Execution Version

LIMITED AND SPECIFIC WAIVER
This LIMITED AND SPECIFIC WAIVER, dated as of July 31, 2020 (this “Waiver”), to
SUPERPRIORITY SENIOR SECURED DEBTOR-IN-POSSESSION CREDIT AND GUARANTY AGREEMENT,
dated as of June 8, 2020 (as amended, restated, amended and restated,
supplemented, waived or otherwise modified from time to time prior to the
effectiveness of this Waiver, the “Credit Agreement”), is entered into by and
among J. C. PENNEY CORPORATION, INC., a Delaware corporation, as debtor and
debtor-in-possession (“Borrower”), J. C. PENNEY COMPANY, INC., a Delaware
corporation, as debtor and debtor-in-possession (“Holdings”), certain
SUBSIDIARIES OF HOLDINGS, each as debtors and debtors-in-possession, as
Guarantors, the Lenders party hereto constituting the Supermajority Lenders, the
other Credit Parties, and GLAS USA LLC, a limited liability company organized
and existing under the laws of the State of New Jersey, as administrative agent
for the Lenders (in such capacity, together with its successors and assigns in
such capacity, “Administrative Agent”).

RECITALS

WHEREAS, on the terms and subject to the conditions set forth in this Waiver and
pursuant to and in accordance with the terms and conditions set forth in Section
10.5 of the Credit Agreement, (a) Borrower has requested that the Lenders party
hereto constituting the Supermajority Lenders hereby agree to the Limited and
Specific Waiver (as defined below), (b) the Lenders party hereto constituting
the Supermajority Lenders are willing to agree to the Limited and Specific
Waiver and (c) the Lenders party hereto constituting the Supermajority Lenders
have authorized, directed and instructed Administrative Agent to execute and
deliver this Waiver; and

WHEREAS, as a result of the execution and delivery of this Waiver, the parties
hereto hereby agree that no Toggle Event has occurred as of the date of this
Waiver.

NOW, THEREFORE, in consideration of the Limited and Specific Waiver contained in
this Waiver and other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto hereby agree as
follows:

a.Defined Terms; Interpretation; Etc. Capitalized terms used and not defined in
this Waiver shall have the meanings assigned to such terms in the Credit
Agreement.

b.Limited and Specific Waiver. On the Effective Date (as defined below), on the
terms and subject to the conditions set forth in this Waiver and pursuant to and
in accordance with the terms and conditions set forth in Section 10.5 of the
Credit Agreement, the parties hereto (which, for the avoidance of doubt,
includes the Supermajority Lenders) hereby waive the occurrence of a Toggle
Event under clause (a) of the definition thereof due to the failure of the
Supermajority Lenders to approve the Business Plan by July 15, 2020 (it being
understood and agreed that no Toggle Event shall be deemed to have occurred) so
long as the Supermajority Lenders approve the Business Plan at or prior to 11:59
p.m., New York City time, on August 7, 2020; provided that the foregoing waiver
(the “Limited and Specific Waiver”) shall only be in effect to the extent that
the following conditions subsequent and covenants are and remain satisfied in
accordance with their terms (it being understood and agreed that a Toggle Event
shall be deemed to have immediately occurred to the extent that the following
conditions subsequent and covenants are not satisfied in accordance with their
terms):

(a)receipt of updated bids for opco by 12:00 p.m. (noon), New York City time, on
August 3, 2020, which for the avoidance of doubt will include a comprehensive
markup (or agreement) to the master lease term sheet, the distribution center
lease term sheet and opco TLB term sheet;

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(b)all funds from the Final Loan shall remain in the Final Loan Escrow Account
through (i) 11:59 p.m., New York City time, on August 4, 2020 if no winning bid
for opco is selected, (ii) 11:59 p.m., New York City time, on August 7, 2020 if
a winning opco bidder is selected, but no final master lease term sheet,
distribution center lease term sheet and opco TLB term sheet is agreed and (iii)
11:59 p.m., New York City time, on August 30, 2020 if a winning opco bidder is
selected and a master lease term sheet, distribution center lease term sheet and
opco TLB term sheet is agreed;

(c)review of the appropriate downsizing of the $50,000,000 amount set forth in
Section 2.1(d)(ii) of the Credit Agreement;

(d)(i) the selection of the winning bid for opco by 11:59 p.m., New York City
time, on August 4, 2020 (ii) the finalization of an acceptable master lease term
sheet, distribution center lease term sheet and opco TLB term sheet with the
winning bidder by 11:59 p.m., New York City time, on August 7, 2020, (iii) the
finalization of an acceptable asset purchase agreement with the winning bidder
by 11:59 p.m., New York City time, on August 30, 2020 and (iv) the finalization
of an acceptable master lease agreement, an acceptable distribution center lease
agreement and an acceptable opco TLB credit agreement with the winning bidder by
11:59 p.m., New York City time, on August 30, 2020;

(e)satisfaction with the progress of the negotiations with the winning bidder
for opco (and, for the avoidance of doubt, this Waiver shall expire upon any
termination of the negotiations or the determination that negotiations are not
proceeding in good faith); and

(f)continued updates to and involvement of the Lenders regarding the process for
the consummation of a sale of all or substantially all of the assets of the
Credit Parties pursuant to section 363 of the Bankruptcy Code.

a.Conditions Precedent to Effectiveness. This Waiver shall become effective
solely upon the satisfaction (or waiver in accordance with the terms and
conditions of Section 10.5 of the Credit Agreement) of the following conditions
precedent (upon satisfaction of such conditions, such date being referred to in
this Waiver as the “Effective Date”):

1.Administrative Agent shall have received a counterpart signature page of this
Waiver duly executed by each of the Credit Parties and the Lenders party hereto
constituting the Supermajority Lenders;

2.as of the Effective Date and after giving effect to the Limited and Specific
Waiver, the representations and warranties contained in the Credit Agreement and
in the other Credit Documents shall be true and correct in all material respects
on and as of the Effective Date to the same extent as though made on and as of
that date, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties
shall have been true and correct in all material respects on and as of such
earlier date; provided that, in each case, such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof;

3.as of the Effective Date and after giving effect to the Limited and Specific
Waiver, no Default or Event of Default shall have occurred and be continuing or
would immediately result from the Limited and Specific Waiver;

4.the RSA shall have been revised to reflect all of the Limited and Specific
Waiver set forth in this Waiver; and

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5.each confidentiality agreement between the Borrower and any Lender shall have
been revised to reflect all of the Limited and Specific Waiver set forth in this
Waiver.
b.Representations and Warranties. In order to induce Administrative Agent and
the Lenders party hereto to enter into this Waiver, each Credit Party represents
and warrants to Administrative Agent and the Lender party hereto, that the
following statements are true, complete and correct:

i.as of the Effective Date after giving effect to the Limited and Specific
Waiver, the representations and warranties contained in the Credit Agreement and
in the other Credit Documents are true and correct in all material respects on
and as of the Effective Date to the same extent as though made on and as of that
date, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties are
true and correct in all material respects on and as of such earlier date;
provided that, in each case, such materiality qualifier shall not be applicable
to any representations and warranties that already are qualified or modified by
materiality in the text thereof; and

ii.as of the Effective Date after giving effect to the Limited and Specific
Waiver, no Default or Event of Default has occurred and is continuing or would
immediately result from the Limited and Specific Waiver.

c.Reaffirmation of Guarantees and Security Interests. Each Credit Party hereby
acknowledges its receipt of a copy of this Waiver and its review of the terms
and conditions of this Waiver and consents to the terms and conditions of this
Waiver, including the Limited and Specific Waiver. Each Credit Party hereby (a)
affirms and confirms its guarantees, pledges, grants and other undertakings
under the Credit Agreement and the other Credit Documents to which it is a party
and (b) agrees that (i) each Credit Document to which it is a party shall
continue to be in full force and effect and (ii) all guarantees, pledges, grants
and other undertakings thereunder shall continue to be in full force and effect
and shall accrue to the benefit of the Secured Parties.

d.Expenses; Indemnity. Each of Sections 10.2 and 10.3 of the Credit Agreement is
hereby incorporated, mutatis mutandis, by reference as if such Sections were set
forth in full in this Waiver.

e.Effect on the Credit Agreement.

i.Except as specifically waived by this Waiver, the Credit Agreement and the
other Credit Documents shall remain in full force and effect and are hereby
ratified and confirmed.

ii.Except as specifically waived by this Waiver, the execution, delivery and
performance of this Waiver shall not constitute a waiver of any provision of, or
operate as a waiver of any right, power or remedy of any Agent or Lender under
any Credit Document.

iii.The parties hereto expressly acknowledge that it is not their intention that
this Waiver or any of the other Credit Documents executed or delivered pursuant
hereto constitute a novation of any of the obligations, covenants or agreements
contained in the Credit Agreement or any other Credit Document, but a limited
and specific waiver thereof pursuant to the terms and conditions contained
herein.

iv.From and after the Effective Date, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
referring to the Credit Agreement, and each reference in the other Credit
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement as specifically waived by this Waiver.

v.This Waiver is, and shall be deemed to be, a Credit Document.

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f.Miscellaneous.

i.Amendment, Modification and Waiver. This Waiver may not be amended or
modified, nor may any provision of this Waiver be waived, except pursuant to the
terms and conditions of Section 10.5 of the Credit Agreement.

ii.Entire Agreement. This Waiver, the Credit Agreement and the other Credit
Documents constitute the entire agreement among the parties with respect to the
subject matter of this Waiver and thereof and supersede all other prior
agreements and understandings, both written and verbal, among the parties or any
of them with respect to the subject matter of this Waiver.

iii.Applicable Law. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR
TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH
RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE
APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK AND EXCEPT TO
THE EXTENT GOVERNED OR SUPERSEDED BY THE BANKRUPTCY CODE.

iv. Consent to Jurisdiction. SUBJECT TO CLAUSE (E) OF THE FOLLOWING SENTENCE,
ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING
HERETO OR ANY OTHER CREDIT DOCUMENTS, OR ANY OF THE OBLIGATIONS, SHALL BE
BROUGHT IN THE BANKRUPTCY COURT, OR IF THE BANKRUPTCY COURT DOES NOT HAVE (OR
ABSTAINS FROM) JURISDICTION, ANY FEDERAL COURT OF THE UNITED STATES OF AMERICA
SITTING IN THE BOROUGH OF MANHATTAN OR, IF THAT COURT DOES NOT HAVE SUBJECT
MATTER JURISDICTION, IN ANY STATE COURT LOCATED IN THE CITY AND COUNTY OF NEW
YORK. BY EXECUTING AND DELIVERING THIS WAIVER, EACH CREDIT PARTY, FOR ITSELF AND
IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS (OTHER THAN
WITH RESPECT TO ACTIONS BY ANY AGENT IN RESPECT OF RIGHTS UNDER ANY COLLATERAL
DOCUMENTS GOVERNED BY LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK OR WITH
RESPECT TO ANY COLLATERAL SUBJECT THERETO); (B) WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY
SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE
WITH SECTION 10.1 OF THE CREDIT AGREEMENT; (D) AGREES THAT SERVICE AS PROVIDED
IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE
APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT
AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS
OF ANY OTHER JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER
ANY COLLATERAL DOCUMENT OR THE ENFORCEMENT OF ANY JUDGMENT.

v.WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
HEREUNDER OR UNDER ANY OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN
THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN

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TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
WAIVER, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL
OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS WAIVER, AND THAT EACH
WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY
HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL
WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS CLAUSE (E) AND EXECUTED BY EACH OF
THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT WAIVERS,
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER
CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LIMITED
AND SPECIFIC WAIVER HEREUNDER. IN THE EVENT OF LITIGATION, THIS WAIVER MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

vi.Severability. In case any provision in or obligation hereunder or under any
other Credit Document shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

vii.Counterparts. This Waiver may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed an original, but
all such counterparts together shall constitute but one and the same instrument.
Delivery of an executed counterpart of a signature page of this Waiver by
facsimile or in electronic format (i.e., “pdf” or “tif”) shall be effective as
delivery of a manually executed counterpart of this Waiver.

viii.Headings. Section headings herein are included herein for convenience of
reference only and shall not constitute a part hereof for any other purpose or
be given any substantive effect.

ix.Administrative Agent. By its execution and delivery of this Waiver, the
Supermajority Lenders hereby authorize, direct and instruct Administrative Agent
to execute and deliver this Waiver, and it is understood that Administrative
Agent shall conclusively rely on the Supermajority Lenders’ authorization,
direction and instruction in connection with its execution and delivery of this
Waiver pursuant to Section 10.5 of the Credit Agreement.

[Remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly
executed by their respective authorized officers as of the day and year first
above written.

BORROWER:
J. C. PENNEY CORPORATION, INC.,
a Delaware corporation

By:/s/ Bill WaffordName: Bill WaffordTitle: Chief Financial Officer

[Signature Page to Limited and Specific Waiver]

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HOLDINGS:
J. C. PENNEY COMPANY, INC.,
a Delaware corporation

By:/s/ Bill WaffordName: Bill WaffordTitle: Chief Financial Officer

[Signature Page to Limited and Specific Waiver]

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GUARANTORS;

J. C. PENNEY PROPERTIES, LLCa Delaware limited liability company
By: /s/ Dawn Wolverton
Name: Dawn WolvertonTitle: Assistant Secretary

J. C. PENNEY PURCHASING CORPORATIONa New York Corporation
By: /s/ Dawn Wolverton
Name: Dawn WolvertonTitle: Assistant Secretary

JCP Real Estate Holdings, LLCa Delaware limited liability company
By: /s/ Dawn Wolverton
Name: Dawn WolvertonTitle: Assistant Secretary

[Signature Page to Limited and Specific Waiver]

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GUARANTORS: (cont...)

FUTURE SOURCE LLC,    a New York limited liability company J. C. PENNEY DIRECT
MARKETING SERVICES LLC,  a Delaware limited liability companyJ. C. PENNEY EXPORT
MERCHANDISING CORPORATION,   a Delaware corporation J. C. PENNEY INTERNATIONAL,
INC.,   a Delaware corporationJCP CONSTRUCTION SERVICES, INC.,   a Delaware
corporation JCP MEDIA, INC.,    a Delaware corporation JCP NEW JERSEY, LLC,    a
Delaware limited liability companyJCP PROCUREMENT, INC.,   a Delaware
corporation JCP REALTY, LLC,   a Delaware limited liability companyJCP TELECOM
SYSTEMS, INC.,    a Delaware corporation JCPENNEY PUERTO RICO, INC.,    a Puerto
Rico corporation JCPENNEY SERVICES, LLC,    a Delaware limited liability
companyJCPSSC, INC.,    a Delaware corporation
By: /s/ Bill Wafford
Name: Bill Wafford Title: Chief Financial Officer

[Signature Page to Limited and Specific Waiver]

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GLAS USA LLC, as Administrative Agent

By:/s/ Yana Kislenko
Name: Yana Kislenko
Title: Vice President

[Signature Page to Limited and Specific Waiver]

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LENDERS:

By Brigade Capital Management, LP as Investment Manager, on Behalf of its
Various Funds and Accounts [DIP LENDER]By:/s/ Patrick CriscilloName: Patrick
CriscilloTitle: Chief Financial Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

H/2 CAPITAL PARTNERS LLCBy:/s/ Ashvin Rao Name: Ashvin RaoTitle: Authorized
Signatory

[Signature Page to Limited and Specific Waiver]

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LENDERS:

Sculptor GC Opportunities Master Fund, Ltd.
By: Sculptor Capital LP, its investment manager
By: Sculptor Capital Holding Corporation, its General PartnerBy:/s/ Wayne
CohenName: Wayne Cohen Title: President and Chief Operating Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

Sculptor SC II, LP
By: Sculptor Capital II LP, its investment manager
By: Sculptor Capital Holding II LLC, its General Partner By: Sculptor Capital
LP, its Member
By: Sculptor Capital Holding Corporation, its General PartnerBy:/s/ Wayne
CohenName: Wayne Cohen Title: President and Chief Operating Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

Sculptor Credit Opportunities Master Fund, Ltd.
By: Sculptor Capital LP, its investment manager
By: Sculptor Capital Holding Corporation, its General PartnerBy:/s/ Wayne
CohenName: Wayne Cohen Title: President and Chief Operating Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

Sculptor Enhanced Master Fund, Ltd.
By: Sculptor Capital LP, its investment manager
By: Sculptor Capital Holding Corporation, its General Partner By:/s/ Wayne
CohenName: Wayne Cohen Title: President and Chief Operating Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

Sculptor Master Fund, Ltd.
By: Sculptor Capital LP, its investment manager
By: Sculptor Capital Holding Corporation, its General PartnerBy:/s/ Wayne
CohenName: Wayne Cohen Title: President and Chief Operating Officer

[Signature Page to Limited and Specific Waiver]

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LENDERS:

SPCP Access Holdings, LLC
By:/s/ Stacey Hatch Name: Stacey Hatch Title: Authorized Signatory

[Signature Page to Limited and Specific Waiver]

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LENDERS:

SPCP Institutional Group, LLC

By:/s/ Stacey Hatch Name: Stacey Hatch Title: Authorized Signatory

[Signature Page to Limited and Specific Waiver]

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LENDERS:

SPCP Group, LLC

By:/s/ Stacey Hatch Name: Stacey Hatch Title: Authorized Signatory

[Signature Page to Limited and Specific Waiver]

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SIXTH STREET SPECIALTY LENDING, INC., as a Lender

By:/s/ Joshua Easterly Name: Joshua Easterly Title: Chief Executive Officer

[Signature Page to Limited and Specific Waiver]

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REDWOOD IV FINANCE 3, LLC, as a Lender

By:/s/ Joshua PeckName: Joshua Peck Title: Vice President

[Signature Page to Limited and Specific Waiver]

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TAO FINANCE 3-A, LLC, as a Lender

By:/s/ Joshua PeckName: Joshua Peck Title: Vice President

[Signature Page to Limited and Specific Waiver]