.,

ARCAP 2004 RR3 RESECURITIZATION, INC.,

ARCAP 2005 RR5 RESECURITIZATION, INC.,

CENTERLINE FUND MANAGEMENT LLC,

CENTERLINE CMBS FUND III MANAGEMENT LLC,

CENTERLINE REIT INC.,

AND

CM INVESTOR LLC

March 5, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Article 1 CERTAIN DEFINITIONS; INTERPRETATION
	 	 	2	 
	 
	 	 	 	 
	1.1 Certain defined terms
	 	 	2	 
	 
	 	 	 	 
	1.2 Other Interpretive Provisions
	 	 	18	 
	 
	 	 	 	 
	Article 2 PURCHASE AND SALE OF PURCHASED INTERESTS
	 	 	18	 
	 
	 	 	 	 
	2.1 Purchase and Sale
	 	 	18	 
	 
	 	 	 	 
	2.2 Closing Date
	 	 	19	 
	 
	 	 	 	 
	2.3 Closing Deliveries
	 	 	20	 
	 
	 	 	 	 
	2.4 Purchase Price Adjustments
	 	 	23	 
	 
	 	 	 	 
	Article 3 REPRESENTATIONS AND WARRANTIES OF CHC
	 	 	23	 
	 
	 	 	 	 
	3.1 No Conflict; Governmental Authorization
	 	 	23	 
	 
	 	 	 	 
	3.2 Corporate Status
	 	 	24	 
	 
	 	 	 	 
	3.3 Authority; Binding Effect
	 	 	24	 
	 
	 	 	 	 
	3.4 Capitalization
	 	 	25	 
	 
	 	 	 	 
	3.5 SEC Documents; Financial Statements
	 	 	26	 
	 
	 	 	 	 
	3.6 Absence of Undisclosed Liabilities
	 	 	27	 
	 
	 	 	 	 
	3.7 Absence of Certain Changes
	 	 	28	 
	 
	 	 	 	 
	3.8 Taxes
	 	 	28	 
	 
	 	 	 	 
	3.9 Intellectual Property
	 	 	30	 
	 
	 	 	 	 
	3.10 Information Systems
	 	 	30	 
	 
	 	 	 	 
	3.11 Proceedings
	 	 	31	 
	 
	 	 	 	 
	3.12 Compliance with Laws; Permits
	 	 	32	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	3.13 Environmental and Safety and Health Matters
	 	 	32	 
	 
	 	 	 	 
	3.14 Employee Matters and Benefit Plans
	 	 	33	 
	 
	 	 	 	 
	3.15 Arrangements with Certain Persons
	 	 	37	 
	 
	 	 	 	 
	3.16 Contracts; No Default
	 	 	38	 
	 
	 	 	 	 
	3.17 Leases
	 	 	39	 
	 
	 	 	 	 
	3.18 Servicing
	 	 	39	 
	 
	 	 	 	 
	3.19 Finder’s Fee
	 	 	40	 
	 
	 	 	 	 
	3.20 Investment Company; Investment Advisor
	 	 	40	 
	 
	 	 	 	 
	3.21 Insurance
	 	 	40	 
	 
	 	 	 	 
	3.22 Disclosure
	 	 	40	 
	 
	 	 	 	 
	3.23 AMAC Promissory Note
	 	 	41	 
	 
	 	 	 	 
	3.24 Subservicing Agreements
	 	 	41	 
	 
	 	 	 	 
	3.25 No Reliance
	 	 	41	 
	 
	 	 	 	 
	Article 4 REPRESENTATIONS AND WARRANTIES OF THE OTHER SELLERS
	 	 	41	 
	 
	 	 	 	 
	4.1 No Conflict; Government Authorizations
	 	 	41	 
	 
	 	 	 	 
	4.2 Corporate Status
	 	 	43	 
	 
	 	 	 	 
	4.3 Authority; Binding Effect
	 	 	43	 
	 
	 	 	 	 
	4.4 Capitalization
	 	 	43	 
	 
	 	 	 	 
	4.5 Financial Statements
	 	 	44	 
	 
	 	 	 	 
	4.6 Absence of Certain Changes
	 	 	45	 
	 
	 	 	 	 
	4.7 Taxes
	 	 	46	 
	 
	 	 	 	 
	4.8 Intellectual Property
	 	 	48	 
	 
	 	 	 	 
	4.9 Information Systems
	 	 	51	 
	 
	 	 	 	 
	4.10 Proceedings
	 	 	51	 
	 
	 	 	 	 
	4.11 Compliance with Laws; Permits
	 	 	52	 

 

ii 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.12 Environmental and Safety and Health Matters
	 	 	54	 
	 
	 	 	 	 
	4.13 Employee Matters and Benefit Plans
	 	 	54	 
	 
	 	 	 	 
	4.14 Arrangements with Certain Persons
	 	 	60	 
	 
	 	 	 	 
	4.15 Intercompany Accounts
	 	 	60	 
	 
	 	 	 	 
	4.16 Finder’s Fee
	 	 	60	 
	 
	 	 	 	 
	4.17 Books and Records
	 	 	60	 
	 
	 	 	 	 
	4.18 Fund Entities
	 	 	61	 
	 
	 	 	 	 
	4.19 Investment Company; Investment Advisor
	 	 	61	 
	 
	 	 	 	 
	4.20 Offering Memoranda
	 	 	61	 
	 
	 	 	 	 
	4.21 Fund Reports
	 	 	62	 
	 
	 	 	 	 
	4.22 Fund Reporting Entities Financial Statements
	 	 	62	 
	 
	 	 	 	 
	4.23 Registration
	 	 	63	 
	 
	 	 	 	 
	4.24 REIT
	 	 	63	 
	 
	 	 	 	 
	4.25 Contracts; No Default
	 	 	64	 
	 
	 	 	 	 
	4.26 Insurance
	 	 	65	 
	 
	 	 	 	 
	4.27 Leases
	 	 	65	 
	 
	 	 	 	 
	4.28 Servicing
	 	 	66	 
	 
	 	 	 	 
	4.29 ERISA
	 	 	66	 
	 
	 	 	 	 
	4.30 Disclosure
	 	 	66	 
	 
	 	 	 	 
	4.31 Sufficiency of Assets
	 	 	66	 
	 
	 	 	 	 
	4.32 CMBS/CDO Bonds
	 	 	67	 
	 
	 	 	 	 
	4.33 Fund III Loan
	 	 	67	 
	 
	 	 	 	 
	4.34 Tangible Assets
	 	 	67	 
	 
	 	 	 	 
	4.35 CDO/CMBS Assignment Agreements
	 	 	67	 
	 
	 	 	 	 
	4.36 Fund I Bonds
	 	 	67	 

 

iii 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.37 No Reliance
	 	 	67	 
	 
	 	 	 	 
	Article 5 REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	68	 
	 
	 	 	 	 
	5.1 No Conflict; Required Filings
	 	 	68	 
	 
	 	 	 	 
	5.2 Limited Liability Company Status
	 	 	69	 
	 
	 	 	 	 
	5.3 Authority
	 	 	69	 
	 
	 	 	 	 
	5.4 Proceedings
	 	 	69	 
	 
	 	 	 	 
	5.5 Finder’s Fee
	 	 	69	 
	 
	 	 	 	 
	5.6 Investment Intent
	 	 	69	 
	 
	 	 	 	 
	5.7 No Reliance
	 	 	69	 
	 
	 	 	 	 
	5.8 Agreements with Certain Persons
	 	 	70	 
	 
	 	 	 	 
	5.9 Island Capital Group
	 	 	70	 
	 
	 	 	 	 
	Article 6 COVENANTS
	 	 	70	 
	 
	 	 	 	 
	6.1 Confidentiality
	 	 	70	 
	 
	 	 	 	 
	6.2 Publicity
	 	 	70	 
	 
	 	 	 	 
	6.3 Books and Records
	 	 	71	 
	 
	 	 	 	 
	6.4 Cooperation
	 	 	71	 
	 
	 	 	 	 
	6.5 Expenses
	 	 	71	 
	 
	 	 	 	 
	6.6 Employee Matters and Employee Benefit Plans
	 	 	72	 
	 
	 	 	 	 
	6.7 Insurance Matters
	 	 	74	 
	 
	 	 	 	 
	6.8 Use of Name
	 	 	75	 
	 
	 	 	 	 
	6.9 Conversion of CSI
	 	 	75	 
	 
	 	 	 	 
	6.10 Non-Competition by Purchaser
	 	 	75	 
	 
	 	 	 	 
	6.11 Non-Competition by CHC and the Other Sellers
	 	 	76	 
	 
	 	 	 	 
	6.12 Increase in Authorized Common Shares of CHC
	 	 	77	 

 

iv 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	6.13 Reorganization of AMAC
	 	 	77	 
	 
	 	 	 	 
	6.14 Certificated CMBS/CDO Bonds
	 	 	77	 
	 
	 	 	 	 
	6.15 Observer Rights
	 	 	78	 
	 
	 	 	 	 
	6.16 Certain Payments
	 	 	78	 
	 
	 	 	 	 
	6.17 Investigation of Certain Matters
	 	 	78	 
	 
	 	 	 	 
	Article 7 CERTAIN TAX MATTERS
	 	 	79	 
	 
	 	 	 	 
	7.1 Tax Returns
	 	 	79	 
	 
	 	 	 	 
	7.2 Transfer Taxes
	 	 	80	 
	 
	 	 	 	 
	7.3 Allocation of Taxes
	 	 	81	 
	 
	 	 	 	 
	7.4 Cooperation on Tax Matters
	 	 	81	 
	 
	 	 	 	 
	7.5 Tax Proceedings
	 	 	81	 
	 
	 	 	 	 
	7.6 Tax Sharing Agreements
	 	 	82	 
	 
	 	 	 	 
	Article 8 SURVIVAL; INDEMNIFICATION
	 	 	82	 
	 
	 	 	 	 
	8.1 Survival Limitation
	 	 	82	 
	 
	 	 	 	 
	8.2 Indemnification by Sellers
	 	 	82	 
	 
	 	 	 	 
	8.3 Indemnification by Purchaser
	 	 	84	 
	 
	 	 	 	 
	8.4 Limitations
	 	 	84	 
	 
	 	 	 	 
	8.5 Defense of Third Party Claims
	 	 	85	 
	 
	 	 	 	 
	8.6 Direct Claims
	 	 	86	 
	 
	 	 	 	 
	8.7 Tax Treatment
	 	 	87	 
	 
	 	 	 	 
	8.8 No Contribution
	 	 	87	 
	 
	 	 	 	 
	8.9 Adjustment for Insurance
	 	 	87	 
	 
	 	 	 	 
	Article 9 MISCELLANEOUS
	 	 	87	 
	 
	 	 	 	 
	9.1 Notices
	 	 	87	 

 

v 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	9.2 Severability
	 	 	88	 
	 
	 	 	 	 
	9.3 Entire Agreement; No Third Party Beneficiaries
	 	 	88	 
	 
	 	 	 	 
	9.4 Amendment; Waiver
	 	 	89	 
	 
	 	 	 	 
	9.5 Binding Effect; Assignment
	 	 	89	 
	 
	 	 	 	 
	9.6 Disclosure Schedule
	 	 	89	 
	 
	 	 	 	 
	9.7 Governing Law
	 	 	89	 
	 
	 	 	 	 
	9.8 Dispute Resolution; Mediation; Jurisdiction; Jury Trial
	 	 	89	 
	 
	 	 	 	 
	9.9 Sellers’ Representative
	 	 	90	 
	 
	 	 	 	 
	9.10 Equitable Remedies
	 	 	91	 
	 
	 	 	 	 
	9.11 Joint and Several Liability of Sellers
	 	 	91	 
	 
	 	 	 	 
	9.12 Construction
	 	 	91	 
	 
	 	 	 	 
	9.13 Time of the Essence
	 	 	92	 
	 
	 	 	 	 
	9.14 Counterparts
	 	 	92	 

INDEX OF SCHEDULES

	 	 	 
	Schedule I

	 	Purchased Interests
	Schedule II

	 	Disclosure Schedule
	Schedule III

	 	Final Fund Documents
	Schedule IV

	 	CDO/CMBS Assignment Agreements
	Schedule V

	 	Subservicing Agreements
	Schedule 2.1(c)

	 	Cash Portion of Purchase Price
	Schedule 2.3(a)(iii)

	 	Sellers Consents
	Schedule 2.3(j)(iv)

	 	Purchaser Consents
	Schedule 2.4(a)

	 	Assumed Bonuses
	Schedule 2.4(b)

	 	Assumed Benefits
	Schedule 2.4(d)

	 	Purchase Price Adjustments
	Schedule 6.6(b)

	 	Business Employees
	Schedule 6.6(d)

	 	Certain Continuing Employees
	Schedule 6.14

	 	Certificated CMBS/CDO Bonds
	Schedule 6.17

	 	Investigation of Certain Matters

INDEX OF EXHIBITS

 

vi 

 

	 	 	 
	Exhibit A

	 	Certificate of Designation of the CHC Special Series A Shares
	Exhibits B1 — B12

	 	CDO/CMBS Assignment Agreements
	Exhibits C1 — C5

	 	Form of Subservicing Agreements
	Exhibit D

	 	Form of Fund I Promote Plans Letter Agreement
	Exhibit E

	 	Form of Lock-Up Agreement
	Exhibit F

	 	Form of Management Agreement
	Exhibit G-1

	 	Form of Registration Rights Agreement between CHC and Purchaser
	Exhibit G-2

	 	Form of Registration Rights Agreement between CHC and Island Manager
	Exhibit H

	 	Form of Related Purchase Agreement
	Exhibit I

	 	Form of Transition Services Agreement
	Exhibit J

	 	Form of Release
	Exhibit K

	 	Form of Secretary’s Certificate
	Exhibit L

	 	Form of FIRPTA Certificate
	Exhibit M

	 	Form of Paul, Hastings, Janofsky & Walker LLP Opinion
	Exhibit N

	 	Form of Richards, Layton & Finger, P.A. Opinion
	Exhibit O

	 	Form of Proskauer Rose LLP Opinion
	Exhibit P

	 	Confidentiality Agreement
	Exhibit Q

	 	Form of Assignment and Assumption Agreement
	Exhibit R

	 	Form of Bill of Sale
	Exhibit S

	 	Form of Software Assignment Agreement
	Exhibit T

	 	Form of Software License Agreement
	Exhibit U

	 	Form of Officer’s Certificate of CHC
	Exhibit V

	 	Form of Amendment to Bylaws of CHC
	Exhibit W

	 	Form of Escrow Agreement
	Exhibit X

	 	Form of Escrow Letter

 

vii 

 

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made this 5th day of March,
2010, by and among Centerline Holding Company, a Delaware statutory trust (“CHC”),
Centerline Capital Group Inc., a Delaware corporation (“CCG”), ARCAP 2004 RR3
Resecuritization, Inc., a Delaware corporation (“ARCAP 2004 RR3”), ARCAP 2005 RR5
Resecuritization, Inc., a Delaware corporation (“ARCAP 2005 RR5”), Centerline Fund
Management LLC, a Delaware limited liability company (“CFM”), Centerline CMBS Fund III
Management LLC, a Delaware limited liability company (“CFM III”), Centerline REIT, Inc., a
Delaware corporation (“Centerline REIT”), CM Investor LLC, a Delaware limited liability
company (“CMI” and, together with CHC, CCG, ARCAP 2004 RR3, ARCAP 2005 RR5, CFM, CFM III,
and Centerline REIT, the “Sellers” and each, a “Seller”), and C-III Capital
Partners LLC, a Delaware limited liability company (“Purchaser”). Purchaser and each
Seller may also be referred to as a “Party” or collectively, as the “Parties.”

RECITALS

WHEREAS, CCG owned one hundred percent (100%) of the issued and outstanding stock of CSI;

WHEREAS, prior to the Closing, CCG caused CSI to be converted from a Delaware corporation to a
Delaware limited liability company (“New CSI”) in accordance with Section 6.9 of
this Agreement;

WHEREAS, CCG currently owns one hundred percent (100%) of the issued and outstanding limited
liability company interests in New CSI (the “CSI Interests”);

WHEREAS, CMI currently owns one hundred percent (100%) of the issued and outstanding limited
liability company interests in CUCA (the “CUCA Interests”);

WHEREAS, CFM currently owns the entire managing member interest in HY II and the interest as a
member in HY II set forth on Schedule I (together, the “HY II Interests”) and the
entire managing member interest in DIV II and the interest as a member in DIV II set forth on
Schedule I (together, the “DIV II Interests” and, together with the HY II
Interests, the “Fund II Interests”);

WHEREAS, CFM III currently owns the entire managing member interest in Fund III and the
interest as a member in Fund III set forth on Schedule I (together, the “Fund III
Interests”);

WHEREAS, Centerline REIT currently owns the entire managing member interest in CRESS and the
interest as a member in CRESS set forth on Schedule I (together, the “CRESS
Interests”);

WHEREAS, Centerline REIT currently owns the Centerline REIT Bonds (as defined below);

 

 

 

WHEREAS, Centerline REIT is the payee under that certain revolving credit promissory note,
dated June 28, 2004, between Steve R. Inman and ARCap REIT (now known as Centerline REIT) (the
“Centerline REIT Promissory Note”);

WHEREAS, ARCAP 2004 RR3 currently owns the ARCAP 2004 RR3 Re-Remic Bonds (as defined below);

WHEREAS, ARCAP 2005 RR5 currently owns the ARCAP 2005 RR5 Re-Remic Bonds (as defined below);

WHEREAS, CFM III is the payee under that certain promissory note, dated February 29, 2008,
between CFM III and Fund III (the “CFM III Promissory Note”);

WHEREAS, CHC is the payee under that certain promissory note, dated June 30, 2007, between CHC
and AMAC (the “AMAC Promissory Note”);

WHEREAS, the CSI Interests, the CUCA Interests, the Fund II Interests, the Fund III Interests,
the CRESS Interests, the Centerline REIT Bonds, the Centerline REIT Promissory Note, the ARCAP 2004
RR3 Re-Remic Bonds, the ARCAP 2005 RR5 Re-Remic Bonds, the CFM III Promissory Note and the AMAC
Promissory Note are hereby collectively referred to as the “Purchased Interests”;

WHEREAS, the Sellers desire to sell to Purchaser, and Purchaser desires to purchase from the
Sellers, pursuant to this Agreement, the Purchased Interests;

WHEREAS, CHC desires to issue and sell to Purchaser, and Purchaser desires to purchase from
CHC, pursuant to this Agreement, the CHC New Shares (as defined below); and

WHEREAS, the Sellers and Purchaser desire to enter into this Agreement and to consummate the
transactions contemplated hereby.

NOW, THEREFORE, in consideration of the representations, warranties, promises, covenants and
agreements herein contained, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1

CERTAIN DEFINITIONS; INTERPRETATION

1.1 Certain defined terms.

(a) For purposes of this Agreement, the following terms shall have the following meanings:

“Acquired Entities” means New CSI and CUCA.

 

2

 

“Acquired Entity Licensed Intellectual Property” means all Intellectual Property
licensed to the Acquired Entities or any of their respective Subsidiaries pursuant to a Contract
and used in the conduct of their respective businesses.

“Acquired Entity Owned Intellectual Property” means all of the Intellectual Property
owned by the Acquired Entities or any of their respective Subsidiaries.

“Affiliate” of a Person means a Person that Controls, is Controlled by, or is under
common Control with, such Person. For purposes of this Agreement, neither Purchaser nor Island
Manager shall be deemed to be an “Affiliate” of any Seller.

“Affiliated Group” means an affiliated group within the meanings of Section 1505 of
the Code or any comparable or analogous state, local or foreign consolidated, combined or unitary
Tax group under applicable Law.

“Agency Subservicing Agreement” shall have the meaning specified in Section
6.10(b).

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

“AMAC” means American Mortgage Acceptance Company, a Massachusetts business trust.

“AMAC Promissory Note” shall have the meaning specified in the recitals to this
Agreement and set forth on Schedule I.

“ARCAP 2004 RR3” shall have the meaning specified in the preamble to this Agreement.

“ARCAP 2004 RR3 Re-Remic Bonds” shall have the meaning specified in Schedule
I.

“ARCAP 2005 RR5” shall have the meaning specified in the preamble to this Agreement.

“ARCAP 2005 RR5 Re-Remic Bonds” shall have the meaning specified in Schedule
I.

“ARCAP 2006 RR7” means ARCap 2006 RR7 Resecuritization, Inc., a Delaware corporation.

“Assignment and Assumption Agreement” means the Assignment and Assumption Agreement,
of even date herewith, between Centerline REIT and CSI, in the form attached hereto as Exhibit
Q.

“Assumed Benefits” shall have the meaning specified in Section 2.4.

“Assumed Bonuses” shall have the meaning specified in Section 2.4.

“Balance Sheets” shall have the meaning specified in Section 4.22(b).

“Bill of Sale” means the Bill of Sale, of even date herewith, between Centerline REIT
and CSI, in the form attached hereto as Exhibit R.

 

3

 

“Bonus Plans” means the Centerline Annual Incentive Bonus Program “A”, Centerline
Annual Incentive Bonus Program “B” and the 2007 Outperformance Program.

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

“Business Employees” shall have the meaning specified in Section 6.6(b) of
this Agreement.

“Cap” shall have the meaning specified in Section 8.4(a).

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

“CDO/CMBS Assignment Agreements” means the agreements specified in Schedule IV
and attached hereto as Exhibits B1 through B10.

“Centerline Balance Sheet Date” shall have the meaning specified in Section
3.7.

“Centerline Mark” shall have the meaning specified in Section 6.8(a).

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

“Centerline REIT Bonds” shall have the meaning specified in Schedule I.

“Centerline REIT Promissory Note” shall have the meaning specified in the recitals to
this Agreement and set forth on Schedule I.

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

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

“CFM III Promissory Note” shall have the meaning specified in the recitals to this
Agreement and set forth on Schedule I.

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

“CHC Balance Sheet” means that consolidated balance sheet of CHC and its consolidated
Subsidiaries as of September 30, 2009.

“CHC Bylaws” means the Fifth Amended and Restated Bylaws of CHC, as amended.

“CHC Data” shall have the meaning specified in Section 3.10(b).

“CHC Employee Plans” shall have the meaning given such term in Section
3.14(a).

“CHC Intellectual Property” shall have the meaning given such term in Section
3.9(a).

“CHC International Plan” shall have the meaning given such term in Section
3.14(d).

 

4

 

“CHC New Shares” means 4,084,390 shares of CHC Special Series A Shares to be issued to
Purchaser pursuant to Section 2.1(b).

“CHC Special Series A Shares” means the Special Series A Shares of CHC with the
rights, powers and preferences as reflected in the certificate of designation of the CHC Special
Series A Shares attached hereto as Exhibit A.

“CHC SEC Documents” shall have the meaning given such term in Section 3.5(a).

“CHC Trust Agreement” means, collectively, CHC’s Second Amended and Restated Trust
Agreement, dated as of November 17, 2003, as amended by Amendment No. 1 thereto, dated as of
September 20, 2005, as further amended by Amendment No. 2 thereto, dated as of November 30, 2005,
as further amended by Amendment No. 3 thereto, dated as of June 13, 2006, and as further amended by
Amendment No. 4 thereto, dated as of April 2, 2007.

“CHC Trust Amendment” means the amendment to the CHC Trust Agreement to increase the
number of common shares of CHC authorized for issuance to permit the automatic conversion of the
CHC New Shares into the appropriate number of common shares of CHC pursuant to the terms of the
certificate of designation of the CHC New Shares.

“Claim” means a claim for indemnity for Damages made by any Seller Indemnitee or
Purchaser Indemnitee.

“Closing” shall have the meaning specified in Section 2.2.

“Closing Date” shall have the meaning specified in Section 2.2.

“CMBS Leased Real Property” shall have the meaning specified in Section
4.27(a).

“CMBS Leases” shall have the meaning specified in Section 4.27(a).

“CMBS Licensed Intellectual Property” means all Intellectual Property licensed to the
Fund Entities or any of their respective Subsidiaries pursuant to a Contract and used in the
conduct of their respective businesses.

“CMBS Owned Intellectual Property” means all of the Intellectual Property owned by the
Fund Entities or any of their respective Subsidiaries.

“CMC” means Centerline Mortgage Capital Inc., a Delaware corporation.

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

“CMP” means Centerline Mortgage Partners Inc., a Delaware corporation.

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

“Confidentiality Agreement” shall have the meaning specified in Section 6.1.

 

5

 

“Contemplated Transaction” means any transaction contemplated by this Agreement or any
Transaction Document.

“Continuing Employees” shall have the meaning specified in Section 6.6(b).

“Contract” means any written, oral or implied contract, mortgage, deed of trust,
lease, sublease, offer to lease, agreement to lease, sales order, purchase order, indenture, note,
bond, loan, instrument, license, permit, franchise, commitment or other instrument, arrangement or
agreement that is or purports to be binding on any Person or all or any part of its property or
assets under applicable Law.

“Control” (including the terms “Controlled by” and “under common Control
with”) means the possession, directly or indirectly, through one or more intermediaries, of the
power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of equity interests, as trustee or executor, by contract or credit arrangement or
otherwise.

“CRESS” means Centerline Real Estate Special Situations Mortgage Fund LLC, a Delaware
limited liability company.

“CRESS Interests” shall have the meaning specified in the recitals to this Agreement
and set forth on Schedule I.

“CSI” means Centerline Servicing Inc., a Delaware corporation.

“CSI Interests” shall have the meaning specified in the recitals to this Agreement and
set forth on Schedule I.

“CUC” means Centerline Urban Capital I, LLC, a California limited liability company.

“CUCA” means Centerline Urban Capital Advisor LLC, a Delaware limited liability
company.

“CUCA Closing Balance Sheet” shall have the meaning specified in Section
4.5(e).

“CUCA Interests” shall have the meaning specified in the recitals to this Agreement
and set forth on Schedule I.

“Damages” means any losses, damages (but excluding any special, indirect,
consequential, exemplary and punitive damages, except for Third Party Claims and except for claims
under Section 8.2(h), in which cases special, indirect, consequential, exemplary and
punitive damages shall be included), injuries, liabilities, claims, demands, settlements,
judgments, awards, fines, penalties, Taxes, fees (including reasonable attorneys’ fees and
disbursements), charges, costs (including costs of investigation and defense) or expenses of any
nature.

“Debt” means, with respect to any Person, (A) any indebtedness for borrowed money of
such Person (including any interest accruing on such indebtedness), (B) any indebtedness of such

 

6

 

Person evidenced by bonds, debentures, specified notes or similar instruments, (C) any
indebtedness of such Person under any conditional sales or other title retention agreements
relating to property or assets purchased by such Person, (D) any obligation of such Person issued
or assumed as the deferred purchase price of property, assets or services (excluding trade accounts
payable and accrued obligations incurred in the Ordinary Course of Business), (E) any capital lease
obligation or any other similar capital obligation of such Person, (F) any synthetic lease
obligation or any other similar lease obligation of such Person, (G) any purchase money obligation
of such Person, (H) any obligation of such Person as an account party in respect of any letters of
credit or bankers’ acceptances, (I) any obligation of such Person under any derivative agreement or
any other similar agreement (including interest-rate, exchange-rate, commodity and equity-linked
agreements), (J) any obligation of such Person in respect of any off-balance-sheet agreement or
transaction that is in the nature of, or in substitution of, a financing, (K) any indebtedness or
other obligation of any other Person of the type specified in any of the foregoing clauses, the
payment or collection of which such Person has guaranteed or in respect of which such Person is
liable, contingently or otherwise, including liable by way of agreement to purchase products or
securities, to provide funds for payment, to maintain working capital or other balance sheet
conditions or otherwise to assure a creditor against loss, (L) any indebtedness or other obligation
of any other Person of the type specified in any of the foregoing clauses that is secured (or,
pursuant to an existing right, could be secured at a later date) by an Encumbrance on any property
or assets of such Person or (M) any obligation for penalties or collection costs in respect of any
of the foregoing.

“Derivative Instrument” means as to a Person, an instrument or security (A) conveying
the right to the profits or losses of the Person, (B) conveying the right to dividends, interest or
other distributions measured in whole or in part by the profits, losses or other financial or
economic results of the Person, (C) conveying the right to consent to, veto or vote on matters with
respect to the Person, (D) convertible into, exercisable for, or exchangeable for any of the
foregoing or any capital stock or any other equity interest of the Person, in each case whether
currently, upon the lapse of time, following the satisfaction of any condition, upon the occurrence
of any event, or combination of the foregoing, or (E) conveying the right to amounts or benefits
dependent upon the price or value of any of the foregoing or of any capital stock or any other
equity interest of the Person.

“Disclosure Schedule” means Schedule II attached hereto, dated as of the date
hereof, and forming a part of this Agreement.

“Dispute” shall have the meaning specified in Section 9.8(a).

“Dispute Notice” shall have the meaning specified in Section 8.6.

“DIV I” means Centerline Diversified Risk CMBS Fund LLC, a Delaware limited liability
company.

“DIV II” means Centerline Diversified Risk CMBS Fund II LLC, a Delaware limited
liability company.

“DIV II Interests” shall have the meaning specified in the recitals to this Agreement.

 

7

 

“Effective Time” means 11:59 p.m. (New York City time) on the Closing Date.

“Employee Plans” means CHC Employee Plans and Other Seller Employee Plans.

“Encumbrance” means any security interest, pledge, mortgage, lien, charge,
encumbrance, imposition, adverse claim, preferential arrangement, option, privilege, entitlement,
right of first refusal, easement, encroachment, indenture, right of way, deed of trust, lease,
security agreement, liability or restriction of any kind.

“Environmental Claim” means any claim, demand, Order, Proceeding, cause of action or
notice by any Person or Governmental Authority alleging or assessing liability arising out of,
based on or resulting from (A) the presence, release or threatened release into the environment, of
any Materials of Environmental Concern at, on, in, under or from any location or (B) circumstances
forming the basis of any violation or non-compliance or alleged violation or non-compliance, of any
Environmental Law.

“Environmental Law” means any federal, interstate, state, local and foreign Laws
relating to pollution or protection of human health, safety, or the environment, including any Law
relating to emissions, discharges, releases or threatened releases of Materials of Environmental
Concern, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Materials of Environmental Concern.

“Environmental Permit” means any Permit required under any applicable Environmental
Laws.

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

“ERISA Affiliate” means any Person (whether or not incorporated) that is (or at any
relevant time was) treated as a single employer with any other Person under Section 414 of the Code
or Section 4001 of ERISA.

“Escrow Agent” means Bank of America, N.A.

“Escrow Agreement” means the Escrow Agreement, by and among CHC, CCG and the Escrow
Agent, in the form attached hereto as Exhibit W.

“Escrow Letter” means the letter regarding the escrow arrangements, by and among CHC,
CCG, the Escrow Agent and Bank of America, N.A., as agent under the Senior Secured Bank Debt, in
the form attached hereto as Exhibit X.

“Escrow Property” shall have the meaning specified in Section 2.1(c)(i)(C).

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

“Federal Tax Group” means the consolidated federal Tax group of which CCG is the
parent.

 

8

 

“Final Fund Documents” means, with respect to each Fund Entity, the final, executed
organizational documents related thereto as identified with respect to such Fund Entity on
Schedule III attached hereto.

“Freddie Mac” means Federal Home Loan Mortgage Corporation.

“Fund I Bonds” means all bonds held of record or beneficially by ARCap 2003-1
Resecuritization, Inc., a Delaware corporation, ARCap 2004-1 Resecuritization, Inc., a Delaware
corporation, and ARCAP 2006 RR7, each of which is set forth on Section 4.32 of the
Disclosure Schedule (other than those bonds that are held by ARCAP 2006 RR7 as nominee for
Centerline REIT).

“Fund I Promote Plans” means Centerline Fund I Incentive Compensation Plan and
Centerline Fund I Senior Management Incentive Compensation Plan.

“Fund I Promote Plans Letter Agreement” means the Letter Agreement, by and between CCG
and Purchaser, in the form attached hereto as Exhibit D.

“Fund II Interests” shall have the meaning specified in the recitals to this Agreement
and set forth on Schedule I.

“Fund II Promote Plans” means Centerline Fund II Incentive Compensation Plan and
Centerline Fund II Senior Management Incentive Compensation Plan.

“Fund III” means Centerline High Yield CMBS Fund III LLC, a Delaware limited liability
company.

“Fund III Interests” shall have the meaning specified in the recitals to this
Agreement and set forth on Schedule I.

“Fund Entities” means HY II, DIV II, Centerline CMBS Fund II REIT, Inc., CRESS, Fund
III and CUC.

“Fund Entity Reports” shall have the meaning specified in Section 4.21(a).

“Fund Financial Statements” shall have the meaning specified in Section
4.22(b).

“Fund PPMs” means Centerline High Yield CMBS Fund LLC Private Placement Memorandum,
Centerline High Yield CMBS Fund II LLC Private Placement Memorandum, Centerline Diversified Risk
CMBS Fund II LLC Private Placement Memorandum, Centerline High Yield CMBS Fund III LLC Private
Placement Memorandum and Centerline Real Estate Special Situations Mortgage Fund LLC Private
Placement Memorandum, together, in each case, with any supplements thereto.

“Fund Reporting Entities” means HY I, DIV I, HY II, DIV II, Fund III, CRESS and CUC.

 

9

 

“Fund Reporting Entities Audited Balance Sheets” shall have the meaning specified in
Section 4.22(a).

“Fund Reporting Entities Audited Financial Statements” shall have the meaning
specified in Section 4.22(a).

“Fund Reporting Entities Unaudited Balance Sheets” shall have the meaning specified in
Section 4.22(b).

“Fund Reporting Entities Unaudited Financial Statements” shall have the meaning
specified in Section 4.22(b).

“GAAP” means United States generally accepted accounting principles consistently
applied.

“Governmental Authority” means any foreign or United States federal, state or local
governmental, regulatory or administrative agency or authority or any court or tribunal or other
entity exercising executive, legislative, judicial, regulatory or administrative powers or
functions of government.

“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as
amended, and the rules and regulations promulgated thereunder.

“HY I” means Centerline High Yield CMBS Fund LLC, a Delaware limited liability
company.

“HY II” means Centerline High Yield CMBS Fund II LLC, a Delaware limited liability
company.

“HY II Interests” shall have the meaning specified in the recitals to this Agreement
and set forth on Schedule I.

“Indemnification Arrangements” shall have the meaning specified in Section
6.7(b).

“Information Systems” means information technology and computer systems relating to
the transmission, storage, maintenance, organization, presentation, generation, processing or
analysis of data and information whether or not in electronic format, used in or necessary to the
conduct of the business of a Person.

“Intellectual Property” means all (A) U.S. and foreign patents and applications
therefor and all divisionals, reissues, renewals, registrations, confirmations, re-examinations,
certificates of inventorship, extensions, continuations and continuations-in-part thereof, (B) U.S.
and foreign trademarks, trade dress, service marks, service names, trade names, Internet domain
names, brand names, logo or business symbols, whether registered or unregistered, and pending
applications to register the same, including all extensions and renewals thereof and all goodwill
associated therewith, (C) U.S. and foreign copyrights in writings, designs, software, mask works or
other works, whether registered or unregistered, and pending applications to register the same,

 

10

 

(D) confidential or proprietary know-how, trade secrets, methods, processes, practices,
formulas and techniques, and (E) computer software programs and software systems.

“Investment Advisers Act” means the Investment Advisers Act of 1940, as amended, and
the rules and regulations promulgated thereunder.

“Investment Company Act” means the Investment Company Act of 1940, as amended, and the
rules and regulations promulgated thereunder.

“Island Capital Group LLC” means Island Capital Group LLC, a Delaware limited
liability company.

“Island Manager” means Island Centerline Manager LLC, a Delaware limited liability
company.

“IT Sharing Payment” shall have the meaning specified in Section 2.4.

“Knowledge” means (A) with respect to an individual, actual knowledge (whether past
or present) of a particular fact or other matter, (B) with respect to CHC, any Other Seller, any
Acquired Entity, any Fund Entity or any of their respective Subsidiaries, actual knowledge (whether
past or present) of Marc D. Schnitzer, Robert L. Levy, John D’Amico, Matthew Stern, Michael Larsen,
James Flynn, Justin E. Ginsberg, William T. Hyman, Paul G. Smyth and/or Andrew J. Weil of a
particular fact or other matter, (C) with respect to Purchaser, actual knowledge (whether past or
present) of Andrew L. Farkas, James A. Aston, Jeffrey P. Cohen, George E. Carleton and/or Paul A.
Hughson and (D) with respect to any other Person who is not an individual, actual knowledge
(whether past or present) of any individual who is serving, or who has at any time served, as a
director, officer, partner, executor or trustee of such Person (or in any similar capacity), of a
particular fact or other matter.

“Law” means any law, statute, ordinance, treaty, code, rule or regulation of any
Governmental Authority, or any binding agreement with any Government Authority, or any principle of
common law.

“Leased Real Property” shall have the meaning specified in Section 3.17.

“License Termination Date” shall have the meaning specified in Section 6.8(b).

“Lock-up Agreements” means lock-up agreements with respect to the transfer of
securities of CHC between each of Related, Bank of America, N.A., Wells Fargo Bank, N.A. and
Natixis Financial Products Inc., on the one hand, and CHC, on the other hand, in substantially the
form attached hereto as Exhibit E.

“Management Agreement” means the Management Agreement, by and among CHC, CCG and
Island Manager, in the form attached hereto as Exhibit F.

“Material Adverse Effect” means, with respect to any Person, any change affecting, or
condition having an effect on, such Person and its Subsidiaries, if any, taken as a whole (A) that
is, or would reasonably be expected to be, materially adverse to the business, assets, liabilities,

 

11

 

results of operations or condition (financial or otherwise) of such Person and its
Subsidiaries, if any, taken as a whole, (B) will, or would reasonably be expected to, prevent or
materially impair the ability of such Person to fulfill its obligations under this Agreement or any
Transaction Document, (C) with respect to Centerline REIT, Centerline CMBS Fund REIT, Inc. or
Centerline CMBS Fund II REIT, Inc., that would reasonably be expected to, prevent or materially
impair Centerline REIT, Centerline CMBS Fund REIT, Inc. or Centerline CMBS Fund II REIT, Inc. from
qualifying as a REIT prior to and immediately following the Closing, (D) will, or would reasonably
be expected to, make any Contemplated Transaction illegal, (E) will, or would reasonably be
expected to, impose any material limitation on or prevent or materially impair the ability of
Purchaser to exercise ownership rights with respect to the Purchased Interests and/or the CHC New
Shares or (F) will, or could reasonably be expected to, delay, prohibit or restrict (i) the
consummation of any Contemplated Transaction or (ii) the ability of such Person to operate its or
any of its Subsidiaries’ businesses following the Closing; provided, however, that
any such change, effect or condition having the results described in the foregoing clauses (A)
through (F) that results from (i) a change in Law or GAAP or interpretations thereof that applies
to such Person, (ii) general economic or market conditions, including changes in interest rates or
(iii) economic or market conditions that directly or indirectly affect the commercial real estate
finance industry generally shall not be considered when determining whether a Material Adverse
Effect on such Person or its Subsidiaries has occurred, except to the extent that such change,
effect or condition disproportionately affects such Person or its Subsidiaries relative to other
industry participants.

“Material Contract” shall have the meaning specified in Section 3.16(a).

“Materials of Environmental Concern” means materials, substances or chemicals,
pollutants, contaminants, wastes, including toxic substances, hazardous substances, radioactive
materials, asbestos, asbestos-containing materials, lead-based paint, radon, mold, fungus,
moisture, microbial contamination, pathogenic organisms, petroleum and petroleum products,
regulated under Environmental Laws.

“Mediation Request” shall have the meaning specified in Section 9.8(b).

“Multiemployer Plan” means any “multiemployer plan”, as defined in Section 3(37) or
4001(a) of ERISA or Section 414(f) of the Code that any Person or ERISA Affiliate maintains,
sponsors, participates in or contributes to, or has maintained, established, sponsored,
participated in, or contributed to within the last six years, or under which such entity has or may
incur any liability or obligation.

“Net Working Capital” means, with respect to any Person, (i) the current assets (as
defined under GAAP and adjusted pursuant to this Agreement) minus (ii) the current
liabilities (as defined under GAAP and adjusted pursuant to this Agreement) of such Person.

“New CSI” shall have the meaning specified in the recitals to this Agreement.

“New CSI Closing Balance Sheet” shall have the meaning specified in Section
4.5(d).

“Notice of Claim” shall have the meaning specified in Section 8.6.

 

12

 

“Observer” shall have the meaning specified in Section 6.15.

“Other Sellers” means all of the Sellers, other than CHC.

“Other Seller Employee Plans” shall have the meaning given such term in Section
4.13(a).

“Order” means any order, writ, certificate, judgment, injunction, decree, stipulation,
determination, assessment, decision, ruling, declaration, award, subpoena or verdict entered,
issued, made or rendered by any Governmental Authority or any arbitrator.

“Ordinary Course of Business” means any action taken by a Person that (A) is
consistent in nature, scope and magnitude with the past practices of such Person and is taken in
the ordinary course of the normal, day-to-day operations of such Person, and (B) does not require
authorization by the board of directors or stockholders of such Person (or by any Person or group
of Persons exercising similar authority).

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

“Pension Plan” means any “employee pension benefit plan” as defined in Section 3(2) of
ERISA (other than a Multiemployer Plan) that any Person or, solely with respect to any Pension Plan
that is subject to Title IV of ERISA, any ERISA Affiliate of any such Person maintains, sponsors,
participates in or contributes to, or has within the last six years maintained, established,
sponsored, participated in, or contributed to, or under which any such Person has or may or incur
any liability or obligation.

“Permit” means any permit, consent, franchise, waiver, authorization, license,
registration or other approval issued, granted, given, or otherwise made available by or under any
Governmental Authority or pursuant to any Law.

“Permitted Encumbrance” means (A) any Encumbrance for Taxes and other similar charges
of any Governmental Authority not yet due or delinquent or being contested in good faith by
appropriate proceedings or which may thereafter be paid without penalty, (B) any statutory
Encumbrance arising in the Ordinary Course of Business by operation of Law with respect to a
liability that is not yet due or delinquent, (C) any Encumbrance to secure lease obligations and
(D) any imperfection of title or similar Encumbrance that, individually or in the aggregate with
other such Encumbrances, does not result in a Material Adverse Effect with respect to CHC, any
Acquired Entity, any Fund Entity or any of their Subsidiaries, as the case may be.

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

“Plan” means each Multiemployer Plan, Pension Plan, Welfare Plan, Promote Plan, Bonus
Plan, and each other employment, executive compensation, bonus, deferred compensation, pension,
collective bargaining, stock option, stock appreciation right, stock purchase, equity-based
compensation, incentive, voluntary employee benefit association within the meaning of Section
501(c)(9) of the Code, profit-sharing or retirement plan, arrangement,

 

13

 

agreement, policy or practice, each medical, dental, life insurance, disability, vacation,
sick pay, paid time off, salary continuation, retention, severance pay plan, fringe benefit plan,
and each other plan, arrangement, agreement, policy or practice (including any severance, change in
control or similar agreement with any foreign or domestic current or former employee, director,
consultant or other service provider of any Person), whether or not subject to ERISA, in each case
that is within the last six years sponsored, established, maintained or contributed to (or with
respect to which any obligation to contribute has been undertaken) by any Person or any ERISA
Affiliate that affects or covers any foreign or domestic current or former employee, director,
consultant or other service provider, or their beneficiaries, of any Person, whether written or
unwritten, funded or unfunded, insured or self insured, or with respect to which any Person or any
ERISA Affiliate has, has had or may incur any liability or obligation on behalf of any such
employee, director, consultant or other service provider or beneficiary.

“Post-Closing Tax Period” shall mean any taxable period ending after the Effective
Time.

“Pre-Closing Tax Period” shall mean any taxable period ending at or before the
Effective Time.

“Procedure” shall have the meaning specified in Section 9.8(b).

“Proceeding” means any claim, action, proceeding, investigation, audit, hearing,
arbitration, administrative or agency complaint or charge, litigation or suit (whether civil,
criminal, administrative, investigative or informal).

“Promote Plans” means the Fund I Promote Plans and the Fund II Promote Plans.

“Purchase Price” shall have the meaning specified in Section 2.1(c).

“Purchased Interests” shall have the meaning specified in the recitals to this
Agreement.

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

“Purchaser Indemnitee” means Purchaser, its past, current and future Affiliates and
Subsidiaries, including, after the Closing, any Acquired Entity, any Fund Entity and their
respective Subsidiaries and Affiliates and the past, current and future respective stockholders,
equity owners, members, partners, controlling Persons (if any), directors, trustees, managers,
officers, employees, agents, successors, assigns and personal representatives of each of them.

“Purchaser Non-Compete” shall have the meaning specified in Section 6.10(a).

“Purchaser Non-Compete Period” shall have the meaning specified in Section
6.10(b).

“Purchaser’s Excluded Representations” shall have the meaning specified in Section
8.1.

“Registration Rights Agreements” means (A) the Registration Rights Agreement between
CHC and Purchaser in the form attached hereto as Exhibit G-1 and (B) the Registration
Rights Agreement between CHC and Island Manager in the form attached hereto as Exhibit G-2.

 

14

 

“REIT” means a real estate investment trust under the Code.

“Related” means Related Special Assets LLC.

“Related Purchase Agreement” means the Purchase and Sale Agreement between Related and
Purchaser in the form attached hereto as Exhibit H.

“Sarbanes-Oxley Act” mean the Sarbanes-Oxley Act of 2002, as amended, and the rules
and regulations promulgated thereunder.

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

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

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

“Seller Indemnitee” means each Seller, its respective past, current and future
Affiliates and Subsidiaries, and the past, current and future respective stockholders, equity
owners, members, partners, controlling Persons (if any), directors, trustees, managers, officers,
employees, agents, successors, assigns and personal representatives of each of them.

“Seller Non-Compete” shall have the meaning specified in Section 6.11(a).

“Seller Non-Compete Period” shall have the meaning specified in Section
6.11(b).

“Sellers’ Excluded Representations” shall have the meaning specified in Section
8.1.

“Senior Secured Bank Debt” means the Debt under the Senior Secured Credit Agreement.

“Senior Secured Credit Agreement” means that certain Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of December 19, 2008, among CHC, CCG, Bank of America,
N.A., as administrative agent and lender, and the other lenders and the guarantors named therein,
as amended on May 15, 2009, as further amended on January 30, 2009, as further amended on December
30, 2009, as further amended on January 15, 2010 and as further amended on February 4, 2010.

“Serviced Loans” shall have the meaning specified in the definition of Servicing
Agreement.

“Servicing Agreement” means any servicing agreement, pooling and servicing agreement,
mortgage selling and servicing contract, indenture or other agreement or instrument, whether
written or oral, pursuant to which CHC, any Acquired Entity or any of their respective Subsidiaries
provides servicing for loans directly or indirectly secured by commercial real estate (by mortgages
thereon or otherwise) (such loans, collectively, the “Serviced Loans”), all of which
agreements are listed on Section 4.25(a) of the Disclosure Schedule (to the extent
identified as such).

 

15

 

“Software Assignment Agreement” means the Software Assignment Agreement between CCG,
as assignor, and CSI, as assignee, relating to the software described on Section 4.8(j) of
the Disclosure Schedule, in the form attached hereto as Exhibit S.

“Software License” means the Software License Agreement between CSI, as licensor, and
CCG, as licensee, relating to the software described on Section 4.8(j) of the Disclosure
Schedule, in the form attached hereto as Exhibit T.

“Specially Serviced Loan” means any commercial mortgage loan that is a “specially
serviced loan” under any Servicing Agreement under which CSI acts as special servicer.

“Straddle Period” shall have the meaning specified in Section 7.3.

“Sublease” means a sublease by and between Centerline REIT, as sublessor, and New CSI,
as sublessee, with respect to that certain Office Lease dated as of May 27, 2005, as amended by
that certain First Amendment to the Office Lease dated as of May 1, 2006, as further amended by
that Second Amendment to the Office Lease dated as of August 15, 2006, as further amended by that
certain Third Amendment to the Office Lease dated as of January 31, 2007, and as further amended by
that certain Fourth Amendment to the Office Lease dated as of September 27, 2007, by and between
TIAA Realty, Inc., as landlord, and Centerline REIT, as tenant.

“Subservicing Agreements” means the Subservicing Agreements specified in Schedule
V and in substantially the forms attached hereto as Exhibits C1 through C5.

“Subsidiary” means, with respect to any Person, any corporation or other legal entity
(A) of which such Person (either alone or through or together with any other Subsidiary or
Subsidiaries) is the general partner or managing entity or (B) a majority of the capital stock or
other equity interests of which generally entitled to vote for the election of the board of
directors or others performing similar functions of such corporation or other legal entity is
directly or indirectly owned or controlled by such Person (either alone or through or together with
any other Subsidiary or Subsidiaries); provided, however, that unless otherwise
specifically stated herein, and except as used in the definitions of “ERISA Affiliate,”
“Multiemployer Plan,” “Pension Plan,” “CHC Employee Plan,” “Other Seller Employee Plan,” and
“Welfare Plan” and in Sections 3.14, 4.13 and 4.29, “Subsidiary” shall
exclude (x) with respect to CHC and its Subsidiaries, any Acquired Entity, any Fund Entity and any
entity that would be, but for the application of this proviso, a Subsidiary of any Acquired Entity
or any Fund Entity and (y) with respect to any Acquired Entity, any Fund Entity or any Subsidiary
of a Fund Entity that would be, but for the application of this proviso, a Subsidiary of any
Acquired Entity; provided, further, that except as used in Section
3.5(b)(iii) and in the last sentence of Section 3.5(a), “Subsidiary” shall
exclude any real estate partnerships and limited liability companies that invest in low income
housing tax credit properties or similar structures and that would be, but for the application of
this proviso, a Subsidiary of CHC (but shall not exclude any Subsidiary of CHC that controls, as
managing member or general partner, a fund that invests in such underlying partnerships or limited
liability companies).

“Taberna” means Taberna Preferred Funding I, Ltd.

 

16

 

“Taberna Exchange and Discharge Proposal” means that certain Exchange and Discharge
Proposal, dated as of February 22, 2010, by and between AMAC and Taberna Capital Management, LLC,
as the collateral manager for Taberna.

“Tax” or “Taxes” means any and all domestic or foreign, federal, state, local
or other taxes, assessments, duties, charges, fees, levies or required deposits of any kind
(together with any and all interest, penalties, additional tax and additional amounts imposed with
respect thereto) imposed by any Taxing Authority, including taxes with respect to income,
franchises, windfall or other profits, gross receipts, transfer, real, personal or intangible
property, sales, use, capital stock, employment, unemployment, social security, workers’
compensation or net worth, ad valorem, value added, single business and taxes in the nature of
excise, withholding, required deposits, ad valorem or value added and any liability under Treasury
Regulation §1.1502-6 or as a transferee or successor, or by contract or agreement.

“Taxing Authority” means the Internal Revenue Service and any other domestic or
foreign Governmental Authority responsible for the administration or collection of any Taxes.

“Tax Proceeding” shall have the meaning specified in Section 7.5.

“Tax Return” means any report, return or similar filing (including any schedule
attached thereto) required to be filed with respect to Taxes, including any information return,
claim for refund, amended return or declaration of estimated Taxes.

“Tax Sharing Agreement” means any written or oral agreement, indemnity or other
arrangement for the allocation or payment of Tax liabilities or payment for Tax benefits between
any Seller, any Acquired Entity, any Fund Entity or their respective Subsidiaries and any Person.

“Third Party Claim” means any claim asserted by any Person (other than a Seller
Indemnitee or a Purchaser Indemnitee) for Damages that may reasonably be expected to give rise to a
Claim.

“Transaction Documents” means this Agreement and the agreements, certificates and
instruments executed by a Party or its Affiliate and delivered pursuant to Section 2.3;
provided, however, that for purposes of Sections 3.1, 3.3,
3.19, 4.1, 4.3, 4.4, 4.16, 5.1, 5.3 and
5.5 “Transaction Documents” shall also include the agreements, certificates and
instruments executed by a Party or its Affiliate at or immediately prior to the Closing in
connection with (i) the recapitalization of the equity of CHC, (ii) the restructuring and
settlement of liabilities and obligations of the Sellers and/or any of their respective
Subsidiaries and (iii) any amended or new credit facility entered into by CHC and/or any of its
Subsidiaries.

“Transfer Taxes” means all transfer, real property transfer, gains, stock transfer,
documentary, sales, use stamp, registration value added, property, recording and other similar
taxes and fees including penalties, interest and additions to such Taxes.

“Transition Services Agreement” means the Transition Services Agreement between CCG
and Purchaser, in the form attached hereto as Exhibit I.

 

17

 

“WARN Act” means the Worker Adjustment and Retraining Notification Act, as amended.

“Welfare Plan” means any “employee welfare benefit plan,” as defined in Section 3(1)
of ERISA that any Person maintains, sponsors, participates in or contributes to or under which any
such Person has or may incur any liability or obligation.

1.2 Other Interpretive Provisions. When a reference is made in this Agreement to an
Article, Section or Schedule, such reference is to an Article or a Section of, or Schedule to, this
Agreement, unless otherwise indicated. The words “include,” “includes” or “including” and “such
as” do not limit the preceding words or terms and shall be deemed to be followed by the words
“without limitation.” The words “hereof,” “herein,” “hereunder,” “hereby” and words of like import
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement. All pronouns and any variations thereof refer to the masculine, feminine or
neuter, singular or plural, as the context may require. All terms defined in this Agreement in
their singular or plural forms, have correlative meanings when used in their plural or singular
forms, respectively. Reference in any Transaction Document to any Contract or document means such
Contract or document as amended or modified and in effect from time to time in accordance with the
terms thereof and includes all addenda, amendments, exhibits, and schedules. The inclusion of any
matter in the Disclosure Schedule in connection with any representation, warranty, covenant or
agreement that is qualified as to materiality or “Material Adverse Effect” shall not be an
admission by the Party delivering such Disclosure Schedule that such matter is material or would
reasonably be expected to result in a Material Adverse Effect with respect to such Party.

ARTICLE 2

PURCHASE AND SALE OF

PURCHASED INTERESTS

2.1 Purchase and Sale.

(a) Purchased Interests. Upon the terms and subject to the conditions of this
Agreement, on the date hereof, the Sellers agree to sell, assign, transfer and otherwise convey to
Purchaser the Purchased Interests free and clear of all Encumbrances (other than restrictions on
transfer under applicable state and federal securities laws), and Purchaser agrees to purchase the
Purchased Interests from the Sellers.

(b) Purchase of CHC New Shares. Upon the terms and subject to the conditions of this
Agreement, on the date hereof, CHC agrees to issue and sell to Purchaser the CHC New Shares free
and clear of all Encumbrances (other than restrictions on transfer under applicable state and
federal securities laws), and Purchaser agrees to purchase the CHC New Shares from CHC.

(c) Purchase Price. Subject to adjustment by Section 2.4, the aggregate
consideration for the Purchased Interests and the CHC New Shares (the “Purchase Price”)
shall be $110,000,000 payable as follows: (i) $50,000,000 shall be paid in cash, of which (A)

 

18

 

$37,026,666 shall be paid by wire transfer of immediately available funds to the accounts
designated in writing by CHC on Schedule 2.1(c)(i)(A) attached hereto, (B) $2,973,334 shall
be paid by Purchaser to certain third parties on behalf of CHC as designated on Schedule
2.1(c)(i)(B) and (C) $10,000,000 shall be paid to the account designated in writing by CHC on
Schedule 2.1(c)(i)(A), to be deposited by CHC with the Escrow Agent (such amount, together
with any interest accrued thereon, the “Escrow Property”) by wire transfer of immediately
available funds (or, as directed by CHC, directly to the account designated on Schedule
2.1(c)(i)(C)), the proceeds of which shall be used as set forth in the Escrow Letter; and (ii)
$60,000,000 shall be in the form of Purchaser’s (or its Subsidiary’s) assumption of outstanding
Senior Secured Bank Debt of CHC and CCG. The Escrow Property shall be held by the Escrow Agent in
accordance with the terms of the Escrow Agreement of even date herewith (the “Escrow
Agreement”), by and among CHC, CCG, the Escrow Agent and Bank of America, N.A., as agent under
the Senior Secured Bank Debt.

(d) Allocation. Schedule I attached hereto sets forth the allocation of the
Purchase Price among each Purchased Interest acquired from each Seller and the CHC New Shares
acquired from CHC (including an allocation among all of the Purchased Interests of any Acquired
Entity or Subsidiary thereof that is a disregarded entity for Tax purposes on the Closing Date) in
accordance with Section 1060 of the Code (and any similar provision of Law, as appropriate). Each
Party shall cooperate fully with the other Party to prepare all Tax forms, including Internal
Revenue Service Forms 8594. The Purchase Price shall be allocated in accordance with this
Section 2.1(d), and no Party shall take a position inconsistent with such allocation on any
Tax Return (including Internal Revenue Service Form 8594), unless otherwise required by a final,
nonappealable determination of a court of competent jurisdiction or a binding closing agreement
entered into with a Taxing Authority.

(e) Assumed Liabilities. Effective as of the Closing, Purchaser shall assume and
agree to pay, discharge or perform, as appropriate, the obligations of any Seller under the
Contracts set forth on Section 4.25(a) of the Disclosure Schedule relating to the Purchased
Interests to the extent such obligations accrue after the Closing, are not required to be performed
on or prior to the Closing and do not arise out of or relate to obligations that are inconsistent
with the representations, warranties, covenants or agreements in this Agreement or any Transaction
Document. Except as set forth in the immediately preceding sentence and Section 2.1(c)
and, subject to the provisions of this Agreement, with respect to liabilities of the Acquired
Entities, the Sellers acknowledge and agree with Purchaser that the Sellers shall not convey to
Purchaser, or cause or permit Purchaser to incur, assume or otherwise become liable for, in each
case, any liability whatsoever (whether fixed or contingent, known or unknown, liquidated or
unliquidated, suspected or unsuspected, material or immaterial, absolute or contingent, matured or
unmatured, determinable or undeterminable, direct or indirect, secured or unsecured, or otherwise).

2.2 Closing Date. The closing of the purchase and sale transactions contemplated by
Sections 2.1(a) and 2.1(b) (the “Closing”) will take place on the date
hereof (the “Closing Date”), at the offices of Paul, Hastings, Janofsky & Walker LLP, 75
East 55th Street, New York, NY, 10022, or at such other place as Purchaser and CHC mutually agree.
At the Closing, there shall be delivered to the Sellers and Purchaser, as applicable, the Purchase
Price, opinions, certificates and other documents and instruments to be delivered under Section
2.3.

 

19

 

2.3 Closing Deliveries. At the Closing:

(a) CHC and each of the Other Sellers, as applicable, shall deliver to Purchaser:

(i) share certificate(s) representing the CHC New Shares in the name of Purchaser
and/or, in Purchaser’s sole and absolute discretion, as directed by Purchaser prior to the
date hereof, the name(s) of other creditors and claimants of CHC and any of its
Subsidiaries;

(ii) evidence of the assignment and transfer to Purchaser of the AMAC Promissory Note,
duly executed by CHC, in form and substance reasonably satisfactory to Purchaser;

(iii) evidence of the consents or approvals of the Persons whose consents or approvals
are required for CHC and each of the Other Sellers to consummate the Contemplated
Transactions, which consents are set forth on Schedule 2.3(a)(iii);

(iv) releases in substantially the form attached hereto as Exhibit J, duly
executed by the Sellers;

(v) a certificate in substantially the form attached hereto as Exhibit K, duly
executed by any Secretary, any Assistant Secretary or any manager, as applicable, of CHC and
each of the Other Sellers, dated as of the date hereof;

(vi) a certificate in substantially the form attached hereto as Exhibit U, duly
executed by an executive officer of CHC, dated as of the date hereof;

(vii) FIRPTA certificates in substantially the form attached hereto as Exhibit
L, duly executed by an executive officer or manager as applicable, of CHC and each of
the Other Sellers.

(viii) each Registration Rights Agreement, duly executed by CHC;

(ix) the Transition Services Agreement, duly executed by CHC and each of the Other
Sellers party thereto;

(x) the Sublease, duly executed by Centerline REIT and New CSI;

(xi) the Management Agreement, duly executed by CHC and CCG;

(xii) the Lock-up Agreements, duly executed by CHC, Related, Bank of America, N.A.,
Wells Fargo Bank N.A. and Natixis Financial Products Inc.;

(xiii) the Subservicing Agreements, duly executed by each of the parties thereto;

 

20

 

(xiv) the CDO/CMBS Assignment Agreements, duly executed by each of the parties thereto;

(xv) the Software Assignment Agreement, duly executed by CCG and CSI;

(xvi) the Software License, duly executed by CSI and CCG;

(xvii) the Escrow Agreement, duly executed by CHC;

(xviii) the Escrow Letter, duly executed by CHC;

(xix) evidence that the Board of Trustees of CHC shall have approved and adopted the
amendment to the CHC Bylaws set forth in Exhibit V;

(xx) evidence that the portion of the Purchase Price set forth on Schedule
2.1(c) shall have been paid to the Persons set forth on Schedule 2.1(c); and

(xxi) evidence of the assignment and transfer to Purchaser or any of its Subsidiaries
of all Intellectual Property used in or necessary to carry on the business of any Acquired
Entity, any Fund Entity and their respective Subsidiaries as currently conducted, which is
not currently held by such Acquired Entity, Fund Entity or any of their Subsidiaries, duly
executed by the owner or holder of such Intellectual Property in form and substance
reasonably satisfactory to Purchaser.

(b) CCG shall deliver to Purchaser: evidence of (i) the assignment and transfer to Purchaser
of the CSI Interests, duly executed by CCG, in form and substance reasonably satisfactory to
Purchaser, (ii) the substitution of Purchaser as sole member of New CSI, including a duly executed
amendment to the limited liability company agreement of CSI admitting Purchaser as the sole member
of New CSI, in form and substance reasonably satisfactory to Purchaser, (iii) the Fund I Promote
Plans Letter Agreement, duly executed by CCG, (iv) the Escrow Agreement, duly executed by CCG, and
(v) the Escrow Letter, duly executed by CCG;

(c) ARCAP 2004 RR3 shall deliver to Purchaser evidence of the assignment and transfer to
Purchaser of the ARCAP 2004 RR3 Re-Remic Bonds, duly executed by RR3, in form and substance
reasonably satisfactory to Purchaser.

(d) ARCAP 2005 RR5 shall deliver to Purchaser evidence of the assignment and transfer to
Purchaser of the ARCAP 2005 RR5 Re-Remic Bonds, duly executed by RR5, in form and substance
reasonably satisfactory to Purchaser.

(e) CFM shall deliver to Purchaser: evidence of (i) the assignment and transfer to Purchaser
of the Fund II Interests, duly executed by CFM, in form and substance reasonably satisfactory to
Purchaser, and (ii) the substitution of Purchaser as managing member of HY II and DIV II, including
a duly executed amendment to the limited liability company agreements of HY II and DIV II,
respectively, admitting Purchaser as the managing member of HY II and DIV II, in form and substance
reasonably satisfactory to Purchaser.

 

21

 

(f) CFM III shall deliver to Purchaser: evidence of (i) the assignment and transfer to
Purchaser of the Fund III Interests, duly executed by CFM III, in form and substance reasonably
satisfactory to Purchaser, (ii) the substitution of Purchaser as managing member of Fund III,
including a duly executed amendment to the limited liability company agreement of Fund III,
admitting Purchaser as the managing member of Fund III, in form and substance reasonably
satisfactory to Purchaser and (iii) the assignment and transfer to Purchaser of the CFM III
Promissory Note, in form and substance reasonably satisfactory to Purchaser.

(g) Centerline REIT shall deliver to Purchaser: evidence of (i) the assignment and transfer to
Purchaser of the CRESS Interests, duly executed by Centerline REIT, in form and substance
reasonably satisfactory to Purchaser, duly executed by Centerline REIT, (ii) the substitution of
Purchaser as the managing member of CRESS, including a duly executed amendment to the limited
liability company agreement of CRESS admitting Purchaser as the managing member of CRESS, each in
form and substance reasonably satisfactory to Purchaser, (iii) evidence of the assignment and
transfer to Purchaser of the Centerline REIT Bonds, duly executed by Centerline REIT, in form and
substance reasonably satisfactory to Purchaser, (iv) evidence of the assignment and transfer to
Purchaser of the Centerline REIT Note, duly executed by Centerline REIT, in form and substance
reasonably satisfactory to Purchaser, (v) the Assignment and Assumption Agreement, duly executed by
Centerline REIT and CSI, and (vi) the Bill of Sale, duly executed by Centerline REIT and CSI.

(h) CMI shall deliver to Purchaser: evidence of (i) the assignment and transfer to Purchaser
of the CUCA Interests, duly executed by CMI, in form and substance reasonably satisfactory to
Purchaser, and (ii) the substitution of Purchaser as sole member of CUCA, including a duly executed
amendment to the limited liability company agreement of CUCA, admitting Purchaser as the managing
member of CUCA, in form and substance reasonably satisfactory to Purchaser.

(i) The Sellers shall deliver to Purchaser opinions of (i) Paul, Hastings, Janofsky & Walker
LLP and (ii) Richards, Layton & Finger, P.A., each dated as of the date hereof, in substantially
the forms attached hereto as Exhibit M and Exhibit N, respectively.

(j) Purchaser shall deliver to CHC:

(i) the Purchase Price in accordance with Section 2.1(c);

(ii) a certificate in substantially the form attached hereto as Exhibit K, duly
executed by the Secretary, Assistant Secretary or manager of Purchaser, dated as of the date
hereof;

(iii) the opinion of Proskauer Rose LLP, dated as of the date hereof, in substantially
the form attached hereto as Exhibit O;

(iv) evidence of the consents or approvals of the Persons whose consents or approvals
are required for Purchaser to consummate the Contemplated Transactions, which consents are
set forth on Schedule 2.3(j)(iv);

 

22

 

(v) each Registration Rights Agreement, duly executed by Purchaser and Island Manager,
respectively;

(vi) the Transition Services Agreement, duly executed by Purchaser;

(vii) the Sublease, duly executed by Purchaser;

(viii) the Management Agreement, duly executed by Island Manager;

(ix) the Related Purchase Agreement, duly executed by Purchaser and Related;

(x) the Fund I Promote Plans Letter Agreement, duly executed by Purchaser;

(xi) evidence that the portion of the Purchase Price set forth on Schedule
2.1(c) shall have been paid to the Persons set forth on Schedule 2.1(c).

(k) Except as provided in Section 6.14, the assignment and transfer to Purchaser (or
its Affiliates) of the Fund I Bonds shall have occurred.

2.4 Purchase Price Adjustments. The cash Purchase Price shall be decreased by (a)
$2,444,040.95, representing the aggregate amount of bonus payments (including Taxes and benefits)
payable to the Continuing Employees for the year ending December 31, 2009 and being assumed by
Purchaser at the Closing, as set forth on Schedule 2.4(a) (the “Assumed Bonuses”),
(b) $497,352.46, representing the aggregate amount of accrued vacation that may be payable to
Continuing Employees, as set forth on Schedule 2.4(b) (the “Assumed Benefits”) and
(c) $170,853.06, representing fifty percent (50%) of the projected costs estimated by Purchaser and
CHC to separate New CSI’s information technology and network from CHC at the Closing (the “IT
Sharing Payment”).

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF CHC

CHC hereby represents and warrants to Purchaser that the statements contained in this Article
3 are true and correct as of the date hereof, except as expressly set forth herein or in the
Disclosure Schedule and except as set forth in the CHC SEC Filings filed on or prior to the date
hereof.

3.1 No Conflict; Governmental Authorization.

(a) The execution, delivery and performance of (1) this Agreement, (2) each of the Transaction
Documents to which CHC is a party and (3) the consummation by CHC of the Contemplated Transactions
do not:

(i) violate, conflict with or result in the breach of any provision of the CHC Trust
Agreement or the CHC Bylaws;

 

23

 

(ii) conflict with or violate, in any material respect, any Law applicable to CHC or
any of its Subsidiaries or by which any property or assets of CHC or any of its Subsidiaries
is bound;

(iii) require any consent or notice, or result in any violation or breach of, or
conflict with, or constitute (with or without notice or lapse of time or both) a default (or
give rise to any right of purchase, termination, amendment, acceleration or cancellation)
under, result in the loss of any benefit under, or result in the triggering of any payments
pursuant to, any of the terms, conditions or provisions of any Material Contract;

(iv) result in the creation of an Encumbrance (except for Permitted Encumbrances) on
any property or asset of CHC or any of its Subsidiaries;

(v) entitle any Person to any right or privilege to which such Person was not entitled
immediately prior to the execution of this Agreement or any Transaction Document, except as
contemplated by the Transaction Documents; or

(vi) impose any limitation on the ability of Purchaser effectively to exercise full
rights of ownership with respect to the CHC New Shares acquired pursuant to this Agreement
or any other Transaction Document;

except, with respect to clauses (iii) through (vi), for such triggering payments, Encumbrances,
filings, notices, permits, authorizations, consents, approvals, violations, terminations,
amendments, accelerations, cancellations, conflicts, breaches, defaults, losses of benefits or
rights, which would not, individually or in the aggregate, result in a Material Adverse Effect on
CHC.

(b) No material consent of, or registration, declaration, notice or filing with, any
Governmental Authority or third party is required to be obtained or made by CHC in connection with
the execution, delivery and performance of this Agreement, any Transaction Document to which it is
a party or the consummation of the Contemplated Transactions.

3.2 Corporate Status. CHC (a) is a statutory trust duly created, validly existing
and in good standing under the laws of the state of Delaware; (b) has all requisite power and
authority to own, lease and operate its properties and to carry on its business as currently
conducted and (c) is duly qualified or licensed to do business and is in good standing in each
of the jurisdictions in which the ownership, operation or leasing of its properties and assets
and the conduct of its business requires it to be so qualified, licensed or authorized, except
where the failure to have such power and authority or to be so qualified, licensed or
authorized would not, individually or in the aggregate, result in a Material Adverse Effect on
CHC. CHC has made available to Purchaser, prior to the date hereof, a true complete and
correct copy of the CHC Trust Agreement and the CHC Bylaws in effect as of the date hereof.

3.3 Authority; Binding Effect. CHC has the requisite power and authority to
execute and deliver this Agreement and each of the Transaction Documents to which it is party,
to perform its obligations hereunder or thereunder and to consummate the

 

24

 

Contemplated Transactions, as applicable. This Agreement and each of the Transaction
Documents to which it is a party have been duly authorized, executed and delivered by CHC, and
(assuming the due authorization, execution and delivery by Purchaser) this Agreement and each
of the Transaction Documents to which CHC is party constitute the legal, valid and binding
obligation of CHC, enforceable against CHC in accordance with their terms. Neither the
execution, delivery or performance of this Agreement or any Transaction Document nor the
consummation of any Contemplated Transaction (a) except as contemplated by Section
6.12, requires the approval of the shareholders of CHC or (b) results in any shareholder of
CHC having the right to exercise statutory or contractual appraisal rights.

3.4 Capitalization.

(a) The CHC Trust Agreement authorizes the issuance of 160,000,000 shares of beneficial
interest in CHC. The current issued and outstanding shares consist of (i) 11,201,487 issued and
outstanding 11% Cumulative Convertible Preferred Shares, Series A-1, (ii) 2,160,000 issued and
outstanding 4.4% Cumulative Perpetual Convertible Community Reinvestment Act Preferred Shares,
Series A-1, (iii) 998,336 issued and outstanding Convertible Community Reinvestment Act Preferred
Shares, (iv) 5,473,391 issued and outstanding Series A Convertible Community Reinvestment Act
Preferred Shares, (v) 56,568,998 issued and outstanding Common Shares and (vi) 12,731,465 issued
and outstanding Special Preferred Voting Shares. All of the issued and outstanding shares of
beneficial interest of CHC (i) have been duly authorized and validly issued, (ii) are fully paid
and non-assessable, and (iii) are free and clear of any and all Encumbrances, except for
restrictions on transfer imposed under federal and state securities laws. No shares of beneficial
interest of CHC are owned by any Subsidiary of CHC.

(b) There is no (i) outstanding subscription, option, call, warrant or right (whether or not
currently exercisable) to acquire any shares of beneficial interest or other securities of CHC;
(ii) outstanding security, instrument or obligation that is or may become convertible into or
exchangeable for any shares of beneficial interest or other securities of CHC or otherwise has the
right to vote on any matters on which the shareholders of CHC have the right to vote; (iii) rights
agreement, shareholder rights plan (or similar plan commonly referred to as a “poison pill” or
Contract under which CHC is or may become obligated to sell or otherwise issue any shares of
beneficial interest or any other securities; (iv) stock appreciation rights, phantom stock awards
or other similar rights that are linked to the value of CHC Common Shares or the value of CHC or
any part thereof; or (v) to the Knowledge of CHC, condition or circumstance that may give rise to
or provide a basis for the assertion of a claim by any Person to the effect that such Person is
entitled to acquire or receive any shares of beneficial interest or other securities of CHC from
CHC.

(c) Section 3.4(c) of the Disclosure Schedule sets forth all outstanding grants and
other interests issued pursuant to the Promote Plans.

(d) The CHC New Shares have been duly authorized by all necessary trust action by CHC and,
upon the issuance of such shares as provided herein, the CHC New Shares will be validly issued,
fully paid and nonassessable. Upon issuance, the CHC New Shares will be free and clear of all
Encumbrances (other than restrictions on transfer under applicable state

 

25

 

and federal securities laws). Following the adoption of the CHC Trust Amendment, the common
shares of CHC issuable upon conversion of the CHC New Shares will have been duly authorized by all
necessary action by CHC, and on the date of conversion will be validly issued, fully paid and
nonassessable. Upon conversion of the CHC New Shares, the common shares of CHC will be free and
clear of all Encumbrances (other than restrictions on transfer under applicable state and federal
securities laws and any Encumbrance to which Purchaser may subject such shares). There is no
preemptive right that has not been waived or terminated with respect to such issuance of the CHC
New Shares and the common shares of CHC issuable upon conversion of the CHC New Shares.
Section 3.4(d) of the Disclosure Schedule sets forth the capitalization of CHC immediately
following the Closing, including equity interests and Derivative Instruments.

3.5 SEC Documents; Financial Statements.

(a) CHC has timely filed with, or furnished to, as applicable, the SEC all registration
statements, prospectuses, reports, forms, statements, schedules, certifications and other documents
required to be filed by CHC since January 1, 2007 (together with all exhibits and schedules thereto
and all information incorporated therein by reference, the “CHC SEC Documents”). As of
their respective dates, or if amended, as of the date of the last such amendment, the CHC SEC
Documents (i) were prepared in accordance and complied in all material respects with the
requirements of the Securities Act, the Exchange Act and the Sarbanes-Oxley Act (to the extent
applicable) and (ii) did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. None of the Subsidiaries
of CHC has filed since January 1, 2007 or is required to file any registration statements,
prospectuses, reports, forms, statements, schedules, certifications or other documents with the
SEC.

(b) The financial statements (including any related notes thereto) contained in the CHC SEC
Documents: (i) complied as to form in all material respects with the published rules and
regulations of the SEC applicable thereto; (ii) were prepared in accordance with GAAP applied on a
consistent basis throughout the periods covered (except as may be indicated in the notes to such
financial statements or, in the case of unaudited statements, as permitted by Form 10-Q or Form 8-K
of the SEC, and except that the unaudited financial statements may not contain footnotes and are
subject to normal and recurring year-end adjustments that will not, individually or in the
aggregate, be material in amount); and (iii) fairly present in all material respects the
consolidated financial position of CHC and its consolidated Subsidiaries as of the respective dates
thereof and the consolidated results of operations and cash flows of CHC and its consolidated
Subsidiaries for the periods covered thereby.

(c) Each of the principal executive officer of CHC and the principal financial officer of CHC
has made all certifications required by Rule 13a-14 or Rule 15d-14 under the Exchange Act or
Section 302 and 906 of the Sarbanes-Oxley Act and the rules and regulations of the SEC promulgated
thereunder with respect to the CHC SEC Documents and the statements contained in such
certifications are true and accurate as of the applicable dates thereof. For the purposes of the
preceding sentence, “principal executive officer” and “principal financial officer” shall have the
meanings given to such terms in the Sarbanes-Oxley Act.

 

26

 

(d) CHC maintains disclosure controls and procedures that satisfy the requirements of Rule
13a-15 under the Exchange Act. Such disclosure controls and procedures are effective to ensure
that all material information concerning CHC and its Subsidiaries is made known on a timely basis
to the individuals responsible for the preparation of CHC’s filings with the SEC.

(e) CHC maintains a system of internal accounting control sufficient to provide reasonable
assurance that: (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

(f) CHC is in compliance in all material respects with the provisions of the Sarbanes-Oxley
Act and the rules and regulations promulgated thereunder applicable to it. To the Knowledge of
CHC, there have been no material violations of provisions of CHC’s code of ethics. Neither CHC nor
any of its Subsidiaries is a party to, or has a legally binding obligation to become a party to,
any joint venture, off-balance sheet partnership or any similar Contract (including any Contract
relating to any transaction or relationship between or among CHC and any of its Subsidiaries, on
the one hand, and any unconsolidated Affiliate, including any structured finance, special purpose
or limited purpose entity or Person, on the other hand, or any “off-balance sheet arrangements” (as
defined in Item 303(a) of Regulation S-K of the SEC but excluding any leases, deferred purchase
price or other ordinary course transaction)), where the purpose or effect of such arrangement or
contract is to avoid disclosure of any material transaction involving, or material liability of,
CHC or any of its Subsidiaries in CHC’s or any of its Subsidiaries’ published financial statements
or other CHC SEC Documents.

(g) There are no amendments or modifications, which were or will be required to be filed with
the SEC, but have not yet been filed with the SEC, to (i) agreements, documents or other
instruments which previously have been filed by CHC with the SEC pursuant to the Exchange Act and
(ii) the CHC SEC Documents themselves. CHC has timely responded to all comment letters from the
Staff of the SEC relating to the CHC SEC Documents and, there are no outstanding or unresolved
comments in comment letters received by CHC from the Staff of the SEC, and the SEC has not asserted
that any of such responses are inadequate, insufficient or otherwise non-responsive. CHC has made
available to Purchaser true, complete and correct copies of all correspondence with the SEC
occurring since January 1, 2007. None of the CHC SEC Documents filed on or prior to the date
hereof is, to the Knowledge of CHC, subject to ongoing SEC review or investigation.

3.6 Absence of Undisclosed Liabilities. None of CHC and its Subsidiaries has any
material obligation or liability of any nature (whether known or unknown, absolute, accrued,
matured or unmatured, fixed or contingent and whether due or to become due, asserted or unasserted)
other than those (i) reflected or reserved against (in accordance with CHC’s past practice with
respect to the methodology used to calculate any such liabilities or obligations) in the balance
sheet included in CHC’s Quarterly Report on Form 10-Q heretofore provided to

 

27

 

Purchaser for the period ended September 30, 2009, (ii) incurred in the Ordinary Course of
Business since the Centerline Balance Sheet Date and that, individually or in the aggregate, are
not material and (iii) incurred in connection with the execution of this Agreement and the other
Transaction Documents.

3.7 Absence of Certain Changes. Since September 30, 2009 (the “Centerline Balance
Sheet Date”), (a) there has been no event or condition which would result in a Material Adverse
Effect on CHC and (b) CHC and its Subsidiaries have, in all material respects, conducted their
business in the Ordinary Course of Business consistent with past practice.

3.8 Taxes.

(a) All Tax Returns required to be filed by or with respect to CHC and its Subsidiaries have
been properly prepared and timely filed (taking into account all applicable extensions), and all
such Tax Returns (including information provided therewith or with respect thereto) are true,
correct and complete in all material respects.

(b) Each of CHC and its Subsidiaries has fully and timely paid all Taxes (whether or not shown
to be due on the Tax Returns referred to in Section 3.8(a)), except for Taxes being
contested in good faith and for which adequate reserves have been established in accordance with
GAAP and for Taxes as to which the failure to pay has not had, and would not reasonably be expected
to have, a Material Adverse Effect on CHC. Adequate reserves in accordance with GAAP have been
established by CHC for all material Taxes not yet due and payable in respect of taxable periods
ending prior to the Effective Time.

(c) All material amounts of Tax required to be withheld by CHC and its Subsidiaries have been
or will be timely withheld and paid over to the appropriate Taxing Authority.

(d) To the Knowledge of CHC, no material deficiency for any amount of Tax has been asserted or
assessed by any Taxing Authority against CHC or its Subsidiaries (or, to the Knowledge of CHC, has
been threatened or proposed), except for deficiencies which have been satisfied by payment, settled
or been withdrawn or which are being contested in good faith and are Taxes for which CHC or its
Subsidiaries have set aside adequate reserves in accordance with GAAP. No audit or other
proceeding by any Taxing Authority is pending or threatened in writing with respect to a material
amount of Taxes due from or with respect to CHC or its Subsidiaries. To the Knowledge of CHC, no
claim has been made by a Taxing Authority in a jurisdiction in which CHC or any Subsidiary of CHC
does not file Tax Returns that CHC or any Subsidiary is or may be subject to taxation in that
jurisdiction. Neither CHC nor any of its Subsidiaries have waived the statute of limitations with
respect to any taxable period involving a material amount of Taxes or agreed to an extension of
time with respect to any material Tax assessment or deficiency.

(e) There are no Tax indemnification, allocation or sharing agreements (or similar agreements)
under which CHC or its Subsidiaries could be liable for the Tax liability of an entity that is not
CHC or one of its Subsidiaries.

 

28

 

(f) There are no material Encumbrances for Taxes upon any property or assets of CHC or its
Subsidiaries, except for Encumbrances for Taxes not yet due and payable or for which adequate
reserves have been provided in accordance with GAAP in the latest CHC Balance Sheet and the Closing
Balance Sheet.

(g) None of CHC or its Subsidiaries has received approval to make or agreed to a change in any
accounting method affecting federal income taxes or has any written application pending with any
Taxing Authority requesting permission for any such change. There are no requests for ruling or
determinations with respect of any Taxes or Tax Returns pending between CHC or any Subsidiary of
CHC and any Taxing Authority.

(h) Neither CHC nor any of its Subsidiaries is a party to or bound by any active closing
agreement pursuant to Section 7121 of the Code (or any similar provision of state, local or foreign
law) or offer in compromise with any Taxing Authority.

(i) Neither CHC nor any of its Subsidiaries has constituted either a “distributing
corporation” or a “controlled” corporation in a distribution of shares qualifying for tax-free
treatment under Section 355 of the Code in the two (2) years prior to the date of this Agreement.

(j) Neither CHC nor any of its Subsidiaries has engaged in any transaction that could give
rise to a disclosure obligation as a reportable transaction under Code Section 6011 and each of the
foregoing is in material compliance with Code Sections 6111 and 6112 and the Treasury Regulations
thereunder related to tax shelter disclosure, registration, list maintenance and record keeping.

(k) Since January 1, 2007, none of CHC or any of its Subsidiaries has been a member of a group
filing a consolidated federal income Tax Return other than the Federal Tax Group or a combined,
consolidated, unitary or other affiliated group for state, local or foreign Tax purposes, and none
of CHC or its Subsidiaries has any liability for the Taxes of any Person as a transferee or
successor. To the Knowledge of CHC, no Tax Proceeding is being conducted with respect to any
consolidated, combined, unitary or other affiliated group, for federal, state or local Tax
purposes, of which any of any of CHC or its Subsidiaries was a member.

(l) None of CHC or its Subsidiaries will be required to include material amounts in income, or
exclude material items of deduction, after the Closing as a result of (i) any intercompany
transaction or excess loss account described in the Treasury Regulations promulgated pursuant to
Section 1502 of the Code (or any corresponding or similar provision of state, local or foreign Law)
arising or occurring on or prior to the Closing, (ii) any installment sale or open transaction
disposition made on or prior to the Closing, (iii) the application of the long-term method of
accounting on or prior to the Closing or (iv) any agreement with a Governmental Authority entered
into on or prior to the Closing.

(m) None of CHC or its Subsidiaries is a foreign corporation for United States federal income
Tax purposes.

(n) CHC has made available to Purchaser true, complete and accurate copies of all Tax Returns
for material Taxes with respect to CHC and its Subsidiaries for the last three

 

29

 

(3) years, and examination reports, and statements of deficiencies assessed against or agreed
to by, or with respect to CHC or its Subsidiaries with respect to such material Taxes for the last
five (5) taxable years.

(o) CHC is a publicly traded partnership and is not, and has never been, taxable as a
corporation under Section 7704 of the Code.

3.9 Intellectual Property. Except as would not result in a Material Adverse Effect on
CHC,

(a) CHC and its Subsidiaries own all right, title and interest in, or have the right to use,
pursuant to a license or otherwise, in each case, free and clear of all Encumbrances except
Permitted Encumbrances, all Intellectual Property (the “CHC Intellectual Property”)
required to operate their respective businesses as presently conducted;

(b) Section 3.9(b) of the Disclosure Schedule lists all registrations and applications
for registration or issuance of CHC Intellectual Property owned or purported to be owned by CHC and
its Subsidiaries and included in the CHC Intellectual Property, and all such registrations and
applications are subsisting in good standing, unexpired and are not the subject of any opposition,
cancellation, re-examination or other invalidation proceeding;

(c) CHC and its Subsidiaries have filed or caused to be filed all affidavits, renewals,
statements of use, maintenance filings and declaration, and paid or caused to be paid all fees and
charges necessary to maintain in good standing the items of Intellectual Property disclosed on
Section 3.9(b) of the Disclosure Schedule;

(d) as of the date hereof, CHC and its Subsidiaries have not received any written notice of
any claims or threatened Proceedings alleging that the conduct of the business of CHC or its
Subsidiaries infringe, misappropriate or otherwise violate the Intellectual Property of any other
Person, including cease and desist letters or offers of license, except for any of the foregoing
that have since been resolved;

(e) to the Knowledge of CHC, (i) the operation of its business does not violate any third
party Intellectual Property rights, and (ii) no third party has interfered with, infringed upon,
misappropriated or otherwise violated any CHC Intellectual Property;

(f) there are no Proceedings pending or, to the Knowledge of CHC, threatened, challenging the
ownership, enforceability, validity or use of any CHC Intellectual Property owned by CHC or its
Subsidiaries; and

(g) CHC and its Subsidiaries take and have taken commercially reasonably actions to maintain
and preserve their material CHC Intellectual Property and all confidential and proprietary
information therein.

3.10 Information Systems.

(a) All Information Systems of CHC and each of its Subsidiaries have been properly maintained,
in all material respects, by technically competent personnel, in accordance

 

30

 

with standards set by the manufacturers or otherwise in accordance with standards prudent in
CHC’s and its Subsidiaries’ industries, to ensure proper operation, monitoring and use. The
Information Systems of CHC and each of its Subsidiaries are in good working condition to
effectively perform all information technology operations necessary to conduct the business of CHC
and its Subsidiaries in all material respects. CHC and its Subsidiaries have in place a
commercially reasonable disaster recovery program, including providing for the regular back-up and
prompt recovery of the data and information necessary to the conduct of the business of CHC and its
Subsidiaries (including such data and information that is stored on magnetic or optical media in
the ordinary course) without material disruption to, or material interruption in, the conduct of
the business of CHC or its Subsidiaries.

(b) All right, title and interest in and to the data included in the Owned Intellectual
Property that is material to the business of CHC and its Subsidiaries and contained in any database
used or maintained by CHC or its Subsidiaries (collectively, the “CHC Data”) is owned by
CHC or its Subsidiaries, free and clear of all Encumbrances.

(c) CHC has established and is in compliance, in all material respects, with a written
information security program or programs covering CHC and its Subsidiaries that (i) includes
safeguards for the security, confidentiality and integrity of transactions and confidential or
proprietary CHC Data and (ii) is designed to protect against unauthorized access to the Information
Systems of CHC and each of its Subsidiaries, CHC Data and the systems of any third party service
providers that have access to (1) CHC Data or (2) Information Systems of CHC and each of its
Subsidiaries.

3.11 Proceedings.

(a) Except as would not result in a Material Adverse Effect on CHC, there is no pending
Proceeding or, to the Knowledge of CHC, any Proceeding threatened against, CHC, any of its
Subsidiaries or any of its officers or trustees. There is no pending Proceeding that challenges,
or that, if decided adversely to CHC or any of its Subsidiaries, would reasonably be expected to
have the effect of preventing, delaying, making illegal, or otherwise interfering with, the
execution, delivery or performance of this Agreement or any Transaction Document or the
consummation of the Contemplated Transactions. To the Knowledge of CHC, no Proceeding is
threatened (i) with respect to the record or beneficial ownership of, or the right to acquire the
capital stock, any Derivative Instrument or other equity interest of CHC or any of its
Subsidiaries, (ii) that challenges any Contemplated Transaction, (iii) that may make any
Contemplated Transaction illegal, (iv) that may impose any limitation on the ability of Purchaser
effectively to exercise full rights of ownership with respect to any Purchased Interests or the CHC
New Shares or (v) that would otherwise delay, prohibit or restrict consummation of any Contemplated
Transaction or impair the contemplated benefits to Purchaser of any Contemplated Transaction.

(b) Except as would not result in a Material Adverse Effect on CHC, there is no Order to which
CHC or any of its Subsidiaries, or any of the assets owned or used by CHC or any of its
Subsidiaries, is subject. To the Knowledge of CHC, no officer or other key employee of CHC or any
of its Subsidiaries is subject to any Order that prohibits such officer or employee

 

31

 

from engaging in or continuing any conduct, activity, or practice relating to the business of
CHC or any of its Subsidiaries that would result in a Material Adverse Effect on CHC.

3.12 Compliance with Laws; Permits.

(a) CHC and each of its Subsidiaries have complied, and are now in compliance, in each case,
in all material respects, with all applicable Laws. No investigation or review by any Governmental
Authority with respect to CHC or any of its Subsidiaries is pending or, to the Knowledge of CHC,
threatened, nor to the Knowledge of CHC, has any Governmental Authority indicated an intention to
conduct any such investigation or review.

(b) No event has occurred or circumstance exists that (with or without notice or lapse of
time, or both) may give rise to any obligation of CHC or any of its Subsidiaries to undertake, or
to bear all or any portion of the cost of, any material remedial action of any nature that would
result in a Material Adverse Effect on CHC.

(c) Except as would not result in a Material Adverse Effect on CHC, none of CHC or any of its
Subsidiaries has received, at any time since January 1, 2007, any notice or other communication
(whether oral or written) from any Governmental Authority or any other Person regarding (i) any
actual or alleged violation of, or failure to comply with, any Law or (ii) any actual or alleged
obligation on the part of CHC or its Subsidiaries to undertake, or to bear all or any portion of
the cost of, any remedial action of any nature, which in each case has not been satisfied in all
material respects.

(d) Except as would not result in a Material Adverse Effect on CHC, CHC and its Subsidiaries
hold all Permits that are necessary for the lawful conduct of their respective businesses or
ownership of their respective assets and properties, and all such Permits are in full force and
effect. Each of CHC and its Subsidiaries is, and at all times since January 1, 2007 has been, in
material compliance with all such Permits, and, to the Knowledge of CHC, no such Permits are
subject to any actual or possible revocation, withdrawal, suspension, cancellation, termination or
modification.

3.13 Environmental and Safety and Health Matters.

(a) (i) Each of CHC and its Subsidiaries is and at all times has been in compliance in all
material respects with all applicable Environmental Laws; (ii) each of CHC and its Subsidiaries
possesses and is in material compliance with all applicable Environmental Permits required under
Environmental Laws to operate as each currently operates; (iii) to the Knowledge of CHC, neither
CHC nor any of its Subsidiaries have generated, treated, stored, used, emitted, released,
discharged, transported or disposed of any Materials of Environmental Concern except in material
compliance with applicable Environmental Laws; (iv) neither CHC nor any of its Subsidiaries have
received any written notification alleging that it is liable for, or request for information
pursuant to Section 104(e) of the Comprehensive Environmental Response, Compensation and Liability
Act or similar foreign, state or local law concerning, any release or threatened release of
Materials of Environmental Concern at any location except, with respect to any such notification or
request for information concerning any such release or threatened release, to the extent such
matter has been fully resolved with the appropriate foreign,

 

32

 

federal, state or local regulatory authority or otherwise; (v) there is no Environmental Claim
pending, or to the Knowledge of CHC, threatened against CHC or any of its Subsidiaries; and (vi)
any material environmental reports, assessments, audits and similar investigations concerning CHC,
its Subsidiaries, or any property currently or formerly owned by CHC or any of its Subsidiaries
that Sellers have made available to Purchaser are all such reports in the possession of CHC or, to
the Knowledge of CHC, otherwise in existence and reasonably within the control of CHC.

(b) None of the matters disclosed in Section 3.13(a) of the Disclosure Schedule,
individually or in the aggregate, would result in a Material Adverse Effect on CHC.

3.14 Employee Matters and Benefit Plans.

(a) Section 3.14(a) of the Disclosure Schedule lists all Plans, written or otherwise,
as amended, modified or supplemented, of CHC or any of its Subsidiaries or any other Person
(whether or not incorporated) which is an ERISA Affiliate of CHC or any of its Subsidiaries, as
well as each plan with respect to which CHC or any of its Subsidiaries could incur material
liability (collectively, the “CHC Employee Plans”). CHC has made available to Purchaser
copies of (i) each such written CHC Employee Plan, including all amendments thereto and all related
trust agreements, administrative service agreements, group annuity contracts, group insurance
contracts, and policies pertaining to liability insurance covering the fiduciaries for each CHC
Employee Plan, summary plan descriptions, summaries of material modifications, registration
statements (including all attachments), prospectuses and communications distributed to employees,
plan participants or their beneficiaries, (ii) with respect to any such CHC Employee Plan and
related trust which is intended to qualify under Sections 401(a) and 501(a) of the Code,
respectively, the most recent favorable determination or opinion letter from the IRS as to its
qualified status under the Code; (iii) the three most recent annual reports on Form 5500 series,
with accompanying schedules and attachments, filed with respect to each CHC Employee Plan required
to make such a filing, (iv) any reports which have been filed with the U.S. Department of Labor or
the Internal Revenue Service within the last six years with respect to each CHC Employee Plan
required to make such filing, (v) financial and other information regarding current and projected
liabilities with respect to each CHC Employee Plan for which the filings described in (ii), (iii)
or (iv) above are not required under ERISA, (vi) all correspondence between the Internal Revenue
Service and/or the Department of Labor and CHC, its Subsidiaries and/or ERISA Affiliates and (vii)
a complete description of each CHC Employee Plan that is not in writing, if any.

(b) (i) (A) No CHC Employee Plan is now or at any time has been a, nor has CHC, its
Subsidiaries or any ERISA Affiliate, or any of their respective predecessors, ever maintained,
contributed to or been required to contribute to or otherwise had any obligation or liability,
directly or indirectly, with respect to any (x) Multiemployer Plan, (y) “multiple employer welfare
arrangement” as defined in Section 3(40) of ERISA, or (z) Pension Plan that is subject to Part 3,
Subtitle B of Title I of ERISA, Title IV of ERISA or Section 412 of the Code, and (B) none of the
CHC Employee Plans promises or provides retiree medical, death, disability or other retiree welfare
benefits to any Person (other than continuation coverage to the extent required by law, whether
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 or otherwise); (ii) CHC has
not, and to CHC’s Knowledge, no party in interest or

 

33

 

disqualified person (as defined in Section 3(14) of ERISA and Section 4975 of the Code) has,
engaged in a transaction with respect to any CHC Employee Plan which could subject CHC or any of
its Subsidiaries or ERISA Affiliates, directly or indirectly, to a material tax, penalty or other
material liability for prohibited transactions under ERISA or Section 4975 of the Code; (iii) CHC
has not, and to the Knowledge of CHC, no fiduciary of any CHC Employee Plan has breached any of the
responsibilities or obligations imposed upon fiduciaries under Title I of ERISA; (iv) all CHC
Employee Plans have been established and maintained substantially in accordance with their terms
(except that in any case in which any CHC Employee Plan is currently required to comply with a
provision of ERISA or of the Code, but is not yet required to be amended to reflect such provision,
it has been maintained, operated and administered in accordance with such provision) and have been
operated in compliance in all material respects with all applicable Laws, and may by their terms be
amended and/or terminated at any time without the consent of any other Person subject to applicable
Laws and the terms of each CHC Employee Plan; (v) CHC has performed all material obligations
required to be performed by it under, and it is not in any material respect in default under or in
violation of, any CHC Employee Plan, and CHC has no Knowledge of any default or violation by any
other Person with respect to any of the CHC Employee Plans; (vi) each CHC Employee Plan which is
intended to be qualified under Section 401(a) of the Code is the subject of a favorable
determination letter from the Internal Revenue Service as to such plan’s qualified status under
Section 401(a) of the Code (or comparable letter, such as an opinion or notification letter as to
the form of plan or prototype plan adopted by one or more of CHC or its Subsidiaries upon which CHC
or its Subsidiaries is permitted to rely), and nothing has occurred since the issuance of such
letter which has impaired or may reasonably be expected to impair such favorable determination or
otherwise has impaired or may reasonably be expected to impair or result in the revocation of the
qualified status of such plan; provided, however, that CHC shall not be responsible
for any such occurrences resulting from actions taken by third party service providers to any such
plan, unless such actions were taken with CHC’s Knowledge; (vii) CHC, its Subsidiaries and each
ERISA Affiliate are in compliance in all material respects with the provisions of ERISA and the
Code applicable to the CHC Employee Plans; (viii) all contributions to, and payments from, the CHC
Employee Plans which have been required to be made in accordance with the CHC Employee Plans have
been timely made (including any insurance premiums due under an insurance policy related to a CHC
Employee Plan); and (ix) all contribution to and payments from, the CHC Employee Plans, except
those to be made from a trust qualified under Section 401(a) of the Code, for any period ending
before the CHC Balance Sheet Date that were not yet required to be made are properly accrued and
reflected on the CHC Balance Sheet.

(c)

(i) Neither CHC nor any of its Subsidiaries currently maintains an employee stock
ownership plan (within the meaning of Section 4975(e)(7) of the Code) or any other CHC
Employee Plan that invests in CHC shares of beneficial interest.

(ii) Since the CHC Balance Sheet Date, neither CHC nor any of its Subsidiaries has
agreed (whether or not legally binding) to any increase in benefits under any CHC Employee
Plan (or the creation of new benefits), to create any Plan or arrangement that would
constitute a CHC Employee Plan, or change in employee

 

34

 

coverage which would increase the expense of maintaining any CHC Employee Plan, other
than in the Ordinary Course of Business with regard to amounts.

(iii) The consummation of the Contemplated Transactions, alone or in combination with
any other event, will not result in any payment or benefits, an increase in the amount of
compensation or benefits or accelerate the vesting or timing of payment of any benefits or
compensation payable in respect of any employee or other service provider.

(iv) No Person will be entitled to any severance benefits under the terms of any CHC
Employee Plan as a result of the consummation of the Contemplated Transactions, alone or in
combination with any other event.

(v) CHC, its Subsidiaries and each ERISA Affiliate have complied in all material
respects with (A) the notice and continuation coverage requirements of Section 4980B of the
Code and the regulations thereunder with respect to each CHC Employee Plan that is a group
health plan within the meaning of Section 5000(b)(1) of the Code, and (B) with the
applicable provisions of the HIPAA and the regulations issued thereunder.

(vi) There are no pending audits or investigations by any governmental agency involving
any CHC Employee Plan, no termination proceedings involving any CHC Employee Plan, and no
threatened or pending claims (except for individual claims for benefits payable in the
normal operation of the CHC Employee Plans), suits or proceedings involving any CHC Employee
Plan or asserting any rights or claims to benefits under any CHC Employee Plan, nor, to the
best of CHC’s Knowledge are there any facts which could reasonably give rise to any material
liability in the event of any such audit, investigation, claim, suit or proceeding.

(vii) To the extent that any CHC Employee Plan constitutes a “non-qualified deferred
compensation plan” within the meaning of Section 409A of the Code, such CHC Employee Plan
was operated in good faith compliance with Section 409A of the Code prior to January 1, 2009
and has been operated in compliance with Section 409A of the Code in all material respects
since January 1, 2009.

(viii) No payment which is or may be made by, from or with respect to any CHC Employee
Plan, to any employee, former employee, director or agent of CHC, its Subsidiaries or any
ERISA Affiliate, either alone or in conjunction with any other payment, event or occurrence,
(A) will or could properly be characterized as an “excess parachute payment” under Section
280G of the Code (or any corresponding provision of state, local or foreign Tax law) and (B)
will not be fully deductible as a result of Code Sections 162, 280G or 404 (or any
corresponding provision of state, local or foreign Tax law).

(d) Each CHC Employee Plan covering non-U.S. employees (a “CHC International Plan”) is
separately listed on Section 3.14(d) of the Disclosure Schedule, and has been maintained in
material compliance with its terms and with the requirements prescribed by

 

35

 

any and all applicable Laws (including any special provisions relating to registered or
qualified plans where such CHC International Plan was intended to so qualify). Except as would not
result in a Material Adverse Effect on CHC, (i) all contributions to, and payments from, the CHC
International Plans (other than payments to be made from a trust, insurance contract or other
funding medium) which may have been required to be made in accordance with the terms of any such
plan, and, when applicable, the law of the jurisdiction in which such plan is maintained, have been
timely made, (ii) all such contributions to the CHC International Plans, and all payments under the
CHC International Plans, for any period ending before the date hereof that are not yet required to
be made are properly accrued and reflected on the financial statements of CHC, (iii) all material
reports, returns, approvals and similar documents with respect to any CHC International Plan
required to be filed with any Governmental Authority or distributed to any CHC International Plan
participant have been duly and timely filed or distributed, and (iv) there are no pending
investigations by any governmental agency involving the CHC International Plans, no claims pending
or threatened in writing (except for claims for benefits payable in the normal operation of the CHC
International Plans), suits or proceedings against any CHC International Plan or asserting any
rights or claims to benefits under any CHC International Plan which could give rise to any
liability, in each case of which CHC has been notified.

(e) Except as is set forth in the CHC SEC Documents or: (i) there are no material
controversies pending or, to the Knowledge of CHC, threatened or reasonably anticipated with
respect to any CHC Employee Plans, the assets of any CHC Employee Plans (other than non-material
routine claims for benefits), any related trusts, or any fiduciary, trustee, administrator or
sponsor of such CHC Employee Plans, any ERISA Affiliate, any employee, director, or other service
provider of CHC or its Subsidiaries (whether current, former or retired); (ii) there are no
collective bargaining agreements or other written agreement with any union or labor organization
applicable to CHC and any of its Subsidiaries or their employees; (iii) there are no employee
representative bodies or works councils or other organizations representing, purporting to
represent or attempting to represent any employee of CHC or any of its Subsidiaries; (iv) neither
CHC nor any of its Subsidiaries is in breach of any collective bargaining agreement or other labor
union contract applicable to Persons employed by CHC or any of its Subsidiaries, nor does CHC know
of any activities or proceedings of any labor union to organize any such employees; (v) neither CHC
nor any of its Subsidiaries has any Knowledge of any activities or proceedings of any labor unions
to organize employees; (vi) there have not been any strikes, slowdowns, work stoppages, lockouts,
or threats thereof, by or with respect to any employees (foreign or domestic) of CHC or any of its
Subsidiaries; (vii) neither CHC nor any of its Subsidiaries is engaged in any unfair labor practice
(within the meaning of the National Labor Relations Act) and there is no unfair labor practice
complaint pending or, to the Knowledge of CHC or any of its Subsidiaries, threatened against any of
them before the National Labor Relations Board; and (viii) each of CHC and its Subsidiaries has
materially complied with all Laws applicable to employees, including but not limited to those
relating to employment discrimination, disability rights or benefits, equal opportunity, plant
closure and other employee protections such as those provided under the WARN Act, affirmative
action, workers’ compensation, employee benefits, severance payments, labor relations, employee
leave issues, wage and hour standards, occupational safety and health requirements and unemployment
insurance and related matters, immigration, and the classification of employees and independent
contractors. There have been no claims of harassment, discrimination, retaliatory act or similar
actions against any employee, officer or director of CHC or its Subsidiaries at any time during

 

36

 

the past four (4) years and, to the Knowledge of CHC, no facts exist that could reasonably be
expected to give rise to such claims or actions. CHC and its Subsidiaries are not required to
have, and do not have, any affirmative action plans or programs. To the Knowledge of CHC, no
employees of CHC or its Subsidiaries are in any material respect in violation of any term of any
employment Contract, non-disclosure agreement, non-competition agreement, or any restrictive
covenant to a former employer relating to the right of any such employee to be employed by CHC or
its Subsidiaries because of the nature of the business conducted or presently proposed to be
conducted by CHC or its Subsidiaries or to the use of trade secrets or proprietary information of
others.

(f) Neither the consideration nor implementation of Contemplated Transactions will increase
(i) the obligation of CHC or any of its Subsidiaries to make contributions or any other payments to
fund benefits accrued under the CHC Employee Plans, or (ii) the benefits accrued or payable with
respect to any participant under the CHC Employee Plans. Each of the CHC Employee Plans may be
amended or terminated at any time by action of the plan sponsor’s board of directors, or a
committee of such board of directors or duly authorized officer, in each case subject to the terms
of the CHC Employee Plan and compliance with applicable Laws.

(g) With respect to the Business Employees, CHC has provided Purchaser with (i) a true,
complete and accurate list, dated as of September 30, 2009, of their names, dates of hire, current
rates of compensation, employment status (i.e., active, inactive, on authorized leave and
reason therefor), department, title, exempt or non-exempt status, and full-time or part-time
status; (ii) a copy of all employee handbooks, supervisory handbooks, employment procedures
manuals, and written employment policies that are in effect currently; and (iii) a copy of all
EEO-1 or similar reports and of all affirmative action plans prepared or submitted to any
Governmental Authority by or on behalf of any of CHC or any of its Subsidiaries since two (2) years
prior to the Closing.

(h) Any individual who performs services for any of CHC or its Subsidiaries and who is not
treated as an employee for federal income tax purposes by CHC or its Subsidiaries is not an
employee under applicable Law or for any purpose including, for Tax withholding purposes or CHC
Employee Plan purposes. Each employee of any of CHC and its Subsidiaries has been properly
classified as “exempt” or “non-exempt” under applicable Law.

3.15 Arrangements with Certain Persons. Excluding this Agreement and the Transaction
Documents, none of CHC or any of its Affiliates (other than any Acquired Entity, any Fund Entity or
any of their respective Subsidiaries), on the one hand, and any Acquired Entity, any Fund Entity or
any of their respective Subsidiaries, on the other hand, has any interest in or is a party to any
Contract with, or relating to, any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries or their respective businesses. No Debt is owing by (a) CHC or any of its Affiliates
(other than any Acquired Entity, any Fund Entity or any of their respective Subsidiaries) to any
Acquired Entity, Fund Entity or any of their respective Subsidiaries or (b) any Acquired Entity,
Fund Entity or any of their respective Subsidiaries to CHC or any of its Affiliates (other than any
Acquired Entity, any Fund Entity or any of their respective Subsidiaries.

 

37

 

3.16 Contracts; No Default.

(a) For the purposes of this Agreement, each of the following shall be deemed to constitute a
“Material Contract” (whether written or oral):

(i) Contracts requiring annual expenditures by or liabilities of any party thereto in
excess of $120,000 which have a remaining term in excess of thirty (30) days and are not
terminable (without material penalty, cost or other liability) within thirty (30) days;

(ii) any Contract that is required by the rules and regulations of the SEC to be filed
as an exhibit to the CHC SEC Documents;

(iii) any Contract: (1) relating to the employment of any employee or retention of any
consultant or independent contractor that requires payments of base salary or amounts in
excess of $100,000 on an annual basis to any Person, (2) the terms of which obligate or may
in the future obligate CHC or any of its Subsidiaries to make any severance, termination or
similar payment to any current employee relating to a period of 12 months or more following
termination of employment or resulting from the consummation of the Contemplated
Transactions; or (C) pursuant to which CHC or any of its Subsidiaries is obligated to make
any bonus payment (other than payments constituting sales commissions or sales-related
bonuses) in excess of $100,000 to any current or former employee or director;

(iv) any Contract relating to the acquisition, transfer, development or sharing of any
material Intellectual Property (except for any Contract pursuant to which (A) any material
Intellectual Property is licensed to CHC or any of its Subsidiaries under any third party
software license generally available to the public, or (B) any material Intellectual
Property is licensed by CHC or any of its Subsidiaries to any Person on a non-exclusive
basis);

(v) any Contract which provides for indemnification of any officer, director or
employee;

(vi) any Contract that materially limits the ability of CHC or any if its Subsidiaries
to compete in any currently contemplated line of business with any Person in any geographic
area for any period of time;

(vii) any joint venture Contracts, partnership arrangements or other agreements outside
the Ordinary Course of Business involving a sharing of profits, losses, costs of liabilities
of any Person by CHC or any of its Subsidiaries; and

(viii) any Contract entered into by CHC or any of its Subsidiaries and any other Person
providing for the acquisition by CHC or any of its Subsidiaries (including by merger,
consolidation, acquisition of stock or assets or any other business combination) of any
material amount of assets of such other Person.

 

38

 

(b) Except as would not reasonably be expected to result in a Material Adverse Effect on CHC,
each Material Contract is valid and in full force and effect, and is enforceable by CHC or its
Subsidiaries and to the Knowledge of CHC, each other party thereto, in accordance with its terms.

(c) To the Knowledge of CHC, no event has occurred, and no circumstance or condition exists,
that (with or without notice or lapse of time) would reasonably be expected to: (i) result in a
violation or breach of any provision of any Material Contract; (ii) give any Person the right to
declare a default or exercise any remedy under any Material Contract; (iii) give any Person the
right to receive or require a rebate, chargeback, penalty or change in delivery schedule under any
Material Contract; (iv) give any Person the right to accelerate the maturity or performance of any
Material Contract; or (v) give any Person the right to cancel, terminate or modify any Material
Contract, in each case of clauses (i) through (v) above, except as would not result in a Material
Adverse Effect on CHC.

(d) Section 3.16(d) of the Disclosure Schedule lists all Material Contracts as of the
date of this Agreement. CHC has made available to Purchaser true and correct copies of each
Material Contract (including all amendments thereto and modifications and waivers thereunder).

3.17 Leases. Neither CHC nor any of its Subsidiaries owns any real property or any
interest in any real property. To the Knowledge of CHC, CHC or one of its Subsidiaries has a good
and valid leasehold interest in each parcel of real property leased by CHC and its Subsidiaries
necessary for the conduct of the business of CHC (the “Leased Real Property”), which
leasehold interest is free and clear of all Encumbrances (other than Permitted Encumbrances) and
except for any failures which would not result in a Material Adverse Effect on CHC and its
Subsidiaries. Except as does not have and would not result in a Material Adverse Effect on CHC,
(a) CHC or one of its Subsidiaries has the right to use and occupancy of the Leased Real Property
for the full term of the lease or sublease relating thereto, (b) all leases for the Leased Real
Property are in good standing, legal, binding, valid and effective and enforceable agreements of
CHC or one of its Subsidiaries and of the other parties thereto in accordance with their respective
terms, and neither CHC nor any of its Subsidiaries has received written notice of any default (or
any condition or event, which, after notice or a lapse of time or both, would constitute a default
thereunder) and (c) neither CHC nor any of its Subsidiaries has assigned its interest under any
such lease or sublease or sublet any part of the premises covered thereby, except for the Sublease
being entered into pursuant to the Contemplated Transactions. To the Knowledge of CHC, there are
no pending or threatened condemnation proceedings with respect to the Leased Real Property that
would materially and adversely affect the use, occupancy or value thereof.

3.18 Servicing. Except as would not result in a Material Adverse Effect on CHC, each
of CHC and its Subsidiaries has complied with (a) all applicable Laws and rating agency servicing
standards with respect to all outstanding Serviced Loans as to which it acts as a servicer, whether
as a master servicer, special servicer, subservicer or otherwise and (b) the material terms of the
applicable Servicing Agreement.

 

39

 

3.19 Finder’s Fee. Except for fees payable to Rothschild Inc. (whose fees CHC
acknowledges are its sole responsibility), no Person is entitled to any broker’s, finder’s
financial advisor’s or other similar fee or commission in connection with this Agreement or the
Contemplated Transactions based upon arrangements made by or on behalf of CHC or any of its
Subsidiaries.

3.20 Investment Company; Investment Advisor. Assuming the truth and accuracy of the
investment representations made to Centerline REIT, CFM, CFM III, CUCA and any Fund Entity by their
respective investors, neither CHC nor any of its Subsidiaries is or has ever been, nor immediately
following the consummation of Contemplated Transactions will be (assuming that each of these
entities remains a separate entity immediately following the consummation of the Contemplated
Transactions and is not merged with Purchaser or any of its Affiliates at this time), required to
register as an investment company under the Investment Company Act. Assuming the truth and
accuracy of the investment representations made to Centerline REIT, CFM, CFM III, CUCA and any Fund
Entity by their respective investors, neither CHC nor any of its Subsidiaries is or has ever been,
nor immediately following the consummation of the Contemplated Transactions will be, required to
register as an investment adviser under the Investment Advisers Act.

3.21 Insurance.

(a) CHC has made available to Purchaser accurate and complete copies of all current material
insurance policies and all material self insurance programs and arrangements relating to the
business, assets, liabilities, operations, employees, officers and directors of CHC and its
Subsidiaries. To the Knowledge of CHC, each of such insurance policies is valid and in full force
and effect. Since January 1, 2009, neither CHC nor any of its Subsidiaries has received any notice
or other communication regarding any actual or possible (i) cancellation or invalidation of any
such insurance policy; (ii) refusal or denial of any material coverage, reservation of rights or
rejection of any material claim under any such insurance policy; or (iii) material adjustment in
the amount of the premiums payable with respect to any such insurance policy. All information
provided to insurance carriers (in applications and otherwise) on behalf of CHC and its
Subsidiaries is accurate and complete, in all material respects, to the extent that the failure of
such information to be accurate and complete would entitle the applicable insurance carrier to
cancel such insurance policy procured on the basis of or in reliance on such information, reduce
the scope of coverage under such policy, increase the premiums payable by CHC and its Subsidiaries
or otherwise take any action adverse to CHC or any of its Subsidiaries.

(b) Section 3.21(b) of the Disclosure Schedule includes a list of material pending or
threatened claims which have been tendered to the insurance carriers for CHC and its Subsidiaries
and indicates which of such claims, if any, have been denied by such insurance carriers or
subjected to a reservation of rights in writing by such carrier, except to the extent such claim,
denial or reservation has been resolved.

3.22 Disclosure. No representation or warranty of CHC in this Agreement or any
Transaction Document, and no statement of CHC in the Disclosure Schedule, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the

 

40

 

statements herein or therein, in light of the circumstances under which they were made, not
misleading.

3.23 AMAC Promissory Note. (a) CHC is the legal and beneficial owner of the AMAC
Promissory Note, free and clear of all Encumbrances, (b) the AMAC Promissory Note constitutes a
legal, valid and binding obligation of AMAC, enforceable against it in accordance with its terms,
(c) no claim has been made by any Person alleging that the AMAC Promissory Note or the indebtedness
evidenced by the AMAC Promissory Note is invalid, unenforceable or should be recharacterized,
equitably subordinated or otherwise compromised or impaired, and (e) none of the Sellers, the
Acquired Entities, the Fund Entities or their respective Subsidiaries has (i) received any payment,
security interest or other transfer from AMAC except payments made either in the Ordinary Course
of Business or on ordinary business terms or in respect of indebtedness incurred in the Ordinary
Course of Business or (ii) effected, or received the benefit of, any setoff against the AMAC on
account of the AMAC Promissory Note or the indebtedness evidenced by the AMAC Promissory Note.
Neither CHC nor any of its Subsidiaries is a party to any Contract with respect to the repayment or
restructuring of the AMAC Promissory Note or any other liability of AMAC, other than the Taberna
Exchange and Discharge Proposal. As of the date hereof, the outstanding principal amount under the
AMAC Promissory Note is $79,876,500 and accrued interest thereunder is $10,007,993.35.

3.24 Subservicing Agreements. The representations and warranties made by each of CMC,
CMP and New CSI in each of the Subservicing Agreements, as applicable, are true and correct in all
respects.

3.25 No Reliance. Each of CHC and its Subsidiaries acknowledges and agrees that,
except for the representations and warranties in this Agreement and the other Transaction
Documents, none of Purchaser, its Affiliates or any other Person has made any representation or
warranty, express or implied, as to the accuracy or completeness of any information regarding
Purchaser, its Affiliates, its real property (whether owned or leased) or its business or other
matters. Without limiting the generality of the foregoing, none of Purchaser, its Affiliates or
any other Person has made a representation or warranty to CHC or any of its Subsidiaries with
respect to (a) any projections, estimates or budgets for the businesses of Purchaser or any of its
Affiliates, or (b) any material, documents or information relating to Purchaser or any of its
Affiliates made available to CHC, any of its Subsidiaries, or their counsel, accountants or
advisors, except as expressly covered by this Agreement or any Transaction Document.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE OTHER SELLERS

Each of the Other Sellers, jointly and severally, hereby represents and warrants to Purchaser
that the statements contained in this Article 4 are true and correct as of the date hereof, except
as expressly set forth herein or in the Disclosure Schedule.

4.1 No Conflict; Government Authorizations.

 

41

 

(a) Assuming the making and obtaining of all filings, notifications, consents, approvals,
authorizations and other actions referred to in Section 4.1(b), the execution, delivery and
performance of this Agreement and the Transaction Documents and the Contemplated Transactions do
not (with or without notice or lapse of time, or both):

(i) violate, conflict with or result in the breach of any provision of the certificate
of incorporation or formation, limited liability company agreement, by-laws, regulations or
other organizational or governing documents of any of the Other Sellers, any Acquired Entity
or any Fund Entity or any of the Acquired Entities’ or Fund Entities’ respective
Subsidiaries;

(ii) contravene, conflict with or violate any Law or Order applicable to any of the
Other Sellers, any Acquired Entity or any Fund Entity or any of the Acquired Entities’ or
Fund Entities’ respective Subsidiaries;

(iii) conflict with or violate or breach any provision of, or give any third party the
right to declare a default or exercise any remedy under, or to accelerate the maturity or
performance of, or to cancel, terminate or modify, any Contract of any of the Other Sellers,
any Acquired Entity or any Fund Entity or any of the Acquired Entities’ or Fund Entities’
respective Subsidiaries;

(iv) result in the creation of any Encumbrance (other than restrictions on transfer
under applicable state and federal securities laws) on any of the properties or assets of
any of the Sellers, any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries pursuant to any Contract to which such Person is a party or by which any of
such Person’s properties or assets are bound or affected;

(v) except as expressly contemplated by this Agreement and the other Transaction
Documents, entitle any Person to any right or privilege to which such Person was not
entitled immediately prior to the execution of this Agreement or any Transaction Document;

(vi) except as expressly contemplated by this Agreement and the other Transaction
Documents, create any obligation on the part of any of the Other Sellers, any Acquired
Entity or any Fund Entity or any of the Acquired Entities’ or Fund Entities’ respective
Subsidiaries that any such Person was not obligated to perform immediately prior to the
execution of this Agreement or any Transaction Document; or

(vii) impose any limitation on the ability of Purchaser effectively to exercise full
rights of ownership with respect to the Purchased Interests;

except in the case of clauses (iii) through (vii) above, for such contraventions, conflicts,
violations, breaches, defaults, exercises, accelerations, cancellations, terminations, modification
and creations which would not result in a Material Adverse Effect on any Other Seller, any Acquired
Entity or any Fund Entity.

(b) No material consent of, or registration, declaration, notice or filing with, any
Governmental Authority or third party is required to be obtained or made by any of the

 

42

 

Other Sellers, any Acquired Entity or any Fund Entity or any of the Acquired Entities’ or Fund
Entities’ respective Subsidiaries in connection with the execution, delivery and performance of
this Agreement, any Transaction Document or the Contemplated Transactions which have not been
obtained prior to the Closing, other than those that, if not made or obtained, individually or in
the aggregate, would not hinder or delay the Closing or would not result in a Material Adverse
Effect on the Other Sellers, any Acquired Entity or any Fund Entity.

4.2 Corporate Status. Each of the Other Sellers, Acquired Entities and Fund Entities
and each of the Acquired Entities’ and Fund Entities’ respective Subsidiaries is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization and each such Person (a) has all requisite corporate, limited liability company or
other power and authority to carry on its business as it is now being conducted, and (b) is duly
qualified to do business and is in good standing in each of the jurisdictions in which the
ownership, operation or leasing of its properties and assets and the conduct of its business
requires it to be so qualified, licensed or authorized, except where the failure to have such power
and authority or be so qualified, licensed or authorized would not result in a Material Adverse
Effect on any such Person. Each of the Other Sellers has made available to Purchaser true,
complete and accurate copies of the certificate of incorporation or formation, limited liability
company agreement, by-laws, regulations or other organizational or governing documents of each of
the Other Sellers, Acquired Entities and Fund Entities and each of the Acquired Entities’ and Fund
Entities’ respective Subsidiaries, each as in effect on the date hereof.

4.3 Authority; Binding Effect. Each of the Other Sellers has all necessary corporate,
limited liability company or other power and authority to enter into this Agreement and the
Transaction Documents, to perform its obligations hereunder and thereunder and to consummate any
Contemplated Transaction. This Agreement and the Transaction Documents have been duly executed and
delivered by each of the Other Sellers, and (assuming due authorization and delivery by CHC and
Purchaser) this Agreement and the Transaction Documents each constitutes the legal, valid and
binding obligations of each of the Other Sellers, enforceable against each of the Other Sellers in
accordance with their respective terms. Neither the execution, delivery or performance of this
Agreement or any Transaction Document nor the consummation of any Contemplated Transaction (a)
requires the approval of the shareholders of CCG, (b) relieves any officer, director, shareholder,
managing member or member of the Other Sellers, any Acquired Entity or any Fund Entity, as
applicable, of any liability, and, except for pro rata benefits arising from the ownership of any
equity interest in any Other Seller, any Acquired Entity or any Fund Entity, will not result in any
of them directly or indirectly receiving any benefit or (c) results in any shareholder, managing
member or member of any Other Seller, any Acquired Entity or any Fund Entity, as applicable, having
the right to exercise statutory or contractual appraisal rights. The sole voting shareholder of
Centerline REIT has approved the execution, delivery and performance of this Agreement, the
Transaction Documents to which Centerline REIT is a party and the consummation of the Contemplated
Transactions, as applicable.

4.4 Capitalization.

(a) Section 4.4(a) of the Disclosure Schedule sets forth a list of the authorized and
outstanding equity interests, name and jurisdiction of organization of AMAC, each Acquired

 

43

 

Entity, Fund Entity and their respective Subsidiaries and, except for AMAC, beneficial and
record owner of the equity interests and Derivative Instruments of each Acquired Entity, Fund
Entity and their respective Subsidiaries. All of such equity interests and Derivative Instruments
are duly authorized, validly issued, fully paid and nonassessable (except with respect to any
capital commitments owed to a Fund Entity and not yet paid) and free and clear of any and all
Encumbrances, except for restrictions on transfer imposed under federal and state securities laws.

(b) Except as contemplated by this Agreement, there are no Derivative Instruments to which any
Acquired Entity, any Fund Entity or any of their respective Subsidiaries is a party or is otherwise
subject. None of the Acquired Entities, Fund Entities or their respective Subsidiaries is a party,
or is otherwise subject, to any voting trust or other voting agreement with respect to any
securities of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries, or,
other than this Agreement, to any Contract relating to the issuance, sale, redemption, transfer,
acquisition or other disposition of the stock, equity, other securities or Derivative Instrument of
any Acquired Entity, Fund Entity or any of their respective Subsidiaries.

(c) There are no other joint ventures or other Persons in which any Acquired Entity, any Fund
Entity and their respective Subsidiaries own, of record or beneficially, any direct or indirect
equity or other similar interest or any right (contingent or otherwise) to acquire the same.

(d) Section 4.4(d) of the Disclosure Schedule sets forth all outstanding grants and
other interests issued pursuant to the Promote Plans.

(e) None of the execution, delivery and performance of this Agreement and the Transaction
Documents and the consummation of any Contemplated Transaction will result in any violation of an
Order or Law or cause any Person to accelerate the maturity or performance under, amend, call a
default under or decrease any right or privilege of any Acquired Entity, any Fund Entity or any of
their respective Subsidiaries.

(f) Each applicable Seller is and, on the Closing Date will be, the record and beneficial
owner and holder of the securities and other interests to be sold by it to Purchaser pursuant to
Sections 2.1(a) and 2.1(b), free and clear of all Encumbrances (other than
restrictions on transfer under applicable state and federal securities laws), and on the Closing
Date, Purchaser will receive good and valid title to the Purchased Interests, free and clear of all
Encumbrances (other than restrictions on transfer under applicable state and federal securities
laws).

4.5 Financial Statements.

(a) Each of the Other Sellers, the Acquired Entities and the Fund Entities and each of the
Acquired Entities’ and Fund Entities’ respective Subsidiaries, as applicable, maintains accurate
books and records reflecting its assets and liabilities and maintains proper and adequate internal
accounting controls that provide assurance of the following: (i) transactions are executed with
management’s authorization; (ii) transactions are recorded as necessary to permit preparation of
the financial statements of the Other Sellers, the Acquired Entities and the Fund

 

44

 

Entities and each of the Acquired Entities’ and Fund Entities’ respective Subsidiaries, as
applicable, in accordance with GAAP.

(b) Section 4.5(b) of the Disclosure Schedule sets forth the unaudited financial
statements as of and for the period ended September 30, 2009 of each of CSI and CUCA which were
used in the preparation of the consolidated financial statements as and for the period ended
September 30, 2009 of CHC.

(c) None of the Acquired Entities, Fund Entities or any of their respective Subsidiaries has
any obligations or liabilities of any nature (whether known or unknown, absolute, accrued, matured
or unmatured, fixed or contingent and whether due or to become due, asserted or unasserted) other
than those (i) reflected or reserved against (in accordance with the past practice of the
applicable Acquired Entity, Fund Entity or Subsidiary (which was in accordance with GAAP) with
respect to the methodology used to calculate any such liabilities or obligations) in the financial
statements of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries as of
September 30, 2009, (ii) incurred in the Ordinary Course of Business since September 30, 2009 and
that, individually or in the aggregate are not material, and (iii) incurred in connection with the
execution of this Agreement and the other Transaction Documents.

(d) Section 4.5(d) of the Disclosure Schedule sets forth the unaudited balance sheet
of New CSI as of the close of business of the date hereof (the “New CSI Closing Balance
Sheet”). The New CSI Closing Balance Sheet was prepared by the Other Sellers based on the good
faith estimates of the Other Sellers and determined in accordance with GAAP consistent with past
practices.

(e) Section 4.5(e) of the Disclosure Schedule sets forth the unaudited balance sheet
of CUCA as of the close of business of the date hereof (the “CUCA Closing Balance Sheet”).
The CUCA Closing Balance Sheet was prepared by the Others Sellers based on the good faith estimates
of the Other Sellers and determined in accordance with GAAP consistent with past practices.

(f) The Assumed Bonuses and the Assumed Benefits represent the Other Sellers’ good faith
estimates of such amounts, and the detail for the Assumed Bonuses and Assumed Benefits contained on
Schedules 2.4(a) and 2.4(b) is based on true, accurate and complete information
contained in the books and records of the Other Sellers, as applicable.

4.6 Absence of Certain Changes.

(a) Since September 30, 2009, (i) there has been no event or condition which would result in a
Material Adverse Effect on any Acquired Entity or any Fund Entity, and (ii) each Acquired Entity,
each Fund Entity and each of their respective Subsidiaries has in all material respects, conducted
its business in the Ordinary Course of Business consistent with past practice.

(b) There is no fact known to any of the Other Sellers, any Acquired Entity or any Fund Entity
or any of the Acquired Entities’ or Fund Entities’ respective Subsidiaries that

 

45

 

now or, to the Knowledge of the Other Sellers, any Acquired Entity or any Fund Entity, in the
future would result in a Material Adverse Effect on any Acquired Entity or any Fund Entity.

4.7 Taxes.

(a) Each of any Acquired Entity, any Fund Entity and their respective Subsidiaries has (i)
duly and timely filed (or there has been filed on its behalf) all Tax Returns required to be filed
by it (taking into account all applicable extensions) with the appropriate Taxing Authority and all
such Tax Returns are true, complete and accurate in all material respects, and (ii) timely paid all
Taxes required to be paid whether or not shown as due on such Tax Returns. Adequate reserves in
accordance with GAAP have been established by each Acquired Entity, Fund Entity and their
respective Subsidiaries for all Taxes not yet due and payable in respect of taxable periods ending
on the date hereof.

(b) There are no Encumbrances for Taxes upon any property or assets of any Acquired Entity,
any Fund Entity or any of their respective Subsidiaries, except for Encumbrances for Taxes not yet
due and payable or for which adequate reserves have been provided in accordance with GAAP in the
latest CHC Balance Sheet and the Closing Balance Sheet.

(c) To the Knowledge of the Other Sellers, there is no notice of audit, examination,
deficiency, assessment, refund litigation or proposed adjustment that has been received by,
asserted or assessed with respect to any Acquired Entity, any Fund Entity or any of their
respective Subsidiaries with respect to any Taxes. As of the date hereof, none of any Acquired
Entity, any Fund Entity or any of their respective Subsidiaries has received notice of any claim
made by a Taxing Authority in a jurisdiction where such Acquired Entity, such Fund Entity or such
Subsidiary does not file a Tax Return, that such Acquired Entity, such Fund Entity or such
Subsidiary is or may be subject to material taxation by that jurisdiction, where such claim has not
been resolved favorably to such Acquired Entity, such Fund Entity or such Subsidiary.

(d) There are no outstanding written requests, agreements, consents or waivers to extend the
statutory period of limitations applicable to the assessment or collection of any income Taxes or
income Tax deficiencies against any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries.

(e) Each of any Acquired Entity, any Fund Entity and their respective Subsidiaries is in
material compliance with all applicable information reporting and Tax withholding requirements
under U.S. federal, state and local, and non-U.S. Tax laws and each has timely withheld, collected,
deposited, remitted and paid all required amounts with respect to all employee, independent
contractor or service provider relationships.

(f) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries has
engaged in any transaction that would require a disclosure obligation as a reportable transaction
under Code Section 6011 and each of the foregoing is in material compliance with Code Sections 6111
and 6112 and the Treasury Regulations thereunder related to tax shelter disclosure, registration,
list maintenance and record keeping. None of the Acquired

 

46

 

Entities, the Fund Entities or any of their respective Subsidiaries has at any time engaged
in, entered into, participated or sponsored a listed transaction within the meaning of Treasury
Regulation Sections 1.6011, 301.6111 or 301.6112.

(g) Section 4.7(g) of the Disclosure Schedule lists each pass through partnership or
limited liability company or other entity that is treated as a partnership, trust or disregarded
entity for tax purposes in which any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries has an equity interest.

(h) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries is a
party to or is bound by any Tax Sharing Agreement.

(i) Each of the Acquired Entities and their respective Subsidiaries is a member of the
Affiliated Group of which CCG is the parent and any similar combined, consolidated, unitary or
other affiliated group for state, local or foreign Tax purposes.

(j) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries has
been a member of a group filing a consolidated federal income Tax Return other than the Federal Tax
Group or a combined, consolidated, unitary or other affiliated group for state, local or foreign
Tax purposes, and none of any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries has any liability for the Taxes of any Person as a transferee or successor. To the
Knowledge of the Other Sellers, no Tax Proceeding is being conducted with respect to any
consolidated, combined, unitary or other affiliated group, for federal, state or local Tax
purposes, of which any of any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries was a member.

(k) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries has
agreed, or is required or has requested, to make any adjustment under Section 481(a) of the Code
(or any corresponding or similar provision of state, local or foreign Law) by reason of a change in
accounting method or otherwise, which adjustment would result in an income inclusion, or
disallowance of deductions, under Section 481(a) of the Code (or any corresponding or similar
provision of state, local or foreign Law) in a Post-Closing Tax Period.

(l) No closing agreement is currently in force pursuant to Section 7121 of the Code (or any
similar provision of state, local or foreign Law) with respect to any Acquired Entity, any Fund
Entity or any of their respective Subsidiaries and there are no Tax rulings or requests for Tax
rulings or closing agreements that could affect the liability for Taxes of any Acquired Entity
after the Closing

(m) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries will
be required to include amounts in income, or exclude items of deduction, after the Closing as a
result of (i) any intercompany transaction or excess loss account described in the Treasury
Regulations promulgated pursuant to Section 1502 of the Code (or any corresponding or similar
provision of state, local or foreign Law) arising or occurring on or prior to the Closing, (ii) any
installment sale or open transaction disposition made on or prior to the Closing, (iii) the
application of the long-term method of accounting on or prior to the Closing or (iv) any agreement
with a Governmental Authority entered into on or prior to the Closing.

 

47

 

(n) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries is a
foreign corporation for United States federal income Tax purposes.

(o) The Other Sellers have made available to Purchaser true, complete and accurate copies of
all Tax Returns with respect to any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries for the last three (3) years, and examination reports, and statements of deficiencies
assessed against or agreed to by, or with respect to any Acquired Entity, any Fund Entity or any of
their respective Subsidiaries with respect to such Taxes for the last five (5) taxable years.

(p) No power of attorney that is currently in effect has been granted with respect to any
matter relating to Taxes of any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries.

(q) Since December 31, 2008, none of any Acquired Entity, any Fund Entity or any of their
respective Subsidiaries has (i) made, rescinded or changed any material Tax election or adopted or
changed any method of accounting other than as reflected on the originally filed income tax returns
of such entities for the taxable years of such entities ending on or before December 31, 2008, (ii)
entered into any settlement of or compromise of any material Tax liability, (iii) changed any
annual accounting period, (iv) entered into a closing agreement, (v) surrendered any right to any
material Tax refund or (vi) filed any amended Tax return or refund claim with respect to any
material Tax.

(r) Each of Centerline High Yield CMBS Fund LLC, Centerline Diversified Risk CMBS Fund LLC,
Centerline High Yield CMBS Fund II LLC, Centerline Diversified Risk CMBS Fund II LLC, Centerline
Real Estate Special Situations Mortgage Fund LLC, Centerline High Yield CMBS Fund III LLC and
Centerline Urban Capital I LLC at all times has been properly treated as a partnership under the
Code for federal income tax purposes and for all state and local tax purposes, and no election has
been made to treat any such entity as a corporation or disregarded entity for Tax purposes. None
of Centerline High Yield CMBS Fund LLC, Centerline Diversified Risk CMBS Fund LLC, Centerline High
Yield CMBS Fund II LLC, Centerline Diversified Risk CMBS Fund II LLC, Centerline Real Estate
Special Situations Mortgage Fund LLC, Centerline High Yield CMBS Fund III LLC and Centerline Urban
Capital I LLC is or at any time has been or under applicable Law properly should be or should have
been treated as a “publicly traded partnership” within the meaning of Section 7704(b) of the Code.

(s) None of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries has
constituted either a “distributing corporation” or a “controlled” corporation in a distribution of
shares qualifying for tax-free treatment under Section 355 of the Code in the two (2) years prior
to the date of this Agreement.

(t) On or prior to the Closing Date, CSI has been converted from a Delaware corporation to a
Delaware limited liability company, New CSI.

4.8 Intellectual Property.

(a) The Acquired Entities, the Fund Entities and their respective Subsidiaries own or have a
valid right to use all of the Intellectual Property used in or necessary to carry on

 

48

 

the business of any Acquired Entity, any Fund Entity and their respective Subsidiaries as
currently conducted.

(b) Section 4.8(b) of the Disclosure Schedule sets forth all of the following that are
owned by the Acquired Entities, the Fund Entities and their respective Subsidiaries or that any
Acquired Entity, any Fund Entity and their respective Subsidiaries have a valid right to use: (i)
patents and patent applications, registered trademarks and registered service marks and trademark
and service mark applications and registered copyrights and copyright applications; (ii) Internet
domain names; and (iii) proprietary and third party software applications (other than shrink wrap
licenses available to businesses and/or consumers generally, each with a value of less than
$2,000.00).

(c) No Acquired Entity Owned Intellectual Property or, to the Knowledge of the Other Sellers,
Acquired Entity Licensed Intellectual Property has been or is now the subject of any opposition or
cancellation or other proceeding, and to the Knowledge of the Other Sellers, no such proceeding is
or has been threatened with respect to any of the foregoing. No CMBS Owned Intellectual Property
or, to the Knowledge of the Other Sellers, CMBS Licensed Intellectual Property has been or is now
the subject of any opposition or cancellation or other proceeding, and to the Knowledge of the
Other Sellers, no such proceeding is or has been threatened with respect to any of the foregoing.

(d) None of the Acquired Entities, the Fund Entities or any of their Subsidiaries has been or
is now involved in any infringement or misappropriation proceeding or other claim or proceeding
involving Acquired Entity Owned Intellectual Property, Acquired Entity Licensed Intellectual
Property, CMBS Owned Intellectual Property or CMBS Licensed Intellectual Property, and no such
proceeding or claim involving the Fund Entities or any of their Subsidiaries is or has been
threatened with respect to any such Intellectual Property. The Acquired Entity Owned Intellectual
Property and the Acquired Entity Licensed Intellectual Property constitutes all of the Intellectual
Property used in the operation of the businesses of the Acquired Entities. The CMBS Owned
Intellectual Property and the CMBS Licensed Intellectual Property constitutes all of the
Intellectual Property used in the operation of the businesses of the Fund Entities.

(e) The Acquired Entities exclusively own, free and clear of all Encumbrances all Acquired
Entity Owned Intellectual Property. To the Knowledge of the Other Sellers, all Acquired Entity
Owned Intellectual Property is valid and enforceable. None of the Acquired Entities or any of
their respective Subsidiaries has received any notice or claim challenging the validity,
enforceability or ownership by the Acquired Entities or any of their respective Subsidiaries of any
of the Acquired Entity Owned Intellectual Property nor, to the Knowledge of the Other Sellers, is
there a reasonable basis for any such claim. None of the Acquired Entities or any of their
respective Subsidiaries has taken any action or failed to take any action that could reasonably be
expected to result in the abandonment, cancellation, forfeiture, relinquishment, invalidation or
unenforceability of any of the Acquired Entity Owned Intellectual Property (including the failure
to pay any filing, examination, issuance, post registration and maintenance fees, annuities and the
like) used in or necessary to carry on the business of any Acquired Entity, any Fund Entity or any
of their Subsidiaries as currently conducted. Each of the Acquired Entities has obtained an
assignment of all Intellectual Property

 

49

 

rights by all employees, independent contractors and/or outside contractors that contributed
to the creation, development or improvement of any Acquired Entity Owned Intellectual Property.

(f) The Fund Entities exclusively own, free and clear of all Encumbrances, all CMBS Owned
Intellectual Property. To the Knowledge of the Other Sellers, all CMBS Owned Intellectual Property
is valid and enforceable. None of the Fund Entities or any of their respective Subsidiaries has
received any notice or claim challenging the validity, enforceability or ownership by the Fund
Entities or any of their respective Subsidiaries of any of the CMBS Owned Intellectual Property
nor, to the Knowledge of the Other Sellers, is there a reasonable basis for any such claim. None
of the Fund Entities or any of their respective Subsidiaries has taken any action or failed to take
any action that could reasonably be expected to result in the abandonment, cancellation,
forfeiture, relinquishment, invalidation or unenforceability of any of the material CMBS Owned
Intellectual Property (including the failure to pay any filing, examination, issuance, post
registration and maintenance fees, annuities and the like). CHC or CCG has obtained an assignment
of all Intellectual Property rights by all employees, independent contractors and/or outside
contractors that contributed to the creation, development or improvement of any CMBS Owned
Intellectual Property.

(g) The Acquired Entities, the Fund Entities and their respective Subsidiaries have taken
reasonable steps in accordance with standard industry practices to protect their respective rights
in the Acquired Entity Owned Intellectual Property and CMBS Owned Intellectual Property and at all
times have taken commercially reasonable steps to maintain the confidentiality of all information
that constitutes a trade secret included therein.

(h) To the Knowledge of the Other Sellers, the activities of the Acquired Entities, the Fund
Entities and their respective Subsidiaries, all as currently conducted, do not infringe upon,
misappropriate, violate, or constitute the unauthorized use of, any Intellectual Property of any
third party, and none of the Acquired Entities, the Fund Entities or any of their respective
Subsidiaries has, within the last two (2) years, received any written notice or claim asserting or
suggesting that any such infringement, misappropriation, violation, or unauthorized use is or may
be occurring or has or may have occurred. To the Knowledge of the Other Sellers, no third party is
infringing, misappropriating or otherwise violating any Acquired Entity Owned Intellectual Property
or CMBS Owned Intellectual Property.

(i) All of the Acquired Entity Owned Intellectual Property, Acquired Entity Licensed
Intellectual Property, CMBS Owned Intellectual Property and the CMBS Licensed Intellectual Property
will be available for use by or on behalf of Purchaser immediately after the consummation of the
Contemplated Transactions, on the same terms available immediately prior thereto.

(j) All right, title and interest in and to the software described on Section 4.8(j)
of the Disclosure Schedule has been duly and validly transferred and assigned to New CSI and is
owned by New CSI, free and clear of all Encumbrances (other than the Software License Agreement and
any other third-party license agreements under which New CSI is the licensee) and no payment is
owed to any third party.

 

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4.9 Information Systems.

(a) Section 4.9(a) of the Disclosure Schedule identifies the material Information
Systems (including operating systems, applications and databases) used by the Acquired Entities,
the Fund Entities or any of their respective Subsidiaries. The Information Systems are, in all
material respects, operational and perform the functions for which they were intended to be used.
Each of the Acquired Entities, the Fund Entities and their respective Subsidiaries owns or has a
valid and subsisting license for all of the Information Systems currently used by them in their
business. Purchaser has been provided true and complete copies of all agreements relating to the
Information Systems (including third party vendor, outsourcing, service, maintenance, hosting and
other agreements), and each Acquired Entity, Fund Entity and their respective Subsidiaries that is
a party to any such agreement is in material compliance therewith.

(b) Within the past twelve (12) months of the date hereof, none of the Acquired Entities, the
Fund Entities or their respective Subsidiaries has experienced any disruption to, or interruption
in, its conduct of its business and operations attributable to a defect, bug, breakdown or other
failure or deficiency on the part of the Information Systems which has resulted in a Material
Adverse Effect on any Acquired Entity or any Fund Entity. Except for scheduled or routine
maintenance that causes any material disruption to, or material interruption in, the conduct of the
business and operations of the Acquired Entities, the Fund Entities and their respective
Subsidiaries, the Information Systems are, taken as a whole, available for use during normal
working hours. Each of the Acquired Entities, each of the Fund Entities and their respective
Subsidiaries has taken commercially reasonable steps to provide for the backup and recovery of the
data and information critical to the conduct of its business and operations.

4.10 Proceedings.

(a) There is no Proceeding commenced by or against, or otherwise involving or, to the
Knowledge of the Other Sellers, threatened against, any Acquired Entity, any Fund Entity or any of
their respective Subsidiaries. There is no Proceeding that challenges, or that may have the effect
of preventing, delaying, making illegal, or otherwise interfering with, the execution, delivery or
performance of this Agreement or any Transaction Document or the consummation of the Contemplated
Transactions. To the Knowledge of the Other Sellers, no event has occurred or circumstance exists
that (with or without notice or lapse of time, or both) may give rise to or serve as a basis for
the commencement of any such Proceeding by or against, or otherwise involving, any of the Other
Sellers, any Acquired Entity, any Fund Entity or any of the respective Subsidiaries of any Acquired
Entity or Fund Entity. To the Knowledge of the Other Sellers, no Proceeding is threatened (i) with
respect to the record or beneficial ownership of, or the right to acquire the capital stock, any
Derivative Instrument or other equity interest of any of the Other Sellers, any Acquired Entity,
any Fund Entity or any of the respective Subsidiaries of any Acquired Entity or Fund Entity, (ii)
that challenges any Contemplated Transaction, (iii) that would make any Contemplated Transaction
illegal, (iv) that would impose any limitation on the ability of Purchaser to exercise its rights
of ownership with respect to any Purchased Interests or the CHC New Shares or (v) that would
otherwise delay, prohibit or restrict consummation of any Contemplated Transaction or materially
impair the contemplated benefits to Purchaser of any Contemplated Transaction.

 

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(b) The Other Sellers have delivered or otherwise made available to Purchaser copies of all
pleadings, correspondence, and other documents relating to each Proceeding listed in Section
4.10 of the Disclosure Schedule. No such Proceeding listed in Section 4.10 of the
Disclosure Schedule would result in a Material Adverse Effect on any Acquired Entity or any Fund
Entity.

(c)

(i) There is no Order to which any Acquired Entity, any Fund Entity or any of their
respective Subsidiaries or any of the assets or properties owned or used by or purported to
be owned or used by any such entity, is subject; and

(ii) to the Knowledge of the Other Sellers, no officer, director, agent or employee of
the Acquired Entities, the Fund Entities or any of their respective Subsidiaries is subject
to any Order that prohibits such officer, director, agent or employee from engaging in or
continuing any conduct, activity, or practice relating to the business of the Acquired
Entities, the Fund Entities or any of their respective Subsidiaries.

(d)

(i) The Acquired Entities, the Fund Entities and their respective Subsidiaries are, and
at all times have been, in material compliance with all of the terms and requirements of
each Order to which it, or any of the assets or properties owned or used by it, is or has
been subject;

(ii) no event has occurred or circumstance exists that may constitute or result in
(with or without notice or lapse of time, or both) a material violation of or material
failure to comply with any term or requirement of any Order to which any of the Acquired
Entities, the Fund Entities or any of their respective Subsidiaries, or any of the assets or
properties owned or used or purported to be owned or used by any such entity, is subject;
and

(iii) none of the Acquired Entities, the Fund Entities or any of their respective
Subsidiaries has received at any time any notice or other communication (whether oral or
written) from any Governmental Authority or any other Person regarding any actual, alleged,
possible or potential material violation of, or material failure to comply with, any term or
requirement of any Order to which any of the Acquired Entities, the Fund Entities or any of
their respective Subsidiaries, or any of the assets or properties owned or used by it, is or
has been subject.

4.11 Compliance with Laws; Permits.

(a) The Fund Entities and their respective Subsidiaries are, and since January 1, 2007, have
been, in material compliance with, and have conducted their respective businesses in all material
respects so as to comply with, all applicable Laws.

 

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(b) To the Knowledge of the Other Sellers, no event has occurred or circumstance exists that
(with or without notice or lapse of time, or both) may give rise to any obligation on the part of
any of the Acquired Entities, the Fund Entities or any of their respective Subsidiaries to
undertake, or to bear all or any portion of the cost of, any material remedial action of any
nature.

(c) To the Knowledge of the Other Sellers, none of the Acquired Entities, the Fund Entities or
any of their respective Subsidiaries has received, at any time since January 1, 2007, any notice or
other communication (whether oral or written) from any Governmental Authority or any other Person
regarding (i) any actual or alleged material violation of, or material failure to comply with, any
Law or (ii) any actual or alleged obligation on the part of any of the Acquired Entities, the Fund
Entities or their respective Subsidiaries to undertake, or to bear all or any portion of the cost
of, any remedial action of any nature, which in each case has not been satisfied in all material
respects.

(d) Section 4.11(d) of the Disclosure Schedule contains a complete and accurate list
of each Permit that is held by any of the Acquired Entities, the Fund Entities or any of their
respective Subsidiaries and identifies the holder thereof. The Acquired Entities, the Fund
Entities and their respective Subsidiaries have obtained all material Permits that are necessary to
the conduct of their respective businesses as presently being conducted. All material Permits are
in full force and effect and:

(i) each Acquired Entity, each Fund Entity and their respective Subsidiaries is, and at
all times since January 1, 2007 has been, in material compliance with all of the terms and
requirements of each Permit identified or required to be identified in Section
4.11(d) of the Disclosure Schedule;

(ii) no event has occurred or circumstance exists that may (with or without notice or
lapse of time, or both) (A) constitute or result directly or indirectly in a material
violation of or a material failure to comply with any term or requirement of any Permit
listed or required to be listed in Section 4.11(d) of the Disclosure Schedule or (B)
result directly or indirectly in the revocation, withdrawal, suspension, cancellation or
termination of, or any modification to, any material Permit listed or required to be listed
in Section 4.11(d) of the Disclosure Schedule;

(iii) none of the Acquired Entities, the Fund Entities or any of their respective
Subsidiaries has received, at any time since January 1, 2006, any notice or other
communication (whether oral or written) from any Governmental Authority or any other Person
regarding (A) any actual or alleged material violation of or material failure to comply with
any term or requirement of any Permit or (B) any actual or potential revocation, withdrawal,
suspension, cancellation, termination of, or modification to any material Permit, which in
each case has not been satisfied in all material respects; and

(iv) all applications required to have been filed for the renewal of all material
Permits have been duly filed on a timely basis with the appropriate Governmental Authority,
and all other filings required to have been made with respect to such material Permit have
been duly made on a timely basis with the appropriate

 

53

 

Governmental Authority and no such application or other filing contained a material
misrepresentation or omission of a material fact.

4.12 Environmental and Safety and Health Matters.

(a) Each Acquired Entity, Fund Entity and any of their respective Subsidiaries is, and, as
applicable, any of their respective operations, businesses, assets and properties are, and at all
times has or have been, in compliance in all material respects with all Environmental Laws; and

(b) there is no Environmental Claim pending or, to the Knowledge of any Other Seller,
threatened against any Acquired Entity, any Fund Entity or any of their respective Subsidiaries,
or, as applicable, relating to their respective operations, businesses, assets and properties.

4.13 Employee Matters and Benefit Plans.

(a) Section 4.13(a) of the Disclosure Schedule sets forth a true, complete and
accurate list of all Plans of the Other Sellers, the Acquired Entities, the Fund Entities and their
respective Subsidiaries and the ERISA Affiliates of the Other Sellers, the Acquired Entities and
their respective Subsidiaries (collectively, the “Other Seller Employee Plans”) (including
a specific identification of those which contain change of control provisions or pending change of
control provisions). True, complete and accurate copies of each of the following documents have
been made available by the Other Sellers, the Acquired Entities and the Fund Entities to Purchaser:

(i) each Other Seller Employee Plan that is a Multiemployer Plan, Pension Plan or
Welfare Plan (and, if applicable, related trust agreements) and all amendments thereto, all
written interpretations thereof and written descriptions thereof (including summary plan
descriptions and summaries of material modifications) which have been distributed to
employees, or to participants or beneficiaries in such Other Seller Employee Plan, all
written contracts, instruments or agreements relating thereto (including administrative
service agreements, insurance contracts or other funding instruments), the most recent
actuarial reports, the three most recent annual reports (Form Series 5500), including all
schedules and financial statements attached thereto, if any, required under ERISA and the
Code, and any reports, filings or other correspondence with the U.S. Department of Labor or
the Internal Revenue Service within the last six years;

(ii) each other Other Seller Employee Plan and all amendments thereto (including a
complete description of each Other Seller Employee Plan that is not in writing, if any);

(iii) the most recent determination letter or opinion letter, if any, issued by the
Internal Revenue Service with respect to each Other Seller Employee Plan that is a Pension
Plan (or comparable letter, such as an opinion or notification letter as to the form of plan
or prototype plan adopted by one or more of the Other Sellers, the Acquired Entities, the
Fund Entities or their Subsidiaries or the ERISA Affiliates of the

 

54

 

Other Sellers, the Acquired Entities and their respective Subsidiaries upon which such
entity is permitted to rely); and

(iv) financial and other information regarding current and projected liabilities with
respect to each Other Seller Employee Plan for which the filings described in (i) and (iv)
above are not required under ERISA.

(b) Each Other Seller Employee Plan that is a Pension Plan (i) has been established and
maintained in all material respects with its terms and with all applicable Laws, including ERISA
and the Code, (ii) is the subject of a favorable determination letter from the Internal Revenue
Service (or comparable letter, such as an opinion or notification letter as to the form of plan or
prototype plan that has been adopted by the plan sponsor of an Other Seller Employee Plan), and
(iii) is qualified and tax exempt under the provisions of Code Sections 401(a) and 501(a) and has
been so qualified during the period from its adoption to the date of this Agreement, and no event
has occurred since the date of the most recent determination letter, opinion letter or application
thereof that could adversely affect its qualification or that caused or could cause the imposition
or any penalty or Tax liability.

(c) Each Other Seller Employee Plan has been operated in compliance in all material respects
with its terms and with all applicable Laws (except that in any case in which any Other Seller
Employee Plan is currently required to comply with a provision of ERISA or of the Code, but is not
yet required to be amended to reflect such provision, it has been maintained, operated and
administered in accordance with such provision), and may by their terms be amended and/or
terminated at any time without the consent of any other Person subject to applicable Laws and the
terms of each Other Seller Employee Plan.

(d) Each of the Other Sellers, the Acquired Entities,
the Fund Entities and their respective Subsidiaries, and the ERISA Affiliates of the Other Sellers, the Acquired Entities and their respective
Subsidiaries has performed all material obligations required to be performed by them under, and are not in any material respect in default under
or in violation of, any Other Seller Employee Plan, and none of the Other Sellers, the Acquired Entities, the Fund Entities and their respective
Subsidiaries, and the ERISA Affiliates of the Other Sellers, the Acquired Entities and their respective Subsidiaries has any Knowledge of any
default or violation by any other Person with respect to, any of the Other Seller Employee Plans.

(e) None of the Other Sellers, any Acquired Entities, any Fund Entities or any of their
respective Subsidiaries, or the ERISA Affiliates of the Other Sellers, the Acquired Entities and
their respective Subsidiaries, or, to the Knowledge of the Other Sellers, any Other Seller Employee
Plan or any party in interest (as defined in Section 3(14) of ERISA) with respect to any such Other
Seller Employee Plan has engaged in any prohibited transaction as defined in Section 406 of ERISA
or Section 4975 of the Code with respect to a Other Seller Employee Plan for which there is no
statutory exemption under Section 408 of ERISA or Section 4975 of the Code. There is no material
litigation, lien, disputed claim, governmental proceeding or investigation pending or, to the
Knowledge of the Other Sellers, threatened or reasonably anticipated with respect to any of such
Other Seller Employee Plans, the assets of such Other Seller Employee Plans (other than
non-material routine claims for benefits), any related trusts, or any fiduciary, trustee,
administrator or sponsor of such Other Seller Employee Plans, any ERISA

 

55

 

Affiliate, any employee, director, or other service provider of the Other Sellers, the
Acquired Entities, the Fund Entities or their respective Subsidiaries (whether current, former or
retired).

(f) No Other Seller Employee Plan provides for post-retirement medical, life insurance or
disability benefits, except as required under the provisions of Part 6 of Title I of ERISA, Section
4980B of the Code, or any other applicable Law, and to the Knowledge of the Other Sellers, no
fiduciary of any Other Seller Employee Plan has breached any of the responsibilities or obligations
imposed upon fiduciaries under Title I of ERISA.

(g) None of the Other Sellers, any Acquired Entities, any Fund Entities or any of their
respective Subsidiaries or any ERISA Affiliate of the Other Sellers, any Acquired Entities or their
respective Subsidiaries, or any of their respective predecessors, has ever maintained, contributed
to or been required to contribute to or otherwise had any obligation or liability, directly or
indirectly, with respect to (i) any Multiemployer Plan, (ii) any Pension Plan subject to Title IV
of ERISA, Section 302 of ERISA or Section 412 of the Code, or (iii) any “multiple employer welfare
arrangement” as defined in Section 3(40) of ERISA.

(h) With respect to each Other Seller Employee Plan, as of the Closing, all required payments,
premiums, and contributions for all periods ending prior to or as of the Closing shall have been
made or accrued on the books and records of the Other Sellers, the Acquired Entities, the Fund
Entities or any of their respective Subsidiaries or the ERISA Affiliate of the Other Sellers, the
Acquired Entities and their respective Subsidiaries. None of the Other Sellers, any Acquired
Entities, any Fund Entities or any of their respective Subsidiaries or any ERISA Affiliate of the
Other Sellers, any Acquired Entities or their respective Subsidiaries, or any Other Seller Employee
Plan or associated trust or funding vehicle has any assets subject to Encumbrances with respect to
any Other Seller Employee Plan.

(i) None of the Other Sellers, any Acquired Entities, any Fund Entities or any of their
respective Subsidiaries (i) is a party to any Contract or Other Seller Employee Plan that has
resulted or could reasonably be expected to result, individually or in the aggregate, in connection
with this Agreement or any change of control of any Company, whether or not pursuant to the
execution and delivery of this Agreement or the consummation of the transactions contemplated
hereby (either alone or upon the occurrence of any additional or subsequent events), in the payment
of any “excess parachute payments” within the meaning of Section 280G of the Code or (ii) has made
any payments, is obligated to make any payments, or is a party to any Contract or Other Seller
Employee Plan that could reasonably be expected to obligate it to make any payments, or is a party
to any Contract or Other Seller Employee Plan that could reasonably be expected to obligate it to
make any payments that will not be deductible by reason of Sections 162, 280G or 404 of the Code.

(j) Since the Centerline Balance Sheet Date, none of none of the Other Sellers, any Acquired
Entities, any Fund Entities or any of their respective Subsidiaries has any formal plan or
commitment (whether or not legally binding) either to create any plan or arrangement that would
constitute a Other Seller Employee Plan, or to make any contributions, modifications, or changes to
any Other Seller Employee Plan, other than in the Ordinary Course of Business and consistent with
past practice with regard to amounts.

 

56

 

(k) (i) None of the Other Sellers, any Acquired Entities, any Fund Entities or any of their
respective Subsidiaries currently maintains an employee stock ownership plan (within the meaning of
Section 4975(e)(7) of the Code).

(ii) The consummation of the transactions contemplated by this Agreement will
not result in an increase in the amount of compensation or benefits or accelerate
the vesting or timing of payment of any benefits or compensation payable in respect
of any employee.

(iii) No Person will be entitled to any severance benefits under the terms of any Other
Seller Employee Plan solely as a result of the consummation of the transactions contemplated
by this Agreement.

(iv) The Other Sellers, the Acquired Entities, the Fund Entities and their respective
Subsidiaries and the ERISA Affiliates of the Other Sellers, any Acquired Entities or their
respective Subsidiaries have complied in all material respects with (A) the notice and
continuation coverage requirements of Section 4980B of the Code and the regulations
thereunder with respect to each Other Seller Employee Plan that is a group health plan
within the meaning of Section 5000(b)(1) of the Code, and (B)with the applicable provisions
of HIPAA and the regulations issued thereunder.

(v) There are no pending audits or investigations by any governmental agency involving
any Other Seller Employee Plan, no termination proceedings involving any Other Seller
Employee Plan, and no threatened or pending claims (except for individual claims for
benefits payable in the normal operation of the Other Seller Employee Plans), suits or
proceedings involving any Other Seller Employee Plan or asserting any rights or claims to
benefits under any Other Seller Employee Plan, nor, to the Knowledge of the Other Sellers,
are there any facts which could reasonably give rise to any material liability in the event
of any such audit, investigation, claim, suit or proceeding.

(vi) To the extent that any Other Seller Employee Plan constitutes a “non-qualified
deferred compensation plan” within the meaning of Section 409A of the Code, such Other
Seller Employee Plan was operated in good faith compliance with Section 409A of the Code
prior to January 1, 2009 and has been operated in compliance with Section 409A of the Code
in all material respects since January 1, 2009.

(vii) No payment which is or may be made by, from or with respect to any Other Seller
Employee Plan, to any employee, former employee, director or agent of the Other Sellers, the
Acquired Entities, the Fund Entities and their respective Subsidiaries and the ERISA
Affiliates of the Other Sellers, any Acquired Entities or their respective Subsidiaries,
either alone or in conjunction with any other payment, event or occurrence will not be fully
deductible as a result of Code 162(m) (or any corresponding provision of state, local or
foreign Tax law).

(l) Each Other Seller Employee Plan covering non-U.S. employees (a “CHC International
Plan”) is separately listed on Section 4.13(l) of the Disclosure Schedule, and has

 

57

 

been maintained in material compliance with its terms and with the requirements prescribed by
any and all applicable Laws (including any special provisions relating to registered or qualified
plans where such Other Seller International Plan was intended to so qualify) and (i) all
contributions to, and payments from, the Other Seller International Plans (other than payments to
be made from a trust, insurance contract or other funding medium) which may have been required to
be made in accordance with the terms of any such plan, and, when applicable, the law of the
jurisdiction in which such plan is maintained, have been timely made, (ii) all such contributions
to the Other Seller International Plans, and all payments under the Other Seller International
Plans, for any period ending before the date hereof that are not yet required to be made are
properly accrued and reflected on the financial statements of CHC, (iii) all material reports,
returns, approvals and similar documents with respect to any Other Seller International Plan
required to be filed with any Governmental Authority or distributed to any Other Seller
International Plan participant have been duly and timely filed or distributed, and (iv) there are
no pending investigations by any governmental agency involving the Other Seller International
Plans, no claims pending or threatened in writing (except for claims for benefits payable in the
normal operation of the Other Seller International Plans), suits or proceedings against any Other
Seller International Plan or asserting any rights or claims to benefits under any Other Seller
International Plan which could give rise to any liability, in each case of which CHC has been
notified.

(m) There are no collective bargaining agreements, memoranda of understanding, side letters or
other written agreements with any union or labor organization applicable to the employees of any of
the Other Sellers, the Acquired Entities, the Fund Entities and their respective Subsidiaries or to
which any of the Other Sellers, the Acquired Entities, the Fund Entities and their respective
Subsidiaries is a party, a signatory, or otherwise bound.

(n) There have not been and there are no pending, threatened or reasonably anticipated labor
disputes, strikes, slow downs, picketings, work stoppages, concerted refusals to work overtime, or
similar labor activities representation proceedings, or attempted union organizing campaigns with
respect to any employees of the Other Sellers, the Acquired Entities, the Fund Entities or their
respective Subsidiaries and there are no unions, work counsels or other organizations representing,
purporting to represent or attempting to represent the employees of the Other Sellers, the Acquired
Entities, the Fund Entities or their respective Subsidiaries or any other collective bargaining
representative of such employees. None of the Other Sellers, the Acquired Entities, the Fund
Entities or their respective Subsidiaries has engaged in any unfair labor practices within the
meaning of the National Labor Relations Act. The Other Sellers, the Acquired Entities, the Fund
Entities and their respective Subsidiaries are in compliance in all material respects with all
applicable Laws relating to employment and employment practices, workers’ compensation, terms and
conditions of employment, worker safety, wages and hours, civil rights, discrimination,
immigration, collective bargaining, and the WARN Act. There have been no claims of harassment,
discrimination, retaliatory act or similar actions against any employee, officer or director of the
Other Sellers, the Acquired Entities, the Fund Entities or their respective Subsidiaries at any
time during the past four (4) years and, to the Knowledge of the Other Sellers, no facts exist that
could reasonably be expected to give rise to such claims or actions. The Other Sellers, the
Acquired Entities, the Fund Entities and their respective Subsidiaries are not required to have,
and do not have, any affirmative action plans or programs. To the Knowledge of the Other Sellers,
no employees of the Other Sellers, the Acquired Entities,

 

58

 

the Fund Entities or their respective Subsidiaries are in any material respect in violation of
any term of any employment Contract, non-disclosure agreement, non-competition agreement, or any
restrictive covenant to a former employer relating to the right of any such employee to be employed
by the Other Sellers, the Acquired Entities, the Fund Entities or their respective Subsidiaries
because of the nature of the business conducted or presently proposed to be conducted by the Other
Sellers, the Acquired Entities, the Fund Entities or their respective Subsidiaries or to the use of
trade secrets or proprietary information of others.

(o) Neither the consideration nor implementation of Contemplated Transactions will increase
(i) the obligation of the Other Sellers, the Acquired Entities, the Fund Entities or their
respective Subsidiaries to make contributions or any other payments to fund benefits accrued under
the Other Seller Employee Plans, or (ii) the benefits accrued or payable with respect to any
participant under the Other Seller Employee Plans. Each of the Other Seller Employee Plans may be
amended or terminated at any time by action of the plan sponsor’s board of directors, or a
committee of such board of directors or duly authorized officer, in each case subject to the terms
of the Other Seller Employee Plan and compliance with applicable Laws.

(p) Section 4.13(p) of the Disclosure Schedule identifies all written employment,
consulting or independent contractor agreements to which any of the Other Sellers, the Acquired
Entities, the Fund Entities or their respective Subsidiaries is a party with respect to any
employee of the Other Sellers, the Acquired Entities, the Fund Entities and their respective
Subsidiaries that are in effect currently or under which any of the Other Sellers, the Acquired
Entities, the Fund Entities or their respective Subsidiaries have any liability.

(q) The Other Sellers have provided Purchaser with (i) a true, complete and accurate list,
dated as of September 30, 2009, of all employees of the Other Sellers, the Acquired Entities, the
Fund Entities and their respective Subsidiaries, including their names, date of hire, current rate
of compensation, employment status (i.e., active, inactive, on authorized leave and reason
therefor), department, title, exempt or non-exempt status, and full-time or part-time status; (ii)
a copy of all employee handbooks, supervisory handbooks, employment procedures manuals, and written
employment policies that are in effect currently; and (iii) a copy of all EEO-1 or similar reports
and of all affirmative action plans prepared or submitted to any Governmental Authority by or on
behalf of any of the Other Sellers, the Acquired Entities, the Fund Entities or their respective
Subsidiaries since two (2) years prior to the Closing.

(r) Any individual who performs services for any of the Other Sellers, the Acquired Entities,
the Fund Entities or their respective Subsidiaries and who is not treated as an employee for
federal income tax purposes by the Other Sellers, the Acquired Entities, the Fund Entities or their
respective Subsidiaries is not an employee under applicable Law or for any purpose including, for
Tax withholding purposes or Other Seller Employee Plan purposes. Each employee of any of the Other
Sellers, the Acquired Entities, the Fund Entities and their respective Subsidiaries has been
properly classified as “exempt” or “non-exempt” under applicable Law.

(s) The consummation of the of the transactions contemplated hereby (and not, for the
avoidance of doubt, any acts taken by Purchaser, any Acquired Entity, any Fund Entity or any of
their respective Subsidiaries on or after Closing) will not cause Purchaser, any

 

59

 

Acquired Entity, any Fund Entity or any of their respective Subsidiaries to incur or suffer
any liability relating to, or obligation to pay, severance, termination, acceleration of vesting or
payment, or other payments to any Person under any Contract to which the Other Sellers, the
Acquired Entities, the Fund Entities or their respective Subsidiaries is a party.

(t) Each of the Promote Plans (and any agreements thereunder) was terminated prior to the date
of this Agreement.

4.14 Arrangements with Certain Persons

(a) Excluding this Agreement and the Transaction Documents, none of the Other Sellers and
their Affiliates (other than any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries), on the one hand, and any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries, on the other hand, has any interest in or is a party to any Contract with, or
relating to, any Acquired Entity, any Fund Entity or any of their respective Subsidiaries or their
respective businesses. No Debt is owing by (i) the Other Sellers and their respective Affiliates
(other than any Acquired Entity, any Fund Entity or any of their respective Subsidiaries) to any
Acquired Entity, Fund Entity or any of their respective Subsidiaries or (ii) any Acquired Entity,
Fund Entity or any of their respective Subsidiaries to the Other Sellers and their respective
Affiliates (other than any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries.

(b) Excluding this Agreement and the Transaction Documents, none of Related and its Affiliates
(other than any Acquired Entity, any Fund Entity or any of their respective Subsidiaries), on the
one hand, and any Acquired Entity, any Fund Entity or any of their respective Subsidiaries, on the
other hand, has any interest in or is a party to any Contract with, or relating to, any Acquired
Entity, any Fund Entity or any of their respective Subsidiaries or their respective businesses. No
Debt is owing by Related and its Affiliates to any Acquired Entity, Fund Entity or any of their
respective Subsidiaries. No Debt is owing by any Acquired Entity, Fund Entity or any of their
respective Subsidiaries to Related and its Affiliates.

4.15 Intercompany Accounts. The unaudited financial statements for the period ended
September 30, 2009 of each of the Other Sellers and their respective Subsidiaries (other than any
Acquired Entity, any Fund Entity or any of their respective Subsidiaries), on the one hand, and any
of the Acquired Entities, Fund Entities or their respective Subsidiaries, on the other hand,
accurately sets forth all intercompany transactions.

4.16 Finder’s Fee. None of the Other Sellers, the Acquired Entities or the Fund
Entities or any of the respective Subsidiaries of any Acquired Entity or any Fund Entity has
incurred or will incur any obligation or liability to any party for any brokerage or finder’s fee
or agent’s commission, or the like, in connection with the Contemplated Transactions.

4.17 Books and Records. The books of account, minute books, stock record books, and
other records of the Acquired Entities, the Fund Entities and their respective Subsidiaries, all of
which have been made available to Purchaser, are complete and correct in all material respects and
have been maintained in accordance with sound business practices applicable to companies comparable
in size and nature to each of the Acquired Entities, the Fund Entities and their

 

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respective Subsidiaries, including the maintenance of an adequate system of internal controls.
The minute books of the Acquired Entities, the Fund Entities and their respective Subsidiaries
contain accurate and complete records, in all material respects, of all duly-called and held
meetings of, and actions taken by, the stockholders, the members, the boards of directors or
trustees, and committees of the boards of directors or trustees of the Acquired Entities, the Fund
Entities and their respective Subsidiaries, and no duly-called meeting of any such stockholders,
members, boards of directors or trustees or committees has been held for which minutes have not
been prepared and are not contained in such minute books. As of the date hereof, all of such books
and records of the Acquired Entities, the Fund Entities and their respective Subsidiaries will be
in the possession of New CSI, physically or electronically (on a server located in New CSI’s office
and dedicated to New CSI’s business), in its Dallas, Texas office.

4.18 Fund Entities. Since each Fund Entity’s respective date of organization, such
Fund Entity has not sponsored or participated in the distribution by public or private offering of
any interests in such Fund Entity or other entities or Persons other than pursuant to, and as
described in, the Fund PPMs, in each case when read together with the related Final Fund Documents
in their entirety.

4.19 Investment Company; Investment Advisor. Assuming the truth and accuracy of the
investment representations made to Centerline REIT, CFM, CFM III, CUCA and any Fund Entity by their
respective investors, none of the Acquired Entities, the Fund Entities or any of their respective
Subsidiaries is or has ever been, nor immediately following the consummation of Contemplated
Transactions will be (assuming that each of these entities remains a separate entity immediately
following the consummation of the Contemplated Transactions and is not merged with Purchaser or any
of its Affiliates at this time), required to register as an investment company under the Investment
Company Act. Assuming the truth and accuracy of the investment representations made to Centerline
REIT, CFM, CFM III, CUCA and any Fund Entity by their respective investors, none of the Acquired
Entities, the Fund Entities or any of their respective Subsidiaries is or has ever been, or
immediately following the consummation of the Contemplated Transactions will be, required to
register as an investment adviser under the Investment Advisers Act.

4.20 Offering Memoranda. Each of the Fund PPMs, ARCap 2003-1 Resecuritization Trust
Offering Memorandum, ARCap 2004-1 Resecuritization Trust Offering Memorandum, ARCap 2005-1
Resecuritization Trust Offering Memorandum, ARCAP 2004 RR3 Resecuritization Trust Offering
Memorandum, ARCAP 2005 RR5 Resecuritization Trust Offering Memorandum, ARCap 2006-RR7
Resecuritization Trust Offering Memorandum, ARCap 2007-1 Resecuritization Trust Offering Memorandum
and the CRESS 2008-1 CDO, together, in each case, with any supplements thereto, in each case when
read together with, and as updated by, the related Final Fund Documents in their entirety, did not,
as of their respective dates, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

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4.21 Fund Reports.

(a) The Other Sellers have previously made available to Purchaser true, complete and accurate
copies of the last annual and periodic reports furnished by the managing member to the members of
each Fund Reporting Entity (collectively, the “Fund Entity Reports”).

(b) Each Fund Reporting Entity has made available all reports to its members that are required
to be furnished by it under the respective certificate of incorporation or formation, limited
liability company agreement, by-laws, regulations or other organizational or governing documents of
the Fund Reporting Entities. All financial statements contained in the Fund Entity Reports fairly
present in all material respects in accordance with GAAP the financial position and results of
operations of the respective Fund Reporting Entity at the date and for the periods indicated. The
accountants who expressed an opinion on such financial statements are, with respect to each Fund
Reporting Entity, reasonably believed to be independent public accountants.

(c) From the respective dates as of which information is given in any of the Fund Entity
Reports and the Fund PPMs (whichever is most recently distributed) to the date hereof, except as
may otherwise be stated in or contemplated by such document, there has not been any material
transaction entered into by the Fund Reporting Entity (except as otherwise in conformity with the
investment objective of such Fund Reporting Entity), other than in the Ordinary Course of Business
and other than as contemplated by the Contemplated Transactions.

(d) Each of the Fund Reporting Entities and their respective Subsidiaries, as applicable,
maintains accurate books and records reflecting its assets and liabilities and maintains proper and
adequate internal accounting controls which provide assurance that (i) transactions are executed
with management’s authorization (including, with respect to the Fund Reporting Entities and their
respective Subsidiaries, the authorization of the managing member thereof and required approval, if
any, of any investment advisory or similar oversight committee, whether for interested party
transactions or otherwise); and (ii) transactions are recorded as necessary to permit preparation
of the consolidated financial statements of each of the Fund Reporting Entities in accordance with
GAAP and to maintain accountability for the Fund Reporting Entities consolidated assets. To the
Knowledge of the Other Sellers, there are no significant deficiencies or material weaknesses in the
design or operation of the internal control structure and procedures over financial reporting of
the Fund Reporting Entities or any of their respective Subsidiaries.

4.22 Fund Reporting Entities Financial Statements.

(a) The Other Sellers have delivered or otherwise made available to Purchaser copies of the
audited balance sheets of each Fund Reporting Entity as of December 31, for all fiscal years since
inception through December 31, 2008, inclusive (the “Fund Reporting Entities Audited Balance
Sheets”) and the related audited consolidated statements of operations and cash flows of each
such Fund Reporting Entity for all fiscal years since inception, through December 31, 2008,
inclusive, in each case accompanied by the audit report of an independent certified public
accounting firm (the “Fund Reporting Entities Audited Financial Statements”).

 

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(b) The Other Sellers delivered or otherwise made available to Purchaser copies of the
unaudited balance sheets of each Fund Reporting Entity as of September 30, 2009 (the “Fund
Reporting Entities Unaudited Balance Sheets” and together with the Fund Reporting Entities
Audited Balance Sheets, the “Balance Sheets”) and the related unaudited statements of
operations and cash flows of each such Fund Reporting Entity for the year then ended (the “Fund
Reporting Entities Unaudited Financial Statements” and together with the Fund Reporting
Entities Audited Financial Statements and the Balance Sheets, the “Fund Financial
Statements”).

(c) The Fund Financial Statements, including the notes thereto, were complete and correct in
all material respects as of their respective dates, complied as to form in all material respects
with applicable accounting requirements, to the extent applicable, and with the published rules and
regulations of the SEC with respect thereto as of their respective dates, and have been prepared in
accordance with GAAP applied on a basis consistent throughout the periods indicated (except as may
be indicated in the notes thereto). The Fund Financial Statements fairly present in all material
respects the consolidated financial position and results of operations and cash flows of each of
the Fund Reporting Entities and their consolidated Subsidiaries at the dates and for the periods
indicated therein (subject, in the case of unaudited statements, to normal, recurring year-end
adjustments). There has been no change in the Fund Reporting Entities’ accounting policies except
as described in the notes to the Fund Financial Statements.

(d) The Fund Financial Statements were prepared from and are in all material respects in
accordance with, the books and records of the Fund Reporting Entities and their respective
Subsidiaries, as applicable, which books and records have been maintained in all material respects
in accordance with sound business practices and all applicable Laws and reflect all financial
transactions of the Fund Reporting Entities and their respective Subsidiaries that are required to
be reflected in accordance with GAAP.

4.23 Registration. Assuming the truth of the representations and warranties of each
of the investors in the Fund Entities and their Subsidiaries, the offer and sale of securities by
any Fund Entity or any of its Subsidiaries was conducted in accordance with exemptions from
registration under the Securities Act and applicable state securities laws.

4.24 REIT. Centerline REIT, Centerline CMBS Fund REIT, Inc., Centerline CMBS Fund II
REIT, Inc. and AMAC each has been organized and each of their operations has been conducted and
maintained at all times in conformity with the requirements for qualification as a real estate
investment trust under the Code, including the making of timely and valid REIT elections and the
satisfaction of the income and asset tests of Code Section 856(c) and the distribution tests of
Code Section 857. ARCAP 2004 RR3 and ARCAP 2005 RR5 were properly treated as qualified REIT
Subsidiaries of Centerline REIT under Section 856(i) of the Code. ARCap 2003-1 Resecuritization,
Inc., ARCap 2004-1 Resecuritization, Inc. and ARCAP 2006 RR7 are properly treated as qualified REIT
Subsidiaries of Centerline CMBS Fund REIT, Inc. under Section 856(i) of the Code. ARCap 2005-1
Resecuritization, Inc. and Centerline 2007-1 Resecuritization, Inc. are properly treated as
qualified REIT Subsidiaries of Centerline CMBS Fund II REIT, Inc. under Section 856(i) of the Code.

 

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4.25 Contracts; No Default.

(a) (i) Section 4.25(a) of the Disclosure Schedule contains a true, complete and
accurate list of the Servicing Agreements and each of the other Contracts to which New CSI is a
party and (ii) the Other Sellers have made available to Purchaser true, complete and accurate
copies of, all limited liability company agreements, employment Contracts, lines of credit
Contracts, master repurchase Contracts, loan agreements, security agreements, pledge agreements,
collateralized debt obligation servicing Contracts, and all other material Contracts (including
Contracts related to Intellectual Property), in each case, which are not terminable in thirty (30)
days or less by any Acquired Entity, any Fund Entity or any of their respective Subsidiaries,
without penalty, termination, charge or similar payment to which any Acquired Entity, any Fund
Entity or any of their respective Subsidiaries is a party.

(b) No Contract made available to Purchaser pursuant to Section 4.25(a) is in material
default by its terms as a result of any act or omission by any of the Acquired Entities, the Fund
Entities or any of their respective Subsidiaries or, to the Knowledge of the Other Sellers, the
Acquired Entities, the Fund Entities or any of their respective Subsidiaries, has been or purports
to have been canceled by any counterparty thereto, and none of the Acquired Entities, the Fund
Entities or any of their respective Subsidiaries is in receipt of any claim of default under any
such agreement.

(c) (i) Each of the Acquired Entities, the Fund Entities and their respective Subsidiaries has
been in material compliance with all applicable terms and requirements of each material Contract
under which such entity has or had any obligation or liability or by which such entity or any of
the assets or properties owned or used or purported to be owned or used by such entity is or was
bound;

(ii) to the Knowledge of the Other Sellers, each other Person that has or had any
obligation or liability under any such material Contract under which any Acquired Entity,
any Fund Entity or any of their respective Subsidiaries has or had any right is in material
compliance with all applicable terms and requirements of such Contract;

(iii) to the Knowledge of the Other Sellers, no event has occurred or circumstance
exists that (with or without notice or lapse of time, or both) may contravene, conflict
with, or result in a violation or breach of, or give any Acquired Entity, any Fund Entity or
any of their respective Subsidiaries or any other Person the right to declare a default or
exercise any remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate or modify, any such material Contract; and

(iv) none of the Acquired Entities, the Fund Entities or any of their respective
Subsidiaries has given to or received from any Person any notice or other communication
(whether oral or written) regarding any actual or alleged violation or breach of, or default
under, any such material Contract.

(d) Any such material Contract that any Acquired Entity, any Fund Entity or any of their
respective Subsidiaries is party to, bound by or subject to, constitutes a legal, valid

 

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and binding obligation of such Acquired Entity, Fund Entity or Subsidiary, enforceable against
each of them in accordance with its terms and, to the Knowledge of the Other Sellers, any such
material Contract constitutes a legal, valid and binding obligation of the other parties thereto,
enforceable against each of them in accordance with its term.

(e) No fees or other payments under the Servicing Agreements or other Contracts set forth on
Section 4.25(a) of the Disclosure Schedule have been paid to New CSI in advance and would
be allocable to any period from and after the close of business on the Closing Date.

4.26 Insurance. Section 4.26 of the Disclosure Schedule identifies all of the
policies of insurance and bonds of any of the Acquired Entities, the Fund Entities and each of
their respective Subsidiaries. The Acquired Entities, the Fund Entities and each of their
respective Subsidiaries have policies of insurance and bonds of the type and in the amounts
customarily carried by persons conducting businesses or owning assets similar, respectively, to
those of the Acquired Entities, the Fund Entities and each of their respective Subsidiaries. There
is no material claim pending under any of such policies or bonds as to which coverage has been
questioned, denied or disputed by the underwriters of such policies or bonds. All premiums due and
payable under all such policies and bonds have been paid and the Acquired Entities, the Fund
Entities and each of their respective Subsidiaries are otherwise in material compliance with the
terms of such policies and bonds. There is no pending or, to the Knowledge of the Other Sellers,
threatened termination of, or material premium increase with respect to, any of such policies.

4.27 Leases.

(a) Section 4.27 of the Disclosure Schedule identifies any Leased Real Property that
is used in connection with the business of CSI, any Acquired Entity and any Fund Entity
(collectively, the “CMBS Leased Real Property”) and contains a true, complete and accurate
list of each of the leases, including all amendments thereto, with respect to the CMBS Leased Real
Property (each a “CMBS Lease” and collectively, the “CMBS Leases”). The Other
Sellers have made available to Purchaser true, complete and accurate copies of the CMBS Leases,
including all schedules, amendments and modifications thereto. None of the Acquired Entities, the
Fund Entities or their respective Subsidiaries owns any real property. Other than the CMBS Leases,
to the Knowledge of the Other Sellers, the CMBS Leased Real Property is not subject to any other
leases or occupancy agreements, rights of first refusal, options to purchase or other rights of
occupancy.

(b) Each CMBS Lease remains unmodified and is in full force and effect except as contemplated
by the Contemplated Transactions, and each of the Acquired Entities, the Fund Entities and their
respective Subsidiaries holds a legal, valid and existing leasehold interest under each of the CMBS
Leases to which it is a party for the term(s) set forth therein. There are no other written or
oral agreements amending or in connection with the CMBS Leases. None of the Acquired Entities, the
Fund Entities or their respective Subsidiaries is in material default or material breach of any
CMBS Lease nor, to the Knowledge of the Other Sellers, is any other party thereto. To the
Knowledge of the Other Sellers, no event has occurred and no

 

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circumstance exists which, if not remedied, and whether with or without notice or the passage
of time or both, would result in such a material default.

(c) None of the Acquired Entities, the Fund Entities or any of their respective Subsidiaries
has received written notice of any pending or threatened condemnations, planned public
improvements, annexation, special assessments, zoning or subdivision changes or other claims
affecting, in any material respect, the CMBS Leased Real Property.

4.28 Servicing. Each of the Acquired Entities and their respective Subsidiaries has
complied with (a) all applicable Laws in all material respects and rating agency servicing
standards with respect to all outstanding Serviced Loans as to which it acts as a servicer, whether
as a master servicer, special servicer, subservicer or otherwise, and (b) the material terms of the
applicable Servicing Agreement and mortgage loan documents relating to such Serviced Loans. As of
the date of this Agreement, (i) CSI is a licensed qualified CDO manager, (ii) CSI has a special
servicer rating of “Strong” by Standard & Poor’s and “CSS2” by Fitch Ratings, and (iii) CSI has not
received any notice of any ratings downgrade from any of them.

4.29 ERISA. None of the Fund Entities are parties to, or have any liability or
obligation with respect to, any Plan. With respect to each Fund Entity, based upon the truth of
the representations made to each Fund Entity by their respective investors, either of the following
is true, to the Knowledge of the Other Sellers:

(a) such Fund Entity (A) is not (I) an “employee benefit plan” within the meaning of Section
3(3) of ERISA, (II) a “plan” defined in Section 4975 of the Code, (III) a governmental plan within
the meaning of Section 3(32) of ERISA, or (IV) a collective investment vehicle made up of two or
more of such plans and (B) no portion of the assets of any such Fund Entity constitutes “plan
assets” within the meaning of the plan asset regulations promulgated by the U.S. Department of
Labor at 29 I.E. 2510.3-101 et. seq. (1986); or

(b) None of CHC, any Fund Entity or their respective Subsidiaries, nor to the Knowledge of the
Other Sellers, any party in interest (as defined in Section 3(14) of ERISA) with respect to any
Fund Entity has engaged in any non-exempt prohibited transaction as defined in Section 406 of ERISA
or Section 4975 of the Code with respect to a Fund Entity that would result in any material
liability to any Acquired Entity, any Fund Entity, any of their respective Subsidiaries or
Purchaser.

4.30 Disclosure. No representation or warranty of any Other Seller in this Agreement
or any Transaction Document and no statement of any Other Seller in the Disclosure Schedule,
contains any untrue statement of a material fact or omits to state a material fact necessary to
make the statements herein or therein, in light of the circumstances under which they were made,
not misleading.

4.31 Sufficiency of Assets. Except for the assets to be used by CCG to provide
services under the Transition Services Agreement, the assets owned, leased and licensed by any
Acquired Entity and its Subsidiaries, include all assets required for the continued conduct of the
business by any Acquired Entity and its Subsidiaries after the Closing as such business is
currently conducted.

 

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4.32 CMBS/CDO Bonds. Section 4.32 of the Disclosure Schedule sets forth all
of the bonds owned of record or beneficially by Centerline REIT, ARCap 2003-1 Resecuritization
Inc., ARCap 2004-1 Resecuritization Inc., ARCAP 2006 RR7, ARCAP 2004 RR3 and ARCAP 2005 RR5 (other
than those bonds that are held by ARCAP 2006 RR7 as nominee for Centerline REIT), including the
name of the record owner and the beneficial owner (if different) of each bond, the issuer of each
bond, the face amount of each bond, the CUSIP number of each bond, the description/class of each
bond, the date and amount of the last payment received by the owner of each bond, and whether each
bond is certificated. The bonds are owned by the specified owner thereof, free and clear of all
Encumbrances (other than restrictions on transfer under any federal or state securities law).

4.33 Fund III Loan. CFM III is the legal and beneficial owner of the CFM III
Promissory Note. CFM III owns the CFM III Promissory Note, free and clear of all Encumbrances. To
the Knowledge of the Other Sellers, the CFM III Promissory Note constitutes a legal, valid and
binding obligation Fund III and is enforceable against it in accordance with its terms.

4.34 Tangible Assets. Section 4.34 of the Disclosure Schedule is a true,
accurate and complete copy of the Bill of Sale pursuant to which Centerline REIT has transferred to
New CSI all equipment, materials, tools, supplies, furniture and other tangible assets which were
owned, leased or used by New CSI, or required for the operation of New CSI as currently conducted
and as proposed to be conducted, and located in the space which is the subject of the Sublease at
New CSI’s location in Irving, Texas (collectively, the “Tangible Assets”). New CSI owns,
leases or has the legal right to use all of the Tangible Assets. New CSI has good and marketable
title to, or a valid leasehold interest in, its Tangible Assets, free and clear of all
Encumbrances. CUCA has no equipment, materials, tools, supplies, furniture, fixtures, improvements
or other tangible assets which are owned, leased or used by CUCA, or required for the operation of
CUCA as currently conducted, and as proposed to be conducted.

4.35 CDO/CMBS Assignment Agreements. Each of the CDO/CMBS Assignment Agreements has
been duly executed by each of the parties thereto. The CDO/CMBS Assignment Agreements specified in
Schedule IV and attached hereto as Exhibits B1 through B10 are true,
complete and accurate copies of the CDO/CMBS Assignment Agreements. Each CDO/CMBS Assignment
Agreement remains unmodified and is in full force and effect. There are no other written or oral
agreements amending or in connection with any CDO/CMBS Assignment Agreement.

4.36 Fund I Bonds. DIV I is the beneficial owner of a fifteen and one-half percent
(15.50%) interest in each of the following bonds, the record title to which is held by ARCAP 2006
RR7 as nominee for DIV I: (a) ARCAP 2006-RR7 Class J; (b) ARCAP 2006-RR7 Class K; (c) ARCAP
2006-RR7 Class L; (d) ARCAP 2006-RR7 Class M; (e) ARCAP 2006-RR7 Class N; (f) ARCAP 2006-RR7 Class
O; (g) ARCAP 2006-RR7 Class P; and (h) ARCAP 2006-RR7 Class X.

4.37 No Reliance. Each of the Other Sellers acknowledges and agrees that, except for
the representations and warranties in this Agreement and the other Transaction Documents, none of
Purchaser, its Affiliates or any other Person has made any representation or warranty, express

 

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or implied, as to the accuracy or completeness of any information regarding Purchaser, its
Affiliates, its real property (whether owned or leased) or its business or other matters. Without
limiting the generality of the foregoing, none of Purchaser, any of its Affiliates or any other
Person has made a representation or warranty to any Other Seller with respect to (a) any
projections, estimates or budgets for the businesses of Purchaser or any of its Affiliates, or (b)
any material, documents or information relating to Purchaser or any of its Affiliates made
available to any Other Seller, any of its Subsidiaries, or their counsel, accountants or advisors,
except as expressly covered by this Agreement or any Transaction Document.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to the Sellers that the statements contained in this
Article 5 are true and correct as of the date hereof:

5.1 No Conflict; Required Filings.

(a) Assuming the making and obtaining of all filings, notifications, consents, approvals,
authorizations and other actions referred to in Section 5.1 (b), the execution, delivery
and performance of this Agreement and any Transaction Document does not and will not (with or
without notice or lapse of time, or both) (i) violate, conflict with or result in the breach of any
provision of the certificate of incorporation or formation, limited liability company agreement,
by-laws, regulations or other organizational or governing documents of Purchaser, (ii) contravene,
conflict with or violate any Law or Order applicable to Purchaser in any material respect, (iii)
conflict in any material respect with or violate or breach in any material respect any provision
of, or give any third party the right to declare a default or exercise a remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate or modify any Contract of
Purchaser which would result in a Material Adverse Effect on Purchaser, (iv) result in the creation
of any Encumbrance (other than restrictions on transfer under applicable state and federal
securities laws) on any of the properties or assets of Purchaser pursuant to any Contract to which
Purchaser is a party or by which any of Purchaser’s properties or assets are or purported to be
bound or affected, (v) entitle any Person to any right or privilege to which such Person was not
entitled immediately before this Agreement or any Transaction Document was executed, or (vi) create
any obligation on the part of Purchaser that it was not obligated to perform immediately before
this Agreement or any Transaction Document was executed, except in the case of clauses (iii)
through (vi) above, for such contraventions, conflicts, violations, breaches, defaults, exercises,
accelerations, cancellations, terminations, modification and creations which would not result in a
Material Adverse Effect on Purchaser.

(b) No consent of, or registration, declaration, notice or filing with, any Governmental
Authority or third party is required to be obtained or made by Purchaser in connection with the
execution, delivery and performance of this Agreement, any Transaction Document or the Contemplated
Transactions which have not been obtained prior to the Closing, other than those that, if not made
or obtained, individually or in the aggregate, would not

 

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materially hinder or materially delay the Closing or would not reasonably be expected to
result in a Material Adverse Effect on Purchaser.

5.2 Limited Liability Company Status. Purchaser is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization and Purchaser (a) has
all requisite power and authority to carry on its business as it is now being conducted, and (b) is
duly qualified to do business and is in good standing in each of the jurisdictions in which the
ownership, operation or leasing of its properties and assets and the conduct of its business
requires it to be so qualified, licensed or authorized, except where the failure to have such power
and authority or to be so qualified, licensed or authorized would not result in a Material Adverse
Effect on Purchaser.

5.3 Authority. Purchaser has all necessary power and authority to enter into this
Agreement and the Transaction Documents, to carry out its obligations hereunder and to consummate
the Contemplated Transactions. This Agreement and the Transaction Documents have been duly
executed and delivered by Purchaser, and (assuming due authorization and delivery by the Sellers)
this Agreement and the Transaction Documents constitute a legal, valid and binding obligation of
Purchaser, enforceable against Purchaser in accordance with their respective terms.

5.4 Proceedings. There are no Proceedings pending or, to the Knowledge of Purchaser,
threatened against Purchaser or any of its properties that would result in a Material Adverse
Effect on Purchaser, or that challenges, or that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with, the execution, delivery and performance of this
Agreement or any other Transaction Document or the consummation of the Contemplated Transactions by
Purchaser.

5.5 Finder’s Fee. Purchaser has not incurred any obligation or liability to any party
for any service, brokerage or finder’s fee or agent’s commission or the like, in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of
Purchaser.

5.6 Investment Intent. Purchaser has knowledge and experience in financial and
business matters such that it is capable of evaluating the risks and merits associated with the
acquisition of the CHC New Shares, is an “accredited investor” as defined in Regulation D as
promulgated under the Securities Act and is acquiring the CHC New Shares for its own account for
investment, with no present intention of making a public distribution thereof. Purchaser will not
sell or otherwise dispose of the CHC New Shares in violation of the Securities Act or any state
securities laws.

5.7 No Reliance. Purchaser acknowledges and agrees that, except for the
representations and warranties in this Agreement and the other Transaction Documents, none of CHC,
the Other Sellers, the Acquired Entities, the Fund Entities, their respective Subsidiaries, or any
other Person has made any representation or warranty, express or implied, as to the accuracy or
completeness of any information regarding the Sellers, the Acquired Entities, the Fund Entities,
their respective Subsidiaries, their real property (whether owned or leased) or their business or
other matters. Without limiting the generality of the foregoing, none of the Sellers,

 

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the Acquired Entities, the Fund Entities, their respective Subsidiaries or any other Person
has made a representation or warranty to Purchaser with respect to (a) any projections, estimates
or budgets for the businesses of any of the Sellers, the Acquired Entities, the Fund Entities or
their respective Subsidiaries, or (b) any material, documents or information relating to any of the
Sellers, the Acquired Entities, the Fund Entities or their respective Subsidiaries made available
to Purchaser, or its counsel, accountants or advisors in any data room or otherwise, except as
expressly covered by this Agreement, the Disclosure Schedule attached hereto or any Transaction
Document.

5.8 Agreements with Certain Persons. Other than (a) the Related Purchase Agreement,
pursuant to which Related acquires a five percent (5%) “profits interest” in Purchaser and (b) that
certain side letter, dated as of the date hereof, between Purchaser and Related, pursuant to which
Related receives an option to acquire a capital interest in Purchaser (true, correct and complete
copies of which have been delivered to CHC as of the date hereof), neither Purchaser nor any of its
Affiliates is a party to any binding agreement with, or relating to, Related or any of its
Affiliates that relates to this Agreement, the other Transaction Documents or any Contemplated
Transaction.

5.9 Island Capital Group. Andrew L. Farkas Controls and is the record and beneficial
owner of a majority of the authorized and outstanding equity interests of Island Capital Group LLC.

ARTICLE 6

COVENANTS

6.1 Confidentiality. Purchaser and each of the Sellers each acknowledges that the
information being provided or made available to it by the other Party and their respective
Subsidiaries or Affiliates (or their respective agents or representatives) is subject to the terms
of a confidentiality agreement dated May 4, 2009, between CHC and Island Capital Group LLC (the
“Confidentiality Agreement”), attached hereto as Exhibit P and the terms of which
are incorporated herein by reference and shall continue to be in force even though the Parties
understand that by its terms the Confidentiality Agreement no longer is in force.

6.2 Publicity. The press release announcing the Closing shall be issued by CHC
(subject to reasonable prior notice to, consultation with, and consent of Purchaser (which consent
shall not be unreasonably withheld, conditioned or delayed)) as to the scope and content of such
press release). In addition, except as required by Law, or as reasonably determined by CHC to be
required by virtue of CHC being a publicly-traded company, the Sellers shall keep this Agreement
and the other Transaction Documents strictly confidential and may not make any disclosure
(including any public statements) of this Agreement or any Transaction Document to any Person
(other than to their respective directors, officers, employees, agents and advisors) without the
prior written consent of Purchaser (which consent shall not be unreasonably conditioned, withheld
or delayed). CHC and Purchaser will use reasonable best efforts to consult with each other
concerning the means by which the employees, customers, suppliers and others having dealings with
the Sellers, any Acquired Entity, any Fund Entity and their respective

 

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Subsidiaries will be informed of the Contemplated Transactions, and Purchaser will have the
right to be present for any such communication.

6.3 Books and Records.

(a) As of the date hereof, CHC and each Other Seller (as applicable) has delivered to
Purchaser all books, records, Contracts, information and any other documents relating to the
business of any Acquired Entity, any Fund Entity and their respective Subsidiaries that are not
already in the possession or control of any Acquired Entity, any Fund Entity or any of their
respective Subsidiaries.

(b) The Sellers and Purchaser agree that each of them will preserve and keep the records held
by it relating to the business of CHC, any Acquired Entity, any Fund Entity and their respective
Subsidiaries for the longer of (i) a period of five (5) years from the date hereof and (ii) such
period as is required under any Final Fund Documents or related side letters; provided,
however, that prior to disposing of any such records in accordance with such policies, the
applicable Party shall provide written notice to the other Party of its intent to dispose of such
records and shall provide such other Party the opportunity to take ownership and possession of such
records (at such other Party’s sole expense) within thirty (30) days after such notice is
delivered. If such other Party does not confirm its intention in writing to take ownership and
possession of such records within such thirty (30)-day period, the Party who possesses the records
may proceed with the disposition of such records. The Sellers and Purchaser shall make such
records available to the other as may be reasonably required by such Party in connection with,
among other things, any insurance claims by or Proceedings or governmental investigations involving
the Sellers or Purchaser or any of their respective Affiliates or in order to enable the Sellers or
Purchaser to comply with their respective obligations under this Agreement or any Transaction
Document.

6.4 Cooperation. The Sellers, on the one hand, and Purchaser, on the other hand,
agree to cooperate fully with each other and to execute and deliver such further documents,
certificates, agreements and instruments and to take such other actions as may be reasonably
requested by the other Party or Parties to evidence or reflect the Contemplated Transactions and to
carry out the intent and purposes of the Transaction Documents. If, following the Closing, the
Parties determine that any Purchased Interest was not owned by the Seller designated as the owner
thereof in this Agreement or any other Transaction Document but instead was owned by another Party
or any party to any other Transaction Document, (a) this Agreement or such other Transaction
Document shall be deemed to effect the sale, assignment, transfer and conveyance thereof to
Purchaser in accordance with, and subject to the terms of, this Agreement without the payment of
any additional consideration by Purchaser and (b) CHC, such other Party or such other party shall
execute and deliver to Purchaser such other documents, agreements and/or instruments to reflect
such sale, assignment, transfer and conveyance in accordance with, and subject to the terms of,
this Agreement without the payment of any additional consideration by Purchaser.

6.5 Expenses. Except as provided for in the Authorization Agreement, dated as of July
4, 2009, between CHC and Island C-III Holdings Group LLC, as amended from time to time, all costs
and expenses incurred in connection with this Agreement and the other

 

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Transaction Documents and the Contemplated Transactions shall be paid by the Party incurring
such expenses, except that all costs and expenses of the Sellers shall be paid by CHC and no such
cost or expense will be paid by any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries.

6.6 Employee Matters and Employee Benefit Plans.

(a) No Employee Plan assets or liabilities will be transferred to Purchaser or its Affiliates;
rather, all such Employee Plan assets and liabilities shall be retained by the Sellers and their
Subsidiaries and ERISA Affiliates, other than any Acquired Entity and any Fund Entity. The Sellers
acknowledge and agree that the Sellers and their Subsidiaries and ERISA Affiliates, other than any
Acquired Entity and any Fund Entity, shall be solely responsible for all liabilities arising out of
or related to any Employee Plans (including liabilities attributable to periods prior to the
Closing) and that Purchaser and its Affiliates shall not be responsible for any liabilities arising
out of or relating to any Employee Plans (including liabilities attributable to periods after the
Closing).

(b) Prior to the date hereof, Purchaser or its Affiliates have made an offer of employment,
effective as of the Closing, to each of the employees of CHC, any Acquired Entity, any Fund Entity
and their respective Subsidiaries listed in Schedule 6.6(b)(a) actively employed in the
business of any Acquired Entity, any Fund Entity or any of their respective Subsidiaries
immediately prior to the Closing (the “Business Employees”). The Business Employees who
are actively employed immediately prior to the Closing and that shall have affirmatively accepted
such offer of employment and shall have commenced working for Purchaser or its Affiliates on the
Closing are hereinafter referred to as the “Continuing Employees”. From and after the
Closing, Purchaser shall use commercially reasonable efforts to ensure that Continuing Employees
shall, to the extent permitted under the terms of such plans and by applicable Law or provided by
Purchaser’s medical insurance policy, receive (i) full credit for all purposes under any employee
benefit plan (other than any severance payment plan) maintained by Purchaser in which such
Continuing Employees are eligible to participate in, including for purposes of determining
eligibility and vesting levels, but not for the actual accrual of benefits, for their service prior
to the Closing with CHC, any Acquired Entity, any Fund Entity and their Subsidiaries, (ii) full
credit for deductibles and co-payments, annual limits and lifetime limits under the welfare plans
of Purchaser, in all cases to the extent such Continuing Employees would have received such credit
under a corresponding Employee Plan (and in all cases except to the extent that such credit would
result in (A) the duplication of benefits and (B) service credit under a newly established plan for
which prior service is not taken into account for employees of Purchaser generally), and (iii) all
preexisting conditions, limitations and waiting periods to which any such Continuing Employees are
subject shall be waived under the Welfare Plans of Purchaser. Except as expressly provided in this
Agreement, nothing in this Section 6.6 or elsewhere in this Agreement will require
Purchaser to provide any particular form of employee benefit or to establish or maintain any
particular type or form of employee benefit plan, or preclude Purchaser from following the date
hereof, terminate the employment of any Continuing Employee.

(c) In accordance with the regular payroll schedule of CHC, any Acquired Entity, any Fund
Entity and their respective Subsidiaries, as applicable, CCG has paid and will

 

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continue to pay, all compensation and benefits due to each employee and former employee of
such entity through the Closing.

(d) If any of the employees set forth on Section 6.6(d) of the Disclosure Schedule
accepts an offer of employment from Purchaser or its Affiliates and such employment is terminated
by Purchaser or its Affiliates without cause during the six-month period following the Closing,
then Purchaser or its Affiliates, as the case may be, shall pay such employee any termination
payment owed to him or, if it fails to do so, reimburse CCG for any such payment that it made to
such employee consistent with a written agreement between CCG and such employee entered into as of
the Closing and disclosed to Purchaser.

(e) None of Purchaser, any Acquired Entity, any Fund Entity or any of their respective
Affiliates shall be liable for any severance or other obligations with respect to any Business
Employees that do not accept employment with Purchaser pursuant to Section 6.6(a).
Notwithstanding anything to the contrary herein, a group health plan maintained by the Sellers
shall make continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended available to all Business Employees that do not accept employment with Purchaser
pursuant to Section 6.6 (a) and who are eligible for such coverage.

(f) Purchaser or its Affiliates and the Sellers or their Affiliates shall take all actions
necessary to allow the Continuing Employees to make eligible rollover distributions of their
account balances (in cash and in loan notes, if any, evidencing loans to such Continuing Employees
as of the date of distribution) under the savings plans of the Sellers or their Affiliates to a
savings plan maintained by Purchaser or its Affiliates as soon as practicable following the
Closing.

(g) The Sellers and their Affiliates, other than any Acquired Entity and any Fund Entity,
shall be responsible for all workers’ compensation claims by any Business Employees arising out of
any injuries and diseases incurred, sustained, or resulting from work-related exposures or
conditions prior to the Effective Time (regardless of whether the claim related thereto is filed
after the Effective Time). Purchaser and its Affiliates shall be responsible for all workers’
compensation claims by any of the Continuing Employees arising out of any injuries and diseases
incurred, sustained, or resulting from work-related exposures or conditions on and after the
Effective Time.

(h) Any liability under the WARN Act, or any similar state law with regard to any employee of
CHC, any Acquired Entity, any Fund Entity and their respective Subsidiaries whose employment is
terminated prior to the date hereof shall be the responsibility of the Sellers. Notwithstanding
anything in this Agreement to the contrary, the Sellers shall indemnify Purchaser and its
Affiliates against, and hold Purchaser and its Affiliates harmless from, any and all damages
arising out of or otherwise in respect of any suit or claim of violation brought against Purchaser
under the WARN Act, or any comparable state law, where such suit or claim is based solely upon
actions taken by the Sellers or their Affiliates prior to the date hereof with respect to any
facility, site, operating unit or Continuing Employee.

(i) Except for Section 6.6(d), no provision of this Section 6.6 shall create
any third party beneficiary or other rights in any employee or former employee (including any

 

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beneficiary or dependent thereof) of CHC, any Acquired Entity, any Fund Entity or their
respective Subsidiaries in respect of continued employment (or resumed employment) with Purchaser
or any of its Affiliates, and no provision of this Section 6.6 shall create any such rights
in any such Persons in respect of any benefits that may be provided, directly or indirectly, under
any Employee Plan or any plan of Purchaser, and nothing herein, whether express or implied, shall
be deemed to constitute an amendment or other modification under any Employee Plan or any plan of
Purchaser, or shall limit the right of Purchaser or its Affiliates to amend, terminate or otherwise
modify any of their Employee Plans following the Closing. If (i) a party other than the Parties
hereto makes a claim or takes other action to enforce any provision in this Agreement as an
amendment to any plan of Purchaser, and (ii) such provision is deemed to be an amendment to such
plan of Purchaser even though not explicitly designated as such in this Agreement, then, solely
with respect to such plan of Purchaser, such provision shall lapse retroactively and shall have no
amendatory effect with respect thereto.

6.7 Insurance Matters.

(a) Following the Closing, Purchaser shall, or shall cause any Acquired Entity, any Fund
Entity or any of their respective Subsidiaries (as applicable), to pursue, at the request, on
behalf and at the expense of the Sellers and their respective Subsidiaries (other than any Acquired
Entity, any Fund Entity and their respective Subsidiaries), any claims made by the Sellers or their
respective Subsidiaries (other than any Acquired Entity, any Fund Entity and their respective
Subsidiaries) prior to the Closing under any such policies retained by any Acquired Entity, any
Fund Entity or any of their respective Subsidiaries following the Closing.

(b) From and after the Closing, each of Purchaser, CHC, each Acquired Entity and each Fund
Entity agrees that all rights of its officers and directors to exculpation, advances of expenses
and indemnification under any indemnification arrangements contained in such entity’s trust
agreement, certificate of incorporation or organization, limited liability company operating
agreement or by-laws (“Indemnification Arrangements”) for acts or omissions occurring at or
prior to the Closing shall survive the Closing Date and shall continue in full force and effect in
accordance with their respective terms and that such rights shall not be amended or otherwise
modified in any manner that would adversely affect the rights of the officers and directors, in
each case with respect to matters occurring on or prior to the Closing. CHC, each Acquired Entity
and each Fund Entity covenants and agrees that it shall not amend or modify after the Closing any
Indemnification Arrangements in a manner that would deprive CHC’s officers and directors of (or
adversely modify) their rights to exculpation, advances of expenses and indemnification under any
Indemnification Arrangements with respect to matters prior to the time of any such amendment. From
and after the Closing, CHC shall maintain its policies insuring its directors and officers in full
force and effect through to the end of their respective terms and continue to honor all obligations
thereunder. The provisions of this Section 6.7(b) are intended to be for the benefit of,
and shall be enforceable by, each of its directors and officers, his or her heirs and his or her
representatives and are in addition to, and not in substitution for, any other rights to
indemnification or contribution that any such person may have by contract or otherwise.

 

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6.8 Use of Name.

(a) The Sellers hereby grant Purchaser the nonexclusive, royalty-free, worldwide license to
use, prior to the License Termination Date (i) the trademark or trade name “Centerline,” and (ii)
any portion of the “Centerline” trade name or marks (collectively, the “Centerline Mark”).

(b) Not later than the close of business on the first Business Day after the date that is one
(1) year following the Closing (the “License Termination Date”), Purchaser shall file, or
shall cause to be filed, a certificate of amendment to the certificate of incorporation or
certificate of formation of each of any Acquired Entity, any Fund Entity or any of their respective
Subsidiaries to remove the Centerline Mark from the name of such entities.

6.9 Conversion of CSI. Prior to the Closing, CHC and CCG will take, and cause to be
taken, all action necessary to convert CSI from a Delaware corporation to a Delaware limited
liability company named Centerline Servicing LLC, pursuant to Section 266 of the Delaware General
Corporation Law and Section 18-214 of the Delaware Limited Liability Company Act. On the Closing
Date, immediately prior to the Closing, CCG will be the sole member of New CSI.

6.10 Non-Competition by Purchaser.

(a) As additional consideration for the consummation of the Contemplated Transactions,
Purchaser agrees that after the Closing it shall not, and shall cause its Controlled Affiliates not
to, engage in any business that is competitive with the businesses of CHC and its Subsidiaries
(other than the Acquired Entities, the Fund Entities and their respective Subsidiaries), as and to
the extent such businesses are conducted immediately after the Closing and subject to the terms and
conditions contained in this Section 6.10 (the “Purchaser Non-Compete”).

(b) Subject to the remaining provisions of this Section 6.10, the Purchaser
Non-Compete shall apply during the period (the “Purchaser Non-Compete Period”) commencing
on the Closing Date and ending on the date that is one (1) year following the later of (i)
the termination by CHC (or its Controlled Affiliate) of all subservicing agreements relating to
CHC’s agency business to which Purchaser (or a Controlled Affiliate of Purchaser) is a party (each,
an “Agency Subservicing Agreement”), and (ii) the termination of the Management Agreement.

(c) Notwithstanding Section 6.10(b), the Purchaser Non-Compete Period shall
immediately terminate: (i) upon the effective date of any termination of an Agency Subservicing
Agreement by CHC (or its Controlled Affiliate) without cause, but only with respect to such
terminated Agency Subservicing Agreement; (ii) upon the effective date of any termination of the
Management Agreement by CHC pursuant to section 12(a)(iv) thereof (Violation of Fiduciary Duties)
if the determination of the Board of Trustees of CHC required under section 12(a)(iv) of the
Management Agreement shall have been made by a majority of the independent members of the Board of
Trustees of CHC; (iii) upon the effective date of any termination of the Management Agreement by
the Manager pursuant to section 12(e) thereof (Investment

 

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Company); or (iv) 30 days following the date of notice of termination of the Management
Agreement given by CHC pursuant to section 12(b) (No Reason) or section 12(c) thereof (Company
Change of Control) or 30 days following the date of notice of termination of the Management
Agreement given by the Manager pursuant to section 12(f) (Good Reason) or section 12(g) thereof
(Company Change of Control), in each case, if the Manager has not received the Termination Fee (as
defined in the Management Agreement) and such other amounts payable to the Manager through the date
of termination of the Management Agreement.

(d) Neither Purchaser nor any of its Controlled Affiliates shall, at any time during the
Purchaser Non-Compete Period while an Agency Subservicing Agreement is in effect, approach, make an
offer to or otherwise solicit the business of any borrower under any loan that is being
sub-serviced pursuant to such Agency Subservicing Agreement with respect to the refinancing of such
loan at any time prior to the date that is six (6) months before the stated maturity date of such
loan; provided, however, that there shall be no such restriction with respect to
any such loan that is (i) on a “watchlist”, provided that CHC and/or its applicable Subsidiary has
given prior written consent, which shall not be unreasonably withheld, conditioned or delayed, (ii)
in special servicing or (iii) in respect of which the borrower thereunder is at the time in
question generally soliciting financing proposals from third party non-agency lenders.

(e) Notwithstanding Sections 6.10(a) and 6.10(b), the Purchaser Non-Compete
immediately shall cease to apply with respect to the business of originating mortgage loans as an
agent for any particular lending program of any agency lender (such as the Federal National
Mortgage Association, Freddie Mac and similar government-sponsored entities and government
agencies) covered by the Purchaser Non-Compete from and after the time that CHC (and its
Subsidiaries) cease to participate in such lending program for any reason.

(f) For the avoidance of doubt, the Purchaser Non-Compete shall not prohibit Purchaser or any
of its Controlled Affiliates from any of the following: (i) engaging in any business conducted as
of the time of the Closing by Purchaser or its Affiliates that it Controls immediately after the
Closing, including primary and special servicing of real estate loans (including servicing of
agency and affordable housing loans and bonds) and commercial real estate debt investment and fund
sponsorship and management; (ii) non-agency debt origination; or (iii) the ownership by Purchaser
and its Affiliates that it Controls immediately after the Closing, collectively, of less than 5.0%
of any class of any publicly-traded security of any Person engaged in any business otherwise
subject to the Purchaser Non-Compete.

6.11 Non-Competition by CHC and the Other Sellers.

(a) As additional consideration for the consummation of the Contemplated Transactions, each of
CHC and each Other Seller agrees that it shall not, and shall cause its respective Affiliates that
it Controls immediately after the Closing not to, engage in any business that is competitive with
the businesses of Purchaser or its Affiliates that it Controls immediately after the Closing
(including any Fund Entity, any Acquired Entity or any of its respective Subsidiaries), as and to
the extent such businesses are conducted at the time of the Closing and subject to the terms and
conditions contained in this Section 6.11 (the “Seller Non-Compete”).

 

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(b) Subject to Section 6.11(c), the Seller Non-Compete shall apply during the period
(the “Seller Non-Compete Period”) commencing on the Closing Date and ending on the
earlier of (i) termination of the Management Agreement by CHC pursuant to sections 12(a)(i)
through 12(a)(ix) thereof, (ii) termination of any Agency Subservicing Agreement by CHC (or its
Controlled Affiliate) for cause or (iii) the date that is one (1) year following the later
of (A) termination of any Agency Subservicing Agreement by CHC (or its Controlled Affiliate)
without cause or (B) termination of the Management Agreement for any reason other than pursuant to
sections 12(a)(i) through 12(a)(ix) thereof.

(c) For the avoidance of doubt, the Seller Non-Compete shall not prohibit CHC or its
Controlled Affiliates from any of the following: (i) engaging in any business conducted as of the
Closing by CHC or its Affiliates that it Controls immediately after the Closing, including low
income housing tax credit equity syndication and agency mortgage loan origination in the United
States; (ii) servicing of agency loans originated by CHC or its Affiliates that it Controls
immediately after the Closing, except this shall not include servicing of agency loans that are
subject to a subservicing arrangement under an Agency Subservicing Agreement; or (iii) the
ownership by CHC, the Other Sellers and their Affiliates that they Control immediately after the
Closing, collectively, of less than 5.0% of any class of any publicly-traded security of any Person
engaged in any business otherwise subject to the Seller Non-Compete.

6.12 Increase in Authorized Common Shares of CHC. As soon as practicable after the
Closing, CHC will seek approval of its shareholders to increase the number of authorized shares of
CHC to not less than 800,000,000 shares to permit the conversion of the outstanding Special Series
A shares of CHC into common shares of CHC as provided in the Certificate of Designation of Special
Series A shares. Purchaser shall vote (or cause to be voted) all CHC New Shares or any other
voting shares of beneficial interest in CHC it beneficially owns or over which it has voting
control in favor of the foregoing proposal to increase the number of authorized shares of CHC that
is submitted for shareholder approval by the Company at any meeting of shareholders, or at any
adjournment or postponement thereof, and with respect to any consent in lieu of such meeting.

6.13 Reorganization of AMAC. Following the Closing, CHC shall continue to act as
manager of AMAC, waiving any fee, and (without any out-of-pocket cost or expense to Purchaser)
shall use its commercially reasonable efforts to cause AMAC to pursue a reorganization as soon as
reasonably practicable on substantially the terms of the Taberna Exchange and Discharge Proposal.
CHC shall not modify, amend or supplement the terms of the Taberna Exchange and Discharge Proposal
without the prior written consent of Purchaser. CHC shall keep Purchaser apprised of the status of
the reorganization of AMAC and shall provide Purchaser with any information relating thereto that
Purchaser reasonably requests from time to time. CHC and its Subsidiaries shall not cause or
permit AMAC to make any payments or other distributions to CHC or any of CHC’s Subsidiaries.
Through the effective date of the plan of reorganization of AMAC, CHC shall cause AMAC to maintain
its books and records in the Ordinary Course of Business.

6.14 Certificated CMBS/CDO Bonds. No later than one Business Day following the
Closing Date, the Sellers shall deliver to Purchaser (or its Affiliates) original certificates
representing the certificated Fund I Bonds, ARCAP 2004 Re-Remic Bonds, ARCAP 2005 Re-

 

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Remic Bonds and Centerline REIT Bonds, each of which are set forth on Schedule 6.14,
together with duly executed, signature guaranteed irrevocable bond powers.

6.15 Observer Rights. From the Effective Time until the termination of the Management
Agreement in accordance with its terms, Purchaser shall have the right to designate a non-voting
observer (the “Observer”) to attend each meeting of CHC’s Board of Trustees (and any
committee thereof) held after the Effective Time, whether such meeting is conducted in person or by
teleconference. The Observer shall have the right to present matters for consideration by CHC’s
Board of Trustees (or any committee thereof) and to speak on matters presented by others at such
meetings of CHC’s Board of Trustees (or any committee thereof). Subject to the confidentiality
provisions of this Section 6.15 and any applicable related person, recusal or similar
policy or practice of CHC, CHC shall cause the Observer to be provided with all communications and
materials that are provided by CHC or its consultants to the members of the Board of Trustees (or
any committee thereof) generally, at the same time and in the same manner that such communications
and materials are provided to such members, including all notices, board packages, reports,
presentations, minutes and consents. Promptly following the Effective Time, CHC shall add the
Observer as an additional named insured under its directors and officers’ liability insurance
policy and provide evidence thereof to Purchaser. Purchaser shall keep (and shall cause the
Observer to keep) confidential any and all information obtained in connection with the exercise of
the rights under this Section 6.15 and shall not disclose any such information (or use the
same except for purposes reasonably related to Purchaser’s interest as a shareholder of CHC) to
unaffiliated third parties, except: (a) with the prior written consent of CHC’s Board of Trustees;
(b) to the legal counsel, accountants and other professional advisors of CHC or the Purchaser on a
need to know basis; (c) to Governmental Authorities having jurisdiction over the Observer or
Purchaser, CHC or any of their respective Subsidiaries; (d) as required by Law or legal process to
which Purchaser, the Observer or any Person to whom disclosure is permitted hereunder is a party;
provided, however, that if Purchaser and/or the Observer is required to disclose
such information pursuant to clause (c) or clause (d), Purchaser and/or the Observer shall promptly
notify CHC so that it may seek a protective order or other appropriate remedy; and further
provided, that in the absence of a protective order or other remedy, if Purchaser and/or
the Observer is compelled to disclose such information, then Purchaser and/or the Observer may
disclose such portion of the information that Purchaser and/or the Observer is legally required to
disclose; or (e) to the extent such information is otherwise publicly available through the actions
of a Person other than Purchaser or the Observer not resulting from the violation by Purchaser or
the Observer of this Section 6.15 or, to the Knowledge of Purchaser or the Observer, a
violation of a legal or contractual obligation to CHC that would prohibit the disclosure of such
information.

6.16 Certain Payments. Purchaser shall make the payments described in Section
2.4 when such amounts become due and payable.

6.17 Investigation of Certain Matters. CHC, acting under the supervision of the
independent members of its Board of Trustees, shall diligently pursue the investigation of the
matters described on Schedule 6.17 and Section 4.15 of the Disclosure Schedule, and
shall retain independent legal counsel in connection therewith.

 

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ARTICLE 7

CERTAIN TAX MATTERS

7.1 Tax Returns. Except as otherwise provided in Article 9:

(a) The Sellers shall prepare and file or cause to be prepared and filed when due all Tax
Returns that are required to be filed by or with respect to each of CHC, any Acquired Entity, any
Fund Entity and their respective Subsidiaries on or before the Closing, and the Sellers shall remit
or cause to be remitted all Taxes shown due on such Tax Returns.

(b) Except as provided in Section 7.1(c), Purchaser shall prepare and file or cause to
be prepared and filed when due all Tax Returns that are required to be filed by or with respect to
each of any Acquired Entity, any Fund Entity and their respective Subsidiaries after the Closing,
and Purchaser shall remit or cause to be remitted any Taxes due in respect of such Tax Returns.
Prior to Purchaser filing, or causing to be filed any Tax Return of any Acquired Entity, any Fund
Entity, or their respective Subsidiaries for (A) a Pre-Closing Tax Period or (B) a Straddle Period,
Purchaser shall provide to CHC, at least 30 days prior to the filing deadline for such Tax Return
(taking into account any applicable extensions), a draft of such Tax Return. Within twenty (20)
days of delivery to CHC of any such draft Tax Return, CHC shall inform Purchaser of any objections
CHC has to such draft Tax Return, and if CHC has no such objections, then Purchaser shall cause to
be timely filed such Tax Return completed on the basis of the draft provided to CHC. If within
twenty (20) days of delivery to CHC of any such draft Tax Return, CHC informs Purchaser of CHC’s
objection(s) to such draft Tax Return, then CHC and Purchaser shall negotiate in good faith to
resolve such objection(s). If CHC and Purchaser are able to resolve such objection(s) prior to the
filing deadline for such Tax Return (taking into account any applicable extensions), then Purchaser
shall cause to be timely filed such Tax Return on the basis agreed upon by CHC and Purchaser. If
despite such good faith efforts, CHC and Purchaser are unable to resolve such objection(s) within
such period of time, then the matter shall be submitted to an independent accounting firm
acceptable to CHC and Purchaser for review and resolution by such accounting firm, which review and
resolution shall (i) occur no later than five (5) days prior to the filing deadline of such Tax
Return (taking into account any applicable extensions), and (ii) be limited to the basis of CHC’s
objection(s); and, thereafter, Purchaser shall cause to be timely filed such Tax Return on the
basis of the draft provided to CHC, as modified to reflect such accounting firm’s resolution of
CHC’s objection(s) thereto. The fees and expenses of the independent accounting firm shall be paid
one-half by the Sellers and one-half by Purchaser. The Sellers shall pay to Purchaser the Sellers’
portion of the Taxes due with respect to any Tax Return referred to in this Section 7.1(b)
the amount of Taxes allocable the Pre-Closing Tax Period, including the portion of any Straddle
Period ending on the Closing determined pursuant to the last two sentences of Section 7.3
no later than three (3) days prior to the due date of such payment, provided, that the
Sellers shall not be responsible for, and shall not be required to pay, any Taxes to the extent
that such Taxes do not exceed the accrued liability for Taxes taken into account in determining the
Final Closing Net Working Capital Amount under Section 2.4. In the case of a Tax Return
filed pursuant to an extension, appropriate adjustments will be made between the Sellers and
Purchaser if, at the time the Tax Return is actually filed, the Taxes due and attributable to a
Pre-Closing Tax Period, including the

 

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portion of any Straddle Period ending on the Closing, with respect to such Tax Return are more
or less than the amount, if any, previously paid by the Sellers.

(c) In the case of any Tax Returns with respect to periods for which an Affiliated Group Tax
Return of the Sellers (or any Subsidiary of any Seller other than any Acquired Entity, any Fund
Entity or any of their respective Subsidiaries will include any of CHC, any Acquired Entity, any
Fund Entity or any of their respective Subsidiaries, CHC shall prepare and file or cause to be
prepared and filed the Tax Returns for the Affiliated Group that included such entities for any
Pre-Closing Tax Period or Straddle Period. Any such Tax Return shall be prepared in a manner
consistent with the past practices with respect to any of CHC, any Acquired Entity, any Fund Entity
or any of their respective Subsidiaries included therein, except as otherwise required by a change
in applicable Law or this Agreement. At least 30 days prior to filing, CHC shall provide Purchaser
with a copy of the portion of such Tax Returns that relate to CHC, any Acquired Entity, any Fund
Entity or any of their respective Subsidiaries. Within twenty (20) days of delivery to Purchaser
of the portions of any such draft Tax Returns, the Company shall inform CHC of any objections
Purchaser has to the portion of such draft Tax Return, and if Purchaser has no such objections,
then CHC shall cause to be timely filed such Affiliated Group Tax Return completed on the basis of
the draft provided to Purchaser. If within twenty (20) days of delivery to Purchaser of any such
portion of any such draft Tax Return, Purchaser informs CHC of Purchaser’s objection(s) to such
portion of such draft Tax Return, then CHC and Purchaser shall negotiate in good faith to resolve
such objection(s). If CHC and Purchaser are able to resolve such objection(s) prior to the filing
deadline for such Tax Return (taking into account any applicable extensions), then CHC shall cause
to be timely filed such Tax Return on the basis agreed upon by CHC and Purchaser. If despite such
good faith efforts, CHC and Purchaser are unable to resolve such objection(s) within such period of
time, then the matter shall be submitted to an independent accounting firm acceptable to CHC and
Purchaser for review and resolution by such accounting firm, which review and resolution shall (i)
occur no later than five (5) days prior to the filing deadline of such Tax Return (taking into
account any applicable extensions) and (ii) be limited to the basis of the Company’s objection(s);
and, thereafter, CHC shall cause to be timely filed such Tax Return on the basis of the draft
provided to Purchaser, as modified to reflect such accounting firm’s resolution of Purchaser’s
objection(s) thereto. The fees and expenses of the independent accounting firm shall be paid
one-half by the Sellers and one-half by Purchaser. Purchaser shall provide CHC with any powers of
attorney necessary in connection with the discharge by the Sellers of their obligations pursuant to
this Section 7.1(c).

7.2 Transfer Taxes. The Sellers, on the one hand, and Purchaser, on the other hand,
each agree to pay on a timely basis fifty percent (50%) of all applicable Transfer Taxes and all
out-of-pocket expenses incurred in connection with the filing of all necessary Tax Returns and
other documentation with respect to all such Transfer Taxes. The Sellers shall prepare, execute
and file all Tax Returns, questionnaires, applications or other documents with respect to any
Transfer Taxes in connection with the Contemplated Transactions. The Sellers shall provide
Purchaser with a copy of such Tax Returns no later than ten (10) Business Days prior to the date of
filing. Upon approval, Purchaser shall submit Purchaser’s portion of the Transfer Taxes, along
with an executed Tax Return with respect to the Transfer Taxes, as applicable, to the Sellers
within ten (10) Business Days of receipt. The Sellers and Purchaser shall jointly participate in
the defense and settlement of any audit of, dispute with taxing authorities

 

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regarding, and any judicial or administrative proceeding relating to the liability for
Transfer Taxes incurred in connection with this Agreement; provided, however, that
neither the Sellers nor Purchaser shall settle any such audit, examination or proceeding without
the prior written consent of the other party, which consent shall not be unreasonably withheld.
Each of the Sellers and Purchaser shall bear its own costs in participating in any such audit,
examination or proceeding.

7.3 Allocation of Taxes. Purchaser and the Sellers shall, to the extent permitted by
applicable Law (or to the extent applicable Law does not so require), elect with the relevant
Taxing Authority to treat for all purposes the Closing Date as the last day of a taxable period of
each of CHC, any Acquired Entity, any Fund Entity and their respective Subsidiaries (including any
such entity that is treated as a partnership for U.S. federal income tax purposes). If applicable
Law does not require or permit the Parties to close any federal state, local or foreign Tax period
of each of CHC, any Acquired Entity, any Fund Entity and their respective Subsidiaries as of the
Closing Date, or for any other taxable period of such entity that includes, but does not end on,
the Closing Date (any of the foregoing, a “Straddle Period”), the allocation of Taxes as
between the portion of such Straddle Period ending on and including the Closing Date and the
portion of such Straddle Period beginning after the Closing Date shall be made as follows: (i) in
the case of Taxes based upon income, gross receipts (such as sales Taxes) or specific transactions
involving Taxes other than Taxes based upon income or gross receipts, the amount of Taxes
attributable to any Straddle Period shall be determined by closing the books of such Acquired
Entity as of the close of business on the Closing Date and by treating the portion of such Straddle
Period ending on and including the Closing Date and the portion beginning after the Closing Date
as, respectively, separate taxable years (provided that any exemptions, allowances or
deductions that are calculated on an annual basis (including but not limited to depreciation and
amortization deductions) shall be allocated between the period ending on the Closing Date and the
period ending after the Closing Date in proportion to the number of days in each such period); and
(ii) in the case of Taxes that are determined on a basis other than income, gross receipts or
specific transactions, the amount of Taxes shall be allocable to the portion of the Straddle Period
ending on and including the Closing Date and the portion of the Straddle Period beginning after the
Closing Date based on a pro ration of days in such Straddle Period.

7.4 Cooperation on Tax Matters. Purchaser and the Sellers shall cooperate fully, as
and to the extent reasonably requested by each other, in connection with the filing of Tax Returns
and any audit, inquiry, litigation or other proceeding with respect to Taxes. Such cooperation
shall include the retention and (upon the other Party’s request) the provision of records and
information which are reasonably relevant to any such audit, inquiry, litigation or other
proceeding and making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder.

7.5 Tax Proceedings. Notwithstanding anything to the contrary contained herein,
Purchaser shall have the sole right to control any audit or examination by any Taxing Authority,
initiate any claim for refund, and contest, resolve and defend against any assessment for
additional Taxes, notice of Tax deficiency or other adjustment of Taxes (a “Tax
Proceeding”) of, or relating to, the income, assets or operations of any of any Acquired
Entity, any Fund Entity and their respective Subsidiaries.

 

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7.6 Tax Sharing Agreements. Prior to the Closing, the Sellers shall cancel or cause
to be cancelled any Tax Sharing Agreements to which any of CHC, any Acquired Entity, any Fund
Entity or their respective Subsidiaries is a party, and if pursuant to any such Tax Sharing
Agreement, if any of any Acquired Entity, any Fund Entity or their respective Subsidiaries is
required to make any payment thereunder after the Closing in respect of any Taxes described in
Section 7.1, then prior to such payment.

ARTICLE 8

SURVIVAL; INDEMNIFICATION

8.1 Survival Limitation. All of the representations and warranties contained in this
Agreement shall survive the Closing until the date that is eighteen (18) months following the
Closing; provided, however, that (x) all the representations and warranties
contained in Sections 3.8 and 4.7 (Taxes) and 3.14 and 4.13
(Employee Matters and Benefits Plans) shall survive the Closing until the date that is
thirty (30) days after the expiration of the applicable statute of limitations period (taking into
account any waiver, extension or tolling thereof), (y) the representations and warranties contained
in Sections 3.1(a)(i), 3.1(a)(ii), 4.1(a)(i) and 4.1(a)(ii) (No
Conflict; Governmental Authorization), 3.3 and 4.3 (Authority; Binding
Effect), 3.4 and 4.4 (Capitalization), 3.19 and 4.16
(Finders Fee) and 4.25(e) (Contracts; No Default) (collectively,
the “Sellers’ Excluded Representations”) shall survive indefinitely and (z) the
representations and warranties contained in Sections 5.1(a)(i) and 5.1(a)(ii)
(No Conflict; Required Filings), 5.3 (Authority) and 5.5 (Finders
Fee) shall survive indefinitely and the representations and warranties contained in Section
5.6 (Investment Intent) shall survive the Closing until the date that is six (6) months
following the Closing (collectively, the “Purchaser’s Excluded Representations”); and
further provided, that if, at any time prior to such expiration of the
representations and warranties, any indemnified Party delivers to any indemnifying Party a written
notice alleging the existence of an inaccuracy in or a breach of any of the representations and
warranties made by any indemnifying Party and asserting a Claim for recovery under Section
8.2 or 8.3 based on such alleged inaccuracy or breach, then the representation or
warranty underlying the Claim asserted in such notice shall continue to survive (solely with
respect to the alleged inaccuracy or breach and to no other fact, event, occurrence, circumstance
or condition) until such time as such Claim is fully and finally resolved. The covenants,
agreements and obligations of the Parties contained in this Agreement shall survive the Closing.

8.2 Indemnification by Sellers. The Sellers, jointly and severally, shall indemnify,
defend and hold harmless each Purchaser Indemnitee from and against, and shall compensate,
reimburse and pay for, any Damages as and when incurred or Taxes owed that are directly or
indirectly suffered or incurred by any Purchaser Indemnitee or to which any Purchaser Indemnitee
may otherwise become subject (regardless of whether or not such Damages relate to any Third Party
Claim) and arise out of, are caused by, or result from:

(a) any inaccuracy in, or breach of, any representation or warranty of any Seller set forth in
this Agreement or any Transaction Document, including Article 3 and Article 4;

 

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(b) any material breach of any covenant or obligation of any of the Sellers set forth in this
Agreement or any Transaction Document (other than any material breach of any covenant or obligation
of the Sellers that is caused by Island Manager acting in such capacity under the Management
Agreement (it being understood and agreed that Island Manager’s actions under the Management
Agreement with respect to this Agreement, the other Transaction Documents and the Contemplated
Transactions are subject to the supervision and control of CHC’s Board of Trustees));

(c) the ownership, management or operation of any Acquired Entity, including, for the
avoidance of doubt, the CSI Interests and the CUCA Interests, any Fund Entity or any of their
respective Subsidiaries and the respective assets of each of the foregoing or any other Purchased
Interests at or prior to the Closing (whether or not disclosed in any Disclosure Schedule);

(d) any liabilities that CHC should have taken into account and set forth on the New CSI
Closing Balance Sheet and the CUCA Closing Balance Sheet;

(e) any amount that should have been included in the Assumed Bonuses or the Assumed Benefits,
and which is due and payable by Purchaser;

(f) any claims by any Continuing Employees or current or former officers, directors or
employees of the Acquired Entities or their respective Subsidiaries relating to matters arising on
or prior to the Closing (whether or not disclosed in the Disclosure Schedules);

(g) any liability of an ERISA Affiliate of a Fund Entity arising under, or with respect to, a
Pension Plan, Welfare Plan or Multiemployer Plan; and

(h) any of the matters set forth on Schedule 6.17, on Section 4.15 of the
Disclosure Schedule or in the Escrow Letter.

Without limiting the foregoing, for example, if a Fund Entity (such as HY II or DIV II) suffered
Damages on or prior to the Closing relating to matters occurring on or prior to the Closing, then
the Fund Entity and its stockholders, members and equity owners shall be entitled to indemnity from
the Sellers under this Section 8.2(h) even though Purchaser and the Fund Entity had
Knowledge of the liability and even if none of the Parties knew the extent or amount of such
liability. Thus, assuming the indemnity arises under Section 8.2(h) and the Damages to the
Fund Entity and/or its stockholders, members and equity owners are equal to $15,000,000, the
Sellers shall instruct the Escrow Agent to pay the Escrow Property to the Fund Entity and/or its
stockholders, members and equity owners, as applicable, in accordance with the Escrow Letter and
(if the Escrow Property is insufficient to pay the Damages in full) the Sellers shall be liable for
the remainder of such Damages, and no part of the $15,000,000 shall be subject to the limitations
set forth in Section 8.4(a) and no portion of the $15,000,000 shall reduce the amount of
the Cap regarding other indemnification by the Sellers.

On any claim under this Section 8.2(h), the Purchaser Indemnitees shall be entitled to the
full amount of the Damages from the Sellers, and the Sellers shall not have the right to seek any

 

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amount of such Damages from any other Purchaser Indemnitee even if such other Purchaser Indemnitee
could have been liable to the Seller or to the indemnified Purchaser Indemnitee.

8.3 Indemnification by Purchaser. Purchaser shall indemnify, defend and hold harmless
each Seller Indemnitee from and against, and shall compensate, reimburse and pay for, any Damages
that are directly or indirectly suffered or incurred by any Seller Indemnitee or to which any
Seller Indemnitee may otherwise become subject (regardless of whether or not such Damages relate to
any Third Party Claim) and arise out of, are caused by, or result from:

(a) any inaccuracy in, or breach of, any representation or warranty set forth in this
Agreement or any Transaction Document, including Article 5;

(b) any material breach of any covenant or obligation, including the covenants and obligations
contained in Section 6.6(d), of Purchaser; and

(c) the ownership, management or operation of any Acquired Entity, any Fund Entity or any of
their respective Subsidiaries and the respective assets of each of the foregoing or any other
Purchased Interests or the CHC New Shares after the Closing.

8.4 Limitations.

(a) The Sellers shall have no liability (for indemnification or otherwise) under this
Agreement to any of the Purchaser Indemnitees unless the aggregate amount of all Damages incurred
by the Purchaser Indemnitees exceeds $500,000 and the Sellers shall be liable only to the extent
such Damages exceed the initial $500,000; provided, however, that the foregoing
limitation shall not apply to indemnification obligations arising out of or resulting from (i) a
breach of any of the Sellers’ Excluded Representations, or (ii) any Claim made against the Sellers
pursuant to Section 8.2(b), 8.2(d), 8.2(f), 8.2(f), 8.2(g)
or 8.2(h). The Sellers shall not be liable to the Purchaser Indemnitees for any Damages
which are otherwise indemnifiable hereunder in an amount that exceeds $30,000,000 (the
“Cap”); provided, however, that the foregoing limitation shall not apply to
indemnification obligations arising out of or resulting from (i) a breach of any of the Sellers’
Excluded Representations, and (ii) any Claim made against the Sellers pursuant to Section
8.2(b), 8.2(d), 8.2(f), 8.2(f), 8.2(g) or 8.2(h); and,
provided further, however, that any recovery pursuant to Section 8.2(h)
shall not be counted against the Cap. As an example of the last proviso in the immediately
preceding sentence, if a recovery under Section 8.2(h) is $10,000,000 and if there has been
no other recovery under any other provision of Section 8.2, then the Cap would remain at
$30,000,000 for all future matters. The foregoing limitations in this Section 8.4(a) shall
not apply to any claim arising from the fraud, willful or criminal misconduct of any indemnifying
Party. For the avoidance of doubt, the limitations in this Section 8.4(a) shall not apply
to claims arising out of, caused by, or resulting from agreements entered into at the Closing
between or among the Parties that relate to ongoing business relationships among the Parties.
Notwithstanding anything to the contrary contained herein, except as set forth in the immediately
preceding sentence, the maximum liability of the Sellers to Purchaser Indemnitees for any and all
Damages that are otherwise indemnifiable hereunder shall be equal to an amount not to exceed one
hundred percent (100%) of the Purchase Price.

 

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(b) Purchaser shall have no liability (for indemnification or otherwise) under this Agreement
to any of the Seller Indemnitees unless the aggregate amount of all Damages incurred by the Seller
Indemnitees exceeds $500,000 and Purchaser shall be liable only to the extent such Damages exceed
the initial $500,000; provided, however, that the foregoing limitation shall not
apply to indemnification obligations arising out of or resulting from (i) a breach of any of the
Purchaser’s Excluded Representations, or (ii) any Claim made against Purchaser pursuant to
Section 8.3(b). Purchaser shall not be liable to the Seller Indemnitees for any Damages
which are otherwise indemnifiable hereunder in an amount that exceeds one hundred percent (100%) of
the Purchase Price. The foregoing limitations in this Section 8.4(b) shall not apply to
any claim arising from the fraud, willful or criminal misconduct of any indemnifying Party. For
the avoidance of doubt, the limitations in this Section 8.4(b) shall not apply to claims
arising out of, caused by, or resulting from agreements entered into at the Closing between or
among the Parties that relate to ongoing business relationships among the Parties.

(c) Except with respect to the matters set forth in Sections 8.2(c) and
8.2(h), the Parties agree that no inaccuracy in, or breach of, any representation or
warranty of any Seller set forth in this Agreement or any Transaction Document shall be a matter
which shall be the subject of indemnification for any purpose, and no Purchaser Indemnitee shall
have any Claim or recourse against any Seller with respect to any such inaccuracy or breach, in
each case if Purchaser had Knowledge (i.e., as set forth in clause (C) of the definition of
Knowledge) prior to the Closing of any such inaccuracy or breach.

(d) Except for actions grounded in fraud, willful or criminal misconduct, from and after the
Closing, the indemnities provided in this Article 8 shall constitute the sole and exclusive
remedy of any indemnified Party for Damages arising out of, resulting from or incurred in
connection with any Claims related to this Agreement or arising out of the transactions
contemplated hereby; provided, however, that this exclusive remedy for Damages does not preclude
any Party from bringing an action for specific performance or other equitable remedy to require any
Party to perform its obligations under this Agreement or any other Transaction Document.

8.5 Defense of Third Party Claims.

(a) Promptly following receipt by an indemnified Party of notice of a Third Party Claim with
respect to which such indemnified Party may be entitled to indemnification pursuant hereto, such
indemnified Party shall provide written notice thereof to the Party obligated to indemnify under
this Agreement; provided, however, that the failure to so notify the indemnifying
Party shall not relieve the indemnifying Party from liability hereunder with respect to such Third
Party Claim, except to the extent that the indemnifying Party is materially prejudiced thereby, and
in any event, only to the extent of such prejudice. The indemnifying Party shall have the right,
upon written notice delivered to the indemnified Party within twenty (20) days thereafter, to
assume the defense of such Third Party Claim. In the event, however, that the indemnifying Party
declines or fails to assume the defense of the Third Party Claim within such twenty (20)-day
period, then the indemnified Party shall assume the defense of such Third Party Claim. With
respect to any Third Party Claim, the indemnified Party or the indemnifying Party, whichever is not
assuming the defense thereof, shall have the right to

 

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participate in such defense and to retain its own counsel at such Party’s own expense;
provided, however, that if the indemnifying Party assumes the defense of such Third
Party Claim, the indemnified Party shall be entitled to participate in such defense and to retain
its own counsel at the indemnifying Party’s expense if (i) requested by the indemnifying Party to
employ such counsel, (ii) in the opinion of counsel to the indemnified Party (which counsel shall
be reasonably satisfactory to the indemnifying Party) the indemnified Party has potential defenses
or counter-claims available to it that are inconsistent with or in addition to those available to
the indemnifying Party or (iii) the indemnified Party determines in good faith that there is a
reasonable probability that a Third Party Claims may adversely affect it other than as a result of
monetary damages for which it would be entitled to indemnification under this Article VIII.
In such circumstances, the indemnifying Party shall reimburse the indemnified Party for all
reasonable fees and expenses of a single counsel (plus all reasonable fees and expenses of a single
local counsel) associated with such defense. The indemnifying Party or the indemnified Party (as
the case may be) shall at all times use commercially reasonable efforts to keep the other Party
reasonably apprised of the status of the defense of any matter the defense of which it is
maintaining. Each of the indemnifying Parties and the indemnified Parties shall reasonably
cooperate with each other with respect to the defense of any such matter. In the event of a
conflict between this Section 8.5 and Section 7.5, the provisions of Section
7.5 shall control.

(b) No indemnified Party may settle or compromise any Third Party Claim or consent to the
entry of any judgment with respect to which indemnification is being sought hereunder without the
prior written consent of the indemnifying Party (which may not be unreasonably withheld or
delayed), unless such settlement, compromise or consent includes an unconditional release of each
indemnifying Party from all liability arising out of or resulting from such Third Party Claim. No
indemnifying Party may settle or compromise any Third Party Claim or consent to the entry of any
judgment with respect to which indemnification is being sought hereunder without the prior written
consent of the indemnified Party (which may not be unreasonably withheld or delayed) unless such
settlement, compromise or consent (x) includes an unconditional release of each indemnified Party
from all liability arising out of, or related to, such Third Party Claim and (y) and (ii) does not
include a statement as to or an admission of fault, culpability or failure to act by or on behalf
of any indemnified Party

8.6 Direct Claims. In the event an indemnified Party asserts a Claim with respect to
any matter not involving a Third Party Claim, such indemnified Party shall promptly provide written
notice of such Claim to the appropriate indemnifying Party (a “Notice of Claim”) specifying
in reasonable detail the basis for such Claim; provided, however, that the failure
to so notify the indemnifying Party shall not relieve the indemnifying Party from liability
hereunder with respect to such Claim, except to the extent that the indemnifying Party is
materially prejudiced thereby. The indemnifying Party may, within twenty (20) days following its
receipt of a Notice of Claim, object to a claim specified in such notice by delivering a written
notice (a “Dispute Notice”) specifying in reasonable detail the basis for such objection.
If the indemnifying Party has timely delivered a Dispute Notice, then the indemnifying Party and
the indemnified Party shall, during a period of thirty (30) days from the indemnified Party’s
receipt of such Dispute Notice, negotiate in good faith to resolve such dispute and, if not
resolved through negotiations, such dispute shall be resolved according to the provisions set forth
in Section 9.8. If the indemnifying Party fails to timely deliver a Dispute Notice to the
indemnified

 

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Party, then the amount specified by the indemnified Party in such Notice of Claim shall be
conclusively deemed a liability of the indemnifying Party under this Article 8.

8.7 Tax Treatment. The Parties shall report any indemnification payment made pursuant
to this Article 8 as a purchase price adjustment unless otherwise required by applicable
Law.

8.8 No Contribution. In no event shall any Seller or Seller Indemnitee have any right
to contribution from, or any other right against, any Acquired Entity, any Fund Entity, any of
their respective Subsidiaries, or any of their shareholders, officers, directors, employees,
agents, members or managers, as the case may be, with respect to any Claim, Third Party Claim or
other payment owing by any Seller or any of its Subsidiaries.

8.9 Adjustment for Insurance. Any indemnification amount payable pursuant to this
Article 8 shall be net of any amounts actually recovered (after deducting related costs and
expenses) by the indemnified Party for the Damages for which such indemnification payment is made,
under any insurance policy. Each indemnified Party shall use commercially reasonable efforts to
recover maximum amounts available under any insurance policy prior to making any Third Party Claim
or Claim against any indemnifying Party; provided, however, that the Parties
acknowledge that if any insurance recovery is insufficient to cover the Damages in full, then the
indemnified Parties shall be entitled to be indemnified pursuant to this Article 8 for the
amount of such Damages not covered by insurance.

ARTICLE 9

MISCELLANEOUS

9.1 Notices. All notices, demands or requests required or permitted to be given
pursuant to this Agreement must be in writing, to the following addresses:

(a) if to Purchaser:

C-III Capital Partners LLC

c/o Island Capital Group LLC

717 Fifth Avenue, 18th Floor

New York, NY 10020

Attention: President

with a copy to:

Proskauer Rose LLP

1585 Broadway

New York, NY 10036

Attention: Allan R. Williams, Esq.

(b) if to the Sellers:

 

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Centerline Holding Company

625 Madison Avenue

New York, NY 10022

Attention: Marc D. Schnitzer

with copies to:

Paul, Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, NY 10022

Attention: Michael L. Zuppone, Esq.

and

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention: Michael E. Lubowitz, Esq.

All notices, demands and requests to be sent to a party pursuant to this Agreement shall be deemed
to have been properly given or served if: (i) personally delivered; (ii) deposited for next day
delivery by FedEx, or other similar nationally recognized overnight courier services, addressed to
such party; or (iii) deposited in the United States mail, addressed to such party, prepaid and
registered or certified with return receipt requested. All notices, demands and requests so given
shall be deemed received: (x) when personally delivered; (y) twenty-four (24) hours after being
deposited for next day delivery with an overnight courier; or (z) seventy-two (72) hours after
being deposited in the United States mail.

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

9.3 Entire Agreement; No Third Party Beneficiaries. This Agreement and the
Transaction Documents, including all exhibits and schedules attached hereto, constitute the entire
agreement of the Parties and supersede any and all other prior agreements and undertakings, both
written and oral, among the Parties, or any of them, with respect to the subject matter hereof.
This Agreement and the other Transaction Documents do not, and are not intended to, confer upon any
other Person any right, benefit or remedy hereunder (other than as provided expressly in
Sections 6.6(d) and 6.7(b) and Article 8).

 

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9.4 Amendment; Waiver. Except as provided in Section 9.8(c), this Agreement
may be amended only in a writing signed by all Parties. Any waiver of rights hereunder must be set
forth in writing (except as provided in Section 9.8(c)) and signed by the Party against
whom the waiver is to be effective. A waiver of any breach or failure to enforce any of the terms
or conditions of this Agreement or any Transaction Document shall not in any way affect, limit or
waive a Party’s rights at any time to enforce strict compliance thereafter with every term or
condition of this Agreement or such Transaction Document.

9.5 Binding Effect; Assignment. This Agreement and the Transaction Documents shall
inure to the benefit of and be binding upon the parties hereto and thereto and their respective
legal representatives and successors. Notwithstanding the foregoing, this Agreement and the
Transaction Documents shall not be assigned by any Party by operation of Law or otherwise without
the prior written consent of each of the other Parties and any such purported assignment shall be
void ab initio, except that Purchaser shall have the right to assign this Agreement, in whole or in
part, and any obligations hereunder to any of its Affiliates or Subsidiaries.

9.6 Disclosure Schedule. The Disclosure Schedule shall be construed with and as an
integral part of this Agreement to the same extent as if the same had been set forth verbatim
herein. The disclosures in any section or subsection of the Disclosure Schedule, as the case may
be, shall qualify only (a) the corresponding section or subsection, as the case may be, of this
Agreement, (b) other sections or subsections of this Agreement to the extent specifically
cross-referenced in such section or subsection of the Disclosure Schedule and (c) other sections or
subsections of this Agreement to the extent it is otherwise reasonably apparent, on the face of
such disclosure, that such disclosure also applies to another section or subsection of the
Disclosure Schedule or another Section or subsection of this Agreement.

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

9.8 Dispute Resolution; Mediation; Jurisdiction; Jury Trial.

(a) Except as otherwise provided in Article 8 in the event of any dispute, controversy
or claim arising out of or relating to this Agreement or any Transaction Document or the breach,
termination or validity hereof or thereof, or the Contemplated Transactions (each a
“Dispute”), upon the written notice of any Party, the other Parties shall attempt in good
faith to negotiate a resolution of the Dispute. If the other Parties are unable for any reason to
resolve a Dispute within thirty (30) days after the receipt of such notice, the Dispute shall be
submitted to mediation in accordance with Section 9.8(b).

(b) Any Dispute not resolved pursuant to Section 9.8(a) shall, at the request of a
Party (a “Mediation Request”), be submitted to non-binding mediation in accordance with the
then current International Institute for Conflict Prevention and Resolution Mediation Procedure
(the “Procedure”), except as modified herein. The mediation shall be held in New York, New
York. The Parties shall have twenty (20) days from receipt by a Party of a Mediation Request to
agree on a mediator. If no mediator has been agreed upon by the Parties within twenty (20) days

 

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of receipt by a Party (or Parties) of a Mediation Request, then any Party may request (on
written notice to the other Parties), that the International Institute for Conflict Prevention and
Resolution appoint a mediator in accordance with the Procedure. All mediation pursuant to this
clause shall be confidential and shall be treated as compromise and settlement negotiations, and no
oral or documentary representations made by the Parties during such mediation shall be admissible
for any purpose in any subsequent proceedings. No Party shall disclose or permit the disclosure of
any information about the evidence adduced or the documents produced by the other Parties in the
mediation proceedings or about the existence, contents or results of the mediation without the
prior written consent of such other Parties except in the course of a judicial or regulatory
proceeding or as may be required by Law or requested by a Governmental Authority or securities
exchange. Before making any disclosure permitted by the preceding sentence, the Party intending to
make such disclosure shall give the other Parties reasonable written notice of the intended
disclosure and afford the other Parties a reasonable opportunity to protect its interests. If the
Dispute has not been resolved within sixty (60) days of the appointment of a mediator, or within
ninety (90) days of receipt by a Party of a Mediation Request (whichever occurs sooner), or within
such longer period as the Parties may agree to in writing, then any Party may file an action on the
Dispute in any court having jurisdiction in accordance with Section 9.8(c).

(c) Each of the Parties hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York and the courts of the United States
of America located in the City and County of the State of New York for any litigation arising out
of or relating to this Agreement, any Transaction Document or any Contemplated Transaction (and
agrees not to commence any litigation relating hereto except in such courts), and further agrees
that service of any process, summons, notice or document by U.S. registered mail to its respective
address set forth in Section 9.1, shall be effective service of process for any litigation
brought against it in any such court. Each of the Parties hereby irrevocably and unconditionally
waives any objection to the laying of venue of any litigation arising out of this Agreement or any
Transaction Documents in the courts of the State of New York or the courts of the United States of
America located in the City and County of the State of New York and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such litigation
brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN CONNECTION WITH
ANY LITIGATION ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY TRANSACTION DOCUMENT OR ANY
CONTEMPLATED TRANSACTION.

9.9 Sellers’ Representative.

(a) Subject to the limitations set forth in Section 2(h) of the Management Agreement, the
Sellers, by executing this Agreement, irrevocably appoint CHC as their sole and exclusive
representative, agent and attorney-in-fact, act jointly for and on behalf of the Sellers with
respect to any matters that arise from and after the Closing in connection with this Agreement and
the Contemplated Transactions. Subject to the limitations set forth in Section 2(h) of the
Management Agreement, CHC hereby agrees to negotiate, enter into settlements and compromises of
Claims and Third Party Claims to comply with orders of courts and awards of arbitrators with
respect to such Claims and Third Party Claims, to resolve any

 

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Claims and Third Party Claims made pursuant to this Agreement or any Transaction Document,
take all actions necessary in its judgment for the accomplishment of the foregoing, and hereby
accepts its appointment as the Sellers’ representative in connection with, and to facilitate the
consummation of the Contemplated Transactions. Purchaser shall be entitled to deal exclusively
with CHC on all matters relating to this Agreement or any Transaction Document, including with
respect to any Claim or Third Party Claim made pursuant to Article 8 and with respect to
any adjustment to the Purchase Price pursuant to Section 2.4, and shall be entitled to rely
conclusively (without further evidence of any kind whatsoever) on any document executed or
purported to be executed on behalf of the Sellers by CHC, and on any other action taken or
purported to be taken on behalf of any Seller by CHC, as fully binding upon such Seller.

(b) CHC shall not be liable for any act done or omitted hereunder as the Sellers’
representative while acting in good faith and in the exercise of reasonable judgment. The Other
Sellers shall severally indemnify and defend CHC and hold CHC harmless against any loss, liability
or expense incurred without gross negligence, bad faith or willful misconduct on the part of CHC
and arising out of or in connection with the acceptance or administration of CHC’s duties
hereunder, including the reasonable fees and expenses of any legal counsel retained by CHC.

(c) Each of the Other Sellers hereby consents to any changes, modifications or supplements
determined by CHC to be in the interest of the Other Sellers as a whole or otherwise required by
the terms of this Agreement or any Transaction Document with respect to the form and substance of
any exhibit, annex, appendix, agreement, instrument, schedule or other document attached to this
Agreement and required hereunder to be executed, delivered or completed at or prior to the Closing.

9.10 Equitable Remedies. Since the breach of the provisions of any Transaction
Document could not be adequately be compensated by money damages, a Party shall be entitled, in
addition to any other right or remedy available to it, to an injunction restraining such breach or
a threatened breach and to specific performance of any such provision of such Transaction Document,
and in either case no bond or security shall be required in connection therewith, and the parties
hereby consent to the issuance of such an injunction and to the ordering of specific performance.

9.11 Joint and Several Liability of Sellers. Any obligation of any Seller under this
Agreement or any other Transaction Document shall be deemed a joint and several obligation of all
Sellers.

9.12 Construction. The headings of the Articles and Sections in this Agreement are
provided for convenience only, are not part of the agreement of the Parties and shall not affect
its construction or interpretation of this Agreement. The language used in this Agreement or any
Transaction Document is the language chosen by the Parties to express their mutual intent, and no
rule of strict construction shall be applied against any Party. The Transaction Documents were
negotiated by the Parties with the benefit of legal representation. To the fullest extent
permitted by applicable Law, if an ambiguity or question or intent or interpretation arises, the
Transaction Documents shall be construed as if drafted jointly by the Parties and no presumption

 

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or burden of proof shall arise favoring and or disfavoring a Party by virtue of the authorship
of any of the provisions of any Transaction Document.

9.13 Time of the Essence. Time is of the essence regarding all dates and time periods
set forth or referred to in any Transaction Document.

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

[Signature Pages Follow]

 

92

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date
first written above.

	 	 	 	 	 
	 	C-III CAPITAL PARTNERS LLC

By ISLAND C-III MANAGER LLC, its Manager

 	 
	 	By:  	/s/ Jeffrey Cohen
 	 
	 	 	Name:  	Jeffrey Cohen 	 
	 	 	Title:  	President 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CENTERLINE HOLDING COMPANY

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chief Executive Officer and President 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CENTERLINE CAPITAL GROUP INC.

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chief Executive Officer and President 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	ARCAP 2004 RR3 RESECURITIZATION, INC.

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chairman & Chief Executive Officer 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	ARCAP 2005 RR5 RESECURITIZATION, INC.

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chairman & Chief Executive Officer 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CENTERLINE FUND MANAGEMENT LLC

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

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CENTERLINE CMBS FUND III MANAGEMENT LLC

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chief Executive Officer 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CENTERLINE REIT, INC.

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	Chairman & Chief Executive Officer 	 

[Signatures Continued on Following Page]

 

 

 

	 	 	 	 	 
	 	CM INVESTOR LLC

 	 
	 	By:  	/s/ Marc D. Schnitzer
 	 
	 	 	Name:  	Marc D. Schnitzer 	 
	 	 	Title:  	President & Chief Executive Officer

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