SIXTH AMENDMENT TO ADDENDUM TO CREDIT AGREEMENT
(Agency Provisions)
This Sixth Amendment to Addendum to Credit Agreement (this "Amendment") is made
as of June 5, 2017, by and among the financial institutions from time to time
signatory hereto (individually, a "Lender" and collectively, the "Lenders"), ZB,
N.A. dba CALIFORNIA BANK & TRUST (who also does business as California Bank &
Trust, a division of ZB, N.A.), successor by merger to California Bank & Trust,
as Administrative Agent for the Lenders (in such capacity, the "Agent"), and
Owens Realty Mortgage, Inc., a Maryland corporation ("Borrower").
RECITALS
A. Borrower, Agent and Lenders entered into that certain Amended and Restated
Credit Agreement, dated April 16, 2015 (as amended and modified through but
excluding the date hereof, by that certain (i) First Amendment to Amended and
Restated Credit Agreement and Loan Documents (the "First Amendment") dated
March 1, 2016, among Agent, Borrower and Lenders, (ii) Second Amendment to
Amended and Restated Credit Agreement and Loan Documents (the "Second
Amendment") dated May 5, 2016, among Agent, Borrower and Lenders, (iii) Third
Amendment to Amended and Restated Credit Agreement and Loan Documents (the
"Third Amendment") dated June 3, 2016, among Agent, Borrower and Lenders,
(iv) Fourth Amendment to Amended and Restated Credit Agreement dated October 19,
2016, (v) Omnibus Amendment to Loan Documents (the "Omnibus Amendment") dated
January 30, 2017, among Agent, Borrower and Lenders, and (vi) Sixth Amendment to
Amended and Restated Credit Agreement dated March 1, 2017, the "Credit
Agreement").
B. The Credit Agreement is evidenced by that certain (i) Amended and Restated
Master Revolving Note in the principal amount of $35,000,000, by Borrower to the
order of California Bank & Trust, a division of ZB, N.A., dated as of March 1,
2016 and (ii) Master Revolving Note in the principal amount of $20,000,000, by
Borrower to the order of First Bank, dated as of March 1, 2016 (as amended by
that certain First Note Revision Agreement dated March 1, 2017, executed by
Borrower and accepted by First Bank), each such Note as amended by the Omnibus
Amendment.  The Credit Agreement may in the future be evidenced by additional
loans made pursuant to a new Sublimit Facility under the Credit Agreement and
pursuant to the terms of the Advance Formula Agreement.  Concurrently herewith,
Borrower is executing a new Master Revolving Note in the principal amount of
$20,000,000, payable to the order of Umpqua Bank and new restated notes in favor
of the existing Lenders (the "New Notes").
C. Borrower executed various documents and agreements in connection with the
Credit Agreement, including, but not limited to the following:  (i) Amended and
Restated Advance Formula Agreement dated April 16, 2015, among Agent, Lenders
and Borrower (as amended and modified through but excluding the date hereof, by
(A) the First Amendment, (B) the Second Amendment, (C) the Third Amendment,
(D) that certain Fourth Amendment to Amended and Restated Advance Formula
Agreement dated October 19, 2016, and (E) the Omnibus Amendment, the "Advance
Formula Agreement"), (ii) Addendum to Credit Agreement (Agency Provisions) dated
April 16, 2015, among Agent, Lenders and Borrower (as amended and modified
through but excluding the date hereof, by (A) the First Amendment, (B) the
Second Amendment, (C) that certain Third Amendment to Addendum to Credit
Agreement (Agency Provisions) dated October 19, 2016, and (D) the Omnibus
Amendment, and (E) that certain Fourth Amendment to Addendum to Credit Agreement
(Agency Provisions) dated March 1, 2017, the "Addendum to Credit Agreement"),
(iii) Security Agreement dated April 16, 2015, in favor of Agent and Lenders, as
amended by the Omnibus Amendment, (iv) Reference Agreement as amended by the
Omnibus Amendment and (v) various Pledge Agreements and Amended and Restated
Pledge Agreements, as amended by (A) the First Amendment, (B) that certain
Omnibus Amendment to Pledge Agreements and Amended and Restated Pledge
Agreements, and (C) the Omnibus Amendment (together with Collateral Assignments
of Deeds of Trust and related agreements in connection therewith) in favor of
Agent and Lenders.  As of the date of this Amendment, the Loan is not secured
directly by any real property.
D. Agent, Lenders and Borrower have agreed to amend the Addendum to Credit
Agreement, on the terms and conditions set forth below.
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AGREEMENT
NOW, THEREFORE, for value received, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
1. Definitions.  Unless otherwise indicated, words and terms which are defined
in the Advance Formula Agreement have the same meaning where used herein.
2. Amendment to Addendum to Agreement.
2.1 In Recital A to the Addendum to Credit Agreement, the reference to "Fifty
Five Million and No/100 Dollars ($55,000,000)" is changed to "Seventy Five
Million Dollars ($75,000,000)".
2.2 In Section 2(c) of the Addendum, the extra availability has been fully
utilized and the availability is now zero.
2.3 Schedule I to the Addendum to Credit Agreement is replaced in its entirety
with the attached Schedule I.
2.4 Schedule 2 to the Addendum to Credit Agreement is replaced in its entirety
with the attached Schedule II.
3. Payment of Fees, Costs and Expenses.  Borrower shall pay Bank, on demand, all
fees, costs and expenses relating to this Amendment, including without
limitation, all fees, costs and expenses (including attorney's fees and costs,
whether out-of-pocket or recoverable pursuant to statute or court rule) incurred
by Bank in advising, negotiating, structuring, drafting, reviewing, amending,
terminating, enforcing, defending or concerning this Amendment, the Credit
Agreement, any of the Loan Documents or any agreement related thereto, whether
or not suit is brought.
4. Conditions to Effectiveness.  The effectiveness of this Amendment is
conditioned upon the Bank's receipt of the following items, in form and content
acceptable to the Bank:
4.1 A fully executed counterpart of this Amendment.
4.2 A fully executed counterpart of the Seventh Amendment to Credit Agreement
and the New Notes.
4.3 Evidence that the execution, delivery and performance by the Borrower of
this Amendment and any instrument or agreement required under this Amendment
have been duly authorized.
4.4 Payment by the Borrower of all costs, expenses and attorneys' fees incurred
by the Bank in connection with this Amendment.
5. Governing Law.  This Amendment shall be governed and controlled in all
respects by the laws of the State of California, without regard to any conflict
of law provisions or principles, including interpretation, enforceability,
validity and construction.
6. Integration.  This Amendment embodies the entire agreement and understanding
among the parties hereto relating to the subject matter hereof and supersedes
all prior agreements and understandings relating to the subject matter hereof. 
No course of prior dealings among the parties hereto, no usage of trade, and no
parol or extrinsic evidence of any nature, shall be used or be relevant to
supplement, explain or modify any term used herein.  In the event of any
conflict between the terms and provisions of this Amendment and the Loan
Documents, the terms and provisions of this Amendment shall control.  This
Amendment is a product of negotiation and preparation by and among the parties
hereto.  Therefore, Borrower and Bank expressly waive the provisions of Civil
Code Section 1654 and acknowledge and agree that this Amendment should not be
deemed prepared or drafted by any one party or any other and shall be construed
accordingly.
7. No Oral Modifications.  The terms of this Amendment cannot be waived,
modified or amended except by a writing signed by the parties to this
Amendment.  Each party agrees that he, she or it will not rely upon any oral or
other non-written waiver, modification or amendment.
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8. Reliance.  Borrower has not relied upon any statement, representation or
promise of Bank or any person or entity acting on Bank's behalf in executing
this Amendment or any related documents or instruments, except as expressly
stated in this Amendment or in the related documents or instruments.  Nothing
contained in this Amendment is intended to confer any rights, powers or
privileges on any person or entity other than the undersigned parties and their
heirs, successors and assigns.
9. Counterparts.  This Amendment may be executed in counterparts and facsimiles
and the counterpart, when properly executed and delivered, will constitute a
fully executed complete agreement.
10. Liens.  Nothing herein contained or done pursuant hereto shall affect or
impair or be construed to affect or impair the lien, charge or encumbrance
created by any Pledge Agreement or the priority thereof over other liens,
charges or encumbrances, if any, or to release or affect the liability of any
party or parties whomsoever who may now or hereafter be liable under or on
account of the Loan Documents.
11. Successors and Assigns. This Amendment shall apply to, bind and inure to the
benefit of the heirs, administrators, executors, legal representatives,
successors and assigns of Pledgor and the endorsees, transferees, successors and
assigns of Agent and Lenders.
[Signatures on following page(s)]
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IN WITNESS WHEREOF, the parties hereto have executed this document as of the
date first above written.
Borrower:
Owens Realty Mortgage, Inc.,
a Maryland corporation

By: ________________________________
Name: Bryan H. Draper
Title: Chief Executive Officer and President
AGENT:

ZB, N.A. dba CALIFORNIA BANK & TRUST
(who also does business as California Bank & Trust,
a division of ZB, N.A.), successor by merger to
California Bank & Trust, as Agent

By: _________________________________
 Thomas C. Paton, Jr.
 Senior Vice President and Manager

LENDERS:

ZB, N.A. dba CALIFORNIA BANK & TRUST
(who also does business as California Bank & Trust,
a division of ZB, N.A.), successor by merger to
California Bank & Trust

By:_________________________________
Thomas C. Paton, Jr.
 Senior Vice President and Manager

FIRST BANK

By:_________________________________
Name:
Title:

UMPQUA BANK

By:_________________________________
Name:
Title:

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Schedule 1

Lenders; Total Commitment – Pro Rata Share

 

Total Commitment:  $75,000,000.00

 
 
Commitment
 
 
Lender
Pro Rata Share
of
Total Commitment
 
 
Address/Tel/Fax/E-Mail
       
$35,000,000.00
ZB, N.A., dba California Bank & Trust
46.6666%
ZB, N.A, dba California Bank & Trust
456 Montgomery Street, 23rd Floor
San Francisco, CA  94104
Attn:  Thomas C. Paton, Jr.
Senior Vice President
 
Tel:  415-875-1447
Fax:  415-875-1456
E-Mail:  tom.paton@calbt.com
 
$20,000,000.00
First Bank
26.6666%
First Bank
1700 North Broadway, Suite 201
Walnut Creek, CA  94596
Attn:  Randy Lee
 
Tel: _____________
Fax:  ____________
E-Mail: _______________
 
$20,000,000.00
Umpqua Bank
26.6666%
Umpqua Bank
____________________________
____________________________
Attn:  _______________________
 
Tel: _____________
Fax:  ____________
E-Mail: _______________
 
       

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