# EDGAR Filing Document

**Accession Number:** 0001968611
**File Stem:** 0001654954-23-002535
**Filing Date:** 2023-3
**Character Count:** 1385554
**Document Hash:** 3e895bc64d7eaad5802ace820a4402a0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-002535.hdr.sgml**: 20230308

**ACCESSION NUMBER**: 0001654954-23-002535

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 50

**FILED AS OF DATE**: 20230308

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Versity Invest, LLC
- **CENTRAL INDEX KEY:** 0001968611
- **IRS NUMBER:** 881425276
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12178
- **FILM NUMBER:** 23715458

**BUSINESS ADDRESS:**
- **STREET 1:** 20 ENTERPRISE
- **STREET 2:** SUITE 400
- **CITY:** ALISO VIEJO
- **STATE:** CA
- **ZIP:** 92656
- **BUSINESS PHONE:** 949-540-9164

**MAIL ADDRESS:**
- **STREET 1:** 20 ENTERPRISE
- **STREET 2:** SUITE 400
- **CITY:** ALISO VIEJO
- **STATE:** CA
- **ZIP:** 92656

## Part

**An offering statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Offering Circular was filed and may be obtained.**

**Preliminary Offering Circular**

**March 8, 2023**

**Subject to Completion**![](versity_1aimg67.jpg)

**VERSITY INVEST, LLC**

**VIP Bonds**

**8.0% Senior Unsecured Bonds (A Bonds)**

**8.0% Senior Unsecured Bonds (R Bonds)**

**$75,000,000 Aggregate Maximum Offering Amount (75,000 Bonds)**

**$5,000 Minimum Purchase Amount (5 Bonds)**

Versity Invest, LLC, a Delaware limited liability company (the "Company"), is offering a maximum of $75,000,000 in the aggregate, of its 8.0% senior unsecured bonds (the "A Bonds"), and of its 8.0% senior unsecured bonds (the "R Bonds" and collectively, the "VIP Bonds") pursuant to this offering circular. The purchase price per VIP Bond is $1,000, with a minimum purchase amount of $5,000, or the "minimum purchase"; however, the Company, in our sole discretion, reserves the right to accept smaller purchase amounts. Both the A Bonds and R Bonds will bear interest at a rate of eight percent (8.0%) per year. The maximum offering amount of VIP Bonds is $75,000,000 (the "Maximum Offering Amount"). The maximum offering amount allocable to the sale of R Bonds is $15,000,000. The VIP Bonds will be offered serially, over a maximum period of two years, starting from the date of qualification of the Offering Statement of which this Offering Circular is a part. Each series of VIP Bonds beginning with Series A-1 and Series R-1 will correspond to the applicable quarter in which closings for VIP Bonds occur. Each series of A Bonds will mature on the third anniversary of the initial issuance date for the applicable series. Each series of R Bonds will mature eighteen months after the initial issuance date for the applicable series. The Company may elect to extend the maturity date of the VIP Bonds for one additional six-month period to facilitate the redemption of the VIP Bonds. Upon maturity, and subject to the terms and conditions described in this offering circular, the A Bonds will be automatically renewed for the same interest rate for an additional three years, and the R Bonds will be automatically renewed for the same interest rate for an additional eighteen months, unless redeemed upon maturity at our or your election. Interest on the VIP Bonds will be paid monthly on the 15th day of each calendar month.

R Bondholders will have the right to have all or a portion of their bonds redeemed at any time prior to the maturity date, at a price per R Bond equal to $960, if redeemed prior to the initial maturity date of the applicable R Bond, plus any accrued but unpaid interest on the R Bond due to such R Bondholder. A Bondholders will have the right to have all or a portion of their A Bonds redeemed at any time prior to the maturity date, at a price per A Bond equal to $900 if redeemed on or before the first anniversary of the issuance date of the applicable A Bond, $920 if redeemed after the first anniversary of the issuance date of the applicable A Bond but on or before the second anniversary of the issuance date of the applicable A Bond and $940 if redeemed after the second anniversary of the issuance of the applicable A Bond, plus any accrued but unpaid interest, on the A Bond due to such A Bondholder. The right of the Bondholders to redeem their VIP Bonds is limited to 3.75% of the principal amount of the outstanding VIP Bonds calculated on a quarterly basis as of the first day of the fiscal quarter in which such redemption occurs (the "<u>3.75% Limit</u>"), subject to an annual cap of up to 15% of the issued and outstanding VIP Bonds (the "<u>15% Limit</u>"). The 3.75% Limit and the 15% Limit can be increased in the Company's sole discretion. To the extent that the 3.75% Limit is not fully used in a given quarter, the unused portion shall not be added to the 3.75% Limit for any future quarter, and any redemptions in excess of such limit or to the extent suspended, shall be redeemed in subsequent quarters on a first come, first served, basis. Bondholders will also have the right to have their VIP Bonds redeemed in the case of a bondholder's death, disability or bankruptcy, subject to notice and other provisions contained in this offering circular. Redemptions due to death, disability or bankruptcy shall count towards the quarterly 3.75% Limit on redemptions described above and shall be redeemed by the Company prior to the optional redemptions. See "***Description of VIP Bonds – Redemption Upon Death, Disability or Bankruptcy***" and "***Description of VIP Bonds – Optional Bond Redemption***" for more information.

i<br>

The VIP Bonds will be offered to prospective investors on a best efforts basis by WealthForge Securities, LLC, a Virginia limited liability company and a member of the Financial Industry Regulatory Authority, or "FINRA." "Best efforts" means that our broker/dealer of record is not obligated to purchase any specific number or dollar amount of the VIP Bonds, but it will use its best efforts to sell the VIP Bonds. Our managing broker-dealer may engage additional broker-dealers, or "Selling Group Members," who are members of FINRA, to assist in the sale of the VIP Bonds. At each closing date, the net proceeds for such closing will be disbursed to our Company and the VIP Bonds relating to such net proceeds will be issued to their respective investors. We expect to commence the sale of the VIP Bonds as of the date on which the offering statement is declared qualified by the United States Securities and Exchange Commission, or the "SEC," and terminate the offering on the earliest of: (i) the date we sell the Maximum Offering Amount; (ii) the second anniversary of the date of qualification of this offering statement; or (iii) such date upon which we determine to terminate the offering, in our sole discretion. Notwithstanding the previous sentence, we have the right, in our sole discretion, to extend this offering beyond the second anniversary of the date of qualification for an additional year.

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|  | **Price to Public** | **Managing Broker-Dealer Fee, Commissions and Expense Reimbursements(1)(2)** | **Proceeds to**<br> **Issuer** | **Proceeds to Other Persons** |
| Per A Bond(3) | $1000 | $80 | $920 | $0 |
| Per R Bond(3) | $1000 | $20 | $980 | $0 |
| Maximum Offering Amount of A Bonds(3)(4) | $75000000 | $6000000 | $69000000 | $0 |
| Maximum Offering Amount of R Bonds(3)(5) | $15000000 | $300000 | $14700000 | $0 |
| Maximum Offering Amount of A Bonds if Maximum Amount of R Bonds Are Sold(3)(5) | $60000000 | $4800000 | $55200000 | $0 |
| Total of A&R Bonds | $75000000 | $5100000 | $69900000 | $0 |

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(1) This includes (a) selling commissions of 5.0% of gross offering proceeds on the sale of A Bonds, (b) a managing broker-dealer fee of up to 2.00% of the gross proceeds of the offering, any portion of which may be further reallowed to a soliciting dealer, and (c) a reallowance fee of up to 1.00% of gross offering proceeds on the sale of A Bonds. The R Bonds will be sold solely to purchasers purchasing through a registered investment advisor. See "  ***Plan of Distribution – Eligibility to Purchase R Bonds*** ." We will not pay selling commissions or a reallowance fee on the sale of R Bonds; however, we will pay a managing broker-dealer fee on the sale of R Bonds. A Bonds may be sold to certain other purchasers at reduced selling commissions and fees. See "  ***Plan of Distribution – Discounts for Bonds Purchased By Certain Persons*** ." All such amounts will be paid to our managing broker-dealer.

(2) The table above does not include an organizational and offering fee, or O&O Fee of 2.00% of offering proceeds ($1,500,000 at the maximum offering amount). In no event will the O&O Fee exceed 2.00% of the offering proceeds.

(3) All figures are rounded to the nearest dollar.

(4) The table above shows amounts payable to our managing broker-dealer if we sell the maximum offering amount comprised solely of A Bonds.

(5) The table above shows amounts payable to our managing broker-dealer for the sale of A Bonds & R Bonds and the maximum offering amount is achieved if we sell the maximum amount of R Bonds in this offering.

ii<br>

**Generally, no sale may be made to you in the offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to <u>www.investor.gov</u>.**

**An investment in the VIP Bonds is subject to certain risks and should be made only by persons or entities able to bear the risk of and to withstand the total loss of their investment. Currently, there is no market for the VIP Bonds being offered, nor does our Company anticipate one developing. Prospective investors should carefully consider and review that risk as well as the RISK FACTORS beginning on page 9 of this offering circular.**

**THE SEC DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SELLING LITERATURE. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC; HOWEVER, THE COMMISION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.**

**FORM 1-A DISCLOSURE FORMAT IS BEING FOLLOWED.**

iii<br>

**TABLE OF CONTENTS**

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| | |
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| **Contents** |  |
| [ABOUT THIS OFFERING CIRCULAR](#about) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 |
| [OFFERING CIRCULAR SUMMARY](#offer) | 2 |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#cautionary) | 7 |
| [RISK FACTORS](#risk) | 8 |
| [USE OF PROCEEDS](#useof) | 16 |
| [PLAN OF DISTRIBUTION](#planof) | 19 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#managment) | 26 |
| [GENERAL INFORMATION ABOUT OUR COMPANY](#genaral) | 29 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS](#material) | 34 |
| [ERISA CONSIDERATIONS](#erisa) | 36 |
| [DESCRIPTION OF VIP BONDS](#descrip) | 37 |
| [LEGAL PROCEEDINGS](#legal) | 42 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#security) | 43 |
| [EXECUTIVE OFFICERS](#executive) | 44 |
| [COMPENSATION OF OUR EXECUTIVE OFFICERS](#compensation) | 45 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#certain) | 46 |
| [INDEPENDENT AUDITOR](#independent) | 47 |
| [LEGAL MATTERS](#legalmatt) | 48 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#where) | 49 |
| [WEALTHFORGE SECURITIES, LLC PRIVACY POLICY](#wealth) | 50 |
| [INDEX TO FINANCIAL STATEMENTS](#Fs) | F-1 |

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| *[**Table of Contents**](#TOC)* |

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**ABOUT THIS OFFERING CIRCULAR**

The information in this offering circular may not contain all of the information that is important to you. You should read this entire offering circular and the exhibits carefully before deciding whether to invest in the VIP Bonds. See "***Where You Can Find Additional Information***" in this offering circular.

Unless the context otherwise indicates, references in this offering circular to the terms "Company," "we," "us," and "our," refer to Versity Invest, LLC, a Delaware limited liability company. References to "R Bondholder" and "A Bondholder" refer to the Person or Persons in whose name or names a particular R Bond or A Bond, respectively, shall be registered on the books of the Company kept for that purpose in accordance with the terms of this offering circular.

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**OFFERING CIRCULAR SUMMARY**

This summary highlights information contained elsewhere in this offering circular. This summary does not contain all of the information that you should consider before deciding whether to invest in the VIP Bonds. You should carefully read this entire offering circular, including the information under the heading "***Risk Factors***" and all information included in this offering circular.

**Overview**

We are a real estate development and asset management company focusing in multi-family, student housing, and hospitality projects across the US. Occasionally, we may undertake projects in other asset classes.

We acquire our properties through investment programs we sponsor which are targeted towards income-seeking investors with the objective of providing those investors with long-term, stable cash-flow. We create our revenue by providing organization, acquisition, development management and asset management services to our various programs.

We currently provide our services to the following programs or types of programs:

· Delaware Statutory Trusts ("DST"), designed primarily to qualify as interests in real estate for IRC Section 1031 like-kind exchange transactions, with an emphasis on student housing and market rate multi-family properties.

· Single property development programs, strategically located and with an emphasis on adding additional beds and/or amenities.

We also provide contracted asset management services to other owners and operators of real estate for properties in the same asset classes that we target for our own acquisition and development operations.

<u>DST Programs</u>. Currently, our business is predominated by our DST real estate transactions. Our DST's are intended to comply with IRS Revenue Ruling 2004-86, the Revenue Ruling, which provides requirements for structuring the DST so that the beneficial interests of the DST will be deemed direct interests in real estate, thus allowing the beneficial interests to be used as replacement property in IRC Section 1031 tax-deferred exchanges. Thus, DSTs are an option for investors looking to defer capital gains taxes by rolling the proceeds of a sale of investment real estate into a new real estate asset. The fractional ownership structure of DSTs gives solo investors access to commercial-grade real estate assets that are similar to those owned by institutional investors, insurance companies, pension funds and real estate investment trusts (REITs). Beneficial interests in our sponsored DST programs are offered pursuant to an exemption under Regulation D, promulgated pursuant to the Securities Act, through FINRA-registered securities broker-dealers.

<u>Single Property Development Projects.</u> Our in-house development team has extensive experience in all areas of the single property development process, from entitlement to completion. Development is synergistic with our other lines of business as we are able to, when circumstances permit, exit development investors into a DST structure, and potentially into the REIT's in the future. This determination is made based on which outcome provides the best returns for the development investor/partner.

<u>Private Student Housing REITs</u>. We intend shortly to privately offer one or more REIT structures to acquire and actively manage diversified portfolios of stabilized, income-oriented student housing properties located in the United States near Top 100 Colleges (as ranked by U.S. News and World Reports) with enrollments of over 20,000 students. We will focus on investments in core, stabilized student housing properties, however we may also selectively invest in development or value-add student housing properties. We anticipate that a wholly owned subsidiary of ours will externally advise such REIT structures.

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**Investment Strategy**

The Company believes that well-positioned student housing properties have the potential to offer investors stable cash flow and performance, inflation-friendly value, appreciation, and tax efficiency from a brick-and-mortar asset anchored by the historical stability of a university. The Company's student housing strategy targets multi-family properties that cater to the top 100 colleges across the United States with enrollments of over 20,000 students and that are located within walking distance from campus. However, the Company will also look into possible expansion into select growth markets.

The Company also looks to invest in high-quality, core/core-plus multi-family assets located in markets exhibiting job growth, population growth, and strong investment drivers across the U.S. The Company's multi-family strategy focuses on long-term investments from $25 million to $100 million in markets with market occupancy rates of mid-90% or higher and targets the following major metropolitan areas across the U.S., with possible expansion into select growth markets:

· Mid-Atlantic – D.C./Maryland/Virginia and Charlotte and Raleigh-Durham, North Carolina;

· Southeast – Atlanta, Georgia, Charleston, South Carolina, Memphis and Nashville, Tennessee, and Miami, Orlando, and Tampa, Florida;

· South – Austin, Dallas, and Houston, Texas;

· West – Los Angeles, San Diego, and San Francisco Bay Area, California, and Phoenix, Arizona;

· Mountain – Denver, Colorado and Salt Lake City, Utah

**The Offering** 

We are offering to investors the opportunity to purchase up to an aggregate of $75,000,000 of VIP Bonds. The maximum offering amount of R Bonds is $15,000,000. See "***Plan of Distribution - Who May Invest***" for further information. The offering will terminate on the earliest of: (i) the date we sell the Maximum Offering Amount; (ii) the second anniversary of the date of qualification of this offering statement; or (iii) such date upon which we determine to terminate the offering, in our sole discretion. In such a case, the new offering statement must be declared qualified before we will be able to continue the offering past the second anniversary of the date of initial qualification.

Our Company will conduct closings in this offering on the first and third Thursday of each month or the "closing dates," and each, a "closing date," until the offering termination. Once a subscription has been submitted and accepted by the Company, an investor will not have the right to request the return of its subscription payment prior to the next closing date. If subscriptions are received on a closing date and accepted by the Company prior to such closing, any such subscriptions will be closed on that closing date. If subscriptions are received on a closing date but not accepted by the Company prior to such closing, any such subscriptions will be closed on the next closing date. It is expected that settlement will occur two business days following each closing date. Two business days after the closing date, offering proceeds for that closing will be disbursed to us and the VIP Bonds purchased will be issued to the investors in the offering. If the Company is dissolved or liquidated after the acceptance of a subscription, the respective subscription payment will be returned to the subscriber. The offering is being made on a best-efforts basis through WealthForge Securities, LLC, or our managing broker-dealer.

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| **Issuer**<br>| Versity Invest, LLC, a Delaware limited liability company. |
| **Securities Offered**<br>| Maximum – $75,000,000, aggregate principal amount of the VIP Bonds. |
| **Maturity Date**<br>| Each series of A Bonds will mature on the third anniversary of the initial issuance date for the applicable series. Each series of R Bonds will mature eighteen months after the initial issuance date for the applicable series.<br>The VIP Bonds will each be offered serially, over a maximum period of 2 years starting from the date of qualification of the Offering Statement of which this Offering Circular is a part, with the sole difference between the series being their respective maturity dates.<br>Upon maturity, and subject to the terms and conditions described in this offering circular, the A Bonds and R Bonds will be automatically renewed at the same interest rate for an additional three years and an additional eighteen months, respectively, unless redeemed upon maturity at our or your election. If the VIP Bonds are not renewed and without the consent of the Bondholders, we may elect to extend the maturity date of the VIP Bonds for an additional six months to facilitate the redemption of the VIP Bonds.<br>We expect that any renewal of the VIP Bonds will be required to be registered or exempt from registration under the Securities Act. If we do not redeem the VIP Bonds at or prior to maturity, including as described under "***Description of VIP Bonds – Optional Redemption***," we anticipate that we will file a new offering statement in order to qualify the renewals for an exemption from registration with the SEC under Regulation A. In such a case, the new offering statement must be declared qualified before we will be able to renew your VIP Bond. |
| **Interest Rate**<br>| A Bonds ***–*** 8.0% per annum computed on the basis of a 360-day year.<br>R Bonds ***–*** 8.0% per annum computed on the basis of a 360-day year. |
| **Interest Payments**<br>| Interest on the VIP Bonds will be paid monthly on the 15th day of the month. Interest will accrue and be paid on the basis of a 360-day year consisting of twelve 30-day months. Interest on each VIP Bond will accrue and be cumulative from the end of the most recent interest period for which interest has been paid on such VIP Bond, or if no interest has paid, from the date of issuance. |
| **Offering Price**<br>| $1,000 per VIP Bond. |
| **Ranking**<br>| The VIP Bonds are senior unsecured indebtedness of our company. The VIP Bonds would rank junior to any of our secured indebtedness and will rank senior to our other unsecured indebtedness, and will be structurally subordinated to all indebtedness of our subsidiaries. See "***Description of VIP Bonds***" for more information.  |
| **Use of Proceeds**<br>| We estimate that the net proceeds we will receive from this offering, without taking into account any sales of R Bonds, will be approximately $69,000,000 if we sell the maximum offering amount, after deducting the selling commissions and fees payable to our managing broker-dealer and selling group members. As sales of R Bonds are without selling commissions, the net proceeds from the offering will depend upon the sales mix of the VIP Bonds.<br>We intend to use the net proceeds from this offering for growth strategies, which are expected to include: (i) real estate acquisitions; (ii) development costs; and (iii) for other general corporate purposes. No portion of the proceeds will be used to compensate our officers or directors. See "***Use of Proceeds***" for additional information.<br>There is no assurance that we will be able to utilize the net proceeds of this offering in the manner or amounts contemplated herein, or at all. In particular, as a result of the onset of the COVID-19 pandemic and the rapid pace of related developments, prospective opportunities for each of the intended uses are evolving and may result in a change in the priority in which we deploy proceeds from this offering as we continue to evaluate ways to maximize the prospects of ongoing success for our business. We may determine not to pursue one or more of the above uses of proceeds.  |

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| **Redemption at the Option of the Bondholder**<br>| R Bondholders will have the right to have all or a portion of their bonds redeemed at any time prior to the maturity date, at a price per R Bond equal to $960, if redeemed prior to the initial maturity date of the applicable R Bond, plus any accrued but unpaid interest on the R Bond due to such R Bondholder. A Bondholders will have the right to have all or a portion of their A Bonds redeemed at any time prior to the maturity date, at a price per A Bond equal to $900 if redeemed on or before the first anniversary of the issuance date of the applicable A Bond, $920 if redeemed after the first anniversary of the issuance date of the applicable A Bond but on or before the second anniversary of the issuance date of the applicable A Bond and $940 if redeemed after the second anniversary of the A Bonds, plus any accrued but unpaid interest, on the A Bond due to such A Bondholder. <br>The right of the Bondholders to redeem their VIP Bonds is limited to 3.75% of the principal amount of the outstanding VIP Bonds calculated on a quarterly basis as of the first day of the fiscal quarter in which such redemption occurs (the "<u>3.75% Limit</u>"), subject to an annual cap of up to 15% of the issued and outstanding VIP Bonds (the "<u>15% Limit</u>"). The 3.75% Limit and the 15% Limit can be increased in the Company's sole discretion. To the extent that the 3.75% Limit is not fully used in a given quarter, the unused portion shall not be added to the 3.75% Limit for any future quarter, and any redemptions in excess of such limit or to the extent suspended, shall be redeemed in subsequent quarters on a first come, first served, basis. Bondholders will also have the right to have their VIP Bonds redeemed in the case of a bondholder's death, disability or bankruptcy, subject to notice and other provisions contained in this offering circular. Redemptions due to death, disability or bankruptcy shall count towards the quarterly 3.75% Limit on redemptions described above and shall be redeemed by the Company prior to the optional redemptions.  |
| **Redemption at the Option of the Company**<br>| The VIP Bonds may be redeemed at the option of the Company at a redemption price equal to 110% of the principal amount to be redeemed. If the VIP Bonds are renewed for an additional term, we may redeem the VIP Bonds at any time during such renewal period. Any redemption will occur at a price equal to the then outstanding principal amount of the VIP Bonds, plus any accrued but unpaid interest. For the specific terms of the Optional Redemption, please see "***Description of VIP Bonds – Optional Redemption***" for more information. |
| **Redemption Upon**<br> **Death, Disability or Bankruptcy** | Within 90 days of the death, disability or bankruptcy of a Bondholder who is a natural person, the estate of such Bondholder, or legal representative of such Bondholder may request that we repurchase, in whole but not in part and without penalty, the VIP Bonds held by such Bondholder by delivering to us a written notice requesting such VIP Bonds be redeemed. Redemptions due to death, disability or bankruptcy shall count towards the quarterly 3.75% Limit on redemptions described above and shall be redeemed by the Company prior to the optional redemptions. Any such request shall specify the particular event giving rise to the right of the holder or beneficial holder to redeem his or her VIP Bonds. If a VIP Bond is held jointly by natural persons who are legally married, then such request may be made by (i) the surviving Bondholder upon the death of the spouse, or (ii) the disabled Bondholder (or a legal representative) upon disability of the spouse. In the event a VIP Bond is held together by two or more natural persons that are not legally married, neither of these persons shall have the right to request that the Company repurchase such VIP Bond unless each Bondholder has been affected by such an event.<br>Disability shall mean with respect to any Bondholder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Bondholder or beneficial holder first acquired VIP Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.<br>Bankruptcy shall mean, with respect to any Bondholder the final adjudication related to (i) the filing of any petition seeking to adjudicate the Bondholder bankrupt or insolvent, or seeking for itself any liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of such Bondholder or such Bondholder's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking, consenting to, or acquiescing in the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for such Person or for any substantial part of its property, or (ii) without the consent or acquiescence of such Bondholder, the entering of an order for relief or approving a petition for relief or reorganization or any other petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or other similar relief under any bankruptcy, liquidation, dissolution, or other similar statute, law, or regulation, or, without the consent or acquiescence of such Bondholder, the entering of an order appointing a trustee, custodian, receiver, or liquidator of such Bondholder or of all or any substantial part of the property of such Bondholder which order shall not be dismissed within ninety (90) days.<br>Subject to the annual cap on redemptions, upon our receipt of a redemption request in the event of death, disability or bankruptcy of a Bondholder, we will designate a date for the redemption of such VIP Bonds, which date shall not be later than 120 days after we receive documentation and/or certifications establishing (to the reasonable satisfaction of the Company) the right to be redeemed. On the designated date, we will redeem such VIP Bonds at a price per VIP Bond that is equal to all accrued and unpaid interest, to but not including the date on which the VIP Bonds are redeemed plus the then outstanding principal amount of such VIP Bond. |

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| **Default** | The Indenture governing the VIP Bonds will contain events of default, the occurrence of which may result in the acceleration of our obligations under the VIP Bonds in certain circumstances. Events of default, other than payment defaults, will be subject to our Company's right to cure within a certain number of days of such event of default. Our Company will have the right to cure any payment default within 60 days before the trustee may declare a default and exercise the remedies under the Indenture. See "***Description of VIP Bonds - Event of Default***" for more information. |
| **Form** | The VIP Bonds purchased through a participant in the Depository Trust Company, or DTC, will be evidenced by global bond certificates deposited with a nominee holder, either DTC or its nominee Cede & Co. VIP Bonds purchased directly will be registered in book-entry form only on the books and records of UMB Bank, N.A. in the name of Phoenix American Financial Services, Inc., or Phoenix American, as record holder of such VIP Bonds for the benefit of such direct purchasers. See "***Description of VIP Bonds - Book-Entry, Delivery and Form****"* for more information. |
| **Bond Service Reserve** | We will reserve 3.75% of the proceeds of the sale of VIP Bonds, calculated on a quarterly basis as of the first day of the fiscal quarter, for the purpose of funding the optional redemptions described above. |
| **Denominations** | We will issue the VIP Bonds only in denominations of $1,000. |
| **Payment of Principal and Interest** | Principal and interest on the VIP Bonds will be payable in U.S. dollars or other legal tender, coin or currency of the U.S.  |
| **Future Issuances** | We may, from time to time, without notice to or consent of the Bondholders, increase the aggregate principal amount of any series of the VIP Bonds outstanding by issuing additional bonds in the future with the same terms of such series of VIP Bonds, except for the issue date and offering price, and such additional bonds shall be consolidated with the applicable series of VIP Bonds and form a single series. |
| **Securities Laws Matters** | The VIP Bonds being offered are not being registered under the Securities Act in reliance upon exemptions from the registration requirements of the Securities Act and such state securities laws and may not be transferred or resold except as permitted under the Securities Act and applicable state securities laws pursuant to registration or exemption therefrom. In addition, the Company does not intend to be registered as an investment company under the Investment Company Act of 1940, as amended. |
| **Trustee, Registrar and Paying Agent** | We have designated UMB Bank, N.A., or UMB, as paying agent. UMB will also act as trustee under the indenture and registrar for the VIP Bonds. As such, UMB will make payments on the VIP Bonds to DTC or to Phoenix American (who will forward such payments to the applicable Bondholders). Phoenix American can elect that we make payments directly to Phoenix American upon written notice to UMB. The VIP Bonds will be issued in book-entry form only, evidenced by global certificates, as such, payments are being made to DTC, its nominee or to Phoenix American. |
| **Governing Law** | The Indenture and the VIP Bonds will be governed by the laws of the State of Delaware. |
| **Material Tax**<br> **Considerations** | You should consult your tax advisors concerning the U.S. federal income tax consequences of owning the VIP Bonds in light of your own specific situation, as well as consequences arising under the laws of any other taxing jurisdiction. |
| **Risk Factors** | An investment in the VIP Bonds involves certain risks. You should carefully consider the risks above, as well as the other risks described under "***Risk Factors***" of this offering circular before making an investment decision. |

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**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This offering circular contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain financial and operating projections or state other forward-looking information. Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth or anticipated in our forward-looking statements. Factors that could have a material adverse effect on our forward-looking statements and upon our business, results of operations, financial condition, funds derived from operations, cash flows, liquidity and prospects include, but are not limited to, the factors referenced in this offering circular, including those set forth below.

When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this offering circular. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this offering circular. The matters summarized below and elsewhere in this offering circular could cause our actual results and performance to differ materially from those set forth or anticipated in forward-looking statements. Accordingly, we cannot guarantee future results or performance. Furthermore, except as required by law, we are under no duty to, and we do not intend to, update any of our forward-looking statements after the date of this offering circular, whether as a result of new information, future events or otherwise.

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**RISK FACTORS**

*An investment in the VIP Bonds is highly speculative and is suitable only for persons or entities that are able to evaluate the risks of the investment. An investment in the VIP Bonds should be made only by persons or entities able to bear the risk of and to withstand the total loss of their investment. Prospective investors should consider the following risks before making a decision to purchase the VIP Bonds. To the best of our knowledge, we have included all material risks to investors in this section.*

**Risks Related to the VIP Bonds and to this Offering**

***The VIP Bonds are not obligations of our subsidiaries and will be subordinated to all of the liabilities of the Company's subsidiaries, if any. Such subordination increases the risk that we will be unable to meet our obligations on the VIP Bonds.***

The VIP Bonds are obligations of the Company exclusively and not of any of our subsidiaries. The VIP Bonds are also effectively subordinated to all of the liabilities of the Company's subsidiaries, to the extent of their assets, since they are separate and distinct legal entities with no obligation to pay any amounts due under the Company's indebtedness, including the VIP Bonds, or to make any funds available to make payments on the VIP Bonds. The Company's right to receive any assets of any subsidiary in the event of a bankruptcy or liquidation of the subsidiary, and therefore the right of the Company's creditors, including holders of the VIP Bonds, to participate in those assets, will be effectively subordinated to the claims of that subsidiary's creditors, including trade creditors, in each case to the extent that the Company is not recognized as a creditor of such subsidiary. In addition, even where the Company is recognized as a creditor of a subsidiary, the Company's rights as a creditor with respect to certain amounts are subordinated to other indebtedness of that subsidiary, including secured indebtedness to the extent of the assets securing such indebtedness.

***We may engage in a variety of transactions that may impair our ability to pay interest and principal on the VIP Bonds.***

The Indenture governing the VIP Bonds will contain covenants that will limit us from making any fundamental changes including any merger, consolidation, winding up or liquidation. However, if we violate this covenant or engage in any of transaction limited by the covenants pursuant to a waiver to the Indenture, it could have an adverse impact on Bondholders. In addition, other than the limited covenants contained in the Indenture discussed in this offering circular, we are not subject to additional restrictions on our activities. We may engage in activities, such as issuing additional debt that may rank senior or *pari passu* with the VIP Bonds, that may hinder our ability to pay our bond service obligations.

***If we sell substantially less than all of the VIP Bonds we are offering, the costs we incur to comply with the rules of the Securities and Exchange Commission, or the SEC, regarding financial reporting and other fixed costs (such as those relating to the offering) will be a larger percentage of our revenue and may reduce our financial performance and our ability to fulfill our obligations under the VIP Bonds.***

We expect to incur significant costs in maintaining compliance with the financial reporting for a Tier II Regulation A issuer and that our management will spend a significant amount of time assessing the effectiveness of our internal control over financial reporting. We do not anticipate that these costs or the amount of time our management will be required to spend will be significantly less if we sell substantially less than all of the VIP Bonds we are offering.

***Redemption requests of VIP Bonds at the option of the Bondholder will be limited by the quarterly 3.75% Limit and to the extent they are accepted, will be subject to financial penalties for early redemption.***

While the Bonds carry an early redemption right and a redemption right in the event of death, disability or bankruptcy of the Bondholder, redemptions are subject to the quarterly 3.75% Limit. As a result, requests for redemption from Bondholders may be rejected by the Company. Additionally, with respect to redemptions at the option of the Bondholders, except for death, disability or bankruptcy, early redemption penalties will apply, which will adversely affect Bondholders seeking to redeem VIP Bonds prior to maturity. If the Company elects to extend the maturity of the VIP Bonds as set forth herein, then a Bondholder may be required to redeem its Bonds, inclusive of the early redemption penalty, if the Bondholder does not wish to keep their VIP Bonds through the extended maturity.

***Redemption requests for VIP Bonds at the option of the Bondholder or in the event of death, disability or bankruptcy of a Bondholder may have an adverse effect on the Company's overall growth and ability to fulfil our obligations on the VIP Bonds.***

The VIP Bonds carry an early redemption right and a redemption right in the event of death, disability or bankruptcy of the Bondholder. As a result, one or more Bondholders may elect to have their VIP Bonds redeemed prior to maturity. In such an event, we may not have access to the necessary cash to redeem such VIP Bonds. Additionally, any cash used to satisfy such redemption requests will be diverted from cash required to fund the continued growth of the Company. Accordingly, the use of funds towards redemptions could result in the Company's inability to meet projected growth targets, which could, in turn, limit the Company's ability to make interest and principal payments to Bondholders.

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***Our trustee shall be under no obligation to exercise any of the rights or powers vested in it by the Indenture at the request, order or direction of any of the Bondholders, pursuant to the provisions of the Indenture, unless such Bondholders shall have offered to the trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby.***

The Indenture governing the VIP Bonds provides that in case an event of default occurs and not be cured, the trustee will be required, in the exercise of its power, to use the degree of care of a reasonable person in the conduct of his own affairs. Subject to such provisions, the trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any Bondholder, unless the Bondholder has offered to the trustee security and indemnity satisfactory to it against any loss, liability or expense.

***There is no established trading market for the VIP Bonds and we do not expect one to develop. Therefore, Bondholders may not be able to resell them for the price that they paid or sell them at all.***

Prior to this offering, there was no active market for the VIP Bonds and we do not expect one to develop. We do not have any present intention to apply for a quotation for the VIP Bonds on an alternative trading system or over the counter market and even if we obtain that quotation in the future, we do not know the extent to which investor interest will lead to the development and maintenance of a liquid trading market. Further, the VIP Bonds will not be quoted on an alternative trading system or over the counter market until after the termination of this offering, if at all. Therefore, investors will be required to wait until at least after the final termination date of this offering for such quotation. The initial public offering price for the VIP Bonds has been determined by us. You may not be able to sell the VIP Bonds you purchase at or above the initial offering price or sell them at all.

Alternative trading systems and over the counter markets, as with other public markets, may from time to time experience significant price and volume fluctuations. As a result, if the VIP Bonds are listed on such a trading system, the market price of the VIP Bonds may be similarly volatile, and Bondholders may from time to time experience a decrease in the value of their VIP Bonds, including decreases unrelated to our operating performance or prospects. The price of the VIP Bonds could be subject to wide fluctuations in response to a number of factors, including those listed in this "***Risk Factors***" section of this offering circular. No assurance can be given that the market price of the VIP Bonds will not fluctuate or decline significantly in the future or that Bondholders will be able to sell their VIP Bonds when desired on favorable terms, or at all. Further, the sale of the VIP Bonds may have adverse federal income tax consequences.

***We may redeem all or any part of the VIP Bonds that have been issued before their maturity, and you may be unable to reinvest the proceeds at either the same or a higher rate of return.***

We may redeem all or any part of the outstanding VIP Bonds prior to maturity. See "***Description of VIP Bonds - Optional Redemption***" for more information. If redeemed, you may be unable to reinvest the money you receive in the redemption at a rate that is equal to or higher than the rate of return on the VIP Bonds.

**Risks Related to Our Business and Our Industry**

***Our company's core business is the syndication of DST real estate properties which may not perform as expected.***

Real estate assets underly our DST syndications thereby making our DST programs subject to risks similar to real estate acquisition and management. Our DST programs by which we acquire real estate are subject to the market conditions where the real estate is located. If we are unable to acquire properties on favorable terms or the properties do not perform as expected, our cash available for operations and redemptions could be reduced.

***Our DST business through which we acquire properties and sponsor securities involves legal and regulatory risks which could subject us to liability or litigation.***

Our DST business is intended to comply with IRS Revenue Ruling 2004-86 which provides requirements for structuring DST investments so that the beneficial interests of the DST will be deemed direct interests in real estate. This allows the beneficial interests to be used as replacement property in IRC Section 1031 ("Section 1031") tax-deferred exchanges. However, whether any particular beneficial interest will qualify as a tax-deferred exchange under Section 1031 depends on the specific facts involved. Factors within or beyond our control could result in an investor's beneficial interest not being deemed a direct interest in real estate and be ineligible for a Section 1031 exchange. As a result, we could face claims or even liability depending on the particular facts of the situation. Even if we are not found liable, litigation as a result of a failed Section 1031 exchange by an investor would distract the Company's management, reduce cash that could be used for redemptions or operations, and potentially have an adverse effect on our business.

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***Our substantial indebtedness could adversely affect our financial condition and our ability to operate our business.***

EquityCo, consisting of our wholly-owned subsidiaries Versity EquityCo, LLC, and Versity EquityCo II, LLC, received a senior secured line of credit from Crayhill Capital Management and as of June 30, 2022, EquityCo had $86,769,638 outstanding under this facility. We maintain three revolving credit facilities of $15,000,000, each, issued by Nelson Brothers Student Housing and Assisted Living Holdings, LLC, NB Student Housing Fund II, LLC, and NB Student Housing Fund III, LLC, respectively, and each will mature April 21, 2032. We had $7,122,687 outstanding on these lines as of June 30, 2022. We had $223,403,569 of notes payable secured by our properties as of June 30, 2022. Our substantial debt could have important consequences to investors, including the following:

· it may be difficult for us to satisfy our obligations, including debt service requirements under our outstanding debt,

· our ability to obtain additional financing for working capital, capital expenditures, debt service requirements or other general corporate purposes may be impaired,

· we must use a significant portion of our cash flow for payments on our debt, which will reduce the funds available to us for other purposes,

· we are more vulnerable to economic downturns and adverse industry conditions and our flexibility to plan for, or react to, changes in our business or industry is more limited,

· our ability to capitalize on business opportunities and to react to competitive pressures, as compared to our competitors, may be compromised due to our high level of debt, and

· our ability to borrow additional funds or to refinance debt may be limited.

***Our property development activities are subject to real estate development risks which may reduce cash available for operations and redemptions.***

The Company is subject to the risks normally associated with development activities. Such risks include risks relating to the availability and timely receipt of zoning and other regulatory approvals, the cost and timely completion of construction (including risks beyond our control, such as adverse weather or labor conditions or material shortages) and the availability of both construction and permanent financing on favorable terms. These risks could result in substantial unanticipated delays or expenses and, under certain circumstances, could prevent completion of development activities once undertaken, any of which could have an adverse effect on our financial condition and results of operations.

***Economic and regulatory changes that impact the real estate market generally may decrease the value of our investments and weaken our operating results.***

The properties we acquire and their performance are subject to the risks typically associated with real estate, including:

· downturns in national, regional and local economic conditions;

· competition;

· adverse local conditions, such as oversupply or reduction in demand and changes in real estate zoning laws that may reduce the desirability of real estate in an area;

· vacancies, changes in market rental rates and the need to periodically repair, renovate and re-let space;

· changes in the supply of or the demand for similar or competing properties in an area;

· changes in interest rates and the availability of permanent mortgage financing, which may render the sale of a property or loan difficult or unattractive;

· changes in governmental regulations, including those involving tax, real estate usage, environmental and zoning laws; and

· periods of high interest rates and tight money supply.

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Any of the above factors, or a combination thereof, could result in a decrease in the value of our investments, which would have an adverse effect on our results of operations and reduce our cash available for redemptions.

***We will be subject to the risks associated with acquiring discounted real estate assets.***

We will be subject to the risks generally incident to the ownership of discounted real estate assets. Such assets may be purchased at a discount from historical cost due to substantial deferred maintenance, abandonment, undesirable locations or markets, or poorly structured financing of the real estate or debt instruments underlying the assets, which has since lowered their value. Further, instability in the financial markets may limit the availability of lines of credit and the degree to which people and entities have access to cash to pay rents or debt service on the underlying assets. Such illiquidity could have the effect of increasing vacancies, increasing bankruptcies and weakening interest rates commercial entities can charge consumers, which can all decrease the value of already discounted real estate assets. Should conditions worsen, the continued inability of the underlying real estate assets to produce income may weaken and our disposition fees could be adversely affected in the event we decide to sell the property.

Further, irrespective of the instability the financial markets may have on the return produced by discounted real estate assets, efforts to correct the instability could make the valuation of such assets highly unpredictable. Fluctuations in market conditions make judging the future performance of such assets difficult. There is a risk that we may not purchase real estate assets at absolute discounted rates and that such assets may continue to decline in value.

***We will compete with third parties in acquiring, managing and selling properties and other investments, which could reduce our profitability.***

We believe that the current market for properties that meet our investment objectives is extremely competitive and many of our competitors have greater resources than we do. Our acquisition fees may be adversely affected if we are unable to purchase properties that meet our standards. We will compete with numerous other entities engaged in real estate investment activities, including individuals, corporations, banks and insurance company investment accounts, REITs, real estate limited partnerships, the U.S. Government and other entities, to acquire, manage and sell real estate and real estate-related assets. Many of our expected competitors enjoy significant competitive advantages that result from, among other things, a lower cost of capital and enhanced operating efficiencies. In addition, the number of entities and the amount of funds competing for suitable investments may increase.

Competition with these entities may result in the following:

· greater demand for the acquisition of real estate and real estate-related assets, which results in increased prices we must pay for our real estate and real estate-related assets;

· delayed investment of our capital;

· decreased availability of financing to us; or

· reductions in the size or desirability of the potential tenant base for one or more properties that we lease.

***Properties that have significant vacancies, especially discounted real estate assets, may experience delays in leasing up or could be difficult to sell, which could diminish our return on these properties thereby lowering our disposition fees.***

The Company looks to invest in high-quality multi-family assets located in markets exhibiting job growth, population growth, and strong investment drivers across the U.S. The Company is strategic in its investment decisions and seeks to acquire properties at a price that will yield a favorable return on investment. Some of the properties that the Company considers purchasing may have high vacancy rates at the time of purchase, and through development and the addition of amenities, will eventually have much higher occupancy rates. Before a high occupancy rate is achieved, there are risks to owning the property. A property may incur vacancies either by the expiration of tenant leases or the continued default of tenants under their leases. Further, our potential investments in underperforming apartment properties or other types of discounted properties may have significant vacancies at the time of acquisition which may take years to reverse if ever. The resale value of the property could be diminished because the market value of a particular property depends principally upon the value of the cash flow generated by the leases associated with that property. Such a reduction in the resale value of a property would reduce our disposition fees.

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***Costs of responding to both known and previously undetected environmental conditions may decrease the value of the property thereby lowering our disposition fees.***

Environmental laws may impose liens on a property or restrictions on the manner in which a property may be used or businesses may be operated. Environmental laws provide for sanctions for noncompliance and may be enforced by governmental agencies or, in certain circumstances, by private parties. Certain environmental laws and common law principles could be used to impose liability for the release of and exposure to hazardous substances, including asbestos-containing materials and lead-based paint. Third parties may seek recovery from real property owners or operators for personal injury or property damage associated with exposure to released hazardous substances. If these environmental costs reduce property values, our disposition fee if we were to sell the property would be adversely impacted.

***Properties acquired by us may have toxic mold that could result in substantial liabilities to us.***

Litigation and concern about indoor exposure to certain types of toxic molds has been increasing as the public becomes aware that exposure to mold can cause a variety of health effects and symptoms, including allergic reactions. It is impossible to eliminate all mold and mold spores in the indoor environment. There can be no assurance that the properties acquired by us will not contain toxic mold. The difficulty in discovering indoor toxic mold growth could lead to an increased risk of lawsuits by affected persons and the risk that the cost to remediate toxic mold will exceed the value of the property. There is a risk that we may acquire properties that contain toxic mold and such properties may negatively affect our performance in the event property values are reduced and our disposition fees are lower as a result.

***If we are developing a property or holding a property for syndication, uninsured losses relating to real property or excessively expensive premiums for insurance coverage could reduce our cash flow.***

During the process of developing a property or holding it for syndication, we may be liable for uninsured losses. There are types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters that are uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Insurance risks associated with potential acts of terrorism could sharply increase the premiums we pay for coverage against property and casualty claims. Additionally, mortgage lenders in some cases have begun to insist that commercial property owners purchase coverage against terrorism as a condition for providing mortgage loans. Such insurance policies may not be available at reasonable costs, if at all, which could inhibit our ability to finance or refinance our properties. In such instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. We may not have adequate coverage for such losses. If any of our properties incurs a casualty loss that is not fully insured, the value of our assets will be reduced by any such uninsured loss. In addition, other than any working capital reserve or other reserves we may establish, we have no source of funding to repair or reconstruct any uninsured property.

***During a period of developing a property, our costs associated with and the risk of failing to comply with the Americans with Disabilities Act, the Fair Housing Act and other tax credit programs may adversely affect our asset management fees.***

Our properties are generally expected to be subject to the Americans with Disabilities Act of 1990 (the "Disabilities Act"), as amended. We could be liable for the costs associated with failing to comply with the Disabilities Act while developing a property or holding it for syndication. If the property cannot be readily leased for failure to comply, gross rents would be adversely affected and our asset management fee would be reduced as well. Under the Disabilities Act, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The Disabilities Act has separate compliance requirements for "public accommodations" and "commercial facilities" that generally require that buildings and services be made accessible and available to people with disabilities. The Disabilities Act's requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties or, in some cases, an award of damages. We cannot assure you that we will be able to acquire properties that comply with the Disabilities Act or place the burden on the seller or other third party to ensure compliance with such laws.

The multifamily rental properties we acquire must comply with Title III of the Disabilities Act, to the extent that such properties are "public accommodations" or "commercial facilities" as defined by the Disabilities Act. Compliance with the Disabilities Act could require removal of structural barriers to handicapped access in certain public areas of our apartment communities where such removal is readily achievable. The Disabilities Act does not, however, consider residential properties, such as multifamily rental properties, to be public accommodations or commercial facilities, except to the extent portions of such facilities, such as the leasing office, are open to the public.

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We also must comply with the Fair Housing Amendment Act of 1988 ("FHAA"), which requires that multifamily rental properties first occupied after March 13, 1991 be accessible to handicapped residents and visitors. Compliance with the FHAA could require removal of structural barriers to handicapped access in a community, including the interiors of apartment units covered under the FHAA. Recently there has been heightened scrutiny of multifamily rental properties for compliance with the requirements of the FHAA and the Disabilities Act and an increasing number of substantial enforcement actions and private lawsuits have been brought against multifamily rental properties to ensure compliance with these requirements. Noncompliance with the FHAA and the Disabilities Act could result in the imposition of fines, awards of damages to private litigants, payment of attorneys' fees and other costs to plaintiffs, substantial litigation costs and substantial costs of remediation.

Certain of our properties may be subject to the low-income housing tax credits, historic preservation tax credits or other similar tax credit rules at the federal, state or municipal level. The application of these tax credit rules is extremely complicated and noncompliance with these rules may have adverse consequences for us. Noncompliance with applicable tax regulations may result in the loss of future or other tax credits and the fractional recapture of these tax credits already taken.

***Our properties are dispersed geographically and across various markets and sectors.***

We may acquire and operate properties in different locations throughout the United States and in different markets and sectors. The success of our properties will depend largely on our ability to hire various managers and service providers in each area, market and sector where the properties are located or situated. It may be more challenging to manage a diverse portfolio. Failure to meet such challenges could adversely affect our operations and cashflow.

***Newly constructed and existing multifamily rental properties could make it more difficult for us to find properties to fold into a DST structure and result in less acquisition fees for our business.***

We may acquire properties in locations that experience increases in construction of multifamily rental or other properties that compete with our properties. This increased competition and construction could:

· make it more difficult for us to find properties that will yield robust acquisition and disposition fees;

· force us to lower our rental prices in order to lease units in our apartment communities thereby lowering the price our properties will eventually sell for; or

· substantially reduce our revenues and cash available for operations and redemptions if our fees are lower as a result of competition for profitable properties to put into a DST structure

***Our efforts to upgrade multifamily rental properties to increase occupancy and raise rental rates through redevelopment and repositioning may fail, which may reduce our disposition fee upon the sale of the property if we are unable to substantially increase the value of the property.***

The success of our ability to upgrade any multifamily rental properties that we may acquire and realize capital gains on these investments materially depends upon the status of the economy where the multifamily rental property is located. Moreover, our revenues will be lower if the rental market cannot bear the higher rental rate that accompanies the upgraded multifamily rental property due to job losses or other economic hardships. Should the local market be unable to support a higher rental rate for a multifamily rental property that we upgraded, we may not realize the premium rental we had assumed by a given upgrade and we may realize reduced rental income or a reduced gain or even loss upon the sale of the property. If we are unable to increase the value of the property, then our disposition fees will be adversely impacted.

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***Renovation risks could affect our profitability.***

A component of our strategy is to renovate multifamily communities in order to effect long-term growth. Our renovation activities generally entail certain risks, including the following:

· funds may be expended and management's time devoted to projects that may not be completed due to a variety of factors, including without limitation, the inability to obtain necessary governmental approvals;

· construction costs of a renovation project may exceed original estimates, possibly making the project economically unfeasible or the economic return on a renovated property less than anticipated;

· increased material and labor costs, problems with subcontractors, or other costs due to errors and omissions which occur in the renovation process;

· projects may be delayed due to required governmental approvals, adverse weather conditions, labor shortages or other unforeseen complications;

· occupancy rates and rents at a renovated property may be less than anticipated; and

· the operating expenses at a renovated property may be higher than anticipated.

***Our company sponsors and manages real estate investments, which could implicate the Investment Company Act of 1940 (the "Investment Company Act"). We may suffer adverse consequences if we are deemed an investment company under the Investment Company Act and we may be required to incur significant costs, and our activities and investments will be restricted, to avoid investment company status.***

We believe we are not an "investment company" as defined by the Investment Company Act. The Investment Company Act contains substantive legal requirements that regulate the manner in which investment companies are permitted to conduct their business activities. If the SEC or a court were to disagree with us, we could be required to register as an investment company. This would negatively affect our ability to consummate an acquisition of an operating company; subject us to disclosure and accounting guidance geared toward investment, rather than operating, companies; limit our ability to borrow money, issue options, issue multiple classes of stock and debt, and engage in transactions with affiliates; and require us to undertake significant costs and expenses to meet the disclosure and regulatory requirements to which we would be subject as a registered investment company. To avoid investment company status, we may be required to incur significant costs and our activities and investments will be restricted. If we are deemed an "investment company" under the Investment Company Act, applicable restrictions could make it impractical for us to continue our business as conducted and could have a material adverse effect on our business.

***A decrease in enrollment at the universities at which our properties are located could adversely affect our financial results.***

University enrollment can be affected by a number of factors including, but not limited to, the current macroeconomic environment, students' ability to afford tuition and/or the availability of student loans, competition for international students, the impact of visa requirements for international students, higher demand for distance education, budget constraints that could limit a University's ability to attract and retain students, any degradation in a university's reputation and reports of crime or other negative publicity regarding the safety of the students residing on, or near, the university. If a university's enrollment were to significantly decline as a result of these or other factors, our ability to achieve our leasing targets and thus our properties' financial performance could be adversely affected.

***We face significant competition from university-owned student housing and from other private student housing communities located within close proximity to universities.***

On-campus student housing traditionally has certain inherent advantages over off-campus student housing because of, among other factors, closer physical proximity to the university campus and integration of on-campus facilities into the academic community. Colleges and universities can generally avoid real estate taxes, while we and other private sector owners are subject to full real estate tax rates. Also, colleges and universities may be able to borrow funds at lower interest rates than those available to us and other private sector owners. As a result, universities may be able to offer more convenient and/or less expensive student housing than we can, which may adversely affect our occupancy and rental rates. We also compete with other national and regional owner-operators of off-campus student housing in a number of markets as well as with smaller local owner-operators. There are a number of purpose-built student housing properties that compete directly with us located near or in the same general vicinity of many of our student housing communities. Such competing student housing communities may be newer than our student housing communities, located closer to campus, charge less rent, possess more attractive amenities, or offer more services, shorter lease terms or more flexible leases. The construction of competing properties or decreases in the general levels of rents for housing at competing properties could adversely affect our rental income. We have recently seen a number of large new entrants in the student housing business and there may be additional new entrants with substantial financial and marketing resources. The entry of these companies has increased and may continue to increase competition for students and for the acquisition, development and management of other student housing properties.

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***We are subject to significant governmental tax regulations, which affect our operations and costs of conducting our business.***

Tax laws remain under constant review by persons involved in the legislative process, at the Internal Revenue Service and the U.S. Department of Treasury, and by various state and local tax authorities. Future changes in tax laws, including to the administrative interpretations thereof or to the enacted tax rates, or new pronouncements relating to accounting for income taxes, could adversely affect us in a number of ways.

***The continuing spread of a new strain of coronavirus (also known as the COVID-19 virus) may adversely affect our ability to generate revenues.***

A pandemic, including the novel coronavirus disease ("COVID-19"), has adversely affected international, national and local economies and financial markets generally, and has had an unprecedented effect on many businesses including the student housing industry. Outbreaks have led governments and other authorities around the world, including federal, state and local authorities in the United States, to impose measures intended to mitigate the spread of disease, including restrictions on freedom of movement and business operations such as issuing guidelines, travel bans, border closings, business closures, quarantine orders, and orders not allowing the collection of rents, charging late fees or eviction of non-paying tenants. These restrictions have inhibited our ability to meet in person with existing and potential residents, which could adversely impact our rental rate and occupancy levels.

A global pandemic could also result in the colleges or universities that our properties serve deciding to cancel in-person classes and/or requiring lower occupancy density in their on-campus residence halls. Additionally, our tenants could experience financial hardship due to deteriorating economic conditions, which could impact our provision for uncollectible accounts and ultimately our overall financial performance. Also, a global pandemic could impact our workforce, resulting in difficulty recruiting, retaining, training, motivating, and developing employees due to evolving health and safety protocols, changing worker expectations including those regarding flexible/remote work models, and restrictions on travel and employee mobility. We could also experience challenges in maintaining our strong corporate culture, which values communication, collaboration, and professional connection.

***Any cybersecurity-attack or other security breach of our technology systems, or those of third-party vendors we rely on, could subject us to significant liability and harm our business operations and reputation.***

Cybersecurity attacks and security breaches of our technology systems, including those of our clients and third-party vendors, may subject us to liability and harm our business operations and overall reputation. Our operations rely on the secure processing, storage and transmission of confidential and other information in its computer systems and networks. Threats to information technology systems associated with cybersecurity risks and cyber incidents continue to grow, and there have been a number of highly publicized cases involving financial services companies, consumer-based companies and other organizations reporting the unauthorized disclosure of client, customer or other confidential information in recent years. Cybersecurity risks could disrupt our operations, negatively impact our ability to compete and result in injury to our reputation, downtime, loss of revenue, and increased costs to prevent, respond to or mitigate cybersecurity events. Although we have developed, and continue to invest in, systems and processes that are designed to detect and prevent security breaches and cyber-attacks, our security measures, information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions that could result in unauthorized disclosure or loss of sensitive information; damage to our reputation; the incurrence of additional expenses; additional regulatory scrutiny or penalties; or our exposure to civil or criminal litigation and possible financial liability, any of which could have a material adverse effect on our business, financial condition and results of operations.

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**USE OF PROCEEDS**

We estimate that the net proceeds we will receive from this offering, without taking into account any sales of R Bonds, will be approximately $69,000,000 if we sell the maximum offering amount, after deducting selling commissions and fees payable to our managing broker-dealer and selling group members. As sales of R Bonds are without selling commissions or reallowance fees , the net proceeds from the offering will depend upon the sales mix of the VIP Bonds. If not all of the VIP Bonds are sold, we expect to complete the total initial investment in the order presented before proceeds are used for the initial investment in any other purpose.

We intend to use the net proceeds from this offering for growth strategies, which are expected to include: (i) real estate acquisitions; (ii) development costs; and (iii) for other general corporate purposes. No portion of the proceeds will be used to compensate our officers or directors.

There is no assurance that we will be able to utilize the net proceeds of this offering in the manner or amounts contemplated herein, or at all. The table below demonstrates our anticipated uses of offering proceeds, but the table below does not require us to use offering proceeds as indicated. Our actual use of offering proceeds will depend upon market conditions, among other considerations. The numbers in the table are approximate.

**Maximum Offering Amount**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **100% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold(8)(9)** | **100% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold(8)(9)** | **A Bonds (10)** | **A Bonds (10)** |
|  | **Amount** | **Percent** | **Amount** | **Percent** |
| Gross offering proceeds | $75000000 | 100.00% | $75000000 | 100.00% |
| Less offering expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (R Bonds)(1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (A Bonds)(1) | $3000000 | 5.00% | $3750000 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Managing broker-dealer fee(2) | $1500000 | 2.00% | $1500000 | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reallowance fee (A Bonds)(3) | $600000 | 1.00% | $750000 | 1.00% |
| Net Proceeds | $69900000 | 93.20% | $69000000 | 92.00% |
| Distribution of Net Proceeds(4) |  |  |  |  |
| Real Estate Acquisitions(5) | $44274660 | 63.34% | $43704600 | 63.34% |
| Development Costs(6) | $22137330 | 31.67% | $21852300 | 31.67% |
| Working Capital(7) | $3488010 | 4.99% | $3443100 | 4.99% |
| <br> **75% of Maximum Offering Amount** | **75% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | **75% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | <br> **A Bonds (10)** | <br> **A Bonds (10)** |
|  | **Amount** | **Percent** | **Amount** | **Percent** |
| Gross offering proceeds | $56250000 | 100.00% | $56250000 | 100.00% |
| Less offering expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (R Bonds)(1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (A Bonds)(1) | $2250000 | 5.00% | $2812500 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Managing broker-dealer fee(2) | $1125000 | 2.00% | $1125000 | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reallowance fee (A Bonds)(3) | $450000 | 1.00% | $562500 | 1.00% |
| Net Proceeds | $52425000 | 93.20% | $51750000 | 92.00% |
| Distribution of Net Proceeds(4) |  |  |  |  |
| Real Estate Acquisitions(5) | $33205995 | 63.34% | $32778450 | 63.34% |
| Development Costs(6) | $16602997.5 | 31.67% | $16389225 | 31.67% |
| Working Capital(7) | $2616007.5 | 4.99% | $2582325 | 4.99% |

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**50% of Maximum Offering Amount**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **50% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | **50% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | **A Bonds(10)** | **A Bonds(10)** |
|  | **Amount** | **Percent** | **Amount** | **Percent** |
| Gross offering proceeds | $37500000 | 100.00% | $37500000 | 100.00% |
| Less offering expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (R Bonds)(1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (A Bonds)(1) | $1500000 | 5.00% | $1875000 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Managing broker-dealer fee(2) | $750000 | 2.00% | $750000 | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reallowance fee(A Bonds)(3) | $300000 | 1.00% | $375000 | 1.00% |
| Net Proceeds | $34950000 | 93.20% | $34500000 | 92.00% |
| Distribution of Net Proceeds(4) |  |  |  |  |
| Real Estate Acquisitions(5) | $22137330 | 63.34% | $21852300 | 63.34% |
| Development Costs(6) | $11068665 | 31.67% | $10926150 | 31.67% |
| Working Capital(7) | $1744005 | 4.99% | $1721550 | 4.99% |

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**25% of Maximum Offering Amount**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **25% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | **25% of the Maximum Offering Amount with a Proportionate Amount of R Bonds and A Bonds**<br> **Sold (8)(9)** | **A Bonds(10)** | **A Bonds(10)** |
|  | **Amount** | **Percent** | **Amount** | **Percent** |
| Gross offering proceeds | $18750000 | 100.00% | $18750000 | 100.00% |
| Less offering expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (R Bonds)(1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling commissions (A Bonds)(1) | $750000 | 5.00% | $937500 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Managing broker-dealer fee(2) | $375000 | 2.00% | $375000 | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reallowance fee(A Bonds)(3) | $150000 | 1.00% | $187500 | 1.00% |
| Net Proceeds | $17475000 | 93.20% | $17250000 | 92.00% |
| Distribution of Net Proceeds(4) |  |  |  |  |
| Real Estate Acquisitions(5) | $11068665 | 63.34% | $10926150 | 63.34% |
| Development Costs(6) | $5534332.5 | 31.67% | $5463075 | 31.67% |
| Working Capital(7) | $872002.5 | 4.99% | $860775 | 4.99% |

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(1) We will pay (a) selling commissions of 5.0% of gross offering proceeds on the sale of A Bonds, (b) a managing broker-dealer fee of up to 2.00% of the gross proceeds of the offering, any portion of which may be further reallowed to a soliciting dealer, and (c) a reallowance fee of up to 1.00% of gross offering proceeds on the sale of A Bonds. The R Bonds will be sold solely to purchasers purchasing through a registered investment advisor. See "  ***Plan of Distribution – Eligibility to Purchase R Bonds*** ." We will not pay selling commissions or a reallowance fee on the sale of R Bonds; however, we will pay a managing broker-dealer fee on the sale of R Bonds. A Bonds may be sold to certain other purchasers at reduced selling commissions and fees. See "  ***Plan of Distribution – Discounts for Bonds Purchased By Certain Persons*** ." All such amounts will be paid to our managing broker-dealer.

(2) We will pay a managing broker-dealer fee of up to 2.00% of the gross offering proceeds on the sale of VIP Bonds.

(3) We will pay a reallowance fee of up to 1.00% of the gross offering proceeds on the sale of A Bonds.

(4) Distributions of net proceeds percentages are based on a percentage of the net proceeds (not gross offering proceeds).

(5) Real Estate Acquisitions refers to amounts we may fund for the initial acquisition of real property which will be subsequently syndicated in our DST programs.

(6) Development costs refer to amounts spent on improvement costs to real estate related to our single property development projects.

(7) We expect to use 4.99% of the net proceeds for working capital and G&A.

(8) This assumes the maximum offering amount is achieved if we sell the maximum amount of R Bonds in this offering.

(9) This column assumes 80% of the maximum offering are comprised of A Bonds and 20% of the maximum offering are comprised of R Bonds.

(10) This assumes we sell the maximum offering amount comprised solely of A Bonds.

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**PLAN OF DISTRIBUTION**

**Who May Invest**

As a Tier II, Regulation A offering, investors must comply with the 10% limitation on investment in the offering, as prescribed in Rule 251. The only investor in this offering exempt from this limitation is an accredited investor, an "<u>Accredited Investor</u>," as defined under Rule 501 of Regulation D. If you meet one of the following tests you qualify as an Accredited Investor:

(i) You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse (or spousal equivalent) in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year;

(ii) You are a natural person and your individual net worth, or joint net worth with your spouse (or spousal equivalent), exceeds $1,000,000 at the time you purchase the VIP Bonds (please see below on how to calculate your net worth);

(iii) You are an executive officer, director, trustee, general partner or advisory board member of the issuer or a person serving in a similar capacity as defined in the Investment Company Act of 1940, as amended, the Investment Company Act, or a manager or executive officer of the general partner of the issuer;

(iv) You are an investment adviser registered pursuant to Section 203 of the Investment Advisers Act of 1940 or an exempt reporting adviser as defined in Section 203(l) or Section 203(m) of that act, or an investment adviser registered under applicable state law.

(v) You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the Code, a corporation, a Massachusetts or similar business trust or a partnership or a limited liability company, not formed for the specific purpose of acquiring the VIP Bonds, with total assets in excess of $5,000,000;

(vi) You are an entity, with investments, as defined under the Investment Company Act, exceeding $5,000,000, and you were not formed for the specific purpose of acquiring the VIP Bonds;

(vii) You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, the Exchange Act, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940, as amended, the Investment Company Act, or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958, any Rural Business Investment Company as defined in the Consolidated Farm and Rural Development Act of 1961 or a private business development company as defined in the Investment Advisers Act of 1940;

(viii) You are an entity with total assets not less than $5,000,000 (including an Individual Retirement Account trust) in which each equity owner is an accredited investor;

(ix) You are a trust with total assets in excess of $5,000,000, your purchase of the VIP Bonds is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the VIP Bonds;

(x) You are a family client of a family office, as defined in the Investment Advisers Act, with total assets not less than $5,000,000, your purchase of the VIP Bonds is directed by a person who has such knowledge and experience in financial and business matters that the family office is capable of evaluating the merits and risks of the prospective investment, and the family office was not formed for the specific purpose of investing in the VIP Bonds;

(xi) You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000; or

(xii) You are a holder in good standing of certain professional certifications or designations, including the Financial Industry Regulatory Authority, Inc. Licensed General Securities Representative (Series 7), Licensed Investment Adviser Representative (Series 65), or Licensed Private Securities Offerings Representative (Series 82) certifications.

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Under Rule 251 of Regulation A, **non-accredited, non-natural investors** are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser's revenue or net assets (as of the purchaser's most recent fiscal year end). A **non-accredited, natural person** may only invest funds which do not exceed 10% of the greater of the purchaser's annual income or net worth (please see below on how to calculate your net worth).

Upon maturity, and subject to the terms and conditions described in this offering circular, the VIP Bonds will be automatically renewed at the same interest rate and for the same term, unless redeemed upon maturity at our or your election. We expect that any renewal of the VIP Bonds will be required to be registered or exempt from registration under the Securities Act. If we do not redeem the VIP Bonds at or prior to maturity, including as described under "***Description of VIP Bonds – Optional Redemption***," we anticipate that we will file a new offering statement in order to qualify the renewals for an exemption from registration with the SEC under Regulation A. In such a case, the new offering statement must be declared qualified before we will be able to renew your VIP Bond.

<u>NOTE</u>: For the purposes of calculating your net worth, Net Worth is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the donor or grantor is the fiduciary and the fiduciary directly or indirectly provides funds for the purchase of the VIP Bonds.

**Determination of Suitability**

The Selling Group Members and registered investment advisors recommending the purchase of VIP Bonds in this offering have the responsibility to make every reasonable effort to determine that your purchase of VIP Bonds in this offering is a suitable and appropriate investment for you based on information provided by you regarding your financial situation and investment objectives. In making this determination, these persons have the responsibility to ascertain that you:

· · meet the minimum income and net worth standards set forth under "  ***Plan of Distribution – Who May Invest*** *"* above;

· · can reasonably benefit from an investment in the VIP Bonds based on your overall investment objectives and portfolio structure;

· · are able to bear the economic risk of the investment based on your overall financial situation;

· · are in a financial position appropriate to enable you to realize to a significant extent the benefits described in this offering circular of an investment in the VIP Bonds; and

· · have apparent understanding of:

o the fundamental risks of the investment;

o the risk that you may lose your entire investment;

o the lack of liquidity of the VIP Bonds;

o the restrictions on transferability of the VIP Bonds; and

o the tax consequences of your investment.

Relevant information for this purpose will include at least your age, investment objectives, investment experience, income, net worth, financial situation, and other investments as well as any other pertinent factors. The Selling Group Members and registered investment advisors recommending the purchase of VIP Bonds in this offering must maintain, for a six-year period, records of the information used to determine that an investment in VIP Bonds is suitable and appropriate for you.

**The Offering**

We are offering a maximum offering amount of $75,000,000 aggregate principal amount of the VIP Bonds to the public through our broker/dealer of record at a price of $1,000 per VIP Bond. The maximum offering amount of R Bonds is $15,000,000. The offering will terminate on the earliest of: (i) the date we sell the Maximum Offering Amount; (ii) the second anniversary of the date of qualification of this offering statement; or (iii) such date upon which we determine to terminate the offering, in our sole discretion. Notwithstanding the previous sentence, we have the right to extend this offering beyond the second anniversary of the date of qualification for an additional year. If we do elect to extend the offering beyond the initial three-year term, then we will be required to file a new offering statement. In such a case, the new offering statement must be declared qualified before we will be able to continue the offering past the second anniversary of the date of initial qualification.

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We have arbitrarily determined the selling price of the VIP Bonds and such price bears no relationship to our book or asset values, or to any other established criteria for valuing issued or outstanding VIP Bonds.

The VIP Bonds are being offered on a "best efforts" basis, which means generally that our broker/dealer of record is required to use only its best efforts to sell the VIP Bonds and it has no firm commitment or obligation to purchase any of the VIP Bonds. The offering will continue until the offering termination. We will conduct closings on the first and third Thursday of each month assuming there are funds to close, until the offering termination. If either day falls on a weekend or holiday, the closing will be conducted on the next business day. Once a subscription has been submitted and accepted by the Company, an investor will not have the right to request the return of its subscription payment prior to the next closing date. If subscriptions are received on a closing date and accepted by the Company prior to such closing, any such subscriptions will be closed on that closing date. If subscriptions are received on a closing date but not accepted by the Company prior to such closing, any such subscriptions will be closed on the next closing date. It is expected that settlement will occur two business days following each closing date. Two business days after the closing date, offering proceeds for that closing will be disbursed to us and the VIP Bonds purchased will be issued to the investors in the offering. If the Company is dissolved or liquidated after the acceptance of a subscription, the respective subscription payment will be returned to the subscriber. The offering is being made on a best-efforts basis through WealthForge Securities, LLC, our broker/dealer of record.

**Managing Broker-Dealer and Compensation We Will Pay for the Sale of the Bonds**

Our managing broker-dealer will receive (a) selling commissions of 5.00% of gross offering proceeds of the offering, (b) a managing broker-dealer fee of up to 2.00% gross offering proceeds of the VIP Bonds, any portion of which may be further reallowed to a soliciting dealer, and (c) a reallowance fee of up to 1.00% of gross offering proceeds of the A Bonds. Each of the foregoing items of compensation may be re-allowed in whole or in part to Selling Group Members.

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Set forth below is a table indicating the estimated compensation and expenses that will be paid in connection with the offering to our managing broker-dealer. The table below assumes only A Bonds are sold and no discounts are given to purchasers.

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|  | **Per A Bond** | **Maximum Offering Amount** |
| **Offering:** |  |  |
| Price to investor: | $1000 | $75000000 |
| Less selling commissions: | $50.00 | $3750000 |
| Less managing broker-dealer fee: | $20.00 | $1500000 |
| Less reallowance fee | $10.00 | $750000 |
| Remaining Proceeds: | $920.00 | $69000000 |

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We have agreed to indemnify our managing broker-dealer, the selling group members and selected registered investment advisors, against certain liabilities arising under the Securities Act. However, the SEC takes the position that indemnification against liabilities arising under the Securities Act is against public policy and is unenforceable.

In accordance with the rules of FINRA, the table above sets forth the nature and estimated amount of all items that will be viewed as "underwriting compensation" by FINRA that are anticipated to be paid by us in connection with the offering. The amounts shown assume we sell all the A Bonds offered hereby, and that all A Bond are sold in the offering with the maximum wholesaling fee.

It is illegal for us to pay or award any commissions or other compensation to any person engaged by you for investment advice as an inducement to such advisor to advise you to purchase the A Bonds; however, nothing herein will prohibit a registered broker-dealer or other properly licensed person from earning a sales commission in connection with a sale of the A Bonds.

**Eligibility to Purchase R Bonds**

We may only sell R Bonds and pay no selling commissions or reallowance fees in connection with the sale of such VIP Bonds in this offering to clients of an investment advisor registered under the Investment Advisers Act of 1940 or under applicable state securities laws (other than any registered investment advisor that is also registered as a broker-dealer, with the exception of clients who have "wrap" accounts which have asset-based fees with such dually registered investment advisor/broker-dealer).

**Discounts for Bonds Purchased by Certain Persons**

We may pay reduced or no selling commissions or reallowance fees in connection with the sale of VIP Bonds in this offering to:

· registered principals or representatives of our dealer-manager or a participating broker (and immediate family members of any of the foregoing persons);

· investors introduced to the managing broker-dealer by the Company or any of their respective officers, directors or affiliates, any benefit plan established exclusively for the benefit of such persons or entities, and, if approved by our board of directors, joint venture partners, consultants and other service providers;

· clients of an investment advisor registered under the Investment Advisers Act of 1940 or under applicable state securities laws (other than any registered investment advisor that is also registered as a broker-dealer, with the exception of clients who have "wrap" accounts which have asset-based fees with such dually registered investment advisor/broker-dealer); or

· persons investing in a bank trust account with respect to which the authority for investment decisions made has been delegated to the bank trust department.

For purposes of the foregoing, "immediate family members" means such person's spouse, parents, children, brothers, sisters, grandparents, grandchildren and any such person who is so related by marriage such that this includes "step-" and "-in-law" relations as well as such persons so related by adoption. In addition, participating brokers contractually obligated to their clients for the payment of fees on terms inconsistent with the terms of acceptance of all or a portion of the Broker-Dealer Fees may elect not to accept all or a portion of such compensation. In that event, such VIP Bonds will be sold to the investor at a per VIP Bond purchase price, net of all or a portion of selling commissions. All sales must be made through a registered broker-dealer participating in this offering, and investment advisors must arrange for the placement of sales accordingly through the broker/dealer of record. The net proceeds to us will not be affected by reducing or eliminating Broker-Dealer Fees payable in connection with sales to or through the persons described above. Purchasers purchasing net of some or all of the Broker-Dealer Fees will receive VIP Bonds in principal amount of $1,000 per VIP Bond purchased.

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Either through this offering or subsequently on any secondary market, affiliates of our Company may buy VIP Bonds if and when they choose. There are no restrictions to these purchases. Affiliates that become Bondholders will have rights on parity with all other Bondholders.

**How to Invest**

*Subscription Agreement*

All investors will be required to complete and execute a subscription agreement. The subscription agreement is available from your registered representative or financial adviser and should be delivered to WealthForge Securities , Attn: Versity Invest, LLC – VIP Bonds, 3015 W. Moore Street, Suite 102, Richmond, VA 23230 together with payment in full by check, ACH or wire of your subscription purchase price in accordance with the instructions in the subscription agreement. All checks should be made payable to "Versity Invest, LLC – VIP Bonds" We will hold closings on the first and third Thursday of each month assuming there are funds to close. Once a subscription has been submitted and accepted by the Company, an investor will not have the right to request the return of its subscription payment prior to the next closing date. If subscriptions are received on a closing date and accepted by the Company prior to such closing, any such subscriptions will be closed on that closing date. If subscriptions are received on a closing date but not accepted by the Company prior to such closing, any such subscriptions will be closed on the next closing date. It is expected that settlement will occur two business days following each closing date. Two business days after the closing date, offering proceeds for that closing will be disbursed to us and the VIP Bonds purchased will be issued to the investors in the offering. If the Company is dissolved or liquidated after the acceptance of a subscription, the respective subscription payment will be returned to the subscriber.

By completing and executing your subscription agreement you will also acknowledge and represent that you have received a copy of this offering circular, you are purchasing the VIP Bonds for your own account and that your rights and responsibilities regarding your VIP Bonds will be governed by the Indenture and the form of VIP Bond certificate each included as an exhibit to this offering circular.

**Book-Entry, Delivery and Form**

&nbsp;&nbsp;&nbsp;&nbsp;The VIP Bonds purchased through a participant in the Depository Trust Company, or DTC, will be evidenced by global bond certificates deposited with a nominee holder, either DTC or its nominee Cede & Co. VIP Bonds purchased directly will be registered in book-entry form only on the books and records of UMB in the name of Phoenix American as record holder of such VIP Bonds for the benefit of such direct purchasers.

We intend to gain eligibility for the VIP Bonds to be issued and held through the book-entry systems and procedures of DTC prior to the initial closing of the offering and intend for all VIP Bonds purchased through DTC participants to be held via DTC's book-entry systems and to be represented by certificates registered in the name of Cede & Co. (DTC's nominee). For investors not purchasing through a DTC participant, the ownership of such VIP Bonds will be reflected on the books and records of UMB in the name of Phoenix American as record holder of such VIP Bonds for the benefit of such direct purchasers.

So long as nominees, as described above, are the registered owners of the certificates representing the VIP Bonds, such nominees will be considered the sole owners and holders of the VIP Bonds for all purposes and the indenture. Owners of beneficial interests in the VIP Bonds will not be entitled to have the certificates registered in their names, will not receive or be entitled to receive physical delivery of the VIP Bonds in definite form and will not be considered the owners or holders under the indenture, including for purposes of receiving any reports delivered by us or the trustee pursuant to the indenture. Accordingly, each person owning a beneficial interest in a VIP Bond registered to DTC or its nominee must rely on either the procedures of DTC or its nominee on the one hand, and, if such entity is not a participant, on the procedures of the participant through which such person owns its interest, in order to exercise any rights of a Bondholder. A Purchaser owning a VIP Bond directly registered with Phoenix American will directly exercise its rights as a Bondholder.

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As a result:

· all references in this offering circular to actions by Bondholders will refer to actions taken by DTC upon instructions from its direct participants; and

· all references in this offering circular to payments and notices to Bondholders will refer either to (i) payments and notices to DTC or Cede & Co. for distribution to you in accordance with DTC procedures, or (ii) payments and notices to Bondholders through UMB Bank in accordance with their applicable procedures.

*The Depository Trust Company*

We have obtained the information in this section concerning DTC and its book-entry systems and procedures from sources that we believe to be reliable. The description of the clearing system in this section reflects our understanding of the rules and procedures of DTC as they are currently in effect. DTC could change its rules and procedures at any time.

DTC will act as securities depositary for the VIP Bonds registered in the name of its nominee, Cede & Co. DTC is:

· a limited-purpose trust company organized under the New York Banking Law;

· a "banking organization" under the New York Banking Law;

· a member of the Federal Reserve System;

· a "clearing corporation" under the New York Uniform Commercial Code; and

· a "clearing agency" registered under the provisions of Section 17A of the Exchange Act.

DTC holds securities that its direct participants deposit with DTC. DTC facilitates the settlement among direct participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in direct participants' accounts, thereby eliminating the need for physical movement of securities certificates.

Direct participants of DTC include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is owned by a number of its direct participants. Indirect participants of DTC, such as securities brokers and dealers, banks, and trust companies, can also access the DTC system if they maintain a custodial relationship with a direct participant.

Purchases of VIP Bonds under DTC's system must be made by or through direct participants, which will receive a credit for the VIP Bonds on DTC's records. The ownership interest of each beneficial owner is in turn to be recorded on the records of direct participants and indirect participants. Beneficial owners will not receive written confirmation from DTC of their purchase, but beneficial owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the direct participants or indirect participants through which such beneficial owners entered into the transaction. Transfers of ownership interests in the VIP Bonds are to be accomplished by entries made on the books of participants acting on behalf of beneficial owners. Beneficial owners will not receive certificates representing their ownership interests in the VIP Bonds.

Conveyance of notices and other communications by DTC to direct participants, by direct participants to indirect participants and by direct participants and indirect participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

*Phoenix American Financial Services, Inc.*

All VIP Bonds not purchased through a DTC participant will be registered in book-entry form only on the books and records of UMB in the name of Phoenix American as record holder of such VIP Bonds for the benefit of such direct purchasers. Beneficial owners registered through Phoenix American will receive written confirmation from Phoenix American Financial Services, Inc. upon closing of their purchases. Transfers of VIP Bonds registered to Phoenix American will be accomplished by entries made on the books of UMB Bank, N.A. at the direction of Phoenix American acting on behalf of its beneficial holders.

*Book-Entry Format*

Under the book-entry format, UMB, as our paying agent, will pay interest or principal payments to Cede & Co., as nominee of DTC or directly to Phoenix American. Phoenix American can elect for us to pay them directly upon written notice to UMB as paying agent. DTC will forward all payments it receives to the direct participants, who will then forward the payment to the indirect participants or to you as the beneficial owner. Phoenix American will forward payments directly to beneficial owners of VIP Bonds registered to Phoenix American. You may experience some delay in receiving your payments under this system. Neither we, the trustee, nor the paying agent has any direct responsibility or liability for the payment of principal or interest on the VIP Bonds to owners of beneficial interests in the certificates.

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DTC is required to make book-entry transfers on behalf of its direct participants and is required to receive and transmit payments of principal, premium, if any, and interest on the VIP Bonds. Any direct participant or indirect participant with which you have an account is similarly required to make book-entry transfers and to receive and transmit payments with respect to the VIP Bonds on your behalf. We and the trustee under the indenture have no responsibility for any aspect of the actions of DTC or any of its direct or indirect participants or of Phoenix American. In addition, we and the trustee under the indenture have no responsibility or liability for any aspect of the records kept by DTC or any of its direct or indirect participants or Phoenix American relating to or payments made on account of beneficial ownership interests in the VIP Bonds or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. We also do not supervise these systems in any way.

The trustee will not recognize you as a Bondholder under the Indenture, and you can only exercise the rights of a Bondholder indirectly through DTC and its direct participants or through Phoenix American, as applicable. DTC has advised us that it will only take action regarding a VIP Bond if one or more of the direct participants to whom the VIP Bond is credited directs DTC to take such action and only in respect of the portion of the aggregate principal amount of the VIP Bonds as to which that participant or participants has or have given that direction. DTC can only act on behalf of its direct participants. Your ability to pledge VIP Bonds, and to take other actions, may be limited because you will not possess a physical certificate that represents your VIP Bonds.

If the global bond certificate representing VIP Bonds is held by DTC, conveyance of notices and other communications by the trustee to the beneficial owners, and vice versa, will occur via DTC. The trustee will communicate directly with DTC. DTC will then communicate to direct participants. The direct participants will communicate with the indirect participants, if any. Then, direct participants and indirect participants will communicate to beneficial owners. Such communications will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

If the global bond certificate representing your VIP Bonds is held by Phoenix American, conveyance of notices and other communications by the trustee to the beneficial owners, and vice versa, will occur via Phoenix American. The trustee will communicate directly with Phoenix American, which will communicate directly with the beneficial owners.

**The Trustee**

UMB Bank has agreed to be the trustee under the indenture. The indenture contains certain limitations on the rights of the trustee, should it become one of our creditors, to obtain payment of claims in certain cases, or to realize on certain property received in respect of any claim as security or otherwise. The trustee will be permitted to engage in other transactions with us and our affiliates.

The indenture provides that in case an event of default specified in the indenture shall occur and not be cured, the trustee will be required, in the exercise of its power, to use the degree of care of a reasonable person in the conduct of his own affairs. Subject to such provisions, the trustee will be under no obligation to exercise any of its rights or powers under the indenture at the request of any Bondholder, unless the Bondholder has offered to the trustee security and indemnity satisfactory to it against any loss, liability, or expense.

*Resignation or Removal of the Trustee.*

The trustee may resign at any time or may be removed by the holders of a majority of the principal amount of then-outstanding VIP Bonds. In addition, upon the occurrence of contingencies relating generally to the insolvency of the trustee, we may remove the trustee, or a court of competent jurisdiction may remove the trustee, upon petition of a holder of certificates. However, no resignation or removal of the trustee may become effective until a successor trustee has been appointed.

We are offering the VIP Bonds pursuant to an exemption to the Trust Indenture Act of 1939, or the Trust Indenture Act. As a result, investors in the VIP Bonds will not be afforded the benefits and protections of the Trust Indenture Act. However, in certain circumstances, the indenture makes reference to the substantive provisions of the Trust Indenture Act.

**Registrar and Paying Agent**

We have designated UMB Bank, N.A. as paying agent. UMB Bank, N.A. will also act as trustee under the indenture and registrar for the VIP Bonds. As such, UMB Bank, N.A. will make payments on the VIP Bonds to DTC or to Phoenix American (who will forward such payments to the applicable Bondholders). Phoenix American can elect for us to pay them directly upon written notice to UMB as paying agent. The VIP Bonds will be issued in book-entry form only, evidenced by global certificates, as such, payments are being made to DTC, its nominee or to Phoenix American.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Overview**

We are a real estate development and asset management company focusing in multi-family, student housing, and hospitality projects across the US. Occasionally, we may undertake projects in other asset classes. We acquire our properties through investment programs we sponsor which are targeted towards income-seeking investors with the objective of providing those investors with long-term, stable cash-flow. We create our revenue by providing organization, acquisition, development management and asset management services to our various programs. We also provide contracted asset management services to other owners and operators of real estate for properties in the same asset classes that we target for our own acquisition and development operations.

We currently provide our services to the following programs or types of programs:

· Delaware Statutory Trusts ("DST"), with an emphasis on student housing and market rate multi-family properties designed primarily for 1031 exchange transactions.

· Single property development programs, strategically located and with an emphasis on adding additional beds and/or amenities.

We intend shortly to privately offer one or more REIT structures to acquire and actively manage diversified portfolios of stabilized, income-oriented student housing properties located in the United States near Top 100 Colleges (as ranked by U.S. News and World Report) with enrollments of over 20,000 students. We will focus on investments in core, stabilized student housing properties, however we may also selectively invest in development or value-add student housing properties.

We primarily generate revenue from fees earned pursuant to management and other agreements that either we or our wholly-owned operating subsidiaries have with our respective investment programs. These include acquisition fees, disposition fees, management fees, development and construction fees, participation in property level cash flows and profit participations.

**Operating Results**

In the period ending June 30, 2022, net income was $5,090,790 due to revenue of $14,828,571 net of expenses of $10,968,050 and noncontrolling interest loss of $1,230,269. Total operating revenue was $14,828,571 comprised of acquisition fees of $12,365,500, real estate sales of $2,119,805, asset management fees of $235,044 and other revenue of $107,555. For the reporting period, acquisition fees accounted for approximately 83% of the total revenues, and were earned primarily from three separate DST transactions: Vintage (Orlando, FL), The Walk (Tuscaloosa, AL) and Hayworth (Houston, TX).

**Liquidity and Capital Resources**

Our principal demands for cash will be for property or land acquisitions, costs of development projects and general overhead; and payment of fees associated with the launch of one of our REITs over the next twelve (12) months.

We are offering and selling to the public up to $75,000,000 of our VIP Bonds. Our cash on hand as of June 30, 2022, was $7,700,506. We expect to fund our operating and administrative expenses with our cash on hand and cash from operations, accessing our existing credit facilities and the proceeds of this offering. We maintain three revolving credit facilities of $15,000,000, each, issued by Nelson Brothers Student Housing and Assisted Living Holdings, LLC, NB Student Housing Fund II, LLC, and NB Student Housing Fund III, LLC, respectively, and each will mature April 21, 2032. These lines are referred to herein collectively as the Unsecured Lines. As of June 30, 2022, the total amounts outstanding on the Unsecured Lines were $7,122,687, in the aggregate.

We also had borrowed, as of June 30, 2022, $1,451,733 from Versity Investments, LLC. There is no specified due date for this obligation.

As of June 30, 2022, we had $1,522,501 outstanding on a term loan from Versity Investments Income Fund II, which is payable as of December 31, 2024.

Our wholly-owned subsidiaries Versity EquityCo, LLC, and Versity EquityCo II, LLC, collectively referred to as EquityCo., received a senior secured line of credit from Crayhill Capital Management, in an aggregate principal amount of up to $50,000,000 which may be further increased up to an aggregate principal amount of $200,000,000. As of June 30, 2022, the credit line was increased to $87,500,000, and had $86,769,638 outstanding under this facility. This line of credit is intended to facilitate the acquisition of properties for our DST programs. See **General Information About Our Company – Current Indebtedness** for more information.

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**Plan of Operations**

Over the next twelve months of operations, we intend to continue our acquisitions and syndications of DST programs and development projects. We also plan to privately offer one or more REIT structures to acquire and actively manage diversified portfolios of stabilized, income-oriented student housing properties located in the United States near Top 100 Colleges (as ranked by U.S. News and World Report) with enrollments of over 20,000 students.

**Trends Affecting our Business**

We believe student housing continues to show resilience to market conditions, which should mitigate unfavorable market conditions punctuated by rising interest rates and inflationary pressures.

According to YardiMatrix National Student Housing Report – First Quarter 2023<sup>1</sup>:

· The student housing industry concluded its best year on record in 2022, and momentum is strong heading into the new year,

· Highly selective universities with name recognition are maintaining their interest among incoming students,

· The shrinking new-supply pipeline paired with the closing and consolidating of many universities nationwide will lead to more competition for housing, ultimately buoying rent growth and speeding up the rate of preleasing, and

· As of December 2022, 48% of beds at Yardi 200 universities were already leased for the fall 2023 school year, representing a new record high for this time of year. Rent growth also remained strong in December 2022, at 4.7% annual growth. With over eight months to go until the start of the next school year, we anticipate 2023 being another record-breaking year for student housing performance (see graphs on next page).

· In addition, national enrollment forecasts for students indicate likely growth, which we believe will translate to even higher performance, and rent growth, for our student offerings.

![](versity_1aimg8.jpg)

Source: Yardi Matrix Student Housing Report

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<sup>1</sup>YardiMatrix – *Matrix Student Housing Report – Q1 2023* (January 2023): https://www.yardimatrix.com/publications/download/file/3346-MatrixStudentHousingReport-Q12023

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![](versity_1aimg9.jpg)

![](versity_1aimg10.jpg)

Beginning in late 2022 and continuing into the first quarter of 2023, DST sales nationally have slowed. As an industry, DST sales were down 62% in Q4 of 2022. This could materially affect our ability to syndicate new projects in 2023, thus decreasing our acquisition fees. However, we have taken steps over the last 18 months to mitigate any such slowdown. In particular, we have grown our distribution network for our DST programs to over 35 broker-dealers.

Based on our research, we also believe that there are a significant number of DST programs nationally that are scheduled in 2023 to sell, due in large part because their mortgages are scheduled to mature, and Revenue Ruling 2004-86 does not permit DSTs that qualify for use in IRC Section 1031 tax-deferred exchanges to refinance, or to modify their debt. Accordingly, we believe these projects are likely to sell, creating a very large amount of capital that will need to be tax deferred into new DST projects through 1031 exchanges.

Over the past several years, investors of all types appear to have meaningfully increased their capital allocations to alternative investment strategies. We expect this current trend will continue as the combination of volatile returns in public equities and volatility on traditional fixed income investments shifts investor focus to the lower correlated and absolute levels of returns offered by alternative assets.

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**GENERAL INFORMATION ABOUT OUR COMPANY**

**Overview**

We are a real estate development and asset management company focusing in multi-family, student housing, and hospitality projects across the US. Occasionally, we may undertake projects in other asset classes. We acquire our properties through investment programs we sponsor which are targeted towards income-seeking investors with the objective of providing those investors with long-term, stable cash-flow. We create our revenue by providing organization, acquisition, development management and asset management services to our various programs. We also provide contracted asset management services to other owners and operators of real estate for properties in the same asset classes that we target for our own acquisition and development operations.

We currently provide our services to the following programs or types of programs:

· Delaware Statutory Trusts ("DST"), designed primarily for 1031 exchange transactions, with an emphasis on student housing and market rate multi-family properties.

· Single property development programs, strategically located and with an emphasis on adding additional beds and/or amenities.

We intend shortly to privately offer one or more REIT structures to acquire and actively manage diversified portfolios of stabilized, income-oriented student housing properties located in the United States near Top 100 Colleges (as ranked by U.S. News and World Reports) with enrollments of over 20,000 students. We will focus on investments in core, stabilized student housing properties, however we may also selectively invest in development or value-add student housing properties.

**Investment Strategy**

The Company believes that well-positioned student housing properties have the potential to offer investors monthly cash flow, stable performance, inflation-friendly value, appreciation, and tax efficiency through depreciation, all from a brick-and-mortar asset anchored by the historical stability of a university. The Company's student housing strategy targets multi-family properties that cater to the top 100 colleges across the United States with enrollments of over 20,000 students and that are located within walking distance from campus. However, the Company will also look into possible expansion into select growth markets.

The Company also looks to invest in high-quality, core/core-plus multi-family assets located in markets exhibiting job growth, population growth, and strong investment drivers across the U.S. The Company's multi-family strategy focuses on long-term investments from $25 million to $100 million in markets with market occupancy rates of mid-90% or higher and targets the following major metropolitan areas across the U.S., with possible expansion into select growth markets:

· Mid-Atlantic – D.C./Maryland/Virginia and Charlotte and Raleigh-Durham, North Carolina;

· Southeast – Atlanta, Georgia, Charleston, South Carolina, Memphis and Nashville, Tennessee, and Miami, Orlando, and Tampa, Florida;

· South – Austin, Dallas, and Houston, Texas;

· West – Los Angeles, San Diego, and San Francisco Bay Area, California, and Phoenix, Arizona;

· Mountain – Denver, Colorado and Salt Lake City, Utah

**DST Programs**

Currently, our business is predominated by our DST real estate transactions. Our DSTs are intended to comply with IRS Revenue Ruling 2004-86, the Revenue Ruling, which provides requirements for structuring the DST so that the beneficial interests of the DST will be deemed as a direct interest in real estate, and thus allowing the beneficial interests to be used as replacement property in IRC Section 1031 tax-deferred exchanges. Thus, DST are an option for investors looking to defer capital gains taxes by rolling the proceeds of a sale of investment real estate into a new real estate asset. The fractional ownership structure of DSTs gives solo investors access to commercial-grade real estate assets that are similar to those owned by institutional investors, insurance companies, pension funds and real estate investment trusts (REITs). We concentrate primarily on student housing and market-rate multi-family projects for our DST investments. Beneficial interests in our sponsored DST programs are privately-offered pursuant to Rule 506(b) of Regulation D, promulgated pursuant to the Securities Act, through FINRA-registered securities broker-dealers.

We use DSTs as a means to acquire real estate which we can then operate on behalf of the investors. In a typical transaction, we would contract to purchase the identified property. We will arrange mortgage financing in the name of the DST and provide the additional funds to the DST, primarily sourced from draws on the Crayhill Line (described below), necessary to close the acquisition through a wholly-owned subsidiary we establish, or the Depositor. The Depositor contributes those funds to the DST in exchange for 100% of the beneficial interests, which the DST has the right to redeem back as actual investors purchase beneficial interests in the DST. Our objective in each DST syndication is to sell 100% of the beneficial interests to third party investors.

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We earn an acquisition fee for arranging the acquisition of the property, agreeing to operate the property, and selling the fractional interests in the property through the broker-dealer channel. Typically, this fee is equal to approximately 3-5% of the purchase price of the real estate, though the fee may vary. We also earn a disposition fee upon the sale of the asset (typically 5-7 years after acquisition), typically around 3% of the sales price, as well as an asset management fee equal to 1% of gross rents. Finally, if there are any capital expenditures or other construction efforts, we will earn a fee equal to roughly 0.5-1% of the cost of construction. The fees are paid out of equity proceeds raised from investors and cash flows from the property. In addition, we are reimbursed for underwriting, due diligence, administrative and closing costs.

Because the DST cannot engage in ongoing leasing activity, we form a subsidiary to master lease all the improvements associated with the property from the DST, or a Master Lease. This entity then operates the project and leases to individual tenants. As rent under the Mater Lease, our subsidiary pays the DST monthly rent comprised of: (a) the monthly debt service under any debt financing related to the acquisition of the property, (b) an established yield on investment, and (c) stated rent in amounts as set forth in the lease. Moreover, our tenant subsidiary generally pays to the DST 50% of the amount that the total operating income from the property exceeds a pre-established threshold for the applicable 12-month period, and our tenant subsidiary retains the remaining amounts.

*Previous DST Transactions* 

The following briefly describes select DST syndications which we have completed, meaning that 100% of the DST interests have been sold to third party investors and is for illustrative purposes only. We currently have 3 other DST's currently being offered, or planned to be offered, to investors through private offerings, totaling $181,270,559.

*Vintage ("Vintage Trust")* – The Company offered $87,963,540 of DST Interests (the "Vintage Interests") in Vintage Trust, which included the purchase price of the property, as well as associated fees to us and fees and compensation to participating broker-dealers. The Vintage Trust acquired the property on April 12, 2022 for a purchase price of $119,600,000. The Vintage Trust obtained the loan in the principal amount of $52,356,000. The interest rate of the loan is fixed at 4.56%. The loan has a term of ten years and requires monthly, interest-only payments for the first five years. For years six through ten of the loan, Vintage Trust is required to make monthly payments of both principal and interests, with principal amortizing on a 30-year schedule. Concurrent with acquiring the property, Vintage Trust leased the property to Vintage LeaseCo, LLC, which then subleases the property to residential tenants. Upon the sale of the property, Vintage LeaseCo, LLC will be entitled to receive a disposition fee in an amount up to 3.0% of the gross sales price of the property. Vintage LeaseCo, LLC will pay the Company an asset management fee of 1.0% of the gross revenue on a monthly basis for use and occupancy of the property. Vintage LeaseCo, LLC will pay a monthly property management fee to an affiliate of the Company of 2.5% of the gross revenues from the property.

The property is a multi-family residential community located at 9223 Vintage Hills Way, Winter Garden, Florida 34787 known as "Vintage Horizon West." The property consists of one parcel of land approximately 18.33 acres in size, upon which are situated ten three-story and one four-story garden apartment buildings containing approximately 342,869 square feet of net rentable residential area across 340 units. Community amenities include resort-style pool with cabanas, public and private lounge, meeting and conference spaces, coffee and wine bar, state of the art fitness center with separate spin bike and high-intensity training studio, community park with outdoor fitness equipment, hammocks and outdoor fire pit, grilling station, pet park, covered patio with outdoor fireplace, pool table, chess, shuffleboard and corn hole, walking trails and 24-hour parcel package room and cold food storage. The property includes 504 open surface parking spaces, 13 handicap spaces, 64 individual garage spaces, and 64 tandem surface spaces in front of the garages. As of February 20, 2023, the property was approximately 90% leased to residents.

*The Walk, DST ("The Walk Trust")* – The Company offered $24,694,414 of DST Interests (the "The Walk Interests") in The Walk Trust which included the purchase price of the property, as well as associated fees and compensation to participating broker-dealers. The Walk Trust acquired the property on April 29, 2022 for a purchase price of $25,500,000. The Walk Trust obtained the loan in the principal amount of $27,834,000. The loan has a term of seven years and requires monthly, interest-only payments for the first five years. For years six and seven of the loan, The Walk Trust will be required to make monthly payments of both principal and interest, with principal amortizing on a 25-year schedule. Concurrent with acquiring the property, The Walk Trust leased the property to The Walk LeaseCo, LLC, which then subleases the property to residential tenants. Upon the sale of the property, The Walk LeaseCo, LLC will be entitled to receive a disposition fee in an amount up to 3.0% of the gross sales price of the property. The Walk LeaseCo, LLC will pay the Company an asset management fee of 1.0% of the gross revenue on a monthly basis for use and occupancy of the property. The Walk LeaseCo, LLC will pay a monthly property management fee to an affiliate of the Company of 3.0% of the gross revenues from the property.

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The property is a mid-rise, Class A student-housing community located adjacent to the University of Alabama at 899 12<sup>th</sup> Street, Tuscaloosa, Alabama 35401 known as "The Walk." The property consists of a single parcel of land approximately 0.92 acres in size, upon which is situated a single, four-story apartment building containing approximately 85,083 square feet of net rentable residential area across 87 units and 251 beds. Amenities include community lounge, 12-foot outdoor television, pool with tanning deck, state of the art fitness center with fitness on demand classes and stand-up tanning, grilling station, firepit lounge and outdoor relaxation courtyard with life sized games, group study room, computer room and secured bike parking room. The property includes a gated, four-level subterranean parking garage with 253 parking spaces. As of April 15, 2022, the property was approximately 84% occupied by residents and approximately 95% pre-leased for the 2022/23 academic year.

**Single Property Development Projects**

Our in-house development team has extensive experience in all areas of the single property development process, from entitlement to completion. Development is synergistic with our other lines of business as we are able to, when circumstances permit, exit development investors into a DST structure, and potentially into the REIT's in the future. This determination is made based on which outcome provides the best returns for the development investor/partner.

We capitalize our development funds through sponsored LLC programs privately offered pursuant to Rule 506(b) and 506(c) of Regulation D, promulgated pursuant to the Securities Act, through FINRA-registered securities broker-dealers. In addition, we work with family offices, investment advisors and institutional partners in joint ventures structures when able. A typical development project will yield development fees, construction management fees, and participation by way of a promote on the back end through a standard promote structure.

**Private Student Housing REIT's**

We intend shortly to privately offer one or more REIT structures to acquire and actively manage diversified portfolios of stabilized, income-oriented student housing properties located in the United States near Top 100 Colleges (as ranked by U.S. News and World Reports) with enrollments of over 20,000 students. We will focus on investments in core, stabilized student housing properties, however we may also selectively invest in development or value-add student housing properties.

We anticipate that an affiliate, one of our wholly-owned subsidiaries, will externally advise the REIT structures. The affiliate will receive reimbursements for organizational and offering expenses as well as for operating expenses. We also anticipate charging a management fee, acquisition fees, and disposition fees, as well as a performance participation allocation, which will entitle us to receive an allocation equal to a percentage of the total return, subject to a particular hurdle amount and a high-water mark. Such allocation will be made annually and accrue quarterly.

**Current Indebtedness**

<u>Unsecured Indebtedness</u>

We maintain three revolving credit facilities of $15,000,000, each, which are collectively referred to herein as the Unsecured Lines, issued by Nelson Brothers Student Housing and Assisted Living Holdings, LLC, NB Student Housing Fund II, LLC, and NB Student Housing Fund III, LLC. Each will mature April 21, 2032.

As of June 30, 2022, we had $7,122,687, in the aggregate outstanding on the Unsecured Lines. During the same period, we borrowed $1,451,733 from Versity Investments, LLC, for which there is not a specified repayment date, and $1,522,501 under a term loan from Versity Investments Income Fund II, which is payable as of December 31, 2024.

As of December 31, 2022, $6,696,619 in the aggregate was outstanding on the Unsecured Lines. We also borrowed an additional $202,499 from Versity Investments Income Fund II, thereby increasing our debt obligation to $1,705,000, and paid down our loan from Versity Investments, LLC to $1,245,181.

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<u>Secured Indebtedness</u>

EquityCo., entered into a Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022, or the Crayhill Line, for a senior secured loan from special purpose entities wholly owned by Crayhill Capital Management, or Crayhill, in an aggregate principal amount of up to $50,000,000, which may be further increased up to an aggregate principal amount of $200,000,000. As of June 30, 2022, the credit line was increased to $87,500,000, and had $86,769,638 outstanding under this facility. The line was increased to $102,000,000 on July 7, 2022 in order to fund the closing of the One on Fourth DST acquisition. The Crayhill line is intended to assist with the acquisition of properties in our DST Programs. The outstanding amount of the line is $70,853,596 as of December 31, 2022.

EquityCo. is the parent to each of the Depositor entities we establish for our DST programs. EquityCo. can draw on the Crayhill line for funds to contribute to the applicable Depositor entity, and the Depositor, in turn, contributes the funds to the DST for 100% of the beneficial interests of the DST. As collateral for the borrowed funds, Borrower pledges to Crayhill 100% of its membership interest in the Depositor. Drawn amounts are repaid from proceeds of redemption of beneficial interests by the DST from the Depositor. See "***DST Programs***" in this section for further information. As additional collateral for drawn funds, Versity EquityCo, LLC also pledges to Crayhill all other assets that it owns, however, Versity EquityCo, LLC is not expected to own any assets other than the membership interest in each Initial Beneficiary Depositor. Versity EquityCo. II Parent, LLC, the parent of EquityCo. and our wholly-owned subsidiary, has also pledged to Crayhill 100% of its membership interest in EquityCo. as collateral for the borrowed funds.

**Key Provisions of Our Operating Agreement**

<u>Governance</u>

Blake W. Wettengel and Tanya E. Muro are the Founding Members of Versity Invest, LLC, which was formed on March 17, 2022, and are the Managers of this entity. The Company's business, property, and affairs are exercised under the director of the Managers. The entity is authorized to issue one class of Membership Interests, which are designated as Common Units. The Common Units are divided into three classes which are designated as "Class A Common Units," "Class B Common Units," and "Class C Common Units." The Class A Common Units and Class B Common Units are identical in all respects except Class B Common Units are not entitled to vote on any matter on which the Members of the Company are entitled to vote. The Class C Common Units may only be issued to certain employees, managers, and other service providers to the Company. A majority of the Class A Common Units is sufficient to approve, among other items, sales and leases of the Company's property outside the ordinary course of business, a merger of the Company, and any other act outside the ordinary course of the Company's activities.

<u>Drag-Along Rights</u>

If (i) the Managers, and (ii) the holders of Class A Common Units which taken together exceed seventy percent (70%) of the aggregate of all Percentage Interests of the holders of Class A Common Units (collectively, the "Drag-Along Sellers"), propose to sell to any Person, in any transaction or series of transactions, Common Units accounting for at least seventy percent (70%) of the aggregate of all Percentage Interests of all Members holding Common Units, or substantially all of the assets of the Company, then the Drag-Along Sellers may require all of the other Members to sell all of their Common Units alongside the Drag-Along Sellers. The Drag-Along Sellers must give notice to the Company and the other Members that they are exercising this right.

<u>Rights of First Refusal</u>

Each time a Member proposes to transfer or sell his or her Membership Interest other than for permitted transfers, this Member must first offer such Membership Interests to each remaining holder of Class A Common Units for a period of 90 days, after which the Member will be free to transfer their Membership Interests.

<u>Indemnification</u>

The Company will indemnify any Member or Manager who was or is a party to any threatened, pending, or completed proceeding or suit, whether formal or informal, unless such Person has engaged in willful misconduct or a knowing violation of criminal law. The Company will promptly make advances or reimbursements for reasonable expenses (including attorneys' fees) incurred by any person claiming indemnification, unless it has been determined that such Person fails to meet the standards for indemnification.

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**Our Organizational Structure**

Below is an organization chart that provides an overview of our organizational structure:

![](versity_1aimg11.jpg)

1 – Sponsor DST syndications and receive acquisition and asset management fees from DST's.

2 – Depositor will be a wholly-owned subsidiary of ours, receives funds from either us directly, or is provided through the EquityCo Parent II/EquityCo II from the Crayhill Line.

3 – The Depositor contributes those funds to the DST in exchange for 100% of the beneficial interests, which the DST has the right to redeem back as investors purchase beneficial interests in the DST. The objective in each DST syndication is to sell 100% of the beneficial interests to third party investors.

4 – We are/will be the sponsor of our development project entities and REIT's. The objective is to sell 100% of ownership to third party investors.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS**

The following discussion is a summary of certain material U.S. federal income tax consequences relevant to the purchase, ownership and disposition of the VIP Bonds, but does not purport to be a complete analysis of all potential tax consequences. The discussion is based upon the Code, current, temporary and proposed U.S. Treasury regulations issued under the Code, or collectively the Treasury Regulations, the legislative history of the Code, IRS rulings, pronouncements, interpretations and practices, and judicial decisions now in effect, all of which are subject to change at any time. Any such change may be applied retroactively in a manner that could adversely affect a Bondholder. This discussion does not address all of the U.S. federal income tax consequences that may be relevant to a holder in light of such Bondholder's particular circumstances or to Bondholders subject to special rules, including, without limitation:

· a broker-dealer or a dealer in securities or currencies;

· an S corporation;

· a bank, thrift or other financial institution;

· a regulated investment company or a real estate investment trust;

· an insurance company

· a tax-exempt organization;

· a person subject to the alternative minimum tax provisions of the Code;

· a person holding the VIP Bonds as part of a hedge, straddle, conversion, integrated or other risk reduction or constructive sale transaction;

· a partnership or other pass-through entity;

· a person deemed to sell the VIP Bonds under the constructive sale provisions of the Code;

· a U.S. person whose "functional currency" is not the U.S. dollar; or

· a U.S. expatriate or former long-term resident.

In addition, this discussion is limited to persons that purchase the VIP Bonds in this offering for cash and that hold the VIP Bonds as "capital assets" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address the effect of any applicable state, local, non-U.S. or other tax laws, including gift and estate tax laws.

As used herein, "U.S. Holder" means a beneficial owner of the VIP Bonds that is, for U.S. federal income tax purposes:

· an individual who is a citizen or resident of the U.S.;

· a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the U.S., any state thereof or the District of Columbia;

· an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

· a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more U.S. persons that have the authority to control all substantial decisions of the trust, or (2) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

If an entity treated as a partnership for U.S. federal income tax purposes holds the VIP Bonds, the tax treatment of an owner of the entity generally will depend upon the status of the particular owner and the activities of the entity. If you are an owner of an entity treated as a partnership for U.S. federal income tax purposes, you should consult your tax advisor regarding the tax consequences of the purchase, ownership and disposition of the VIP Bonds.

We have not sought and will not seek any rulings from the IRS with respect to the matters discussed below. There can be no assurance that the IRS will not take a different position concerning the tax consequences of the purchase, ownership or disposition of the Bonds or that any such position would not be sustained.

**THIS SUMMARY OF MATERIAL FEDERAL INCOME TAX CONSIDERATIONS IS FOR GENERAL INFORMATION ONLY AND DOES NOT CONSTITUTE TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE APPLICATION OF THE TAX CONSIDERATIONS DISCUSSED BELOW TO THEIR PARTICULAR SITUATIONS, POTENTIAL CHANGES IN APPLICABLE TAX LAWS AND THE APPLICATION OF ANY STATE, LOCAL, FOREIGN OR OTHER TAX LAWS, INCLUDING GIFT AND ESTATE TAX LAWS, AND ANY TAX TREATIES.**

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**U.S. Holders**

*Interest*

U.S. Holder generally will be required to recognize and include in gross income any stated interest as ordinary income at the time it is paid or accrued on the VIP Bonds in accordance with such holder's method of accounting for U.S. federal income tax purposes.

*Sale or Other Taxable Disposition of the Bonds*

A U.S. Holder will recognize gain or loss on the sale, exchange, redemption (including a partial redemption), retirement or other taxable disposition of a VIP Bond equal to the difference between the sum of the cash and the fair market value of any property received in exchange therefore (less a portion allocable to any accrued and unpaid stated interest, which generally will be taxable as ordinary income if not previously included in such holder's income) and the U.S. Holder's adjusted tax basis in the VIP Bond. A U.S. Holder's adjusted tax basis in a VIP Bond (or a portion thereof) generally will be the U.S. Holder's cost therefore decreased by any payment on the VIP Bond other than a payment of qualified stated interest. This gain or loss will generally constitute capital gain or loss. In the case of a non-corporate U.S. Holder, including an individual, if the VIP Bond has been held for more than one year, such capital gain may be subject to reduced federal income tax rates. The deductibility of capital losses is subject to certain limitations.

*Medicare Tax*

Certain individuals, trusts and estates are subject to a Medicare tax of 3.8% on the lesser of (i) "net investment income," or (ii) the excess of modified adjusted gross income over a threshold amount. Net investment income generally includes interest income and net gains from the disposition of VIP Bonds, unless such interest payments or net gains are derived in the ordinary course of the conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). U.S. Holders are encouraged to consult with their tax advisors regarding the possible implications of the Medicare tax on their ownership and disposition of VIP Bonds in light of their individual circumstances.

*Information Reporting and Backup Withholding*

A U.S. Holder may be subject to information reporting and backup withholding when such holder receives interest and principal payments on the VIP Bonds or proceeds upon the sale or other disposition of such VIP Bonds (including a redemption or retirement of the VIP Bonds). Certain holders (including, among others, corporations and certain tax-exempt organizations) generally are not subject to information reporting or backup withholding. A U.S. Holder will be subject to backup withholding if such holder is not otherwise exempt and:

· such holder fails to furnish its taxpayer identification number, or TIN, which, for an individual is ordinarily his or her social security number;

· the IRS notifies the payor that such holder furnished an incorrect TIN;

· in the case of interest payments such holder is notified by the IRS of a failure to properly report payments of interest or dividends;

· in the case of interest payments, such holder fails to certify, under penalties of perjury, that such holder has furnished a correct TIN and that the IRS has not notified such holder that it is subject to backup withholding; or

· such holder does not otherwise establish an exemption from backup withholding.

A U.S. Holder should consult its tax advisor regarding its qualification for an exemption from backup withholding and the procedures for obtaining such an exemption, if applicable. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules from a payment to a U.S. Holder will be allowed as a credit against the holder's U.S. federal income tax liability or may be refunded, provided the required information is furnished in a timely manner to the IRS.

Non-U.S. Holders are encouraged to consult their tax advisors.

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**ERISA CONSIDERATIONS**

An investment in us by an employee benefit plan is subject to additional considerations because the investments of these plans are subject to the fiduciary responsibility and prohibited transaction provisions of ERISA and restrictions imposed by Section 4975 of the Code. For these purposes the term "employee benefit plan" includes, but is not limited to, qualified pension, profit-sharing and stock bonus plans, Keogh plans, simplified employee pension plans and tax deferred annuities or IRAs established or maintained by an employer or employee organization. Among other things, consideration should be given to:

· whether the investment is prudent under Section 404(a)(1)(B) of ERISA;

· whether in making the investment, that plan will satisfy the diversification requirements of Section 404(a)(1)(C) of ERISA; and

· whether the investment will result in recognition of unrelated business taxable income by the plan and, if so, the potential after-tax investment returns.

The person with investment discretion with respect to the assets of an employee benefit plan, often called a fiduciary, should determine whether an investment in us is authorized by the appropriate governing instrument and is a proper investment for the plan.

Section 406 of ERISA and Section 4975 of the Code prohibit employee benefit plans from engaging in specified transactions involving "plan assets" with parties that are "parties in interest" under ERISA or "disqualified persons" under the Code with respect to the plan.

In addition to considering whether the purchase of VIP Bonds is a prohibited transaction, a fiduciary of an employee benefit plan should consider whether the plan will, by investing in us, be deemed to own an undivided interest in our assets, with the result that our operations would be subject to the regulatory restrictions of ERISA, including its prohibited transaction rules, as well as the prohibited transaction rules of the Code.

The Department of Labor regulations provide guidance with respect to whether the assets of an entity in which employee benefit plans acquire equity interests would be deemed "plan assets" under some circumstances. Under these regulations, or the Plan Asset Regulations, an entity's assets would not be considered to be "plan assets" if, among other things:

(I) the equity interests acquired by employee benefit plans are publicly offered securities - i.e., the equity interests are widely held by 100 or more investors independent of the issuer and each other, freely transferable and registered under specified provisions of the federal securities laws;

(ii) the entity is an "operating company"—i.e., it is primarily engaged in the production or sale of a product or service other than the investment of capital either directly or through a majority-owned subsidiary or subsidiaries; or

(iii) there is no significant investment by benefit plan investors, which is defined to mean that less than 25% of the value of each class of equity interest is held by the employee benefit plans referred to above.

We do not intend to limit investments by benefit plan investors in our Company because we anticipate that we will qualify as a "real estate operating company." If the Department of Labor were to take the position that we are not a real estate operating company and we had significant investment by benefit plans, then we may become subject to the regulatory restrictions which would likely have a material adverse effect on our business.

Plan fiduciaries contemplating a purchase of VIP Bonds should consult with their own counsel regarding the consequences under ERISA and the Code in light of the serious penalties imposed on persons who engage in prohibited transactions or other violations.

**ACCEPTANCE OF ORDERS ON BEHALF OF PLANS IS IN NO RESPECT A REPRESENTATION BY US OR ANY OTHER PARTY RELATED TO US THAT THIS INVESTMENT MEETS THE RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY ANY PARTICULAR PLAN OR THAT THIS INVESTMENT IS APPROPRIATE FOR ANY PARTICULAR PLAN. THE PERSON WITH INVESTMENT DISCRETION SHOULD CONSULT WITH HIS OR HER ATTORNEY AND FINANCIAL ADVISERS AS TO THE PROPRIETY OF AN INVESTMENT IN US IN LIGHT OF THE CIRCUMSTANCES OF THE PARTICULAR PLAN.**

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**DESCRIPTION OF VIP BONDS** 

This description sets forth certain terms of the VIP Bonds that we are offering pursuant to this offering circular. In this section we use capitalized words to signify terms that are specifically defined in the Indenture, by and between us and UMB Bank, N.A., as trustee, or the trustee. We refer you to the Indenture for a full disclosure of all such terms, as well as any other capitalized terms used in this offering circular for which no definition is provided.

Because this section is a summary, it does not describe every aspect of the VIP Bonds or the Indenture. We urge you to read the Indenture carefully and in its entirety because that document and not this summary defines your rights as a Bondholders. Please review a copy of the Indenture. The Indenture is filed as an exhibit to the offering statement, of which this offering circular is a part, at <u>www.sec.gov</u>. You may also obtain a copy of the Indenture from us without charge. See "***Where You Can Find More Information***" for more information. You may also review the Indenture at the trustee's corporate trust office at 928 Grand Blvd., 12th Floor, Kansas City, Missouri 64106.

**Ranking**

The VIP Bonds are senior unsecured indebtedness of our company. The VIP Bonds would rank junior to any of our secured indebtedness and will rank senior to our other unsecured indebtedness, and will be structurally subordinated to all indebtedness of our subsidiaries. The Indenture does not limit our ability to incur, or permit our subsidiaries to incur, third-party indebtedness, whether secured or unsecured.

**Interest and Maturity**

The VIP Bonds will be offered serially, over a maximum period of two years, starting from the date of qualification of the Offering Statement of which this Offering Circular is a part, with the sole difference between the series being their respective maturity dates. Each series of VIP Bonds beginning with Series A-1 and Series R-1 will correspond to the applicable quarter in which closings for Bonds occurs. Both the A Bonds and R Bonds will bear interest at a rate of eight percent (8.0%) per year. Each series of Class A Bonds will mature on the third anniversary of the initial issuance date. Each Series of Class R Bonds will mature eighteen months after the initial issuance date. Interest on the VIP Bonds will be paid monthly on the 15th day of the month. The first interest payment on a VIP Bond will be paid on the 15th day of the month following the issuance of such VIP Bond.

Upon maturity, and subject to the terms and conditions described in this offering circular, the VIP Bonds will be automatically renewed at the same interest rate and for the same term, unless redeemed upon maturity at our or your election. We expect that any renewal of the VIP Bonds will be required to be registered or exempt from registration under the Securities Act. If we do not redeem the VIP Bonds at or prior to maturity, including as described under "***Description of VIP Bonds – Optional Redemption***," we anticipate that we will file a new offering statement in order to qualify the renewals for an exemption from registration with the SEC under Regulation A. In such a case, the new offering statement must be declared qualified before we will be able to renew your VIP Bond. If the VIP Bonds are not renewed and without the consent of the Bondholders, we may elect to extend the maturity date of the VIP Bonds for an additional six months to facilitate the redemption of the VIP Bonds.

With respect to the maturity and renewal of a VIP Bond, the Company will send to the Trustee and each holder of such a VIP Bond a notice of maturity, no more than 270 days and no less than 180 days prior to a maturity date for any VIP Bond, notifying the holder of the VIP Bond of the VIP Bond's pending maturity and that the VIP Bond will be automatically renewed unless, no later than 90 days from the maturity date of such a VIP Bond, the holder of the VIP Bond sends the company a written notice stating that repayment of the VIP Bond is required in connection with the maturity of the VIP Bond.

**Manner of Offering**

The offering is being made on a best-efforts basis through our broker/dealer of record. We reserve the right to conduct future sales through other Selling Group Members. Our broker/dealer of record will be required to purchase any of the Bonds.

**THE REQUIRED INTEREST PAYMENTS AND PRINCIPAL PAYMENT ARE NOT A GUARANTY OF ANY RETURN TO YOU NOR ARE THEY A GUARANTY OF THE RETURN OF YOUR INVESTED CAPITAL. WHILE OUR COMPANY IS REQUIRED TO MAKE INTEREST PAYMENTS AND PRINCIPAL PAYMENT AS DESCRIBED IN THE INDENTURE AND ABOVE, WE DO NOT INTEND TO ESTABLISH A SINKING FUND TO FUND SUCH PAYMENTS. THEREFORE, OUR ABILITY TO HONOR THESE OBLIGATIONS WILL BE SUBJECT TO OUR ABILITY TO GENERATE SUFFICIENT CASH FLOW OR PROCURE ADDITIONAL FINANCING IN ORDER TO FUND THOSE PAYMENTS. IF WE CANNOT GENERATE SUFFICIENT CASH FLOW OR PROCURE ADDITIONAL FINANCING TO HONOR THESE OBLIGATIONS, WE MAY BE FORCED TO SELL SOME OR ALL OF THE COMPANY'S ASSETS TO FUND THE PAYMENTS. WE CANNOT GUARANTEE THAT THE PROCEEDS FROM ANY SUCH SALE WILL BE SUFFICIENT TO MAKE THE PAYMENTS IN THEIR ENTIRETY OR AT ALL. IF WE CANNOT FUND THE ABOVE PAYMENTS, BONDHOLDERS WILL HAVE CLAIMS AGAINST US WITH RESPECT TO SUCH VIOLATION AS FURTHER DESCRIBED UNDER THE INDENTURE.**

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**Optional Redemption at Election of Bondholder**

The VIP Bonds will be redeemable at the election of the Bondholder beginning anytime following the last issuance date of the series of VIP Bonds held by the Bondholder, or the Optional Redemption. In order to request redemption, the Bondholder must provide written notice to us at our principal place of business that the Bondholder requests redemption of all or a portion of the Bondholder's Bonds, or a Notice of Redemption.

R Bondholders will have the right to have all or a portion of their bonds redeemed at any time prior to the maturity date, at a price per R Bond equal to $960, if redeemed prior to the initial maturity date of the applicable R Bond, plus any accrued but unpaid interest on the R Bond due to such R Bondholder. A Bondholders will have the right to have all or a portion of their A Bonds redeemed at any time prior to the maturity date, at a price per A Bond equal to $900 if redeemed on or before the first anniversary of the issuance date of the applicable A Bond, $920 if redeemed after the first anniversary of the issuance date of the applicable A Bond but on or before the second anniversary of the issuance date of the applicable A Bond and $940 if redeemed after the second anniversary of the issuance of the applicable A Bond, plus any accrued but unpaid interest, on the A Bond due to such A Bondholder. The right of the Bondholders to redeem their VIP Bonds is limited to 3.75% of the principal amount of the outstanding VIP Bonds calculated on a quarterly basis as of the first day of the fiscal quarter in which such redemption occurs (the "<u>3.75% Limit</u>"), subject to an annual cap of up to 15% of the issued and outstanding VIP Bonds (the "<u>15% Limit</u>"). The 3.75% Limit and the 15% Limit can be increased in the Company's sole discretion. To the extent that the 3.75% Limit is not fully used in a given quarter, the unused portion shall not be added to the 3.75% Limit for any future quarter, and any redemptions in excess of such limit or to the extent suspended, shall be redeemed in subsequent quarters on a first come, first served, basis. Bondholders will also have the right to have their VIP Bonds redeemed in the case of a bondholder's death, disability or bankruptcy, subject to notice and other provisions contained in this offering circular. Redemptions due to death, disability or bankruptcy shall count towards the quarterly 3.75% Limit on redemptions described above and shall be redeemed by the Company prior to the optional redemptions. We will have 90 days from the date the applicable Notice of Optional Redemption is provided to redeem the requesting Bondholder's Bonds, subject to the limitations set forth in the VIP Bond. Our obligation to redeem VIP Bonds with respect to Notices of Redemption received in any given Redemption Period (as defined below) is limited to an aggregate principal amount of VIP Bonds equal to 15% of the aggregate principal of VIP Bonds under the Indenture. Any VIP Bonds redeemed as a result of a Bondholder's right upon death, disability or bankruptcy will be included in calculating the 3.75% Limit and will thus reduce the number of VIP Bonds available to be redeemed pursuant to Optional Redemption.

**Redemption Upon Death, Disability or Bankruptcy**

Within 90 days of the death, disability or bankruptcy of a Bondholder who is a natural person, the estate of such Bondholder, or legal representative of such Bondholder may request that we repurchase, in whole but not in part and without penalty, the VIP Bonds held by such Bondholder by delivering to us a written notice requesting such VIP Bonds be redeemed. Redemptions due to death, disability or bankruptcy shall count towards the annual 5% Limit on redemptions described above and shall be redeemed by the Company prior to the optional redemptions. Any such request shall specify the particular event giving rise to the right of the holder or beneficial holder to redeem his or her VIP Bonds. If a VIP Bond is held jointly by natural persons who are legally married, then such request may be made by (i) the surviving Bondholder upon the death of the spouse, or (ii) the disabled Bondholder (or a legal representative) upon disability of the spouse. In the event a VIP Bond is held together by two or more natural persons that are not legally married, neither of these persons shall have the right to request that the Company repurchase such VIP Bond unless each Bondholder has been affected by such an event.

Disability shall mean with respect to any Bondholder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Bondholder or beneficial holder first acquired VIP Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

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Bankruptcy shall mean, with respect to any Bondholder the final adjudication related to (i) the filing of any petition seeking to adjudicate the Bondholder bankrupt or insolvent, or seeking for itself any liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of such Bondholder or such Bondholder's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking, consenting to, or acquiescing in the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for such Person or for any substantial part of its property, or (ii) without the consent or acquiescence of such Bondholder, the entering of an order for relief or approving a petition for relief or reorganization or any other petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or other similar relief under any bankruptcy, liquidation, dissolution, or other similar statute, law, or regulation, or, without the consent or acquiescence of such Bondholder, the entering of an order appointing a trustee, custodian, receiver, or liquidator of such Bondholder or of all or any substantial part of the property of such Bondholder which order shall not be dismissed within ninety (90) days.

Upon receipt of redemption request in the event of death, disability or bankruptcy of a Bondholder, we will designate a date for the redemption of such VIP Bonds, which date shall not be later than 30 days after we receive documentation and/or certifications establishing (to the reasonable satisfaction of the Company) the right to be redeemed. On the designated date, we will redeem such VIP Bonds at a price per VIP Bond that is equal to all accrued and unpaid interest, to but not including the date on which the VIP Bonds are redeemed plus the then outstanding principal amount of such VIP Bond.

**Optional Redemption**

We may redeem the VIP Bonds, in whole or in part, without penalty at any time. If the VIP Bonds are renewed for an additional term, we may redeem the VIP Bonds at any time during such renewal period. Any redemption of a VIP Bond will be at a price equal to all accrued and unpaid interest, up to but not including the date on which the VIP Bonds are redeemed, plus 110% of the principal amount to be redeemed. If we plan to redeem the VIP Bonds, we are required to give notice of redemption not less than 5 days nor more than 60 days prior to any redemption date to each Bondholder's address appearing in the securities register maintained by the trustee. In the event we elect to redeem less than all of the VIP Bonds, the particular VIP Bonds to be redeemed will be selected by the trustee by such method as the trustee shall deem fair and appropriate.

**Merger, Consolidation or Sale**

We may consolidate or merge with or into any other corporation, and we may sell, lease or convey all or substantially all of our assets to any corporation, provided that the successor entity, if other than us:

· is organized and existing under the laws of the United States of America or any United States, or U.S., state or the District of Columbia; and

· assumes all of our obligations to perform and observe all of our obligations under the VIP Bonds and the Indenture; and provided further that no event of default under the Indenture shall have occurred and be continuing.

The Indenture does not provide for any right of acceleration in the event of a consolidation, merger, sale of all or substantially all of the assets, recapitalization or change in our stock ownership. In addition, the Indenture does not contain any provision which would protect the Bondholders against a sudden and dramatic decline in credit quality resulting from takeovers, recapitalizations or similar restructurings.

**Certain Covenants**

We will issue the VIP Bonds under an Indenture, or the Indenture, to be dated as of the initial issuance date of the VIP Bonds between us and UMB Bank, N.A., as the trustee. The Indenture does not limit our ability to incur, or permit our subsidiaries to incur, third-party indebtedness, whether secured or unsecured.

*Bond Service Reserve*

We will reserve 3.75% of the proceeds of the sale of VIP Bonds calculated on a quarterly basis as of the first day of the fiscal quarter, for the purpose of funding the optional redemptions described above.

*Reports*

We will furnish the following reports to each Bondholder:

<u>Reporting Requirements under Tier II of Regulation A</u>. After launching this Tier II, Regulation A offering, we will be required to comply with certain ongoing disclosure requirements under Rule 257 of Regulation A. We will be required to file: an annual report with the SEC on Form 1K; a semi-annual report with the SEC on Form 1-SA; current reports with the SEC on Form 1-U; and a notice under cover of Form 1-Z. The necessity to file current reports will be triggered by certain corporate events, similar to the ongoing reporting obligation faced by issuers under the Exchange Act, however the requirement to file a Form 1-U is expected to be triggered by significantly fewer corporate events than that of the Form 8-K. Parts I & II of Form 1-Z will be filed by us if and when we decide to and are no longer obligated to file and provide annual reports pursuant to the requirements of Regulation A.

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<u>Annual Reports</u>. As soon as practicable, but in no event later than one hundred twenty (120) days after the close of our fiscal year, ending December 31st, we will cause to be mailed or made available, by any reasonable means, to each Bondholder as of a date selected by us, an annual report containing financial statements of our Company for such fiscal year, presented in accordance with GAAP, including a balance sheet and statements of operations, equity and cash flows, with such statements having been audited by an accountant selected by us. We shall be deemed to have made a report available to each Bondholder as required if it has either (i) filed such report with the SEC via its Electronic Data Gathering, Analysis and Retrieval (EDGAR) system and such report is publicly available on such system or (ii) made such report available on any website maintained by our Company and available for viewing by the Bondholders.

*Payment of Taxes and Other Claims*

We will pay or discharge or cause to be paid or discharged, before the same shall become delinquent: (i) all taxes, assessments and governmental charges levied or imposed upon us or upon our income, profits or assets; and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon our property; provided, however, that we will not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings or for which we have set apart and maintain an adequate reserve.

Prior to this offering, there has been no public market for the VIP Bonds. We may apply for quotation of the VIP Bonds on an alternative trading system or over the counter market beginning after the final closing of this offering. However, even if the VIP Bonds are listed or quoted, no assurance can be given as to (1) the likelihood that an active market for the VIP Bonds will develop, (2) the liquidity of any such market, (3) the ability of Bondholders to sell the VIP Bonds or (4) the prices that Bondholders may obtain for any of the VIP Bonds. No prediction can be made as to the effect, if any, that future sales of the VIP Bonds, or the availability of the VIP Bonds for future sale, will have on the market price prevailing from time to time. Sales of substantial amounts of the VIP Bonds, or the perception that such sales could occur, may adversely affect prevailing market prices of the VIP Bonds. See "***Risk Factors — Risks Related to the VIP Bonds and the Offering***."

**Event of Default**

The following are events of default under the Indenture with respect to the VIP Bonds:

· default in the payment of any interest on the VIP Bonds when due and payable, which continues for 60 days, a cure period;

· default in the payment of any principal of or premium on the VIP Bonds when due, which continues for 60 days, a cure period;

· entry by any court having jurisdiction over the Company of a final and non-appealable judgment or order for the payment of money in excess of $25,000,000.00 (before the application of any pre-judgment interest), singly or in the aggregate for all such final judgments or orders against any subsidiary;

· the Company ceases conducting its business (including, for this purpose, the business conducted by or through any direct or indirect subsidiaries) or liquidates all or substantially all of its assets (meaning, for this purpose, all or substantially all of the combined assets of the Company and its direct and indirect subsidiaries)

· default in the performance of any other obligation or covenant contained in the Indenture or in this offering circular for the benefit of the VIP Bonds, which continues for 120 days after written notice, a cure period; and

· specified events in bankruptcy, insolvency or reorganization of us;

Book-entry and other indirect Bondholders should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or rescind an acceleration of maturity.

Annually, within 120 days following December 31st while the VIP Bonds are outstanding, we will furnish to the trustee a written statement of certain of our officers certifying that to their knowledge we are in compliance with the Indenture, or else specifying any event of default and the nature and status thereof. We will also deliver to the trustee a written notification of any uncured event of default within 30 days after we become aware of such uncured event of default.

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**Remedies if an Event of Default Occurs**

Subject to any respective cure period, or other terms of the indenture, if an event of default occurs and is continuing, the trustee or the Bondholders of not less than a majority in aggregate outstanding principal amount of the VIP Bonds may declare the principal thereof, and all unpaid interest thereon to be due and payable immediately. In such event, the trustee will have the right force us to sell any assets held by us or any subsidiary of ours that we have the unilateral right to cause it to sell its assets. We will be required to contribute the proceeds of any such sale to the repayment of the VIP Bonds. With respect to subsidiaries for which we do not have the unilateral right to sell their assets, the trustee has the right to force us to sell our equity in such subsidiary in order to repay the VIP Bonds.

At any time after the trustee or the Bondholders have accelerated the repayment of the principal, premium, if any, and all unpaid interest on the VIP Bonds, but before the trustee has obtained a judgment or decree for payment of money due, the Bondholders of a majority in aggregate principal amount of outstanding VIP Bonds may rescind and annul that acceleration and its consequences, provided that all payments, other than those due as a result of acceleration, have been made and all events of default have been remedied or waived.

The Bondholders of a majority in principal amount of the outstanding VIP Bonds may waive any default with respect to that series, except a default:

· in the payment of any amounts due and payable or deliverable under the VIP Bonds; or

· in an obligation contained in, or a provision of, the Indenture which cannot be modified under the terms of the Indenture without the consent of each Bondholder The Bondholders of a majority in principal amount of the outstanding VIP Bonds may direct the time, method and place of conducting any proceeding for any remedy available to the trustee or exercising any trust or power conferred on the trustee with respect to the VIP Bonds, provided that (i) such direction is not in conflict with any rule of law or the Indenture, (ii) the trustee may take any other action deemed proper by the trustee that is not inconsistent with such direction and (iii) the trustee need not take any action that might involve it in personal liability or be unduly prejudicial to the Bondholders not joining therein. Subject to the provisions of the Indenture relating to the duties of the trustee, before proceeding to exercise any right or power under the Indenture at the direction of the Bondholders, the trustee is entitled to receive from those Bondholders security or indemnity satisfactory to the trustee against the costs, expenses and liabilities which it might incur in complying with any direction.

A Bondholder will have the right to institute a proceeding with respect to the Indenture or for any remedy under the Indenture, if:

· that Bondholder previously gives to the trustee written notice of a continuing event of default in excess of any cure period,

· the Bondholders of not less than a majority in principal amount of the outstanding VIP Bonds have made written request;

· such Bondholder or Bondholders have offered to indemnify the trustee against the costs, expenses and liabilities incurred in connection with such request;

· the trustee has not received from the Bondholders of a majority in principal amount of the outstanding VIP Bonds a direction inconsistent with the request (it being understood and intended that no one or more of such Bondholders shall have any right in any manner whatever by virtue of, or by availing of, any provision of the Indenture to affect, disturb or prejudice the rights of any other of such Bondholders, or to obtain or to seek to obtain priority or preference over any other of such Bondholders or to enforce any rights under the Indenture, except in the manner herein provided and for equal and ratable benefit of all Bondholders); and

· the trustee fails to institute the proceeding within 60 days.

However, the Bondholder has the right, which is absolute and unconditional, to receive payment of the principal of and interest on such VIP Bond on the respective due dates (or any redemption date, subject to certain discounts) and to institute suit for the enforcement of any such payment and such rights shall not be impaired without the consent of such Bondholder.

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**LEGAL PROCEEDINGS**

There are currently no material legal proceedings involving our Company.

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**SECURITY OWNERSHIP OF CERTAIN**

**BENEFICIAL OWNERS AND MANAGEMENT**

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| ***Security Ownership of Certain Beneficial Owners (10% or more)*** | ***Security Ownership of Certain Beneficial Owners (10% or more)*** | ***Security Ownership of Certain Beneficial Owners (10% or more)*** | ***Security Ownership of Certain Beneficial Owners (10% or more)*** |
| **Title of Class**<br>| **Name and Address of Beneficial Owner**<br>| **Amount and Nature of Beneficial Ownership Acquirable**<br>| **Percent of Class**<br>|
| Class A<sup>2</sup><br>| Blake Wettengel<br>| 760000<br>| 76%<br>|
| Class A<sup>2</sup><br>| Tanya Muro<br>| 240000<br>| 24%<br>|

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__________________________

<sup>2</sup>The Class A Units comprise all issued and outstanding Units of the Company.

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**EXECUTIVE OFFICERS**

The following table sets forth information of our executive officers.

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| **Name** | **Age** | **Position with our Company** | **Manager/Officer** <br> **Since** |
| Blake W. Wettengel | 44 | Chairman, Chief Executive Officer, President, and Manager | March 2022 |
| Tanya Muro | 44 | Chief Operating Officer Secretary, Board Member, and Manager | March 2022 |
| Jennifer Welker | 53 | Chief Financial Officer | March 2022 |
| Frank J. Muhlon | 51 | Chief Investment Officer and Board Member | March 2022 |

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Set forth below is biographical information for the executive officers of our Company.

**Blake W. Wettengel –** Mr. Wettengel is our Chairman of the Board, Chief Executive Officer, President and Co-Founder of Versity Invest, LLC and its affiliated entities. Under Mr. Wettengel's leadership, Versity Invest, LLC has grown into a nationally recognized real estate operating company that has acquired, managed, or developed real estate investments valued in excess of $500 million with properties across the country. During Mr. Wettengel's tenure in the student housing industry, he has overseen the acquisition and management of over 15,000 beds of multifamily properties, securing nearly $1.5 billion in debt and equity investments. The firms founded by Mr. Wettengel have received multiple awards including a ranking in the Inc. 500, which recognizes the fastest growing companies in the country. Prior to founding Versity Invest, LLC, Mr. Wettengel served as the CEO of the Company's predecessor Versity Investments, LLC beginning March of 2018. Between 2015 and 2018 Mr. Wettengel served as COO and General Counsel for the predecessor for Versity Investments, LLC. Mr. Wettengel practiced law from 2005 to 2015, specializing in real estate and corporate transactions and related tax and securities matters. Mr. Wettengel received a B.A. in with honors from Brigham Young University and a J.D. from the University of California, Los Angeles (UCLA).

**Tanya E. Muro -** Ms. Muro is a member of our Board of Directors, our Secretary and the Chief Operating Officer and Co-Founder of Versity Invest, LLC and its affiliated entities. As Chief Operating Officer of Versity Invest, LLC, Mrs. Muro is responsible for the global operations of the company. With over 20 years of experience in the commercial real estate industry, Mrs. Muro has closed more than $2 billion in real estate investments, including land development and oil and gas transactions and the country's first tenant-in-common acquisition. Her leadership focuses on high performance areas while providing outstanding client service and driving profitable revenue growth. Prior to founding Versity Invest, LLC, Mrs. Muro served as the COO of the Company's predecessor Versity Investments, LLC beginning March of 2018. Between 2007 and 2018 Mrs. Muro served in numerous roles for the predecessor for Versity Investments, LLC. Mrs. Muro has managed investor relations with respect to over 3,500 investors while heading Business Development at multiple firms, which have been ranked in the Inc. 500 as some of the fastest growing real estate companies in the country. Mrs. Muro has broad knowledge of regulatory bodies, including FINRA and the SEC. Mrs. Muro received a B.A. from Loyola Marymount University.

**Jennifer Welker** – Mrs. Welker is the Chief Financial Officer of Versity Invest, LLC. She oversees all financial aspects of the company including acquisitions, accounting, financial reporting, cash management, budget/forecasting, and investor financial reporting. Mrs. Welker served as the CFO for the Company's predecessor Versity Investments, LLC beginning November 2020, and before that she was the Sr. Vice President of Accounting & Finance within the organization as of November 2018. Mrs. Welker has also served as Vice President and Corporate Controller of the Picerne Group beginning in February of 2017 where she was responsible for finance, accounting and financial reporting for the company's investment, management, and development activities. Ms. Welker graduated from San Jose State University in 1996 with a B.S. degree in Business and an emphasis in accounting. She is a Certified Public Accountant.

**Frank J. Muhlon** – Mr. Muhlon is a Member of the Board of Directors and Chief Investment Officer of Versity Invest, LLC and its affiliated entities. Mr. Muhlon is an accomplished commercial real estate executive with over 20 years of transactional, asset management and advisory experience involving over $15 billion of asset value, covering traditional property asset classes (i.e., multifamily, office, retail, industrial, hospitality) and alternative assets (e.g., healthcare/medical, self-storage, data centers, homebuilding, infrastructure, and specialty). As Chief Investment Officer of Versity Invest, LLC, he originates, executes, and manages multifamily and student housing investments nationally. Prior to joining Versity Invest, LLC, Mr. Muhlon held senior positions with equity syndicate CrowdStreet, the real estate trading platform Ten-X, the middle market investment banking firm Orix USA/Houlihan Lokey, and the New York-based owner/developer Silverstein Properties. Mr. Muhlon received a B.S. in Finance from Rutgers University and a M.S. in Real Estate Finance from New York University.

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**COMPENSATION OF OUR EXECUTIVE OFFICERS**

Below is the annual compensation of each of the three highest paid executive officers of our Company for the fiscal year ended December 31, 2022.

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| **Name** | **Position** | **Cash**<br> **Compensation** | **Other** <br> **Compensation** | **Total**<br> **Compensation** |
| Blake Wettengel | Chief Executive Officer | $560000 | $0 | $0 |
| Frank Muhlon | Chief Investment Officer | $447747.50 | $0 | $0 |
| Tanya Muro | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Operating Officer | $300000 | $0 | $0 |

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

The Company has multiple related party relationships. On April 2, 2022, the Company entered into a Backoffice Services Agreement with Versity Investments, LLC. The Backoffice Services Agreement provides that Versity Investments, LLC will provide management, operational, accounting, payroll, employee benefits, and back office services to the Company. On April 2, 2022, the Company also entered into an Intellectual Property License with Versity Investments, LLC. The Intellectual Property License provides that Verity Investments, LLC has agreed to license Versity Investments, LLC's names "Versity" and "Versity Investments" and all corresponding intellectual property rights to the Company. Blake Wettengel, the Company's Chief Executive Officer, owns 36% of the Class A Units of Versity Investments, LLC, 20% of the Class B Units of Versity Investments, LLC, 20% of the Class C Units of Versity Investments, LLC and 76% of the Class A Units of the Company. Tanya Muro, the Company's Chief Operating Officer, owns 14% of the Class A Units of Versity Investments, LLC, 15% of the Class B Units of Versity Investments, LLC, 15% of the Class C Units of Versity Investments, LLC, and 24% of the Class A Units of the Company. Consequently, the transactions between Versity Investments, LLC and the Company are related party transactions.

From time to time, Book and Ladder, LLC provides property management services related to the Company's DST programs. Blake Wettengel owns 20% of the Class A Units and 34% of the Class B Units of Book and Ladder LLC and 76% of the Class A Units of the Company. Tanya Muro owns 20% of the Class A Units and 33% of the Class B Units of Book and Ladder, LLC and 24% of the Class A Units of the Company. Consequently, the transactions between Book and Ladder, LLC and the Company are related party transactions.

From time to time, Sunstone Development, LLC provides property development services related to the Company's DST programs. Blake Wettengel owns 55% of the Class A Units of Sunstone Development, LLC and 76% of the Class A Units of the Company. Tanya Muro owns 25% of the Class A Units of Sunstone Development, LLC and 24% of the Class A Units of the Company. Consequently, the transactions between Sunstone Development, LLC and the Company are related party transactions.

EquityCo, consisting of our wholly-owned subsidiaries Versity EquityCo, LLC, and Versity EquityCo II, LLC, is the parent to each of the Depositor entities we establishing for our DST programs. Either the Company or Versity, Investments, LLC is the Manager of the Depositor entities. Blake Wettengel owns 36% of the Class A Units of Versity Investments, LLC, 20% of the Class B Units of Versity Investments, LLC, 20% of the Class C Units of Versity Investments, LLC and 76% of the Class A Units of the Company. Tanya Muro owns 14% of the Class A Units of Versity Investments, LLC, 15% of the Class B Units of Versity Investments, LLC, 15% of the Class C Units of Versity Investments, LLC, and 24% of the Class A Units of the Company. As such, the transactions between the Depositor entities, Versity Investments, LLC, and the Company are related party transactions.

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**INDEPENDENT AUDITOR**

The financial statements of Versity Invest, LLC, which comprise the balance sheet as of June 30, 2022, and related statements of operation, cashflows and member equity since March 17, 2022, the date of inception, through June 30, 2022, included in this offering circular, have been audited by Ronald Blue & Co. CPAs, independent auditors, as set forth in their reports thereon.

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**LEGAL MATTERS**

Certain legal matters in connection with this offering, including the validity of the VIP Bonds, will be passed upon for us by Whiteford, Taylor & Preston LLP.

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**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We will file, annual, semi-annual and special reports, and other information, as applicable, with the SEC. You may read and copy any document filed with the SEC at the SEC's public company reference room at Room 1580, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The SEC also maintains a web site that contains reports, and informational statements, and other information regarding issuers that file electronically with the SEC (<u>http://www.sec.gov</u>).

Our Company has filed an offering statement of which this offering circular is a part with the SEC under the Securities Act. The offering statement contains additional information about us. You may inspect the offering statement without charge at the office of the SEC at Room 1580, 100 F Street, N.E., Washington, D.C. 20549, and you may obtain copies from the SEC at prescribed rates.

This offering circular does not contain all of the information included in the offering statement. We have omitted certain parts of the offering statement in accordance with the rules and regulations of the SEC. For further information, we refer you to the offering statement, which may be found at the SEC's website at <u>http://www.sec.gov</u>. Statements contained in this offering circular and any accompanying supplement about the provisions or contents of any contract, agreement or any other document referred to are not necessarily complete. Please refer to the actual exhibit for a more complete description of the matters involved.

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**WEALTHFORGE SECURITIES, LLC PRIVACY POLICY**

*Updated as of January 2022*

This Privacy Statement covers: WealthForge Securities, LLC. WealthForge Securities, LLC does not disclose information to non-affiliated companies except as described below.

1. Acknowledgement and Acceptance of Terms

WealthForge Securities, LLC is committed to protecting your privacy. This Privacy Statement sets forth our current privacy practices regarding the information we collect from you.

2. Third-party Policies

You may have received this privacy notice through a website or an email from a website or other third party, but this Privacy Statement does not apply to any third parties, and we are not responsible for their content. If you visit external websites, we recommend that you review their privacy policies.

The collection, further use, or disclosure of your information by issuers, unaffiliated service providers or by other third parties is not the responsibility of WealthForge Securities, LLC. Such collection, use, or disclosure is governed by the third parties' privacy policies.

3. Personal Information We Collect From You

To complete your transactions, we will ask you or your financial professional to provide personal information such as name, address, email, telephone number or facsimile number, bank account number, social security number, driver's license, passport, or other government issued identification number, income or net worth information, and other information relevant to your request for participation in a transaction. You may also be asked to disclose personal information to us so that we can provide assistance and information to you. We will not disclose personally identifiable information we collect from you to non-affiliated parties without your permission, except to the extent necessary to provide the products and services, as described below.

4. How We Use, Share, and Protect Personal Information

The Personal information you provide is used to provide services to you and to inform you of products, services, or opportunities that may be available through WealthForge Securities, LLC. Information and data you provide will also be used to administer our business, and our products and services in a manner consistent with this Privacy Statement and all applicable laws, rules, regulations, or other legal obligations. If you provide us with your name, address, telephone number, or email address, or have done so in the past, WealthForge Securities, LLC may contact you by telephone, mail, or email. Email or other electronic communications sent to us will be maintained in a manner consistent with our legal and regulatory requirements regarding client and public communications.

We do not rent, sell, or share your personal information to unaffiliated organizations except to provide products or services you have requested, when we have your permission, or under certain limited circumstances. For example, we provide such information to companies who work on behalf of or with WealthForge Securities, LLC, subject to confidentiality agreements. These companies may use your personal information to help WealthForge Securities, LLC communicate with you about WealthForge Securities, LLC's products and services or to assist WealthForge Securities, LLC in the provision of its products and services. WealthForge Securities, LLC may compile and use aggregated, anonymized data that does not directly or indirectly identify you or compromise your personal information in violation of this policy.

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WealthForge Securities, LLC may share information that you provide with the issuer and sponsor of the offering in which you have expressed an interest, the other broker-dealers providing services for that issuer and sponsor, as well as other companies providing services in connection with the offering, such as escrow agents and banks, credential-checking services, the issuer's special purpose vehicle(s) for that offering, and other financial intermediaries such as transfer agents, investment advisors, etc.

Social security numbers are only shared with the following and only as applicable to a particular transaction or activity that you initiate: personnel for third-party intermediaries processing the transaction for the issuer and sponsor; other parties that use the social security numbers for the limited purpose of providing services for the offering and that have agreed to maintain the confidentiality of your information; other financial intermediaries involved in the transaction; and the issuer and sponsor of the securities.

WealthForge Securities, LLC maintains reasonable physical, electronic, and procedural safeguards that comply with applicable laws and regulations to protect personal information about you and works with vendors and partners to protect the security and privacy of user information. WealthForge Securities, LLC maintains the information collected on servers located within the United States and does not transfer your data to other countries.

5. Other Reasons We Share Personal Information

We also use information you provide to respond to subpoenas, court orders, or other similar legal obligations and processes, comply with regulatory requests and audits, or to establish or exercise our legal rights or defend against legal claims. In addition, we will share such information if we believe it is required by law or it is necessary to investigate, prevent, or take action regarding illegal activities or suspected fraud or the rights or property of WealthForge Securities, LLC or third parties.

Finally, we may transfer information about you to any acquirer or successor of WealthForge Securities, LLC if and to the extent that WealthForge Securities, LLC is acquired by or merged with another company.

6. Changes to this Statement

WealthForge Securities, LLC has the discretion to update this Privacy Statement at any time.

7. Notice of Residents of California and Nevada

WealthForge Securities, LLC has the discretion to update this Privacy Statement at any time. When we do, we will also revise the "updated" date at the top of this page. We encourage you to review this Privacy Statement each time you receive it to stay informed about our use of your information.

**California Residents**

California law requires that we obtain your affirmative consent before we share your nonpublic personal information with non-affiliated third-party companies.

The California Consumer Privacy Act requires that WealthForge Securities, LLC inform you of your rights, provide a list of the categories of personal information it has collected about consumers in the past twelve (12) months and detail what categories of personal information it sells or discloses.

<u>Rights of California Residents</u>

1. Right of access

California residents have the right to request that a business that collects a resident's personal information disclose to that resident the categories and specific pieces of personal information the business has collected.

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California residents have the right to request that a business that collects personal information about the resident disclose to the resident the following:

(1) The categories of personal information it has collected about that resident.

(2) The categories of sources from which the personal information is collected.

(3) The business or commercial purpose for collecting or selling personal information.

(4) The categories of third parties with whom the business shares personal information.

(5) The specific pieces of personal information it has collected about that consumer.

2. Right to know what we sell or disclose

California residents have the right to request that a business that sells the resident's personal information, or that discloses it for a business purpose, disclose to that resident:

(1) The categories of personal information that the business collected about the resident.

(2) The categories of personal information that the business sold about the resident and the categories of third parties to whom the personal information was sold, by category or categories of personal information for each third party to whom the personal information was sold.

(3) The categories of personal information that the business disclosed about the resident for a business purpose.

WealthForge Securities, LLC does not sell personal information.

3. Right to opt out

California residents shall have the right, at any time, to direct a business that sells personal information about the resident to third parties not to sell the resident's personal information.

4. Right to deletion

In some cases, California residents shall have the right to request that a business delete any personal information about the resident which the business has collected from the resident.

5. Right to equal service and price

A business may not discriminate against a California resident because the resident exercised any of the resident's rights, including, but not limited to, by:

(A) Denying goods or services to the consumer.

(B) Charging different prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.

(C) Providing a different level or quality of goods or services to the resident, if the resident exercises the consumer's rights under this title.

(D) Suggesting that the resident will receive a different price or rate for goods or services or a different level or quality of goods or services.

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<u>How to request your information</u> 

To request the personal information in WealthForge Securities, LLC's possession please contact WealthForge Securities, LLC via either <u>https://www.wealthforge.com/contactus</u> or 866.603.4082.

To request what personal information WealthForge Securities, LLC has disclosed to a third party please contact WealthForge Securities, LLC via either <u>https://www.wealthforge.com/contactus</u> or 866.603.4082.

To request your personal information be deleted email the following address <u>admin@wealthforge.com</u> or call 866.603.4082.

<u>Categories of Personal Information</u> <u>WealthForge Securities, LLC collects</u> 

Section 3 above details the categories of personal information WealthForge Securities, LLC collects from investors or their financial professional.

<u>Categories of Personal Information WealthForge Securities, LLC has sold in the past twelve (12) months</u>.<u> </u>

WealthForge Securities, LLC acts solely as a service provider and does not sell personal information.

<u>Categories of Personal Information</u> <u>WealthForge Securities, LLC has disclosed in the past twelve (12) months</u>.<u> </u>

Section 4 above details how WealthForge Securities, LLC uses your personal information. Information provided by you in the investment documents may also be shared with the issuer of the offering in which you have expressed an interest, third-party intermediaries providing services for that issuer, as well as other companies providing services in connection with the offering, such as, escrow agents and banks, credential-checking services, the issuer's special purpose vehicle(s) for that offering, and other financial intermediaries. In each case, disclosure is subject to applicable privacy law and is limited to the extent the third party needs the information.

WealthForge Securities, LLC has disclosed the following types of personal information to third-parties in the past twelve (12) months:

· To issuers of securities: name, date of birth, accreditation status, SSN, bank account information, suitability information (including income or net worth estimates).

· To broker-dealers or advisors: name, date of birth, accreditation status, SSN, bank account information, suitability information (including income or net worth estimates) of their subscribers.

· To regulators: name, date of birth, accreditation status, SSN, bank account information, suitability information (including income or net worth estimates).

· To third-party service providers: name, date of birth, SSN, bank account information.

Any information provided to WealthForge Securities, LLC will be used for the purpose of completing the transaction.

In addition, if you are a California resident, California Civil Code Section 1798.83 permits you to request information regarding the disclosure of your personal information by WealthForge Securities, LLC to its affiliates and/or third parties for their direct marketing purposes.

To make such a request, please send an email with your first name, last name, mailing address, email address, and telephone number to <u>admin@wealthforge.com</u>. Please include "California Privacy Rights" in the subject line of your email. You may also make such a request by writing to us at the address set forth in the Contacting Us section.

**Nevada Residents**

Nevada law requires us to disclose that you may elect to be placed on our internal do-not-call list by calling us at 804-308-0431. For further information, contact the Nevada Attorney General's office at 555 E. Washington Ave., Suite 3900, Las Vegas, NV 89101; by phone at 702-486-3132; or by email at <u>BCPINFO@ag.state.nv.us.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Notice to European Union Members

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Data subjects in the European Union have the following principal rights under data protection law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the right to withdraw consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the right to access;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the right to rectification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. the right to erasure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the right to restrict processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. the right to data portability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. the right to object to processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. the right not to be subject to decisions made solely on automated processing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. the right to complain to a supervisory authority.

To limit our collection, storage, or sharing please contact our Data Protection Officer, Chris Rohde, as provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Contacting Us

If you have questions regarding our Privacy Statement, its implementation, or failure to adhere to this Privacy Statement and/or our general practices, please contact us at: <u>admin@wealthforge.com</u> or send your comments to:

WealthForge Attention: Privacy Statement Representative and Data Protection Officer,

3015 W. Moore Sreet, Suite 102, Richmond, VA 23230.

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VERSITY INVEST, LLC

INDEX TO FINANCNIAL STATEMENTS

**<u>Financial Statements as of June 30, 2022</u>**

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| [Independent Auditors' Report](#re) | F-3 |
| Financial Statements |  |
| [Consolidated statement of financial position as of June 30, 2022](#bs) | F-5 |
| [Consolidated statement of operations for the period March 17, 2022 (inception) through June 30, 2022](#so) | F-6 |
| [Consolidated statement of changes in members' equity for the period March 17, 2022 (inception) through June 30, 2022](#she) | F-7 |
| [Consolidated statement of cash flows for the period March 17, 2022 (inception) through June 30, 2022](#cf) | F-8 |
| [Notes to consolidated financial statements](#note) | F-9 – F-18 |

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|:---|
| F-1 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

FINANCIAL STATEMENTS

AND

INDEPENDENT AUDITOR'S REPORT

FOR THE PERIOD MARCH 17, 2022 (DATE OF FORMATION)

THROUGH JUNE 30, 2022

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| F-2 |
| *[**Table of Contents**](#toc3)* |

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| | |
|:---|:---|
| ![](versity_1aimg57.jpg) | **INDEPENDENT AUDITORS' REPORT** |
|  | To the Members <br> Versity Invest, LLC <br> Aliso Viejo, California |

---

**Report on the Audit of the Consolidated Financial Statements**

***Opinion***

We have audited the consolidated financial statements of Versity Invest, LLC, which comprise the consolidated statement of financial position as of June 30, 2022, and the related consolidated statements of operations, changes in members' equity, and cash flows for the period from March 17, 2022 to June 30, 2022, then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Versity Invest, LLC as of June 30, 2022, and the results of its operations and its cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of Versity Invest, LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Responsibilities of Management for the Consolidated Financial Statements***

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Versity Invest, LLC's ability to continue as a going concern for one year after the date that the consolidated financial statements are issued or when applicable, one year after the date that the consolidated financial statements are available to be issued.

1551 N Tustin Ave., Suite 1000

Santa Ana, CA 92705

714.543.0500 ---

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| F-3 |
| *[**Table of Contents**](#toc3)* |

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Versity Invest, LLC

Page 2 of 2

***Auditor's Responsibilities for the Audit of the Consolidated Financial Statements***

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

· Exercise professional judgment and maintain professional skepticism throughout the audit.

· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Versity Invest, LLC's internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Versity Invest, LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

---

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|:---|
| ![](versity_1aimg64.jpg) |
| Santa Ana, California <br> February 13, 2023 |

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| F-4 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**CONSOLIDATED STATEMENT OF FINANCIAL POSITION** 

June 30, 2022

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| | |
|:---|:---|
| **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $13151829 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents - restricted | 2207984 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property held for sale | 269203806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 10456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 8489798 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 809156 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits | 4730 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 169733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $294047492 |
| **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $393059 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3496384 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 223403569 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 543915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 227836927 |
| **Members' equity** | 66210565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and members' equity | $294047492 |

---

See accompanying notes and independent auditors' report

---

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|:---|
| F-5 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**CONSOLIDATED STATEMENT OF OPERATIONS** 

For the Period from March 17, 2022 to June 30, 2022

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| | |
|:---|:---|
| **Revenues** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Real estate sales | $2119805 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset management fees | 235044 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition fees | 12365500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other revenue | 107555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 14828571 |
| **Expenses before income taxes** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 781380 |
| &nbsp;&nbsp;&nbsp;&nbsp; Salaries and payroll | 1940623 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property operations | 1245393 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketing | 429100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional | 487061 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 113059 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 1644208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 2178233 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest - loan fees | 2148993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 10968050 |
| **Noncontrolling interests in (income) loss of consolidated subsidiaries** | 1230269 |
| **Net income** | $5090790 |

---

See accompanying notes and independent auditors' report

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|:---|
| F-6 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS' EQUITY** 

For the Period from March 17, 2022 to June 30, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common** | **DST**<br> **interests** | **Retained** <br> **earnings** | **Total** |
| **Balances, March 17, 2022** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions | $-  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16517 |  | 16517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling contributions |  | 77723533 |  | 77723533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions | (596571) | (420944) |  | (1017515) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Syndication costs |  | (14372491) |  | (14372491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling income (loss) |  | (1230269) |  | (1230269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) |  |  | 5090790 | 5090790 |
| **Balances, June 30, 2022** | $(580054) | $61699829 | $5090790 | $66210565 |

---

See accompanying notes and independent auditors' report

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|:---|
| F-7 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**CONSOLIDATED STATEMENT OF CASH FLOWS** 

For the Period from March 17, 2022 to June 30, 2022

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| | |
|:---|:---|
| **Cash flows from operating activities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income | $5090790 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling DST interests - income (loss) | (1230269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 1644208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bad debt expense | 2331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest - loan fees | 2148993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (12787) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | (8489798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (809156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | (4730) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 393059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3496384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | 543915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 2772940 |
| **Cash flows from investing activities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and construction in process | (11422429) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (11422429) |
| **Cash flows from financing activities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal payments on notes payable | (38340742) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Syndication costs | (14372491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling DST interests - contributions | 77723533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling DST interests - distributions | (420944) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions | 16517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions | (596571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 24009302 |
| Change in cash and cash equivalents | 15359813 |
| **Total cash and cash equivalents, beginning of period** | - |
| **Total cash and cash equivalents, end of period** | $15359813 |

---

See accompanying notes and independent auditors' report

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| F-8 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 1. Summary of significant accounting policies**

This summary of significant accounting policies is presented to assist in understanding the accompanying consolidated financial statements. The consolidated financial statements and notes are the representations of Versity Invest, LLC's (Versity's) management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States (GAAP) and have been consistently applied in the preparation of the consolidated financial statements.

***Principal business activity***

Versity is a Delaware limited liability company and was formed on March 17, 2022, for the purpose of real estate syndication, management, development and construction. The Company's year-end is December 31. On April 2, 2022, the Company entered into a limited liability company agreement (the "Operating Agreement") with its members. The Operating Agreement defines various matters pertaining to the Company including formation, term, ownership interests, initial contributions, fiscal year end, and allocations of profit and loss, amongst others.

The Company's income is derived from: (1) management fees from the management of real property, (2) acquisition fees and commissions from the purchase or sale of real property; (3) profit-sharing from the sale of certain properties, and (4) construction management fees from the management of real property development. Consequently, the Company's ability to collect income for services performed is affected by economic fluctuations in the real estate industry.

***Principles of consolidation***

The accompanying consolidated financial statements include the accounts of the Versity, and the following entities. Going forward, "we," "us," "our" and "Company" refers to the consolidated companies. The Company follows the topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification, which requires a variable interest entity ("VIE") to be consolidated by a company if it has (a) the power to direct the activities most significant to the VIE and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. All significant intercompany transactions have been eliminated.

The Company is a majority owner in the following properties or entities, which have been consolidated:

Versity EquityCo II, LLC (Equity) was formed on March 17, 2022, in the state of Delaware, for the purpose providing bridge loans to Versity. Equity is a wholly owned subsidiary of Versity.

VSHR Adviser, LLC (Adviser) was formed on February 28, 2022, in the state of Delaware, for the purpose of being a real estate management company. Adviser is a wholly owned subsidiary of Versity.

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| F-9 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 1. Summary of significant accounting policies (continued)** 

***Principles of consolidation (continued)***

Vintage LeaseCo, LLC (Vintage) was formed on December 10, 2021, in the state of Delaware, for the purpose of managing as the master tenant for property commonly known as Vintage Horizon West, located in Winter Garden, Florida. Vintage is a wholly owned subsidiary of Versity.

The Walk LeaseCo, LLC (The Walk) was formed on March 17, 2022, in the state of Delaware, for the purpose of managing as the master tenant for property commonly known as The Walk, located in Tuscaloosa, Alabama. The Walk is a wholly owned subsidiary of Versity.

Hayworth Tanglewood LeaseCo. LLC (Hayworth) was formed on May 31, 2022, in the state of Delaware, for the purpose of managing as the master tenant for property commonly known as The Hayworth, located in Houston, Texas. Hayworth is a wholly owned subsidiary of Versity.

Vintage Horizon West is a Class A, multi-family residential community located in Winder Garden, Florida. On April 12, 2022, the community was acquired by Vintage, DST (Vintage DST), a Delaware statutory trust. Vintage DST was formed on December 10, 2021, for the purpose of acquiring and owning Vintage Horizon West. Versity owns 24.00% of Vintage DST.

The Walk is a Class A, mid-rise student-housing community located in Tuscaloosa, Alabama. On April 29, 2022, the community was acquired by The Walk, DST (Walk DST), a Delaware statutory trust. Walk DST was formed on March 17, 2022, for the purpose of acquiring and owning The Walk. Versity owns 54.00% of Walk DST.

The Hayworth is a Class A, mid-rise, multi-family residential community located in Tanglewood area of Houston, Texas. On June 30, 2022, the community was acquired by Hayworth Tanglewood, DST (Hayworth DST), a Delaware statutory trust. Hayworth DST was formed on May 31, 2022, for the purpose of acquiring and owning The Hayworth. Hayworth DST is a wholly owned subsidiary of Versity.

Per the terms of our loan agreement with Crayhill (see Note 5), we are required to consolidate any DSTs that have Crayhill mezzanine financing associated with them and have not been fully syndicated, in accordance with GAAP. As of June 30, 2022, Vintage DST, The Walk DST and Hayworth DST met the criteria for consolidation.

***Basis of Presentation***

The accompanying consolidated financial statements have been prepared in accordance with GAAP as contained within the FASB Accounting Standards Codification ("ASC").

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| F-10 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 1. Summary of significant accounting policies (continued)** 

***Concentration of credit risk***

The Company maintains several bank accounts, the balance of which may, at times, be in excess of Federal Deposit Insurance Corporation (FDIC) limits. The Company has not experienced any losses in such accounts. Management does not believe that the Company is exposed to any significant credit risk in connection with cash and cash equivalents.

***Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.

***Cash and cash equivalents***

For purposes of the consolidated statement of cash flows, all highly liquid debt instruments purchased with an original maturity of three months or less are considered to be cash equivalents.

***Cash and cash equivalents - restricted***

Cash and cash equivalents - restricted include all monies that are subject to lender restrictions.

***Receivables***

Receivables consist of accounts receivable and rent receivable. An allowance for doubtful accounts has been applied against receivables based on estimates of uncollectible amounts. Management evaluates receivable balances, considers the adequacy of allowances, and makes appropriate adjustments. At June 30, 2022, the allowance for doubtful accounts was $0.

***Other receivables***

The Company will provide loans to affiliated companies for a variety of reasons. These loans range from non-interest-bearing to market interest and are due upon maturity. Additionally, the Company may accrue other type of receivables. Management evaluates loan balances and other receivable balances and considers recording an allowance, if necessary. For the period ended June 30, 2022, the allowance for doubtful accounts total was $0.

***Property and equipment***

Property and equipment are carried at cost. Expenditures in excess of $1,500 are capitalized and depreciated over the item's estimated useful life. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets, ranging from three to thirty-nine years. Leasehold improvements are depreciated over the term of the related lease agreement. Total depreciation was $1,644,208 for the period ended June 30, 2022.

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| F-11 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 1. Summary of significant accounting policies (continued)** 

***Long-lived assets***

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the period ended June 30, 2022, there were no events or changes in circumstances indicating that the carrying amount of long-lived assets may not be recoverable.

***Revenue recognition***

The Company adopted ASU 2014-09, *Revenue from Contracts with Customers (Topic 606)*. Revenue is recognized as the Company provides services. Revenue is recognized to the extent that there is no future performance obligation. Where there is a future performance obligation, a portion is deferred over the expected service period. Revenue is measured based on the consideration to which the Company expects to be entitled in a contract. The Company's revenue does not have a significant financing component, so the transaction (invoice) price is considered to have no difference between the promised consideration and the cash selling price. The Company's revenue is disaggregated by major products and services as shown on the Statement of Operations. The Company recognizes contract assets, when the service is provided, which is generally at the point in time when the invoice is raised resulting in a recognition of a receivable. It is possible that there is a short time lag between invoice date and policy inception date.

The Company receives management services fees for services provided from strategic partners and related party entities.

Sales of real estate generally are accounted for under the full accrual method. Under that method, gain is not recognized until the collectibility of the sales price is reasonably assured and the earnings process is virtually complete. When a sale does not meet the requirements for income recognition, gain is deferred until those requirements are met. Some sales of real estate are accounted for under the installment method. Under that method, gain is recognized as principal payments on the related notes payable are collected. A portion of the deferred gain is also recognized as income to the extent that the deferred gain exceeds the note receivable from the buyer plus the maximum contingent liability to the Company for other debt on the property.

Commission, brokerage, and fees are recognized when the related service has been provided and it is probable that the Company will be compensated for services rendered, and the amount of consideration for such services can be reliably measured. This is deemed to be the invoice date. An allowance is made for anticipated lapses and cancellations. Where there is a future obligation to provide claims handling services, a portion of the commission income is deferred over the expected service period.

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| F-12 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 1. Summary of significant accounting policies (continued)** 

***Revenue recognition***

Rental income is derived from rental activity. The Company leases apartment homes under operating leases with terms generally of one year or less. Generally, credit investigations are performed for prospective residents and security deposits are obtained. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases. Rental income under an operating lease agreement should be recognized on a straight-line basis. Management has elected to record rental income according to each tenant's lease agreement. The difference between the two methods was determined to be immaterial in respect to the consolidated financial statements. Additionally, for each property the Master Tenant (MT) and Delaware Statutory Trust (DST) entities entered into a master lease agreement. Per the master lease agreement, the MT is obligated to pay the DST a monthly base rent and percentage rent based on the Master Tenant gross receipts. Management has elected to record rental income according to the master lease agreement, not straight-line basis. The difference between the two methods was determined to be immaterial in respect to the consolidated financial statements.

***Selling costs***

Selling costs related to tangible assets and costs to obtain regulatory approvals are capitalized and recognized as properties and/or lands are sold. Direct selling costs that relate to properties and/or lands that are sold and accounted for under a method other than the full accrual method are deferred and recognized as the related gain is recognized. Other selling costs are charged to expense when incurred.

***Advertising***

It is the Company's policy to expense advertising costs as incurred. Advertising expense for the period ended June 30, 2022, was $11,886.

***Income Taxes***

The Company, with the consent of their members, has elected to be taxed as a limited liability company (LLC) under the Internal Revenue Code and the laws of the applicable state in which it was formed. As a result of its election to be taxed as a LLC, the liability for federal income taxes is the obligation of the Company's members. Income tax returns filed by the Company are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, the first income tax return will be filed for the 2022 tax year, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

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|:---|
| F-13 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 2. Cash and cash equivalents**

Cash and cash equivalents as of June 30, 2022, consisted of the following:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; Versity Invest, LLC | $873771 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated entities | 6622753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated properties | 7863289 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total cash and cash eqivalents | $15359813 |
| **Note 3. Properties held for sale** |  |
| Properties held for sale as of June 30, 2022, consisted of the following: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vintage Horizon West | $118424120 |
| &nbsp;&nbsp;&nbsp;&nbsp; The Walk | 45189027 |
| &nbsp;&nbsp;&nbsp;&nbsp; The Hayworth | 105590659 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total properties held for sale | $269203806 |

---

Depreciation expense related to properties held for sale was $1,641,661 for the period ended June 30, 2022.

**Note 4. Property and equipment**

Property and equipment as of June 30, 2022, consisted of the following:

---

| | |
|:---|:---|
| Computer equipment | $16276 |
| Furniture, fixtures & equipment | 150449 |
| Equipment | 5555 |
| Total property and equipment | 172280 |
| Less: accumulated depreciation | (2547) |
| Property and equipment, net | $169733 |

---

Depreciation expense related to property and equipment was $2,547 for the period ended June 30, 2022.

---

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|:---|
| F-14 |
| *[**Table of Contents**](#toc3)* |

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**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 5. Notes payable**

---

| | |
|:---|:---|
| On April 12, 2022, the Company, through a special purpose entity wholly owned by the Company, entered into a credit agreement (the "Credit Agreement") with special purpose entities wholly owned by Crayhill Capital Management (collectively, "Crayhill" and the "Crayhill Credit Facility") |  |
| The Crayhill Credit Facility is a revolving loan maturing on May 27, 2025, with two 180-day extension options subject to certain conditions outlined further in the Credit Agreement. The Crayhill Credit Facility bears interest at 12.50% per annum, with a minimum utilization of $25 million. Full balances are repayable on maturity, with no prepayment penalties. Monthly payments due pursuant to the Crayhill Credit Facility are based upon total monthly syndications and property income from the related DSTs and loan parties as defined in the Credit Agreement with minimum payments being interest-only on a balance of $25 million. The Company has an initial maximum borrowing capacity up to $50 million, which can be increased to a total maximum borrowing capacity of $200 million with certain conditions and approvals from Crayhill. From April 12, 2022 through June 30, 2022 the company borrowed $125.1 million from the Crayhill Credit Facility to finance the acquisition of Vintage DST, The Walk DST and Hayworth DST, and repaid approximately $38.3 million over the same period with the proceeds of equity syndications from the related DSTs and related DST property income. | $86769639  |
| The Company obtained unsecured notes payable to a related party totaling $1,522,501. The notes has no formal payment terms. | 1522501 |
| On April 12, 2022, the Company obtained a secured note payable from the Vintage DST acquisition to a third party in the amount up to $52,346,000. The note is at 4.56% interest, maturing May 1, 2032. Monthly payments are interest only through July 31, 2026. On August 1, 2026, monthly interest and principal installments of $212,747 are due until maturity. | 52346000  |
| On April 29, 2022, the Company obtained a secured note payable from the Walk DST acquisition to a third party in the amount up to $27,834,000. The note is at 3.50% interest, maturing May 5, 2029. Monthly payments are interest only through May 31, 2027. On June 1, 2027, monthly interest and principal installments of $139,344 are due until maturity. | 27834000  |

---

---

| |
|:---|
| F-15 |
| *[**Table of Contents**](#toc3)* |

---

**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 5. Notes payable (continued)**

---

| | |
|:---|:---|
| On June 30, 2022, the Company obtained a secured note payable from the Hayworth DST acquisition to a third party in the amount up to $48,000,000. The note is at 5.25% interest, maturing June 30, 2029. Monthly payments are interest only through July 31, 2026. On August 1, 2026, monthly interest and principal installments of $265,058 are due until maturity. | 48000000 |
| The Company obtained unsecured notes payable to related parties associated with short-term closing loans totaling $7,122,687. The notes have no formal payment terms. | 8574420 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total notes payable | 225046560 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: loan fees | (1642991) |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net | $223403569 |

---

Future minimum principal payments required consisted of the following as of June 30, 2022:

---

| | |
|:---|:---|
| 2023 | $10096921 |
| 2024 |  |
| 2025 | 86769639 |
| 2026 | - |
| 2027 | - |
| Thereafter | 128180000 |

---

Note 6. Members' equity

The Company's members' equity consists of Class A common membership interests to certain principals of the Company and Class B and C membership. As of June 30, 2022, capital contributions raised consisted of 1,000,000 Class A units.

---

| |
|:---|
| F-16 |
| *[**Table of Contents**](#toc3)* |

---

**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 7. Related party transactions** 

***Backoffice services agreement***

On April 2, 2022, the Company entered into a Backoffice Services Agreement (the "Agreement") with Versity Investments, LLC. Versity Investments, LLC (the "Service Provider") is an affiliated party that provides certain management, operational, accounting, payroll, employee benefits, and other back office services to the Company, as defined by the Agreement. The initial term of the Agreement is 12 months, and the Agreement will automatically renew for successive 12 month terms unless either party provides written notice of nonrenewal at least 30 days prior to the end of the then-current term.

The Agreement allows for the Service Provider to invoice the Company for such services until such a time that the Company assumes and employs all of the Service Provider's employees. On the first business day of each calendar month of the term after the full assumption of such obligations, the Company will directly pay the entire aggregate amount of the monthly payroll, including tax withholdings, remittances, and employee benefits, for all Service Provider's employees, and all Service Provider's costs and expenses related to administration, including preparation of required reconciliations, recordkeeping, handling, and contracting with third-party vendors, tax and other governmental withholding and reporting (including Forms W-2s and 1099s), responses to inquiries and request for assistance made by Service Provider's employees or tax and other government and quasi- government authorities.

***Backoffice Services Agreement (continued)***

If Service Provider incurs any indebtedness, fees, costs, and/or expenses above monthly standard overhead, the Company shall make interest-free advances to Service Provider to cover such costs. Service Provider shall repay such advances when able as determined in the sole discretion of the managers of Service Provider.

**Note 8. Commitments and Contingencies**

***Other contingencies***

From time to time, the Company is party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor is management aware of any such legal proceedings contemplated by governmental authorities.

---

| |
|:---|
| F-17 |
| *[**Table of Contents**](#toc3)* |

---

**VERSITY INVEST, LLC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

For the Period from March 17, 2022 to June 30, 2022

**Note 9. Supplemental disclosures of cash flow information**

Cash paid for interest and income taxes for the period ended June 30, 2022, was as follows:

---

| | |
|:---|:---|
| Interest | $2178233 |
| Income taxes | $-  |

---

The Company acquired property and equipment through debt financing totaling $128,180,000 for the period ended June 30, 2022.

Interest expense totaled $4,327,226, which includes amortization of loan fees of $2,148,993.

**Note 10. Subsequent events**

***Property held for sale***

<u>One on 4<sup>th</sup> Purchase and Sale Agreement</u>

On July 25, 2022, the Company entered into a purchase and sale agreement ("PSA") for the acquisition of a student housing property in Stillwater, Oklahoma ("One on 4th") for $52 million. The Company acquired One on 4th in a DST structure. The Company will receive approximately $1.9 million in acquisition fees, which will be recognized as revenue in conjunction with the closing, in accordance with GAAP.

<u>Apex Purchase and Sale Agreement</u>

On August 1, 2022, the Company entered into a purchase and sale agreement ("PSA") for the acquisition of a multifamily property in Orlando, Florida ("Apex") for $100 million. The Company acquired Apex in a DST structure. The Company will receive approximately $5 million in acquisition fees, which will be recognized as revenue in conjunction with the closing, in accordance with GAAP.

***Date of management evaluation***

Management has evaluated subsequent events through February 13, 2023, the date on which the consolidated financial statements were available to be issued.

---

| |
|:---|
| F-18 |
| *[**Table of Contents**](#toc3)* |

---

**PART III - EXHIBITS**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Exhibit Description** |
| [(1)(a)](versity_ex1a.htm) | [Managing Broker-Dealer Agreement by and between WealthForge Securities, LLC and Versity Invest, LLC](versity_ex1a.htm) |
| [(1)(b)](versity_ex1b.htm) | [Form of Registered Investment Adviser Selling Agreement](versity_ex1b.htm) |
| [(2)(a)](versity_ex2a.htm) | [Certificate of Formation of Versity InvestCo, LLC](versity_ex2a.htm) |
| [(2)(b)](versity_ex2b.htm) | [State of Delaware Certificate of Amendment](versity_ex2b.htm) |
| [(2)(c)](versity_ex2c.htm) | [Limited Liability Company Agreement of Versity Invest, LLC](versity_ex2c.htm) |
| [(3)(a)](versity_ex3a.htm) | [Form of Indenture](versity_ex3a.htm) |
| [(3)(b)](versity_ex3b.htm) | [Form of A Bond](versity_ex3b.htm) |
| [(3)(c)](versity_ex3c.htm) | [Form of R Bond](versity_ex3c.htm) |
| [(4)](versity_ex4.htm) | [Subscription Agreement](versity_ex4.htm) |
| [(6)](versity_ex6.htm) | [Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022, by and between Versity EquityCo, LLC, Versity EquityCo II, LLC, KHCA Funding LLC, Versity EquityCo Parent, LLC, Versity EquityCo Parent II, LLC, Versity Investments, LLC, Versity Invest, LLC, Brian Nelson, Tanya Muro, and Blake Wettengel](versity_ex6.htm) |
| [(11)](versity_ex11.htm) | [Consent of Ronald Blue & Co. CPAs](versity_ex11.htm) |

---

---

| |
|:---|
| 55 |
| *[**Table of Contents**](#TOC)* |

---

SIGNATURES

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Aliso Viejo, California on March 7, 2023.

---

| | |
|:---|:---|
| **VERSITY INVEST, LLC,**<br> a Delaware limited liability company | **VERSITY INVEST, LLC,**<br> a Delaware limited liability company |
| By: | /s/ Blake W. Wettengel |
| Name: | Blake W. Wettengel |
| Its: | Chief Executive Officer and President |
|  | (Principal Executive Officer) |
| By: | /s/ Jennifer Welker |
| Name: | Jennifer Welker |
| Its: | Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |

---

---

| |
|:---|
| 56 |
| *[**Table of Contents**](#TOC)* |

---

**VERSITY INVEST, LLC**

**VIP Bonds**

**8.0% Senior Unsecured Bonds (A Bonds)**

 **8.0% Senior Unsecured Bonds (R Bonds)**

**$75,000,000 Aggregate Maximum Offering Amount (75,000 Bonds)**

**$5,000 Minimum Purchase Amount (5 Bonds)**

**PRELIMINARY OFFERING CIRCULAR**

57<br>

## Ex1A-1

**EXHIBIT (1)(a)**

---

| | |
|:---|:---|
| ![](versity_ex1aimg41.jpg)  | *BROKER-DEALER SERVICES ORDER FORM* |
| 3015 W Moore Street, Suite 102 |  |
| Richmond, VA 23230 |  |

---

This Order Form is between WealthForge Securities, LLC, a Virginia limited liability company, and the party identified below ("Client").

---

| | | | |
|:---|:---|:---|:---|
| Client: | Versity Invest, LLC | Contact Name:  | Tanya Muro  |
| Notice Address | 20 Enterprise, Suite 400  | Contact Email: | tanya@versityinvest.com  |
| City, State: | Aliso Viejo, CA | State of Incorporation:  | Delaware |
| Zip Code: | 92656 | Entity Type: | Limited Liability Company |
| **START DATE:** *Upon Full Execution* | **START DATE:** *Upon Full Execution* | **TERM:** *12 months* | **TERM:** *12 months* |

---

---

| | |
|:---|:---|
| PRICING SCHEDULE | PRICING SCHEDULE |
| Diligence Fee | Waived |
| Managing B-D Transaction Fee | 65bps |
| Regulatory Filing Service Fee | $350 per form |

---

The following, which are all attached and incorporated by reference, govern WealthForge's provision of the Broker-Dealer Services and comprise the Agreement between the parties with respect to those Services:

· This Order Form.

· The B-D Service Schedule.

· The parties may enter into one or more Statements of Work or Deal Sheets that, when fully executed, are also incorporated into the Agreement.

· The MSA.

The parties each cause this Order Form to be duly executed by an authorized representative.

---

| | | | |
|:---|:---|:---|:---|
| **Client:**  | Versity Invest, LLC | **WealthForge Securities, LLC** | **WealthForge Securities, LLC** |
| **Signature:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> ![](versity_ex1aimg49.jpg) | **Signature:** | ![](versity_ex1aimg50.jpg) |
| **Title:** | Manager | **Title:** | CEO 5/6/2022 |
| **Date:** | 5/6/2022 | **Date:** |  |

---

© 2020 WealthForge. All rights reserved. WealthForge Securities, LLC is a member FINRA/SIPC. wealthforge.com

REP SUPERVISION SERVICES PRICINGSCHEDULE

---

| | |
|:---|:---|
| *Registration Fees\** |  |
|  | $500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due upon executing each Rep Agreement |  |
| *Supervisory Fees* |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Quarterly Fee per Client-Affiliated Representative  | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp; Disclosure Event per Client-Affiliated Representative | $500 |

---

\*Client shall reimburse WealthForge for all costs related to registration of Client-Affiliated Representative. See Service Schedule for more details.

WealthForge commits to a **100**% commission payout to Client-Affiliated Representatives. See Service Schedule for more details.

---

| | | | |
|:---|:---|:---|:---|
| **Client:**  | Versity Invest, LLC | **WealthForge Securities, LLC** | **WealthForge Securities, LLC** |
| **Signature:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> ![](versity_ex1aimg49.jpg) | **Signature:** | ![](versity_ex1aimg50.jpg) |
| **Title:** | Manager | **Title:** | CEO 5/6/2022 |
| **Date:** | 5/6/2022 | **Date:** |  |

---

© 2020 WealthForge. All rights reserved. WealthForge Securities, LLC is a member FINRA/SIPC. wealthforge.com

MBD Agreement 01.30.22

**<u>MANAGING BROKER-DEALER AGREEMENT</u>**

This Managing Broker-Dealer Agreement (this "Agreement") is entered into between Client (the "Issuer"), and WealthForge Securities, LLC, a Virginia limited liability company ("WealthForge"), effective on the date on the Order Form (the "Effective Date") regarding the sale of specific securities by the Issuer or its affiliated issuers (each an "Offering") for which WealthForge provides services (the "Services").

1. <u>Appointment of WealthForge</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 On the basis of the representations, warranties, and covenants herein contained, but subject to the terms and conditions herein set forth, WealthForge is hereby appointed and agrees to perform the Services for Offerings under an executed Deal Sheet. Each mutually executed Deal Sheet sets forth the specific scope of Services for an Offering under this Agreement. WealthForge is authorized to enlist other members of the Financial Industry Regulatory Authority, Inc. ("FINRA") acceptable to the Issuer (the "Selling Group Members") to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 No sale of an Offering will be effective unless and until accepted by an Issuer. The Issuer reserves the right, in its sole discretion, to accept or reject any purchase agreement for an Offering (the "Investment Agreement") in whole or in part for a period of 10 days after receipt of the Investment Agreement. Any proposed purchase of an Offering not accepted within 30 days of receipt will be deemed rejected. The performance of Services will commence on the date specified on the Order Form and will continue until the Agreement is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Subject to the performance by the Issuer of all its obligations and the completeness and accuracy of all the Issuer's representations and warranties in this Agreement, WealthForge accepts such agency and agrees to use its best efforts during the Offering Period to find qualified investors for the Issuer's Offering.

2. <u>Representations and Warranties of the Issuer</u>. The Issuer represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Issuer is duly organized and is validly existing in the state of incorporation or formation referenced on the Order Form, has all requisite power and authority to enter into this Agreement, and has all requisite power and authority to conduct its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 No defaults exist in the due performance or observance of any material obligation, term, covenant, or condition of any agreement or instrument to which the Issuer is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Subject to Section 3.3, the Offering Materials do not include, nor will they include at any time during the term, any untrue statement of a material fact nor do they nor will they omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 No consent, approval, authorization, or other order of any governmental authority is required in connection with the execution or delivery by the Issuer of this Agreement except such as may be required under the Securities Act or applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 At the time of the issuance of an Offering, the Issuer will have authorized and issued the securities. Upon payment, the securities will be fully paid, nonassessable, and will conform to the description contained in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 As of the Effective Date and at the time of any Offering (each, an "Applicable Date"), none of (i) the Issuer, (ii) any predecessor of the Issuer, , (iii) any director, executive officer, other officer participating in an Offering, general partner, or managing member of the Issuer or Issuer, (v) any beneficial owner of 20% or more of the Issuer's outstanding voting equity securities, calculated on the basis of voting power, or (vi) any promoter connected with the Issuer in any capacity at the time of a sale of a security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.1 Has been convicted within 10 years of any Applicable Date of any felony or misdemeanor that was:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the purchase or sale of any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Involving the making of any false filing with the Securities and Exchange Commission (the "SEC"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.2 Is subject to any order, judgment, or decree of any court of competent jurisdiction, entered within 5 years before any Applicable Date, that, as of such Applicable Date, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the purchase or sale of any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Involving the making of any false filing with the SEC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.3 Is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions), a state authority that supervises or examines banks, savings associations, or credit unions, a state insurance commission (or an agency or officer of a state performing like functions), an appropriate federal banking agency, the U.S. Commodity Futures Trading Commission, or the National Credit Union Administration that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of any Applicable Date, bars the person from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Association with an entity regulated by such commission, authority, agency, or officer; banking; or officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Engaging in the business of securities, insurance, or banking; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Engaging in savings association or credit union activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within 10 years before any Applicable Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.4 Is subject to an order of the SEC pursuant to sections 15(b) or 15B(c) of the Securities Exchange Act of 1934 (the "Exchange Act") or section 203(e) or (f) of the Investment Advisers Act of 1940 (the "Investment Advisers Act") that, as of any Applicable Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, or investment advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Places limitations on the activities, functions, or operations of such person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Bars such person from being associated with any entity or from participating in the offering of any penny stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.5 Is subject to any order of the SEC entered within 5 years before any Applicable Date that, as of such Applicable Date, orders the person to cease and desist from committing or causing a violation or future violation of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any scienter-based anti-fraud provisions of the federal securities laws including, without limitation, section 17(a)(1) of the Securities Act, section 10(b) of the Exchange Act and 17 CFR 240.10b-5, section 15(c)(1) of the Exchange Act, and section 206(1) of the Investment Advisers Act or any other rule or regulation thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 5 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.6 Is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.7 Has filed (as a registrant or issuer), or was, or was named as an underwriter in, any registration statement or Regulation A offering statement filed with the SEC that, within 5 years of any Applicable Date, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption or is, as of any Applicable Date, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.8 Is subject to a United States Postal Service false representation order entered within 5 years before any Applicable Date or is, as of any Applicable Date, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.9 The Issuer agrees to immediately notify WealthForge of any violations or potential violations of the representations set forth in this Section 2.6 during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 The representations and warranties made in this Section 2 are made as of the date of this Agreement and will be continuing representations and warranties throughout the Term. In the event that any of these representations or warranties becomes untrue or is incorrect, the Issuer will immediately notify WealthForge in writing of the fact which makes the representation or warranty untrue or incorrect.

3. <u>Duties and Obligations of the Issuer</u>. The Issuer agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Issuer will deliver to WealthForge the Offering Materials, including any amendments, supplements, or appendices, as WealthForge may reasonably request for the purposes contemplated by federal and applicable state securities laws. The Issuer will also deliver to WealthForge copies of any printed sales literature or other materials as it may reasonably request in connection with an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Issuer will comply with all requirements imposed upon it by the rules and regulations of the SEC, and by all applicable state securities laws and regulations, to permit the continuance of offers and sales of securities, in accordance with the provisions of this Agreement and the Offering Materials, and will amend or supplement any Offering Materials in order to make the Offering Materials comply with the requirements of federal and applicable state securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 If at any time any event occurs as a result of which the Offering Materials would include an untrue statement of a material fact or, in view of the circumstances under which it was made, omit to state any material fact necessary to make the statements not misleading, the Issuerwill notify WealthForge, correct such statement or omission, and deliver to WealthForge as many copies of such amendment or supplement to the Offering Materials as WealthForge may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The Issuer will apply the net proceeds from an Offering in the manner set forth in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Subject to WealthForge's actions and the actions of others in connection with an Offering, any affiliated Issuer will comply with all requirements imposed upon it by Rule 506 or other applicable federal or state securities laws. Upon request, the Issuer will provide WealthForge with a copy of any documents filed by the Issuer in connection with any such exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Issuer agrees that it will submit to WealthForge any documents to be filed with the SEC for advanced review and approval. The Issuer will not submit any documents to the SEC listing WealthForge as the broker-dealer on an Offering unless it has written approval from WealthForge. Any such documents must be substantially in the form WealthForge approves. The Issuerwill notify WealthForge immediately upon submission to the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 In order to use electronic delivery for documents pertaining to an Offering, the Issuer will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.1 Provide a form of consent to electronic delivery to be signed by prospective investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.2 Comply with Sections I(A)1 (b) – (e), I(A)2(d), I(B)2, and I(C), (E), (G), (H), (I) and (J) of the NASAA Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 In order to use electronic signatures, the Issuer will (i) retain electronically signed documents in compliance with applicable laws and regulations, (ii) not condition participation in an Offering on the use of electronic signatures, and (iii) provide a form of consent to electronic signatures to be signed by prospective investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 Each Issuer will either pay all commissions directly to WealthForge or agree to allow WealthForge to withhold commissions from distributions of Gross Proceeds.

4. <u>Representations and Warranties of WealthForge</u>. WealthForge represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 WealthForge is a duly organized Virginia limited liability company in good standing and has all requisite power and authority to enter into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 This Agreement, when executed by WealthForge, is duly authorized and is a valid and binding agreement of WealthForge, enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 The consummation of the transactions contemplated in this Agreement will not result in a breach or violation of any order directed to WealthForge by any court, FINRA, or any federal or state regulatory body or administrative agency having jurisdiction over WealthForge or its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 WealthForge is, and during the Term of this Agreement will remain, duly registered as a broker-dealer pursuant to the provisions of the Exchange Act, a member in good standing with FINRA, and a broker or dealer duly registered as a broker-dealer in any state where offers are made by WealthForge. WealthForge will comply with all applicable laws, regulations, requirements, and rules of the Securities Act, the Exchange Act, applicable state law, and FINRA. WealthForge has all required licenses and permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 WealthForge has reasonable grounds to believe, based on information made available to it by the Issuer that all material facts are adequately and accurately disclosed in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 This Agreement, or any supplement or amendment hereto, may be filed by the Issuer with the SEC or FINRA, if such filing should be required, and may be filed with and may be subject to the approval of any applicable federal and applicable state securities regulatory agencies, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 No agreement will be made by WealthForge with any person permitting the resale, repurchase, or distribution of the Securities purchased by such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 WealthForge has established and implemented anti-money-laundering compliance programs ("AML"), in accordance with FINRA Rule 3310 and Section 352 of the Money Laundering Abatement Act and Section 326 of the USA PATRIOT Act of 2001.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 As of any Applicable Date, that none of (i) WealthForge, (ii) any general partner or managing member of WealthForge, (iii) any director, executive officer, other officer participating in an Offering, general partner, or managing member of WealthForge, or (iv) any person that has been or will be paid (directly or indirectly) remuneration for solicitation of investors in connection with the sale of securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.1 Has been convicted within 10 years of any Applicable Date of any felony or misdemeanor that was:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the purchase or sale of any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Involving the making of any false filing with the SEC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.2 Is subject to any order, judgment, or decree of any court of competent jurisdiction entered within 5 years before any Applicable Date that, as of such Applicable Date, restrains or enjoins such person from engaging or continuing in any conduct or practice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the purchase or sale of any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Involving the making of any false filing with the SEC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.3 Is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions), a state authority that supervises or examines banks, savings associations or credit unions, a state insurance commission (or an agency or officer of a state performing like functions), an appropriate federal banking agency, the U.S. Commodity Futures Trading Commission, or the National Credit Union Administration that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of any Applicable Date, bars the person from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Association with an entity regulated by such commission, authority, agency, or officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Engaging in the business of securities, insurance, or banking; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Engaging in savings association or credit union activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within 10 years before any Applicable Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.4 Is subject to an order of the SEC pursuant to sections 15(b) or 15B(c) of the Exchange Act or section 203(e) or (f) of the Investment Advisers Act that, as of any Applicable Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, or investment advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Places limitations on the activities, functions, or operations of such person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Bars such person from being associated with any entity or from participating in the offering of any penny stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.5 Is subject to any order of the SEC entered within 5 years before any Applicable Date that, as of such Applicable Date, orders the person to cease and desist from committing or causing a violation or future violation of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any scienter-based anti-fraud provisions of the federal securities laws including, without limitation, section 17(a)(1) of the Securities Act, section 10(b) of the Exchange Act and 17 CFR 240.10b-5, section 15(c)(1) of the Exchange Act, and section 206(1) of the Investment Advisers Act or any other rule or regulation thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 5 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.6 Is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.7 Has filed (as a registrant or issuer), or was or was named as an underwriter in, any registration statement or Regulation A offering statement filed with the SEC that, within 5 years of any Applicable Date, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is, as of any Applicable Date, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.8 Is subject to a United States Postal Service false representation order entered within 5 years before any Applicable Date or is, as of any Applicable Date, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.9 WealthForge agrees to immediately notify the Issuer if there is a violation or potential violation of the representations set forth in this Section 4.9 during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 The representations and warranties made in this Section 4 are and will be continuing representations and warranties throughout the Term. In the event that any of these representations or warranties becomes untrue, WealthForge will immediately notify the Issuer in writing of the fact which makes the representation or warranty untrue.

5. <u>Duties and Obligations of WealthForge</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 WealthForge will serve in a "best efforts" capacity during the performance of the Services. WealthForge may perform Services as an agent, but all sales will be made by the Issuer, acting through WealthForge as an agent, and not by WealthForge as a principal. WealthForge will not have any authority to appoint any person or other entity as an agent or sub-agent of WealthForge or the Issuer, except to appoint Selling Group Members acceptable to the Issuer in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 WealthForge will provide independent due diligence services with respect to the material information and representations contained in the Offering Materials. WealthForge will provide feedback to the Issuer with respect to any Offering Materials. WealthForge will immediately bring to the attention of the Issuer any circumstance or fact which causes WealthForge to believe the Offering Materials, any other literature distributed pursuant to an Offering, or any information supplied by prospective investors in their subscription materials may be inaccurate or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 If applicable, WealthForge will confirm that neither the Selling Group Member nor the Selling Group Member's registered representative involved in the sale is subject to a disqualification or disclosure event as set forth in Rule 506(d) or 506(e) of Regulation D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 After completing diligence, WealthForge will enter into an agreement with

each Selling Group Member (each a "Soliciting Dealer Agreement").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 WealthForge will not execute any transaction in which an investor invests into an Offering in a discretionary account without prior written approval of the transaction by the investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 WealthForge will comply in all respects with the subscription procedures and plan of distribution set forth in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 In the event WealthForge receives any customer funds for the Securities, WealthForge will transmit such customer funds not later than noon of the next business day, following receipt of such funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 WealthForge will conduct all of its solicitation and sales efforts in conformity with SEC and FINRA rules, including Rule 506 (if applicable), and exemptions available under applicable state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 WealthForge will notify the Issuer of Investment Agreements it receives and ensure that such Investment Agreements are materially complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 WealthForge will comply with its AML policies and procedures for all investments into the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 WealthForge will process all commissions to the Selling Group Members for Investment Agreements accepted by the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 The Issuer may also enter into agreements for the sale of an Offering to certain investors with non-FINRA registered investment advisors ("Registered Investments Advisors"), and WealthForge will assist in the administration of such arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 WealthForge will terminate an Offering upon request of the Issuer at any time and will resume an Offering upon subsequent request of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 WealthForge will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.1 Maintain written policies and procedures covering the use of electronic offering documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.2 Store the electronic offering documents in a non-rewriteable and non- erasable format;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.3 Take prompt action in the event of a security breach to (i) identify and locate the breach, (ii) secure the affected information, (iii) suspend the use of the particular device or technology that has been compromised until information security has been restored, and (iv) provide notice of the security breach to any investor whose confidential personal information has been improperly accessed in connection with the security breach. Compliance with this item after the discovery of a security breach or any other breach of personal information will not substitute or in any way affect other requirements or obligations, including notification, imposed on WealthForge pursuant to applicable laws, regulations, or standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 WealthForge will require each Selling Group Member, as agent of the Issuer, if it uses electronic signatures in connection with an Offering, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15.1 Receive a prospective investor's prior, informed consent to obtain the use of electronic signatures in the form provided by the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15.2 Comply with all of the provisions of the Policy Regarding Use of Electronic Signatures included in the NASAA Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 WealthForge will maintain written policies and procedures covering the use of electronic signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 WealthForge will handle all required FINRA filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 WealthForge may provide the Broker-Dealer of Record Services in Section 1 of the attached Addendum for investments from Registered Investment Advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 WealthForge may provide the additional services in the Addendum if indicated on an executed Deal Sheet.

6. <u>Compensation</u>. Subject to Section 7, as compensation for services rendered by WealthForge under this Agreement, WealthForge will be entitled to receive from the Issuer or Issuer, as appropriate, the following fees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Diligence Fee: The Issuer will pay the diligence fee per Offering for WealthForge's diligence of an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Managing Broker-Dealer Fee: The Issuer will pay WealthForge the Managing Broker Dealer Fee outlined in the Order Form out of Gross Proceeds as compensation for the Services. WealthForge will discount the Managing Broker-Dealer Fee by 0.05% for Securities submitted through the Altigo platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Retail Commissions: If stated in an executed Deal Sheet, the Issuer will pay the Retail Commissions and Allowances to WealthForge as set forth in the Deal Sheet. WealthForge may re-allow this fee to Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Wholesale Commissions: If stated in an executed Deal Sheet, the Issuer will pay the Wholesale Commissions to WealthForge in the amount detailed in the Deal Sheet. WealthForge may re-allow this fee, in whole or in part, to certain wholesalers, some of which may be internal to the Issuer and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Filing Fee: If indicated on the Order Form, the Issuer will pay WealthForge the Filing Fee for each filing of Form D, state blue sky notices, or 5110, as applicable. The Issuer agrees to pay any additional filing fees associated with any filings under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Subject to the Addendum, WealthForge may also sell an Offering as a Selling Group Member, thereby becoming entitled to selling commissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 The Issuer will pay WealthForge, for sales of securities, an amount up to 1% of the Total Sales as a nonaccountable marketing and due diligence allowance which WealthForge may reallow to the Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 If: (x) the Issuer elects to discontinue Services for an Offering and does not have a termination right under this Agreement to do so or if WealthForge terminates its Services for an Offering for material breach; and (y) there are Remaining Funds, then upon invoice from WealthForge, the Issuer will pay WealthForge the Managing Broker-Dealer Fee for the Remaining Funds as if the Remaining Funds were Gross Proceeds of an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 Overdue Fees under this Agreement and the Rep Supervision Appendix are subject to: (x) interest of eighteen percent (18.0%) per annum or the maximum rate permissible by law, whichever is less; and (y) all costs of collection including attorney's fees. For Fees payable subject to a fully-executed Deal Sheet for a public Offering, including a non- traded REIT Offering, the preceding sentence applies *except* that the total amount that WealthForge is entitled for overdue Fees, including interest, costs, and attorney's fees may not exceed 8% of the total amount sought to be raised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 Notwithstanding the foregoing provisions of this Section 6, the Issuer reserves the right, in its sole discretion, to refuse to accept any or all Investment Agreements tendered by WealthForge or to terminate the Offering at any time.

7. <u>Conditions to Payment of Commissions, Allowances and Expense Reimbursements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 No selling commissions, allowances, expense reimbursements, or other compensation will be payable with respect to any Investment Agreements that are rejected by the Issuer. No selling commissions, allowances, expense reimbursements, or other compensation will be payable to WealthForge with respect to any sale of an Offering by WealthForge unless and until such time as the Issuer has received the total proceeds of any such sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Except as provided in Section 17, all other expenses incurred by WealthForge in the performance of its obligations, including, but not limited to, expenses related to the Offering and any attorneys' fees, will be at WealthForge's sole cost and expense. This limitation will apply even if the Issuer does not consummate an Offering.

8. <u>Offering</u>. An Offering must be at the offering price and upon the terms and conditions set forth in the Offering Materials.

9. <u>Indemnification by the Issuer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 The Issueragrees to indemnify, defend, and hold harmless WealthForge and the Selling Group Members, and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "Selling Parties") against any and all Loss resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1 Any untrue statement of a material fact contained in the Offering Materials or in any application or other document filed in any jurisdiction in order to qualify an Offering under, or exempt an Offering from, the registration or qualification requirements of the securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2 The omission from the Offering Materials of a material fact required to be stated therein or necessary to make the statements not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3 The failure of the Issuer, as a result of its acts or omissions, to comply with any of the applicable provisions of the Securities Act, including Rule 506 or any other applicable federal or state laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4 Any verbal or written representations made in connection with an Offering by the Issuer in violation of the Securities Act, or any other applicable federal or state securities laws and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.5 The breach by the Issuer of any term, condition, representation, warranty, or covenant in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 If any action is brought against any of the Selling Parties for which they seek indemnification, WealthForge or the Selling Group Members will promptly notify the Issuer in writing of the action. The Issuer will then assume the defense of such action. The failure to notify the Issuer will not affect the provisions in this Section 9 unless such failure to notify the Issuer has a material and adverse effect on the defense of the claims. The affected Selling Parties will have the right to employ counsel in any such case. The Issuer will bear any expenses of defense as long as the expenses are authorized in writing by the Issuer. But the Issuer will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 The Issuer and the Issuer agree to promptly notify WealthForge of the commencement of any litigation or proceedings against the Issuer or any of its respective managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 The indemnity provided to WealthForge pursuant to this Section 9 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1 any untrue statement or alleged untrue statement of material fact made by WealthForge or any agent of WealthForge, or any omission or alleged omission of a material fact required to be disclosed by WealthForge or any agent of WealthForge made in reliance upon and in conformity with written information furnished to the Issuer by WealthForge specifically for use in the preparation of the Offering Materials (or any amendment or supplement thereto) or any sales literature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2 the failure to qualify securities sold in an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of WealthForge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.3 the offer or sale by WealthForge of an Offering to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.4 the breach by WealthForge of its representations, warranties, or obligations in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 The indemnity provided to the Selling Group Member pursuant to this Section 9 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.1 any untrue statement or alleged untrue statement of material fact made by the Selling Group Member or any agent of the Selling Group Member or any omission or alleged omission of a material fact required to be disclosed by the Selling Group Member or any agent of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2 the failure to qualify securities sold in an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules or regulations caused by an action or omission of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.3 the offer or sale by the Selling Group Member of an Offering to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.4 the breach by the Selling Group Member of its representations, warranties, or obligations under its Soliciting Dealer Agreement with WealthForge relating to the Offering.

10. <u>Indemnification by WealthForge</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 WealthForge agrees to indemnify, defend, and hold harmless the Issuer, the Selling Group Members, and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "ISGM Parties"), against any and all Loss resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 Any verbal or written representations made in connection with an Offering by WealthForge in violation of the Securities Act, or any other applicable federal or state securities laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 Any misrepresentation contained in any sales or other materials provided by WealthForge to the Selling Group Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3 WealthForge's failure to comply with any of the applicable provisions of the Securities Act, the Exchange Act, Rule 506, the applicable requirements and rules of FINRA, or any applicable state laws or regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4 The breach by WealthForge of any term, condition, representation, warranty, or covenant in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 If any action is brought against any of the ISGM Parties for which they seek indemnification, ISGM Parties will promptly notify WealthForge in writing of the action. WealthForge will then assume the defense of such action. The failure to notify WealthForge will not affect the provisions in this Section 10 unless such failure to notify WealthForge has a material and adverse effect on the defense of the claims. The affected ISGM Parties will have the right to employ counsel in any such case. WealthForge will bear any expenses of defense as long as the expenses are authorized in writing by WealthForge. But WealthForge will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 WealthForge agrees to promptly notify the Issuer Issuerof the commencement of any litigation or proceedings against WealthForge or any of its managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 The indemnity provided to the Issuer pursuant to this Section 10 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.1 any untrue statement or alleged untrue statement of material fact made by the Issueror any agent of the Issuer (other than WealthForge), or any omission or alleged omission of a material fact required to be disclosed by the Issuer or any agent of the Issuer (other than WealthForge);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.2 the failure to qualify an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.3 the breach by the Issuer of its representations, warranties, or obligations in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 The indemnity provided to the Selling Group Member pursuant to this Section 10 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.1 any untrue statement or alleged untrue statement of material fact made by the Selling Group Member or any agent of the Selling Group Member, or any omission or alleged omission of a material fact required to be disclosed by the Selling Group Member or any agent of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.2 the failure to qualify securities sold in an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.3 the offer or sale of the Offering by the Selling Group Member to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.4 the breach by the Selling Group Member of its representations, warranties, or obligations under its Soliciting Dealer Agreement with WealthForge relating to the Offering.

11. <u>Indemnification by the Selling Group Member</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Each Selling Group Member agrees to indemnify, defend, and hold harmless the Issuerand WealthForge and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "IMBD Parties"), against any and all Loss resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1 Any verbal or written representations made in connection with an Offering by such Selling Group Member, its employees, or affiliates in violation of the Securities Act, or any other applicable federal or state securities laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2 Any use of sales materials or use of unauthorized verbal representations by such Selling Group Member, its employees, or affiliates concerning the Offering in violation of the Soliciting Dealer Agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3 Such Selling Group Member's failure to comply with any of the applicable provisions of the Securities Act, the Exchange Act, Rule 506, the applicable requirements and rules of FINRA, or any applicable state laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4 The breach by such Selling Group Member of any term, condition, representation, warranty, or covenant of the Soliciting Dealer Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.5 The failure by any investor to comply with the Suitability Requirements set forth in the Offering Materials; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.6 Any electronic signatures and/or stamped signatures in any form which have been used, obtained, or relied upon by the Selling Group Member with respect to this Agreement, the applicable Soliciting Dealer Agreement, or any Investment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 If any action is brought against any of the IMBD Parties for which they seek indemnification, IMBD Parties will promptly notify Selling Group Member in writing of the action. Selling Group Member will then assume the defense of such action. The failure to notify Selling Group Member will not affect the provisions in this Section 11 unless such failure to notify Selling Group Member has a material and adverse effect on the defense of the claims. The affected IMBD Parties will have the right to employ counsel in any such case. Selling Group Member will bear any expenses of defense as long as the expenses are authorized in writing by Selling Group Member. But Selling Group Member will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 The Selling Group Member agrees to promptly notify the Issuerand WealthForge of the commencement of any litigation or proceedings against the Selling Group Member or any of the Selling Group Member's managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 The indemnity provided to WealthForge pursuant to this Section 11 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.1 any untrue statement or alleged untrue statement of material fact made by WealthForge or any agent of WealthForge, or any omission or alleged omission of a material fact required to be disclosed by WealthForge or any agent of WealthForge made in reliance upon and in conformity with written information furnished to the Issuer by WealthForge specifically for use in the preparation of the Offering Materials (or any amendment or supplement thereto) or any sales literature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.2 the failure to qualify securities sold in an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of WealthForge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.3 the offer or sale by WealthForge of an Offering to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.4 the breach by WealthForge of its representations, warranties, or obligations in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 The indemnity provided to the Issuer pursuant to this Section 11 will not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.1 any untrue statement or alleged untrue statement of material fact made by the Issuer or any agent of the Issuer (other than WealthForge), or any omission or alleged omission of a material fact required to be disclosed by the Issuer or any agent of the Issuer (other than WealthForge);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.2 the failure to qualify securities sold in an Offering for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.3 the breach by the Issuer of its representations, warranties, or obligations in this Agreement.

12. <u>Contribution</u>. In the case that the indemnification provided in Sections 9, 10, and 11 is for any reason held to be unavailable from the Issuer, WealthForge, or the Selling Group Members, the Issuer, WealthForge, and the Selling Group Members will contribute to the aggregate Loss (including any amount paid in settlement of any action, suit, or proceeding or any claims asserted). The parties will contribute in proportion to the relative fault of the Issuer, the Issuer, WealthForge and the Selling Group Members and their affiliates and agents in connection with the events described in Sections 9, 10 and 11, which resulted in such Loss, as well as any other equitable considerations. The parties and any person who controls WealthForge will also have rights to contribution under this Section 12. The relative fault of the parties will be determined by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 whether the IssuerWealthForge, or the Selling Group Member or their affiliates and agents supplied any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such omission or statement.

13. <u>Disclaimers; Limitations of Liability</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <u>Disclaimer</u>. EXCEPT FOR THE WARRANTIES SET FORTH ABOVE, THE SERVICES ARE PROVIDED "AS IS." WEALTHFORGE DISCLAIMS ALL WARRANTIES: EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD-PARTY RIGHTS. WEALTHFORGE DOES NOT WARRANT THAT THE SERVICES WILL MEET THE ISSUER'S REQUIREMENTS. THE ISSUER ACKNOWLEDGES THAT UNDER NO CIRCUMSTANCES DOES WEALTHFORGE REPRESENT OR WARRANT THAT THE ISSUER'S OR AN AFFILIATED ISSUER'S GOALS FOR AN OFFERING WILL BE MET. WEALTHFORGE IS NOT RESPONSIBLE FOR THE ACCURACY OR COMPLETENESS OF INFORMATION PROVIDED BY OR ON BEHALF OF THE ISSUER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Limitations of Liability</u>. EXCEPT AS PROVIDED IN SECTION 13.3, AND EXCEPT TO THE EXTENT PROHIBITED BY LAW:

A PARTY HAS NO LIABILITY TO THE OTHER PARTY OR TO THIRD PARTIES FOR SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, LOSS OF BUSINESS, LOSS OF PROFITS OR REVENUE, GOODWILL, OR SAVINGS, OR DAMAGE TO, LOSS OF, OR REPLACEMENT OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE SERVICES) RELATING IN ANY MANNER TO THE SERVICES (WHETHER ARISING FROM CLAIMS BASED IN CONTRACT, TORT, OR OTHERWISE), EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH CLAIM OR DAMAGE; AND

THE DISCLAIMERS AND LIMITATIONS CONTAINED IN THIS SECTION 13 ARE A FUNDAMENTAL PART OF THE BASIS OF THE BARGAIN HEREUNDER, AND WEALTHFORGE WOULD NOT PROVIDE THE SERVICES TO CLIENT AND CLIENT WOULD NOT ENGAGE THE WEALTHFORGE SERVICES WITHOUT THEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Exclusions</u>. The limitations of liability set forth in Section 13.2 do not apply to a party's: (i) obligations under Section 10 (Indemnification by WealthForge); (ii) obligations under Section 15 (Privacy Act); and (iii) fraud, gross negligence or intentional misconduct.

WealthForge's liability is limited as follows. WEALTHFORGE'S ENTIRE LIABILITY FOR SERVICES UNDER THIS AGREEMENT IS LIMITED TO TWO MILLION DOLLARS ($2,000,000.00) IN THE AGGREGATE FOR THE TERM OF THE AGREEMENT.

14. <u>Compliance</u>. All actions, direct or indirect, by WealthForge and its agents, members, employees, and affiliates will conform to (i) requirements applicable to broker-dealers under federal and applicable state securities laws, rules, and regulations and (ii) applicable requirements and rules of FINRA.

15. <u>Privacy Act</u>. To protect Customer Information (as defined below) and to comply with the requirements of the Gramm-Leach-Bliley Act, relevant state and federal regulations pursuant, and state privacy laws, the parties wish to agree to the following confidentiality and non-disclosure obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 "Customer Information" means any information contained on a customer's investment documentation or other form and all nonpublic personal information about a customer that a party receives from the other party. Customer Information includes, but is not limited to, name, address, telephone number, social security number, health information, and personal financial information (which may include consumer account number).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 The parties understand and acknowledge that they may be financial institutions subject to applicable federal and state customer and consumer privacy laws and regulations, including Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801, et seq.) and regulations (collectively, the "Privacy Laws"). Any Customer Information that one party receives from the other party is received with limitations on its use and disclosure. The parties agree that they are prohibited from using the Customer Information received from the other party other than (i) as required by law, regulation, or rule or (ii) to carry out the purposes for which one party discloses Customer Information to the other party pursuant to this Agreement, as permitted under the use in the ordinary course of business exception to the Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 The parties will establish and maintain safeguards against the unauthorized access, destruction, loss, or alteration of Customer Information in their control which are no less rigorous than those maintained by a party for its own information of a similar nature. In the event of any improper disclosure of any Customer Information, the party responsible for the disclosure will promptly notify the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 The provisions of this Section 15 will survive the termination of this Agreement.

16. <u>Survival</u>. Except as the context otherwise requires, all representations, warranties, and agreements contained in this Agreement, including the indemnity agreements contained in Sections 9, 10 and 11 and the contribution agreements contained in Section 12 will survive the termination of this Agreement.

17. <u>Costs of the Offering</u>. Except for the compensation payable to WealthForge and the allowances and reimbursements described in Section 6, which are the sole obligations of the Issuer or its affiliates, WealthForge will pay all of its own costs and expenses, including, but not limited to, all expenses necessary for WealthForge to remain in compliance with any applicable federal, state, or FINRA laws, rules, or regulations in order to participate in an Offering as a broker-dealer, and the fees and costs of WealthForge's counsel. The Issuer agrees to pay all other expenses incident to the performance of its obligations hereunder, including all expenses incident to filings with federal and state regulatory authorities and to the exemption of an Offering under federal and state securities laws, including fees and disbursements of the Issuer's counsel, and all costs of reproduction and distribution of the Offering Materials and any amendment or supplement thereto.

18. <u>Term</u>. The Initial Term continues for the duration set forth on the Order Form. At the end of the Initial Term, unless a party gives 60 days' written notice of non-renewal ("Non- Renewal Notice"), this Agreement will renew for consecutive six-months periods (each, a "Renewal Term").

19. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 This Agreement is terminable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1 by mutual agreement of the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.2 by the non-breaching party, for the other party's material breach of the Agreement: (x) upon ten (10) days' written notice if the breach is curable and remains uncured at the end of the notice period; or (y) immediately, upon written notice, if the breach is not curable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.3 by the non-breaching party for the other party's material breach relating to its obligations under Section 15 of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.4 by either party as required by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.5 by one party if the other party is subject to a Bankruptcy Event; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.6 by WealthForge if it determines, in its reasonable discretion, that Issuer is unable to solicit securities due to a violation of law, rule, or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 Such termination will not affect the indemnification or contribution agreements set forth in Sections 9, 10 and 11 or the contribution agreements set forth in Section 12.

20. <u>Governing Law</u>. This Agreement will be governed by, subject to, and construed in accordance with the laws of the state of Virginia without regard to conflict of law provisions.

21. <u>Venue</u>. The venue for any dispute will be in the state or federal courts in Richmond, Virginia, except that: (i) a party may seek injunctive or other equitable relief in any state or federal court of competent jurisdiction for any actual or alleged infringement of any intellectual property or other proprietary rights; and (ii) WealthForge may seek the payment of Fees in a state or federal court where the defendant resides or has assets.

22. <u>Severability</u>. If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible (i) the remainder of this Agreement will be considered valid and operative and (ii) effect will be given to the intent manifested by the portion held invalid or inoperative.

23. <u>Counterparts</u>. This Agreement may be executed in 2 or more counterparts, each of which will be deemed to be an original, and together which will constitute one and the same instrument.

24. <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1 The parties will provide notice under this Agreement in writing in one of the following ways: (i) by personal delivery or overnight delivery, which is effective immediately upon delivery; (ii) by certified mail, return receipt requested, which is effective three (3) business days after notice is sent; or (iii) by email, which is effective one (1) business day after the date successfully sent (subject to the notifying party providing proof of successful transmission upon request).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2 WealthForge will send notice to the Issuer to the address specified in the applicable Order Form and the Issuer will send notice to WealthForge as follows:

WealthForge

Attention: Legal

3015 W. Moore Street, Suite 102

Richmond, VA 23230

25. <u>Waiver</u>. A waiver by any party of a provision or right under this Agreement does not constitute a waiver of any other provision or right under this Agreement.

26. <u>Recovery of Costs</u>. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party will be entitled to recover reasonable attorneys' fees and other costs incurred in that action or proceeding (and any additional proceeding for the enforcement of a judgment) in addition to any other relief to which it or they may be entitled.

27. <u>Entire Agreement</u>. This Agreement sets forth the entire agreement between the parties with respect to the services anticipated under the agreement. This Agreement may not be modified or amended, except by written agreement.

28. <u>Confirmation</u>. The Issuer agrees to notify WealthForge and the Selling Group Members of the acceptance by the Issuer of purchases in the Offering.

29. <u>Due Diligence</u>. The Issuer will authorize a collection of information regarding an Offering, which collection the Issuer may amend and supplement from time to time, to be delivered by WealthForge to the Selling Group Members (or their agents performing due diligence) in connection with their due diligence review of an Offering. In the event a Selling Group Member (or its agent performing due diligence) requests access to additional information or otherwise wishes to conduct additional due diligence regarding an Offering, the Issuer and WealthForge will reasonably cooperate with such Selling Group Member to accommodate such request. All due diligence information received by WealthForge or the Selling Group Members in connection with their due diligence review of an Offering is confidential and must be maintained as confidential and not disclosed by WealthForge or the Selling Group Members except to the extent such information is disclosed in the Offering Materials.

30. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1 "Advertising Materials" means, but is not limited to, websites, offering landing pages, emails, and all written materials about an Offering provided by Issuer, or any party acting as Issuer's agent or on Issuer's behalf to Issuer's knowledge, to prospective subscribers, and all written materials that include a disclaimer stating that securities are offered through WealthForge Securities, LLC or otherwise mentions WealthForge Securities, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2 "Affiliate" means a person or entity controlling, controlled by, or under common control with that party, including an Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3 "Agreement" means this Managing Broker-Dealer Agreement between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.4 "Applicable Date" means as of the Effective Date and at the time of any performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.5 "Bankruptcy Event" means a party becomes the subject of: (x) a petition in bankruptcy or any proceeding related to its insolvency, receivership, or liquidation, in any jurisdiction, that is not dismissed within sixty (60) days of its commencement; or (y) an assignment for the benefit of creditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.6 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.7 "Fees" collectively means all fees Issuer owes to WealthForge under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.8 "Gross Proceeds" means the aggregate proceeds received from the sale of Securities for which WealthForge provides Services subject to a fully-executed Deal Sheet under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.9 "Investment Advisers Act" means the Investment Advisers Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.10 "Investment Agreement" means the agreement that an investor signs to effectuate the purchase of Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.11 "Loss" means any and all loss, liability, claim, damage, and expense whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.12 "Offering" means an issuer's specific offer of securities for sale for which WealthForge performs Services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.13 "Offering Materials" means all written or oral communications a Issuer or an Issuer intends to provide a prospective subscriber related to an Offering, including, as applicable, the private placement memorandum, operating agreement, subscription agreement, and Advertising Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.14 "Offering Period" means the period of time for which WealthForge provides Services for the Issuer's Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.15 "Order Form" means the mutually-executed document which sets forth the Services for which Client is engaging WealthForge and the corresponding pricing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.16 "Remaining Funds" means funds: (x) that remain in escrow when WealthForge's the Services end because (i) Issuer elects to discontinue those Services for an Offering and does not have a termination right under this Agreement to do so, or (ii) WealthForge terminates its Services for an Offering for material breach; and (y) for which WealthForge performed Services on behalf of the Issuer for the corresponding investor; and (z) that the Issuer has discretion to accept and elects not to accept.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.17 "Securities Act" means the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.18 "Securities" means the debt or equity securities that an Issuer makes available in an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.19 "Services" means, collectively, all services that WealthForge provides under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.20 "Issuer-Affiliated Representative" means a registered representative of WealthForge who is also employed by the Issuer or its Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.21 "Issuer NRF Person" means a non-registered fingerprinted associated person of WealthForge who is also employed by the Issuer or its Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.22 "Term" means the period of time during which this Agreement remains valid and is in effect.

**Addendum**

**WealthForge Securities, LLC Services**

In addition to the obligations of WealthForge set forth in the Managing Broker-Dealer Agreement (the Agreement"), WealthForge will perform the following services with respect to an Offering. Capitalized terms used, but not defined herein, have the meanings set forth in the Agreement. This Addendum is incorporated into the terms, and made a part, of the Agreement.

1. <u>Broker-Dealer of Record Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 When WealthForge is acting as a broker-dealer of record for a securities transaction into an Offering — as indicated on an executed Deal Sheet:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1 The investor will be considered a "Customer" of WealthForge (as described below). WealthForge represents that it has established and implemented an AML compliance program ("AML Program"), in accordance with FINRA Rule 3310 and Section 352 of the Money Laundering Abatement Act, the Bank Secrecy Act, as amended, and Section 326 of the USA PATRIOT Act of 2001, which are reasonably expected to detect and cause reporting of suspicious transactions in connection with the sale of Securities. In addition, WealthForge represents that it has established and implemented a program ("OFAC Program") for compliance with OFAC and will continue to maintain its OFAC Program during the Term of this Agreement. Upon request by the Issuer at any time, WealthForge will (i) furnish a copy of its AML Program and OFAC Program to the Issuer for review and (ii) furnish a copy of the findings and any remedial actions taken in connection with WealthForge's most recent independent testing of its AML Program and its OFAC Program. Notwithstanding the foregoing, WealthForge will not be required to provide to the Issuer any documentation that, in WealthForge's reasonable judgment, would cause WealthForge to lose the benefit of attorney-client privilege or other privilege which it may be entitled to assert relating to the discoverability of documents in any civil or criminal proceedings. WealthForge represents that it is currently in compliance with all AML rules and all OFAC requirements, specifically including, but not limited to, the Customer Identification Program requirements under Section 326 of the USA PATRIOT Act. WealthForge agrees, upon request by the Issuer to perform and carry out, on behalf of the Issuer, the Customer Identification Program requirements in accordance with Section 326 of the USA PATRIOT Act and applicable SEC and Treasury Department rules thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2 WealthForge will conduct all solicitation and sales efforts in conformity with Regulation D, the Securities Act, and exemptions available under applicable state law. WealthForge will conduct reasonable investigation to ensure that all prospective investors are not (i) listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, Department of the Treasury ("OFAC"), or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable enabling legislation or other Executive Orders (such lists are collectively referred to as "Lists") or (ii) owned or controlled by, nor will they act for or on behalf of, any person or entity on the Lists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3 WealthForge will review the beneficial ownership for any entity investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4 WealthForge agrees that it will not offer the Securities for sale to any investor who has not confirmed to WealthForge, in writing before the offer, that such investor meets the suitability requirements set forth in the Offering Materials. Nothing contained in this Section 3.1.4 may be construed to relieve WealthForge of its suitability obligations under FINRA Rule 2111.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.5 WealthForge will limit the solicitation of the Offering to persons whom it has reasonable grounds to believe, and in fact believes, meet the financial suitability and other investor requirements set forth in the Offering Materials.

2. <u>Non-Solicitation</u>. WealthForge and the Issuer agree that the respective party will not solicit, offer work to, employ, or contract with one or more of the other party's or its Affiliates' Team Members. For purposes of this Section 3, "Team Member" means an individual that a party or its Affiliate employs as a party, employee or individual independent contractor and with whom the other party comes into direct contact with related to an Offering and the execution of the duties of the parties under this Agreement. The restrictions set forth in this Section 3 (i) will apply during the Term of this Agreement and during the twelve months immediately following the termination of this Agreement or the termination of an Offering, whichever is earlier and (ii) will not apply to the hiring of a Team Member that responds to a general newspaper or internet advertisement or other solicitation not targeting Team Members. If a party breaches this Section 3, then, upon request, the breaching party will pay to the non-breaching party the greater of (i) 1 year's compensation offered to the Team Member by the breaching party or (ii) 1 year's compensation paid by the non-breaching party to the Team Member at the time of the breach. The parties waive the right to object to the validity of the agreed damages for the breach of this Section 3 on the grounds that they are void as penalties or are not reasonably related to actual damages. If request for payment under this Section 3 is made and not timely remitted and if the non- breaching party files suit, then the non-breaching party may claim all damages available by law in addition to or instead of the amounts set forth in this Section 3.

3. <u>Registered Representative Supervisory Services</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Rep Supervision Services. If agreed by the parties on the Order Form or other writing, WealthForge will provide the following Registered Representative Supervision Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Issuer Affiliated Representative Onboarding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1 WealthForge will onboard each Issuer-Affiliated Representative using the following process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer will introduce WealthForge to the Issuer- Affiliated Representative candidate ("Rep Candidate").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) WealthForge will conduct an initial screen of the Rep Candidate in accordance with its written supervisory procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If WealthForge, in its sole discretion, determines it will accept the Rep Candidate after the initial screen, it will present him or her with an independent contractor agreement setting forth terms of the Rep Candidate's engagement with WealthForge as a registered representative ("Rep Agreement"). The Rep Candidate must execute the Rep Agreement to become a Issuer-Affiliated Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In coordination with the Rep Candidate, WealthForge will process the Rep Candidate's Form U4. When FINRA accepts the Form U4, the Rep Candidate becomes a Issuer-Affiliated Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WealthForge may disqualify a Rep Candidate or terminate a Issuer-Affiliated Representative for unreported or misrepresented disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 WealthForge's Rep Supervision Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1 WealthForge will do the following as part of its Rep Supervision

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Onboard Issuer-Affiliated Representatives as set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Facilitate training for Issuer-Affiliate Representatives, including assisting Issuer-Affiliate Representatives in obtaining required licenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Facilitate required registration with FINRA and all U.S. jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Provide required FINRA-required broker-dealer supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Provide review of advertising material the Issuer-Affiliated Representative uses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2 WealthForge may terminate a Issuer-Affiliated Representative as set forth in the corresponding Rep Agreement. If there are no Issuer-Affiliated Representatives, WealthForge may discontinue its provision of its Services under this Order Form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3 WealthForge will also supervise Issuer NRF Persons as further discussed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Issuer Obligations and Acknowledgements specific to Rep Supervision Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.1 Issuer-Affiliated Representative Fees and Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer is jointly and severally liable with the Issuer- Affiliated Representative for all Fees for all Issuer-Affiliated Representatives' accounts under each corresponding Rep Agreement. WealthForge may invoice the Issuer directly for these Rep Agreement Fees. It is the Issuer's responsibility to understand the Fees under the Rep Agreements for its Issuer-Affiliated Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) WealthForge commits to charging each Registered Representative no more than the amount on the Order Form for the Supervisory Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The first branch exam each calendar year for each branch office is included for no additional charge. There is a $1,000.00 charge for each additional exam in a calendar year, which WealthForge may conduct in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2 The Issuer and Issuer-Affiliated Representatives are jointly and severally responsible for the cost of exam fees and related study materials. WealthForge may expend these fees, in addition to ongoing fees for maintaining a Issuer-Affiliated Representative's registration (collectively, "Registration Fees"), on the Issuer-Affiliated Representative's behalf in the due course of administering onboarding or supervision. If WealthForge expends Registration Fees, the Issuer and the Issuer-Affiliated Representative are jointly and severally liable for promptly reimbursing WealthForge for the Registration Fees upon invoice from WealthForge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.3 Certain personnel of the Issuer or its Affiliates or their respective agents that assist Issuer-Affiliated Representatives may be required to become Issuer NRF Persons. The Issuer will cooperate fully and truthfully in: (x) determining whether certain personnel should become Issuer NRF Persons; and (y) working with WealthForge to administer Issuer NRF Persons. WealthForge determines in its sole discretion who should be a Issuer NRF Person under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.4 The Issuer has no regulatory supervisory obligations for a Issuer- affiliated Representative or a Issuer NRF Person in his or her capacity of performing securities functions under WealthForge. However, the Issuer is responsible for ensuring that its business activities adhere to applicable law and regulation. The Issuer may not include transaction-based compensation in an agreement between the Issuer and its Issuer- Affiliated Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.5 Unless otherwise agreed in writing, Issuer-Affiliated Representatives will only provide Retail Services for the Issuer and its Offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.6 If (x) WealthForge's provision of Rep Supervision Services is, in its reasonable opinion, necessary for the Issuer to operate in a compliant manner related to Offerings under this Agreement; and (y) if Issuer-Affiliated Representatives or Issuer NRF Persons become unable to perform in those respective capacities for WealthForge for any reason, including if WealthForge submits one or more U5 Forms in its discretion, then (z) WealthForge may terminate any or all of its Services for the infringing Offerings. WealthForge may terminate its Services for an Offering if the Issuer is in breach of Section 3.4.4 of this Addendum. WealthForge may terminate the Broker-Dealer Service Schedule or the Agreement if the anticipated structure of the Issuer's future Offerings will not allow the Issuer to raise capital without the provision of Rep Supervision Services or if WealthForge is unable to administer individuals it determines are required to be Issuer NRF Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.7 The Issuer represents and warrants that the Issuer-Affiliated Representatives and Issuer NRF Persons participating or who will participate in an Offering are not subject to one or more disqualification events as described in Section 2.7 of the Agreement (a "Disqualification Event"). The Issuer will notify WealthForge immediately if the Issuer has reason to believe a Issuer-Affiliated Representative is subject to a Disqualification Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.8 WealthForge has sole discretion to grant or withhold consent for each Issuer-Affiliated Representative to participate in each Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.9 If the Issuer provides Issuer-Affiliated Representatives and Issuer NRF Persons with an email account, then the Issuer will help facilitate the email supervision, including facilitating email archiving when necessary and use email disclaimers that WealthForge requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Issuer-Affiliated Rep Retail Services and Wholesaling Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.1 If WealthForge is engaged under a Deal Sheet for an Offering, Issuer- Affiliated Representatives may provide Retail Services or Wholesale Services for the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuer-Affiliated Rep Commission</u>: For each Offering, WealthForge will reallow portions of the Retail Commissions to Issuer-Affiliated Representatives as set forth in the Rep Agreement with each Issuer-Affiliated Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) WealthForge's compensation arrangement with each Issuer- Affiliated Representative, which may be modified in the agreement between WealthForge and the Issuer-Affiliated Representative, is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 WealthForge will pay the Issuer-Affiliated Representative 90% of the amount of the Retail Commissions that WealthForge collects from the Issuer or Issuer attributable to Rep-Introduced Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 "Rep-Introduced Investor" means an investor the Issuer-Affiliated Representative introduced to one or more Offerings in performing Retail Services on WealthForge's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 Additional Indemnities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1 In addition to the Issuer's indemnification obligations set forth in Section 9 of this Agreement, the Issuer will indemnify, defend, and hold harmless WealthForge from and against all Losses in connection with or arising out of (w) a Issuer- Affiliated Representative's breach of his or her Rep Agreement or applicable law or regulation; (x) a Issuer NRF Persons' breach of his or her NRF Agreement or applicable law or regulation; (y) the Issuer-Affiliated Representative or Issuer NRF Person's employment with the Issuer; and (z) any private securities transactions by the Issuer- Affiliated Representative or Issuer NRF Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2 WealthForge will not indemnify the Issuer for actions by Issuer- Affiliated Representatives or Issuer NRF Persons.

Deal Sheet 11.05.21

![](versity_ex1aimg60.jpg)

**<u>DEAL SHEET</u>**

This Deal Sheet, effective________________ , is between WealthForge Securities, LLC, a Virginia limited liability company and__________________ ("Client") and is incorporated by reference into the Master Services Agreement between the parties effective____________________ .

**1.** **Offering Identification** 

a. <u>Name of Offering</u>:

b. <u>Registration Exemption</u>:

c. <u>Maximum / Minimum Amount of Raise</u>:

d. <u>Is there a contingency for the first Escrow Release for the Offering?</u> 

e. <u>Additional Deal Parameters</u>:

f. <u>Is WealthForge providing Broker-Dealer of Record services for RIA Investments?:</u> Yes or No

**2.** **Fee Summary** 

a. **Summary of Fees for this Offering** 

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| | |
|:---|:---|
| (i)  | Transaction Fee: |
|  | ____________of the gross Proceeds of each individual Investment for which Company provides Managing B-D services |
|  | If the individual Investment is submitted through the Altigo platform, Company will discount this fee to_____________ of gross Proceeds |
| (ii)  | Wholesaling Fee: |
|  | ___________of Gross Proceeds for Affiliated and Non-Affiliated Company Representatives |
| (iii)  | Retail Commissions and Allowances: |
|  | ___________all WealthForge Registered Representatives |
| (iv)  | <u>Regulatory Filing Services Fees</u>: $350.00 each for all required federal and state filings, including notice filings plus filing costs for each jurisdiction, which vary by jurisdiction. |
| (v)  | Marketing Allowance: |

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Deal Sheet Page 1 of 4

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| | |
|:---|:---|
| b.  | **Managing B-D Services** |
| (i)  | The Transaction Fee is a fee payable based on a percentage of the Gross Proceeds of each Individual Investment as set forth in Section 2(a) of the Deal Sheet, above. |
| (ii)  | Company will perform Managing B-D Services for this Offering. In addition to the Transaction Fee, Client shall also remit to Company all applicable Retail Commissions and Retail Allowances, which Company will re-allow to Selling Group Members as set forth in its agreement with the Selling Group Members. |
| c.  | **Regulatory Filing Services** |
| (i)  | WealthForge shall file on Client's behalf all required federal and state filings, including notice filings at the cost set forth in Section 2(a) above. |
| d.  | **Retail and Wholesale Services** |
| (i)  | <u>AffiliatedRepresentatives</u> |
|  | The parties intend for one or more Client-Affiliated Representative(s) to perform Retail Services or Wholesaling Services and receive compensation for this Offering: Yes |
| (ii)  | <u>Other WF Representatives</u> |
|  | The parties intend for Other WF Representatives to provide Retail Services for this Offering: Yes |
| (iii)  | Client shall pay Company the Commissions Allowances set forth in Section 2(a) of this Deal Sheet. |
| (iv)  | Unless otherwise indicated on this Deal Sheet, Company shall perform the Retail and Wholesale Services as set forth in Deal Sheet Exhibit A, which is incorporated by reference. |
| e.  | **Termination**. Services under this Deal Sheet end upon the first occurrence of one of the following events: (i) the Offering reaches its end date as set forth in the Offering Materials; (ii) the Client abandons the Offering; (iii) the Broker-Dealer Service Schedule ends; or (iv) upon Company's written notice to Client of a Major Offering Impediment or Client's breach of Section 8 (e) or (f) of the Broker-Dealer Service Schedule with respect to an Offering. Upon the occurrence of an event in the preceding sentence: (x) Company shall wind down its Services for the Offering, including corresponding with the escrow agent to facilitate proper distribution of funds; and (y) Client shall cease use of all Offering Materials for the Offering that reference Company. |

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Deal Sheet Page 2 of 4

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| | |
|:---|:---|
|  | "Major Offering Impediment" means the following relating to an Offering: potential litigation, a violation of applicable law or regulation, a circumstance which would preclude an Offering from exemption from registration pursuant to Section 4(a)(2) of the Securities Act; a state or SEC sanction or investigation; or a circumstance that, when reasonably evaluated, creates a material adverse effect on Client's ability to raise capital in the Offering |
| **3.**  | **Other Terms, including Additional Services and Fees** |
| N/A | N/A |
| **4.**  | **Certifications** |
| a.  | Client has not accepted and shall not accept funds in the Offering unless Company processes those funds. |
| b.  | During the Offering and for six (6) months following the final Escrow Release of the Offering, the Issuing Party agrees to notify Company of an Investor's transfer or assignment of: (x) the Securities; or (y) any of the obligations or rights associated with the Securities. |
| c.  | The following certification only applies to the Issuing Party: |
|  | The Issuing Party represents and warrants all its associated persons participating in the sale of securities that are not Client-Affiliated Representatives: (x) are exempt from registration as a broker under the registration safe harbor provided by 17 C.F.R. 240.3a4-1; and (y) will remain exempt from registration as a broker by meeting the conditions and restricting participation in the Offering as set forth in 17 C.F.R. 240.3a4-1. |

---

[Remainder Intentionally Blank; Signature Page Below to Follow]

Deal Sheet Page 3 of 4

The parties' authorized representatives execute this Deal Sheet as of the date first stated above.

---

| | |
|:---|:---|
| **COMPANY** | **CLIENT** |
| **WEALTHFORGE SECURITIES, LLC** |  |
| By: | By: |
| Name: | Name: |
| Title: | Title: |

---

Deal Sheet Page 4 of 4

**Deal Sheet Exhibit A**

**Retail and Wholesale Services**

**1.** **Description** 

a. Client-Affiliated Representatives and Other WF Representatives may sell the Offering directly to retail investors only if specified in the Deal Sheet, which means WealthForge, through its representatives will:

(I) Use reasonable efforts to identify Prospective Subscribers for the Offering and make Retail Introductions directly.

(ii) Market the Offering by making available the Offering Materials to Prospective Subscribers and responding to inquiries and requests for information to convert Prospective Subscribers into Investors.

(iii) Offer the Securities as a broker, but all sales are made by Issuing Party acting through WealthForge as a broker, and not by WealthForge as a dealer or an underwriter.

b. As specified in the Deal Sheet, Client-Affiliated Representatives may engage in wholesaling efforts, which means marketing the Offering to financial intermediaries that may or may not be current Selling Group Members.

**2.** **Provisions Pertaining to Retail Services** 

a. WealthForge will direct all WealthForge Representatives to provide Prospective Subscribers with a copy of the Offering Materials and advise each Prospective Subscriber at the time of the initial offering to him or her that the Issuing Party will, during the course of the Offering and prior to any sale, give each Prospective Subscriber the opportunity to: (x) ask questions of and to receive answers from the Issuing Party, concerning the terms and conditions of the Offering; and (y) obtain additional information the Issuing Party possesses or that it may obtain without unreasonable effort or expense that is necessary to verify the accuracy of the information in the Offering Materials.

b. Prior to making any sale of the Securities, WealthForge will instruct all WealthForge Representatives to inform Prospective Subscribers and their representatives, if any, of all pertinent facts relating to the liquidity and marketability of the Securities, as the pertinent facts are set forth in the Offering Materials.

Deal Sheet Exhibit A Page 1 of 1<br>

![](versity_ex1aimg26.jpg)

**Certificate Of Completion**<br>

---

| | | |
|:---|:---|:---|
| Envelope Id: EC7190E9CD91478A861F6FE1C8B339B7 |  | Status: Completed |
| Subject: Please DocuSign: To Versity - MBD Agreement - 05.05.22.pdf |  |  |
| Source Envelope: |  |  |
| Document Pages: 34 | Signatures: 4 | Envelope Originator: |
| Certificate Pages: 6 | Initials: 0 | Michael Roman |
| AutoNav: Enabled |  | 3015 W Moore St |
| EnvelopeId Stamping: Enabled |  | Suite 102 |
| Time Zone: (UTC-05:00) Eastern Time (US & Canada) |  | Richmond, VA 23230 |
|  |  | mroman@wealthforge.com |
|  |  | IP Address: 69.59.107.156 |

---

**Record Tracking**<br>

Status: Original Holder: Michael Roman Location: DocuSign <br> 5/5/2022 2:41:23 PM mroman@wealthforge.com

---

| | | |
|:---|:---|:---|
| **Signer Events** | **Signature** | **Timestamp** |

---

---

| | | |
|:---|:---|:---|
| Tanya Muro  | ![](versity_ex1aimg54.jpg) | Sent: 5/5/2022 2:52:37 PM  |
| tanya@versityinvest.com  | ![](versity_ex1aimg54.jpg) | Viewed: 5/6/2022 5:26:53 PM  |
| Manager | ![](versity_ex1aimg54.jpg) | Signed: 5/6/2022 5:27:31 PM |
| Security Level: Email, Account Authentication |  |  |
| (None)  |  |  |
|  | Signature Adoption: Pre-selected Style |  |
|  | Signed by link sent to tanya@versityinvest.com  |  |
|  | Using IP Address: 216.60.237.118 |  |
|  | Signed using mobile |  |
| **Electronic Record and Signature Disclosure:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accepted: 5/6/2022 5:26:53 PM |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ID: dcabc1d9-936a-4d12-827f-d58626feb66d |  |  |
| Bill Robbins | ![](versity_ex1aimg55.jpg)  | Sent: 5/6/2022 5:27:33 PM |
| brobbins@wealthforge.com | ![](versity_ex1aimg55.jpg)  | Viewed: 5/6/2022 5:32:26 PM |
| CEO | ![](versity_ex1aimg55.jpg)  | Signed: 5/6/2022 5:33:48 PM |

---

---

| | | |
|:---|:---|:---|
| WealthForge Holdings. LLC |  |  |
| Security Level: Email, Account Authentication | Signature Adoption: Pre-selected Style |  |
| (None) | Signed by link sent to brobbins@wealthforge.com |  |
|  | Using IP Address: 74.110.190.224 |  |
|  | Signed using mobile |  |
| **Electronic Record and Signature Disclosure:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Not Offered via DocuSign |  |  |
| **In Person Signer Events** | **Signature** | **Timestamp** |
| **Editor Delivery Events** | **Status** | **Timestamp** |
| **Agent Delivery Events** | **Status** | **Timestamp** |
| **Intermediary Delivery Events** | **Status** | **Timestamp** |
| **Certified Delivery Events** | **Status** | **Timestamp** |
| **Carbon Copy Events** | **Status** | **Timestamp** |
| Michael Roman <br> mroman@wealthforge.com<br> Director, Managing Broker Dealer Services <br> WealthForge Holdings, Inc<br> Security Level: Email, Account Authentication <br> (None) | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:50 PM <br> Resent: 5/6/2022 5:33:57 PM <br> Viewed: 5/6/2022 6:29:25 PM |

---

---

| | | |
|:---|:---|:---|
| **Carbon Copy Events** | **Status** | **Timestamp** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chris Rohde <br> crohde@wealthforge.com <br> Corporate Counsel <br> WealthForge<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Accepted: 9/1/2015 9:41:16 AM<br> ID: 975614a4-1cb0-4273-9e10-3dab73178709 | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:51 PM |
| &nbsp;&nbsp;&nbsp;&nbsp; Lauren Prieur <br> lprieur@wealthforge.com <br> Operations Associate <br> WealthForge<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:52 PM |
| &nbsp;&nbsp;&nbsp;&nbsp; Taylor Leonard <br> tleonard@wealthforge.com<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:53 PM <br> Viewed: 5/6/2022 5:34:23 PM |
| &nbsp;&nbsp;&nbsp;&nbsp; Amanda Jessen <br> ajessen@wealthforge.com <br> HR Generalist <br> WealthForge<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:54 PM |
| &nbsp;&nbsp;&nbsp;&nbsp; Jason Kjellson <br> jason@versityinvest.com <br> EVP<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:55 PM <br> Viewed: 5/6/2022 6:16:04 PM |
| &nbsp;&nbsp;&nbsp;&nbsp; Alex Pauliukonis <br> apauliukonis@wealthforge.com <br> Pauliukonis<br> Security Level: Email, Account Authentication <br> (None)<br> **Electronic Record and Signature Disclosure:**<br> Not Offered via DocuSign | ![](versity_ex1aimg56.jpg)<br>| Sent: 5/6/2022 5:33:55 PM |
| **Witness Events** | **Signature** | **Timestamp** |
| **Notary Events** | **Signature** | **Timestamp** |
| **Envelope Summary Events** | **Status** | **Timestamps** |
| Envelope Sent | Hashed/Encrypted | 5/5/2022 2:52:37 PM |
| Certified Delivered | Security Checked | 5/6/2022 5:32:26 PM |

---

---

| | | |
|:---|:---|:---|
| **Envelope Summary Events** | **Status** | **Timestamps** |
| Signing Complete <br> Completed | Security Checked <br> Security Checked | 5/6/2022 5:33:48 PM<br> 5/6/2022 5:33:55 PM |
| **Payment Events** | **Status** | **Timestamps** |
| **Electronic Record and Signature Disclosure** | **Electronic Record and Signature Disclosure** | **Electronic Record and Signature Disclosure** |

---

Electronic Record and Signature Disclosure created on: 4/3/2014 1:20:26 PM

Parties agreed to: Tanya Muro, Chris Rohde

**ELECTRONIC RECORD AND SIGNATURE DISCLOSURE** From time to time, WealthForge (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the "I agree" button at the bottom of this document. **Getting paper copies** At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. **Withdrawing your consent** If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. **Consequences of changing your mind** If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign "Withdraw Consent" form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. **All notices and disclosures will be sent to you electronically** Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

**How to contact WealthForge:**

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: admin@capitalforge.com

**To advise WealthForge of your new e-mail address**

To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at admin@capitalforge.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.

In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign.

**To request paper copies from WealthForge** To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to admin@capitalforge.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any.

**To withdraw your consent with WealthForge** To inform us that you no longer want to receive future notices and disclosures in electronic format you may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. send us an e-mail to admin@capitalforge.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

**Required hardware and software**

---

| | |
|:---|:---|
| Operating Systems: | WindowsXP or above, Mac OS X, iOS 6 or above, Android 4.0 or above. Pre-release (e.g. beta) versions of operating systems are not supported. |
| Browsers: | FireFox 13 or above, Chrome 18 or above, Safari 5.1 or above, Internet Explorer 9.0 or above/ Pre-release (e.g. beta) versions of browsers are not supported. |
| Email: | Access to a valid email account |
| Enabled Security Settings: | Allow per session cookies Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection |
| Other: | Software may be required to view Adobe PDF files. |

---

\*\* These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. **Acknowledging your access and consent to receive materials electronically** To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the "I agree" button below. By checking the "I Agree" box, I confirm that:

· I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and

· I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and

· Until or unless I notify WealthForge as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by WealthForge during the course of my relationship with you.

## Ex1A-1

**EXHIBIT (1)(b)**

![](versity_ex1bimg1.jpg)

**<u>Registered Investment Adviser Agreement Cover Page</u>**

**<u>Adviser Name:</u>**

**<u>Sponsor Name:</u>**

Effective Date:

**<u>Adviser Information</u>**

Entity Type:

State of Incorporation / Formation:

Contact Name:

Email Address:

Mailing Address:

CRD:

**<u>Offering-Specific Definitions</u>**

Name of Offering:

"<u>Issuer</u>" is

"Securities" means: Interests in an LLC

**<u>Other Terms</u>**:

This Cover Page is incorporated by reference into the attached Agreement.

[Remainder Intentionally Blank; Signatures to Follow]

Page 1 of 10

![](versity_ex1bimg1.jpg)

The parties each cause this Agreement to be duly executed by an authorized representative of the Effective Date first stated above.

I am a Registered Investment Adviser and act as such under an agreement or power of attorney with the investor. I am fully aware of the financial situation, investment objectives, risk tolerance, income requirements, tolerance for illiquidity or potential losses of income or capital, and overall investment experience and investment limitations of each investor. I am capable of independently evaluating the investment risk of the orders I recommend. I certify that I have rendered my fiduciary responsibilities to each investor by acting in Good Faith, exercising a Prudent Person Standard of Care, and fulfilling my Duty of Loyalty, and I believe my recommendations to be suitable for each investor based upon the investor's Best Interests.

---

| | |
|:---|:---|
| WEALTHFORGE SECURITIES, LLC | [ADVISER] |
| By: | By: |
| Name: | Name: |
| Title: | Title: |

---

Page 2 of 10

![](versity_ex1bimg1.jpg)

**<u>Registered Investment Adviser Agreement</u>**

This Registered Investment Adviser Agreement ("Agreement"), is between WealthForge Securities, LLC, a Virginia limited liability company ("WealthForge"), and the Adviser identified above. The terms and conditions of this Agreement specifically govern the Offering described in the Cover Page upon full execution.

1. <u>Appointment of Adviser</u>. <u> </u> 

a. The Issuer has contracted with WealthForge to perform certain services for the Offering under a Managing Agreement. Specifically, the Managing Agreement provides that WealthForge may obtain subscriptions from Prospective Subscribers through one or more registered investment advisers. "Prospective Subscriber" means an individual or entity that may desire to purchase Securities in the Offering.

b. WealthForge desires to give the clients of Adviser the opportunity to purchase the Securities, and Adviser is willing and desires to provide its clients with information concerning the Securities and the procedures for subscribing for the Securities upon the following terms and conditions.

2. <u>Joint Representations, Warranties and Obligations</u>. Each party represents and warrants for its own accord to the other as of the date of this Agreement and as of all times during the Term that:

a. It has been duly organized and is a validly existing entity under the laws of its incorporation or organization and has been duly qualified to transact business in all states in which it is required to qualify and has all requisite authority to enter into this Agreement.

b. This Agreement is duly authorized and is valid and binding on the party, and is enforceable in accordance with its terms.

c. The services that the party provides for the benefit of the Offering will not result in a breach or violation of (i) orders, rules or regulations of a regulatory body or administrative agency with jurisdiction over the party or its affiliates; (ii) one or more agreements related to the party's corporate governance; or (iii) one or more agreements binding on the party.

d. The party will comply with all applicable laws, regulations and requirements of the Securities Act of 1933, the Securities Exchange Act of 1934 (the "Exchange Act"), applicable state laws, and applicable regulatory authorities, including those of the Securities and Exchange Commission.

e. The party shall conduct all of its efforts for offerings exempt from federal and state registration in conformity with the relevant federal exemption, including Regulation A or under Regulation D, Rule 506, as applicable, and related exemptions available under state securities laws.

Page 3 of 10

![](versity_ex1bimg1.jpg)

f. WealthForge acknowledges that Adviser may receive compensation for its advisory services to its clients, or reimbursements of costs and charges incurred in the performance of its services, from a variety of sources, including Adviser's clients. Adviser acknowledges and represents that it does not charge its clients a fee or charge based upon the sale of the Securities. Adviser represents and warrants that its fee arrangements would not be deemed excessive under applicable regulations. WealthForge and Adviser acknowledge that Adviser is not affiliated with WealthForge.

3. <u>WealthForge's Obligations</u>. <u> </u> 

a. WealthForge will deliver or have the Issuer deliver to Adviser copies of the Memorandum, as appropriate and necessary for Adviser to perform its services under this Agreement. "Memorandum" means the Issuer's private placement memorandum, offering document or documents, including all exhibits, amendments, and supplements.

b. WealthForge will provide the Adviser with information that WealthForge possesses as the Adviser reasonably requests to conduct due diligence on the Issuer and the Offering.

c. WealthForge is, and during the Term of this Agreement will (i) be duly registered as a broker-dealer pursuant to the provisions of the Exchange Act; and (ii) be a member in good standing of FINRA.

4. <u>Adviser's Obligations</u>. <u> </u> 

a. Adviser shall not make representations to a Prospective Subscriber other than those contained in the Memorandum and supplemental sales literature the Issuer furnishes through WealthForge.

b. When providing services under this Agreement, Adviser shall: (i) provide each Prospective Subscriber with a copy of the Memorandum; and (ii) upon initial communication with a Prospective Subscriber about an Offering, indicate to the Prospective Subscriber that the Adviser and Issuer will, during the course of the Offering, and prior to any sale, give the Prospective Subscriber and representative the opportunity to ask questions of and to receive answers concerning the terms and conditions of the Offering and to obtain additional information that the Issuer possesses, or may be obtained by it without unreasonable effort or expense, that is necessary to verify the accuracy of the information contained in the Memorandum.

c. Adviser shall as promptly as practicable under the circumstances, bring to WealthForge's attention if it becomes aware of a circumstance or fact that causes Adviser to believe that the Memorandum or other literature that Issuer distributes about the Offering, or that information a Prospective Subscriber provides to Issuer to make a subscription is materially inaccurate or misleading.

Page 4 of 10

![](versity_ex1bimg1.jpg)

d. To the extent permitted by law or regulation, Adviser shall promptly notify WealthForge of the following in connection with an Offering: (i) the commencement or threat of any litigation or proceedings against Adviser or any of Adviser's officers, members, managers, directors, shareholders, affiliates, or agents; (ii) regulatory inquiries into the Adviser's business practices; and (iii) investor complaints against the Adviser.

e. Adviser shall promptly notify WealthForge if Adviser's representations and warranties in this Agreement become materially inaccurate.

f. Adviser shall not make an agreement permitting the resale, repurchase, or distribution of Securities, unless Securities are properly registered and the sale complies with all applicable securities laws and regulations.

g. Adviser shall have reasonable grounds to believe, based upon the information made available to it, that all material facts regarding Adviser's client are adequately and accurately disclosed in the subscription agreement for the Offering and provide a basis for evaluating the purchase of the Securities. Adviser shall evaluate items of compensation, physical properties, tax aspects, financial stability and experience of Issuer, conflicts of interest and risk factors, appraisals, as well as any other information deemed pertinent by Adviser;

h. Adviser, unless otherwise licensed, shall not act as a broker or dealer in connection with the purchase to be made by its client.

i. Adviser will use every reasonable effort to assure that the Securities are purchased only by investors who:

---

| | |
|:---|:---|
| i.  | meet the investor suitability standards, including the requirement that such investors are accredited investors, and minimum purchase requirements set forth in the Memorandum; |
| ii.  | can reasonably benefit from an investment in the Securities based on each prospective investor's overall investment objectives and portfolio structure; |
| iii.  | are able to bear the economic risk of the investment based on each prospective investor's overall financial situation; and |
| iv.  | have apparent understanding of: |
|  | the fundamental risks of the investment; |
|  | the risk that the prospective investor may lose the entire investment; |
|  | the lack of liquidity of the Securities; |
|  | the restrictions on transferability of the Securities; |
|  | the background and qualifications of the officers and directors of Issuer; and |
|  | the tax consequences of an investment in the Securities. |

---

Page 5 of 10

![](versity_ex1bimg1.jpg)

j. WealthForge or Sponsor or the managing broker-dealer may require use of an electronic platform to process subscriptions. Adviser shall cooperate with the processing of subscriptions through such an electronic platform if reasonably practical.

k. Adviser is responsible for its use of or reliance upon any electronic signatures and all stamped signatures in any form.

l. Adviser shall not attempt to obtain subscriptions funded from a discretionary account without the Potential Subscribers, the Sponsor's, managing-broker dealer's, and WealthForge's written approval. Adviser shall not recommend or implement any transaction involving the purchase of Securities from any account without the required prior written approvals of the transactions by the investor.

m. For each Offering, Adviser shall only make offers to Prospective Subscribers in states that WealthForge advises the Securities are authorized for sale.

5. <u>WealthForge's Indemnification</u>. <u> </u> 

a. WealthForge agrees to indemnify and hold harmless Adviser and its affiliates, and their owners, managers, members, partners, directors, officers, employees and agents ("Adviser Indemnitees") against any and all loss, liability, damage and expense whatsoever, including legal fees and the costs of enforcing this indemnity ("Loss") in connection with a third party action (a "Claim") arising out of or based upon:

(i) WealthForge's gross negligence, willful misconduct or fraud; or

(ii) WealthForge's breach of Section 2, 3, or 9 of this Agreement.

6. <u>Adviser's Indemnification</u>. <u> </u> 

a. Adviser agrees to indemnify and hold harmless WealthForge and its managers, members, partners, directors, officers, employees and agents ("WealthForge Indemnitees") against any and all Loss in connection with a Claim arising out of or based upon:

(i) Adviser's gross negligence, willful misconduct or fraud; or

(ii) Adviser's breach of this Agreement;

(iii) Adviser's use of electronic signatures in providing Prospective Subscriber documentation.

7. <u>Indemnification Procedures</u>. <u> </u> 

a. An indemnifying party is relieved of its obligations of indemnification to the extent the Loss is caused by the negligence, willful misconduct or breach of this Agreement by the party seeking indemnification.

Page 6 of 10

![](versity_ex1bimg1.jpg)

b. To receive the indemnities contained in this Agreement, the party seeking indemnification must promptly notify the indemnifying party of a Claim and provide reasonable cooperation (at the indemnifying party's expense) and full authority to defend or settle the Claim, provided that the indemnifying party may not settle a Claim requiring an admission of liability, obligation or payment by the indemnified party without the indemnified party's prior written consent. The indemnified party, at its cost, may participate in the defense of the claim or action through counsel of its own choosing.

c. The requirements in Section 7(b) do not apply to Claims against WealthForge Indemnitees relating to a proceeding by a regulatory authority, including, but not limited to, FINRA.

8. <u>Disclaimer and Limitations of Liability</u>. <u> </u> 

a. <u>Disclaimer</u>. EXCEPT FOR THOSE EXPRESSLY STATED IN THIS AGREEMENT, WEALTHFORGE MAKES NO WARRANTIES TO ADVISER REGARDING ITS PROVISION OF SERVICES TO THIRD PARTIES, INCLUDING ISSUERS AND OTHER FINANCIAL INTERMEDIARIES.

b. NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR INDIRECT DAMAGES OF ANY KIND, INCLUDING ANY LOSS OF PROFITS, LOSS OF USE, LOSS OF COST OR OTHER SAVINGS, INJURY OR DAMAGE SUFFERED OR COSTS AND EXPENSES INCURRED BY ANY OF THEM, OF ANY NATURE OR FROM ANY CAUSE WHATSOEVER, WHETHER SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL.

c. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, TO THE EXTENT PERMITTED BY LAW, THE AGGREGATE LIABILITY OF WEALTHFORGE ARISING IN CONNECTION WITH THIS AGREEMENT FOR DAMAGES, REGARDLESS OF THE FORM OF THE ACTION, WILL NOT EXCEED THE FEES PAID OR PAYABLE BY THE ISSUER TO WEALTHFORGE FOR ITS SERVICES UNDER THE MANAGING AGREEMENT ATTRIBUTABLE TO PROSPECTIVE SUBSCRIBERS THAT ADVISER INTRODUCES UNDER THIS AGREEMENT DURING THE SIX MONTHS PRIOR TO THE CLAIM ARISING.

d. THE LIMITATIONS OF LIABILITY IN SECTION 8(b) and (c) DO NOT APPLY TO (I) THE PARTIES' INDEMNIFICATION OBLIGATIONS TO EACH OTHER, PURSUANT TO SECTIONS 5 AND 6 OF THIS AGREEMENT; (II) A BREACH OF SECTION 9 OR 10 OF THIS AGREEMENT; OR (III) DAMAGES RESULTING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR FRAUD. EXCEPT FOR IN THE CASE OF WEALTHFORGE'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR FRAUD, WEALTHFORGE'S ENTIRE LIABILITY RELATED TO WEALTHFORGE'S OBLIGATIONS UNDER SECTIONS 5 AND 9 IS LIMITED TO ONE MILLION DOLLARS.

Page 7 of 10

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| | |
|:---|:---|
| 9.  | <u>Confidential Information</u>.<u> </u> |
| a.  | Each party agrees to (i) protect and treat as confidential the disclosing party's Confidential Information using the same care as it would in protecting its own information of a similar nature, but no less than reasonable care; (ii) to limit dissemination of such Confidential Information to persons within the party's business organization or that of its affiliates or services providers who have a need to use such Confidential Information in connection with the purpose or performance of their duties, who have been advised of the confidential nature thereof, and who have agreed to keep such information confidential as required herein or are under obligations of confidentiality imposed by law or rule or their professional obligations ("Authorized Recipients"). Each party will remain responsible for compliance with the provisions of this section by its Authorized Recipients. |
| b.  | "<u>Confidential Information</u>" means all material non-public information of the disclosing party  |
|  | (or third party non-public information provided to the disclosing party subject to restrictions on disclosure) including, without limitation, (i) of a party's commercial, business, financial, strategic, legal, technical, operational, administrative and marketing information, intellectual property, know-how and other information or data in whatever form supplied, relating to a party, its subsidiaries, affiliated companies and its business; and (ii) summaries, memoranda, analysis, compilations, forecasts, studies or other documents which contain or otherwise reflect such information. WealthForge Confidential Information specifically includes the non-public information of third party securities issuers who have contracted with WealthForge to provide services for an Offering. |
| c.  | A receiving party will have no obligation to maintain the other party's Confidential Information where the receiving party can show that such information (i) was in the possession of the receiving party without any obligation of confidence prior to disclosure of information by the other party; (ii) is or becomes publicly available through no fault of the receiving party; (iii) was developed by the receiving party independent of this Agreement; or (iv) is required to be disclosed pursuant to a valid court order or demand of a regulatory authority or other governmental body, provided however, that, unless prohibited by law, the receiving party will first give written notice to the disclosing party, so that the disclosing party, at its sole expense, may seek appropriate legal remedies. In addition, either party may disclose, without prior notice, Confidential Information to any applicable regulatory authority as required or requested pursuant to regulation or in the course of an audit or examination. Adviser will treat this Agreement as Confidential Information of WealthForge, except as necessary to enforce its terms. Nothing in this Agreement prohibits either party from initiating communications directly with, or responding to any inquiry from, or providing testimony before the SEC, FINRA, any other self-regulatory organization, or any other state or federal regulatory authority regarding the other party's actions under this Agreement. |
| d.  | Adviser and WealthForge acknowledge that certain information made available to the other party or collected for the purposes of this Agreement may be nonpublic personal information under the Gramm-Leach-Bliley Act or other federal, state, and international privacy laws and related regulations (collectively, "Privacy Laws"). With regards to nonpublic personal information obtained under this Agreement, each party shall : (a) not disclose or use the information except as required to carry out the purposes of the Agreement or as otherwise permitted by the Privacy Laws; (b) establish and maintain procedures reasonably designed to ensure the security and privacy of all nonpublic personal information and to comply with all Privacy Laws; and (c) cooperate with the other party and provide reasonable assistance to the other parties' compliance with the Privacy Laws. |

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Page 8 of 10

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| | |
|:---|:---|
| 10.  | <u>Non-solicitation</u>. |
|  | Each party agrees that it will not solicit, offer work to, employ, or contract with, one or more of the other party's or its affiliates' Team Members. The restriction in the prior sentence (i) applies during the Term and during the twelve (12) months immediately following the conclusion of Term; and (ii) does not apply to the hiring of a Team Member that responds to a general newspaper or Internet advertisement or other solicitations not targeting the Team Member. For purposes of this section, "Team Member" means an individual a party or its affiliate employs as a partner, employee or individual independent contractor and with which the other party comes into direct contact in the course of the Agreement. |
| 11.  | <u>Term and Termination</u>.<u> </u> |
| a. | Term. This Agreement shall terminate (i) upon the Issuer's termination of the corresponding Offering; (ii) upon termination of the Managing Agreement; or (iii) as set forth in Section 10(b) below. To the extent that any duties are intended, either expressly or impliedly, to be performed subsequent to the closing of the Offering, the terms and conditions of this Agreement continue to apply to those obligations, and the parties shall perform as set forth in this Agreement. |
| b.  | Early Termination. A party may end the Agreement upon five business days' written notice to the other party. A party may terminate this Agreement immediately upon written notice for the other party's material breach of this Agreement. |
| c.  | To the extent that any duties are intended, either expressly or impliedly, to be performed subsequent to the closing of the Offering or to the termination of this Agreement, the terms and conditions of this Agreement continue to apply to those obligations. |
| d.  | The period of time from the Effective Date through the date the agreement ends pursuant to Section 11(a) or (b), inclusively is the "Term." |
| 12.  | <u>Construction</u>. |
|  | This Agreement shall be governed by, subject to, and construed in accordance with, the laws of the Commonwealth of Virginia without regard to conflict of law provisions. |
| 13.  | <u>Arbitration</u>. |
|  | The parties hereby agree that any controversy arising out of or relating to this Agreement or any Offering will be settled by arbitration in accordance with FINRA's rules then in effect, or, if FINRA declines jurisdiction or if FINRA arbitration jurisdiction does not apply to Adviser, then by arbitration before an arbitrator under the American Arbitration Association, and its Supplementary Procedures for Securities Arbitration, except (a) a party may seek injunctive or other equitable relief in any state or federal court of competent jurisdiction for any actual or alleged infringement of any intellectual property or other proprietary rights; (b) WealthForge may seek the payment of fees where the defendant resides or has assets; and (c) a party may bring a claim not exceeding $25,000.00 in the Richmond General District Court, located in Richmond, Virginia. Unless FINRA or American Arbitration Association rules apply and dictate otherwise and except as stated above, the venue for any dispute will be Richmond, Virginia. THE PARTIES EACH IRREVOCABLY WAIVE THEIR RIGHT TO A TRIAL BY JURY IN ANY ACTION ARISING FROM OR RELATING TO THIS AGREEMENT. |

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Page 9 of 10

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| | |
|:---|:---|
| 14.  | <u>Severability</u>. |
|  | This Agreement, including the Cover Page, sets forth the entire agreement between the parties with respect to the Offering and supersedes all prior agreements between the parties relating to Adviser's role in the Offering. This Agreement may not be modified or amended except by written agreement. If a provision of this Agreement is declared to be invalid, the remaining provisions of this Agreement continue in full force and effect. Adviser may not assign this Agreement without WealthForge's prior written consent. A waiver by either party of a provision of or right under this Agreement will not constitute a waiver of any other provision of or right under this Agreement. This Agreement may be executed in multiple counterparts and by facsimile or electronic means, each of which is deemed an original but all of which together will constitute one and the same agreement. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rule of strict construction will be applied against any party. Nothing in this Agreement will be construed to create a partnership, joint venture, or other similar relationship between the parties. |
| 15.  | <u>Notices</u>. |
|  | The parties shall provide notice under this Agreement in writing in one of the following ways: |
|  | (a) by personal delivery or overnight delivery, which is effective immediately upon delivery; |
|  | (b) by certified mail, return receipt requested, which is effective three (3) business days after notice is sent; (c) by email, which is effective one (1) business day after the date successfully sent (subject to the notifying party having proof of successful transmission). WealthForge shall send notice to Adviser to the address specified on the Cover Page. Adviser shall send notice to WealthForge as follows: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WealthForge Securities, LLC |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Attention: Chief Compliance Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3015 Moore Street, Suite 102 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Richmond, VA 23230 <u>legal@wealthforge.com</u>  |
| 16.  | <u>Survival</u>. |
|  | Sections 4(d), 4(e), 4(f), 4(k), and Sections 5 - 19 survive the termination or expiration of this Agreement. |
| 17.  | <u>Third-Party Beneficiaries</u>.<u> </u> |
|  | Issuer and the managing broker-dealer for each Offering and their respective owners, managers, members, partners, directors, officers, employees, agents, attorneys and accountants are third-party beneficiaries of Adviser's obligations under this Agreement, including Adviser's representations and warranties and indemnification obligations. |
| 18.  | This Agreement, or any supplement or amendment hereto, may be filed by the Issuer with the SEC, if such should be required, and may be filed with, and may be subject to the approval of, any applicable federal or state securities regulatory agencies if required. |

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<br> <u>Page 10 of 10</u>

## Ex1A-2A

**EXHIBIT (2)(a)**

<u>Delaware</u> Page 1

The First State

*I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED ARE TRUE AND CORRECT COPIES OF ALL DOCUMENTS ON FILE OF "VERSITY INVESTCO, LLC" AS RECEIVED AND FILED IN THIS OFFICE.*

*THE FOLLOWING DOCUMENTS HAVE BEEN CERTIFIED:*

*CERTIFICATE OF FORMATION, FILED THE SEVENTEENTH DAY OF MARCH, A.D. 2022, AT 9:57 O`CLOCK P.M.*

*AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE AFORESAID LIMITED LIABILITY COMPANY, "VERSITY INVESTCO, LLC".*

![](versity_ex2aimg7.jpg)

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| | | |
|:---|:---|:---|
| <br>6684437 8100H<br> SR# 20221077400<br>| ![](versity_ex2aimg8.jpg) | <br>Authentication: 202957620<br> Date: 03-21-22 |
| You may verify this certificate online at <u>corp.delaware.gov/authver.shtml</u>  | You may verify this certificate online at <u>corp.delaware.gov/authver.shtml</u>  |  |

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State of Delaware SecretarF• of State Division of Corporations Delivered 09:57 PM 03117/2022 FILED 09:57 PM 03/17/2022 SR 20221055619 - File Number 6684437 STATE OF DELAWARE CERTIFICATE OF FORMATION <br> OF LIMITED LIABILITY COMPANY

The undersigned authorized person, desiring to form a limited liability company pursuant to the Limited Liability Company Act of the State of Delaware, hereby certifies as follows:

1. The name of the limited liability company is <u>Versity InvestCo, LLC</u> 

2. The Registered Office of the limited liability company in the State of Delaware is located at <u>1201 N. Orange St., Suite 7044</u> (street), in the City of <u>Wilmington</u>, Zip Code <u>19801</u>. The name of the Registered Agent at such address upon whom process against this limited liability company may be served is <u>Sorensen Entity Services LLC</u> 

---

| | |
|:---|:---|
| By: | ![](versity_ex2aimg5.jpg) |
| Name: | Chris Sorensen<br> Print or Type |

---

## Ex1A-2B

**EXHIBIT (2)(b)**

<u>Delaware</u> Page 1

The First State

*I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT OF "VERSITY INVESTCO, LLC", CHANGING ITS NAME FROM "VERSITY INVESTCO, LLC" TO "VERSITY INVEST, LLC", FILED IN THIS OFFICE ON THE TWENTY-THIRD DAY OF MARCH, A.D. 2022, AT 6:44 O`CLOCK P.M.*

![](versity_ex2bimg2.jpg)

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| | | |
|:---|:---|:---|
| <br>6684437 8100<br> SR# 20221168299<br>| ![](versity_ex2bimg1.jpg) | <br>Authentication: 203013393<br> Date: 03-25-22 |
| You may verify this certificate online at <u>corp.delaware.gov/authver.shtml</u>  | You may verify this certificate online at <u>corp.delaware.gov/authver.shtml</u>  |  |

---

STATE OF DELAWARE

CERTIFICATE OF AMENDMENT

1. Name of Limited Liability Company: <u>Versity InvestCo, LLC</u> 

2. The Certificate of Formation of the limited liability company is hereby amended as follows:

1. The name of the limited liability company is Versity Invest, LLC<br>

IN WITNESS WHEREOF, the undersigned have executed this Certificate on the <u>23</u> day of <u>March</u> A.D. <u>2022</u>

---

| | |
|:---|:---|
| ![](versity_ex2bimg8.jpg) | ![](versity_ex2bimg8.jpg) |
| Name: | Chris Sorensen |
|  | Print or Type |

---

State of Delaware Secretary of State Division of Corporations Delivered 06:44 PM 03/23/2022 FILED 06:44 PM 03/23/2022 SR 20221133874 - File Number 6684437

## Ex1A-2A

**EXHIBIT (2)(c)**

LIMITED LIABILITY COMPANY AGREEMENT

OF

VERSITY INVEST, LLC

(a Delaware limited liability company)

April 12, 2022

LIMITED LIABILITY COMPANY AGREEMENT

OF

VERSITY INVEST, LLC

This LIMITED LIABILITY COMPANY AGREEMENT (this <u>"Agreement") is made an</u>d<u> </u>entered into as of this 12th day of April 2022, by and among Versity Invest, LLC, a Delaware limited liability company (the <u>"Company"), the Founding</u> Members and the other Members, if any.

<u>R E C I T A L S</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. On March 17, 2022, the Founding Members of the Company caused the Certificate for the Company to be filed with the office of the Secretary of State of the State of Delaware under the name "Versity Invest, LLC" as a limited liability company under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Founding Members desire to enter into this Agreement in order to provide for the governance of the Company and the conduct of its business.

<u>A G R E E M E N T</u>

In consideration of the foregoing recitals and the mutual covenants, agreements, representations and warranties contained in this Agreement, the parties, intending to be legally bound, agree as follows:

**ARTICLE 1** 

**DEFINITIONS**

When used in this Agreement, the following terms shall have the meanings set forth below (all terms used in this Agreement that are not defined in this Article 1 shall have the meanings set forth elsewhere in this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "<u>Act</u>" means shall mean the Delaware Limited Liability Company Act, Title 6 of the Delaware Code Annotated, Sections 18-101 et seq., as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "<u>Adjusted Capital Account Deficit</u>" means with respect to any Member, the deficit balance, if any, in the Capital Account of that Member as of the end of the relevant Fiscal Year, or other relevant period, adjusted as follows: (i) credit to such Capital Account, any amounts which that Member is obligated or deemed obligated to restore pursuant to any provision of this Agreement or pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c); (ii) debit to such Capital Account, the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5), and (6); and (iii) to the extent required under the Treasury Regulations, credit to such Capital Account (A) that Member's share of "Company Minimum Gain" and (B) that Member's share of "Member Nonrecourse Debt Minimum Gain." (Each Member's share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain shall be determined under Treasury Regulations Sections 1.704-2(g) and 1.704-2(i)(5), respectively).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "<u>Affiliate</u>" means any individual, partnership, corporation, trust or other entity or association, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with a Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "<u>Agreement</u>" means this Limited Liability Company Agreement of the Company, as originally executed and as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "<u>Bankruptcy</u>" means: (a) the filing of an application by a Member for, or its, his or her consent to, the appointment of a trustee, receiver, or custodian of its, his or her other assets; (b) the entry of an order for relief with respect to a Member in proceedings under the United States Bankruptcy Code, as amended or superseded from time to time; (c) the making by a Member of a general assignment for the benefit of creditors; (d) the entry of an order, judgment, or decree by any court of competent jurisdiction appointing a trustee, receiver, or custodian of the assets of a Member unless the proceedings and the person appointed are dismissed within 90 days; or (e) the failure by a Member generally to pay its, his or her debts as the debts become due within the meaning of Section 303(h)(1) of the United States Bankruptcy Code, as determined by the Bankruptcy Court, or the admission in writing of its, his or her inability to pay its, his or her debts as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "<u>Capital Account</u>" means with respect to any Member the capital account which the Company establishes and maintains for such Member pursuant to Section 5.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "<u>Capital Contribution</u>" means the total value of cash and fair market value of property (including promissory notes or other obligation to contribute cash or property) contributed and/or services rendered or to be rendered to the Company by Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "<u>Certificate</u>" means the Certificate of Formation for the Company originally filed with the Delaware Secretary of State on March 17, 2022, and as may be amended or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "<u>Class A Common Units</u>" has the meaning given to it in Section 3.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "<u>Class A Percentage Interest</u>" for any given holder of Class A Common Units as of any particular date shall equal the number of Class A Common Units held by such Member divided by the aggregate of all Class A Common Units held by all of the holders of Class A Common Units at such time. The initial Class A Percentage Interests of the Members is set forth under the column "Class A Percentage Interest" in <u>Exhibit A</u> attached hereto, as such percentage may be updated or adjusted from time to time pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "<u>Class B Common Units</u>" has the meaning given to it in Section 3.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "<u>Class C Common Units</u>" has the meaning given to it in Section 3.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, the provisions of succeeding law, and to the extent applicable, the regulations currently in force as final or temporary that have been issued by the U.S. Department of Treasury ("<u>Regulations</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "<u>Common Units</u>" has the meaning given to it in Section 3.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "<u>Company</u>" means Versity Invest, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "<u>Company Minimum Gain</u>" shall have the meaning given to the term "Partnership Minimum Gain" in the Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "<u>Consent of Spouse</u>" has the meaning set forth in Section 8.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "<u>Depreciation</u>" means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization, or any other cost recovery deduction allowable with respect to an asset for that year or other period, except that if the Gross Asset Value of an asset differs from its tax basis at the beginning of the year or other period, depreciation shall be an amount that bears the same ratio to the beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for the year or other period bears to the beginning tax basis, except that, if the federal income tax depreciation, amortization, or other cost recovery deduction for that year or other period is zero, depreciation shall be determined with reference to the beginning Gross Asset Value, using any reasonable method selected by the Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "<u>Economic Interest</u>" means a Member's or Economic Interest Owner's share of one or more of the Company's Profit, Loss, and distributions of the Company's assets pursuant to this Agreement and the Act, but shall not include any other rights of a Member, including, without limitation, the right to vote or participate in the management or, except as provided in the Act, any right to information concerning the business and affairs of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "<u>Economic Interest Owner</u>" means the owner of an Economic Interest who is not a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "<u>Founding Members</u>" means Blake Wettengel and Tanya Muro.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "<u>Gross Asset Value</u>" means, with respect to any asset, the tax basis of that asset, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The initial Gross Asset Value of any asset contributed (or deemed contributed under Code Sections 704(b) and 752 and the Treasury Regulations promulgated thereunder) by a Member to the Company shall be the fair market value of the asset on the date of the contribution, as determined by the contributing Member and the Managers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Gross Asset Values of all Company assets shall be adjusted to equal their respective fair market values, as determined by the Managers, as of the following times: (A) the acquisition of a Membership Interest by any new or existing Member in exchange for more than a *de minimis* Capital Contribution; (B) the distribution by the Company to a new or existing Member of more than a *de minimis* amount of property as consideration for a Membership Interest; (C) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); and (D) in connection with the grant of a Membership Interest (other than de minimis interest) as consideration for the provision of services to or for the benefit of the Company by an existing Member or another person in anticipation of becoming a Member; *provided*, *however*, that adjustments pursuant to clauses (A), (B) and (D) above shall be made only if the Managers reasonably determine that the adjustments are necessary or appropriate to reflect the relative economic interests of the Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Gross Asset Value of any Company asset distributed to any Member shall be the fair market value of the asset on the date of distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the tax basis of the assets pursuant to Code Sections 734(b) or 743(b), but only to the extent that the adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m); *provided*, *however*, that Gross Asset Values shall not be adjusted pursuant to this paragraph (iv), to the extent the Managers determine that an adjustment pursuant to paragraph (ii) is necessary or appropriate in connection with a transaction that would otherwise result in adjustment pursuant to this paragraph (iv).

If the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraphs (i), (ii), or (iv) above, that Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to the asset for purposes of computing Profits and Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "<u>Gross Receipts</u>" means all revenues received by the Company from the operation of its business attributable to a particular period as determined by the Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "<u>Hurdle Amount</u>" means, with respect to any Member holding Class C Common Units, the Hurdle Amount set forth on <u>Exhibit A</u> for that Member with respect to those Class C Common Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "<u>Joinder Agreement</u>" means a document substantially in the form of <u>Exhibit C</u> to this Agreement or such other document prescribed by the Managers in order for a Person to adopt, accept and agree to be bound by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "<u>Majority Interest</u>" means one or more Class A Percentage Interests of Members holding Class A Common Units which taken together exceed 50% of the aggregate of all Class A Percentage Interests of Members holding such Class A Common Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "<u>Manager(s)</u>" means each Person named as a Manager in Section 6.2, or any other Person that succeeds such Person in that capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "<u>Member</u>" means the Founding Members and each other Person who: (a) is a signatory to this Agreement as a Member or, has been admitted to the Company as a Member in accordance with the Certificate and this Agreement or is an assignee who has become a Member in accordance with Article 8; and (b) has not ceased to be a Member for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "<u>Member Nonrecourse Debt</u>" shall have the meaning given to the term "Partner Nonrecourse Debt" in Treasury Regulations Section 1.704-2(b)(4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "<u>Member Nonrecourse Debt Minimum Gain</u>" means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "<u>Member Nonrecourse Deductions</u>" has the same meaning as "partner nonrecourse deductions" in Treasury Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "<u>Membership Interest</u>" means a Member's entire interest in the Company including the Member's Economic Interest, the right to vote on or participate in the management, if applicable, and the right to receive information concerning the business and affairs of the Company, together with the obligations of such Member to comply with all of the terms of this Agreement and the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "<u>Muro Member</u>" means Tanya Muro and/or her successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "<u>Net Cash Proceeds</u>" means the amount by which the gross proceeds from the sale, condemnation, or refinancing of all or any portion of the Company's assets, after payment of, or reserve for, Company liabilities, including, without limitation, expenditures directly attributable to that sale, condemnation, or refinancing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "<u>Nonrecourse Deduction</u>" has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(1) and 1.704-2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "<u>Nonrecourse Liability</u>" shall have the meaning set forth in Treasury Regulations Section 1.704-2(b)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "<u>Optional Purchase Event</u>" shall mean, with respect to any Member, the occurrence

of any of the following events: (a) the Bankruptcy of a Member; (b) the death or disability of a Member; (c) the liquidation, winding-up or dissolution of a Member; (d) the termination of a Member's employment or consulting relationship with the Company, if applicable; and (e) the marital dissolution of a Member, if applicable, as it relates to any Member-spouse that becomes a Member as a result of such marital dissolution. Notwithstanding the foregoing, for purposes of clauses (b) and (d), an "<u>Optional Purchase Event</u>" shall (1) only include any Membership Interests held by a Member who acquired such Membership Interests in consideration of its, his or her service with the Company (or an affiliate of the Company) as an employee or consultant of the Company, and (2) not be applicable to the Membership Interests held by the Wettengel Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "<u>Partially Adjusted Capital Accounts</u>" means, with respect to any Member for any Fiscal Year, the Capital Account of such Member at the beginning of such year, adjusted for all Capital Contributions and distributions during such year and all special allocations pursuant to <u>Sections 7.2</u> with respect to such year before giving effect to any allocations of Profit or Losses pursuant to <u>Section 7.1</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "<u>Partnership Representative</u>" shall be designated by the Managers pursuant to Section 9.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "<u>Percentage Interest</u>" for any given Member as of any particular date shall equal the number of Common Units held by such Member divided by the aggregate of all Common Units held by all of the Members at such time. The Percentage Interests of the Members is set forth under the column "Total Percentage Interest" in <u>Exhibit A</u> attached hereto, as such percentage may be updated or adjusted from time to time pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "<u>Person</u>" means an individual, general partnership, limited partnership, limited liability company, corporation, trust, estate, real estate investment trust association or any other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "<u>Profits</u>" and "<u>Losses</u>" means, for each Fiscal Year, an amount equal to the Company's taxable income or loss for such Fiscal Year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition of "Profits" and "Losses" shall be added to such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Profits or Losses pursuant to this definition of "Profits" and "Losses" shall be subtracted from such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event the Gross Asset Value of any Company asset is adjusted pursuant to subparagraphs (ii) or (iii) of the definition of "Gross Asset Value," the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Gain or loss resulting from any disposition of property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year, computed in accordance with the definition of "Depreciation;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 734(b) is required pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in complete liquidation of a Member's Membership Interest, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits or Losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Notwithstanding any other provision of this definition of "Profits" and "Losses," any items that are specially allocated pursuant to Section 7.2 shall not be taken into account in computing Profits and Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "<u>Targeted Accounts</u>" means, with respect to any Member for any Fiscal Year, an amount (either positive or negative) equal to the hypothetical distribution such Member would receive, or hypothetical contribution such Member would be required to make, as the case may be, if: (i) all Company assets, including cash, were sold for cash at an aggregate price equal to their Gross Asset Value (taking into account any adjustments to Gross Asset Value for such Fiscal Year), (ii) all liabilities allocable to such assets were then satisfied according to their terms (limited, with respect to each Nonrecourse Liability, to the Gross Asset Value of the assets securing such liability), and (iii) all such proceeds from the disposition were distributed pursuant to <u>Section 7.5</u>, reduced by such Member's share of Member Nonrecourse Debt Minimum Gain and Company Minimum Gain immediately prior to such sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "<u>Terms and Conditions</u>" shall mean the terms and conditions upon which the Offeror Member's offers to buy the Membership Interests of the Offeree Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "<u>Treasury Regulations</u>" means the Income Tax Regulations, including Temporary Regulations, promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "<u>Wettengel Member</u>" means Blake Wettengel and/or his successors and assigns.

**ARTICLE 2**

**ORGANIZATIONAL MATTERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Formation</u>. Pursuant to the Act, the Founding Members formed a Delaware limited liability company under the laws of the State of Delaware by filing the Certificate with the Delaware Secretary of State on March 17, 2022 and entering into this Agreement. The rights and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights or obligations of any Member are different by reason of any provision of this Agreement than they would be in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Name</u>. The name of the Company shall be "Versity Invest, LLC." The business of the Company may be conducted under that name or, upon compliance with applicable laws, any other name that the Managers deem appropriate or advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Term</u>. The term of this Agreement shall continue in full force and effect in perpetuity, unless terminated as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Office and Agent</u>. The executive offices of the Company shall be the place or places as may be determined by the Managers from time to time. The Company's initial agent for service of process required by the Act is as set forth in the Certificate and may be changed if and as determined by the Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Addresses of Members</u>. The addresses of the Members are set forth on the signature pages of the Members attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Purpose of Company</u>. The purpose of the Company shall be to conduct any or all business activities that may be legally exercised by limited liability companies under the Act, and the Company may engage in all activities necessary, customary, convenient, or incident to accomplishment of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Tax and Accounting</u>. In accordance with the provisions of the Treasury Regulations Section 301.7701-2 and relevant applicable state income or franchise tax law or regulations, the Company will be classified as a "partnership" for Federal and (to the extent permitted) State income and franchise tax purposes. Neither the Company nor any of the Members shall take any action that is inconsistent with the foregoing. The Company and each of the Members shall take such actions and file such reports, returns and/or statements as are necessary or appropriate to accomplish the foregoing. The Company will deliver to each Member within 120 days after the end of each Fiscal Year all information necessary for the preparation of such Member's federal income tax return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Fiscal Year</u>. The Company's fiscal year shall commence on January 1 of each calendar year and end on December 31 of such calendar year (the "<u>Fiscal Year</u>").

**ARTICLE 3**

**MEMBERSHIP INTERESTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Initial Contribution, Membership Interests and Recapitalization</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 <u>Initial Contributions</u>. Each of the Members has acquired the percentage and type of the Membership Interests of the Company, including the establishment of a Capital Account, if applicable, as consideration for the capital contributions, if applicable, all as forth opposite such Member's name on <u>Exhibit A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2 <u>Membership Interests</u>. The Company shall be authorized to issue one class of Membership Interests, which shall be designated as "<u>Common Units</u>." The Common Units may be further subdivided in the Managers' discretion into separate series or subclasses of Common Units, with rights, preferences and privileges as set forth in this Agreement, an amendment to this Agreement or in a separate certificate of designations of the rights, preferences and privileges of such series or subclass of Common Units duly adopted and approved by the Managers and any Members with applicable approval rights, each of which will be attached as an Exhibit to this Agreement. Common Units of the Company may be issued, as authorized by the Managers, only in accordance with the terms of this Agreement. It is not necessary that all authorized Common Units be issued or outstanding. The total number of authorized Common Units may not be increased without the approval of the Managers and any Members with applicable approval rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3 <u>Common Units</u>. The Common Units shall be divided into three classes to be designated "Class A Common Units," "Class B Common Units" and "Class C Common Units." The Class A Common Units and Class B Common Units shall be identical in all respects and shall have equal rights, powers, preferences, and the qualifications, limitations or restrictions thereof, except that, except as set forth herein or as otherwise required by law each outstanding Class B Common Unit shall not be entitled to vote on any matter on which the Members of the Company shall be entitled to vote, and Class B Common Units shall not be included in determining the Percentage Interests voting or entitled to vote on any such matters. The Class C Common Units may only be issued to certain employees, managers and other service providers to the Company, which interests are intended to constitute "profits interests" as defined in Section 4.01 of Rev. Proc. 93-27, 1993-2 CB 343, as clarified by Rev. Proc. 2001-43, 2001-34 I.R.B. 191, issued by the Internal Revenue Service. Except as set forth herein or as otherwise required by law, each outstanding Class C Common Unit shall not be entitled to vote on any matter on which the Members of the Company shall be entitled to vote, and Class C Common Units shall not be included in determining the Percentage Interests voting or entitled to vote on any such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Certificate of Membership Interests</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1 <u>Certificate</u>. Membership Interests shall constitute certificated securities governed by Article 8 of the California Commercial Code and, upon the request of the Managers in their sole discretion, shall be represented by a certificate of Membership Interest, the form and content of which shall be in the Managers' sole discretion, subject to the terms of this Section 3.2. If certificates of Membership Interest are requested by the Managers, such certificates shall be numbered serially, as they are issued and shall be signed by any one or more Managers. Each certificate of Membership Interest shall state the name of the Company, the fact that the Company is organized under the laws of the State of California as a limited liability company, the name of the person to whom the certificate is issued, the date of issue, and the number, class and, if applicable, series or subclass of Membership Interests represented thereby. Each certificate of Membership Interest shall be otherwise in such form as may be determined by the Managers. Such certificates shall bear the following restrictive legends, in addition to any other legends required by applicable law or contract:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE OF MEMBERSHIP INTEREST HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES ACT</u>"). THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE CONVEYED WITHOUT SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED FOR SUCH SALE, TRANSFER, PLEDGE OR OTHER CONVEYANCE UNDER THE SECURITIES ACT.

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A LIMITED LIABILITY COMPANY AGREEMENT BY AND AMONG THE COMPANY AND THE HOLDERS OF ITS SECURITIES. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2 <u>Cancellation of Certificate</u>. Except as herein provided with respect to lost, stolen, or destroyed certificates, no new certificates of membership shall be issued in lieu of previously issued certificates of Membership Interest until former certificates for a like number of Membership Interest shall have been surrendered and cancelled. All certificates of Membership Interest surrendered to the Company for transfer shall be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3 <u>Replacement of Lost, Stolen or Destroyed Certificate</u>. Any Member claiming that a certificate of Membership Interest is lost, stolen or destroyed may make an affidavit or affirmation of that fact and request a new certificate. Upon the giving of a satisfactory indemnity to the Company as reasonably required by the Managers, a new certificate may be issued of the same tenor and representing the same number of Membership Interest as was represented by the certificate alleged to be lost, stolen or destroyed.

**ARTICLE 4** 

**MEMBERSHIP**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Limited Liability</u>. Except as required under the Act or as expressly set forth in this Agreement, no Member shall be personally liable for any debt, obligation or liability of the Company, whether that liability or obligation arises in contract, tort or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Admission of Additional Members</u>. The Managers may at any time, and from time to time, cause the Company to issue additional Membership Interests to, and to admit any Person as, a Member in exchange for such Capital Contributions and pursuant to such other terms and conditions as the Managers may determine; <u>provided</u>, <u>however</u>, that the Managers may also admit any Person as a Member through the issuance of Class C Common Units representing "profits interests" without any Capital Contribution to the Company. The Managers shall amend this Agreement (and <u>Exhibit A</u> attached hereto), and the Members hereby consent to such amendment, to reflect (a) the sale of additional Membership Interests, (b) the admission of additional Members, and (c) any changes in allocations of Profits, Losses, distributions, voting rights and management participation in connection with the admission of such additional Members. Each new Member shall sign a Joinder Agreement and provide a signed Consent of Spouse (if such new Member is an individual and is married). Notwithstanding the foregoing, substitute members may only be admitted in accordance with Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Members Are Not Agents</u>. Pursuant to Section 6.1 and the Certificate, the management of the Company is vested in the Managers. No Member, acting solely in the capacity of a Member, is an agent of the Company nor can any Member in such capacity bind nor execute any instrument on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Voting Rights</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1 Except as expressly provided in this Agreement or as required by law, Members shall have no voting, approval or consent rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2 Except as specifically provided in this Agreement to the contrary or as may be required by applicable law in the absence of this Section 4.4, in all matters in which a vote of the Members is required, the vote of Members holding a Majority Interest of the Class A Common Units shall be sufficient to authorize or approve such act, including, without limitation, to approve the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The sale, lease, exchange, or other disposal of all, or substantially all, of the Company's property, with or without the goodwill, outside the ordinary course of the Company's activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A merger or conversion of the Company under Article 10 of the Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any other act outside the ordinary course of the Company's activities as determined by the Managers in their reasonable discretion.

Except as otherwise specifically provided in this Agreement, all votes of the Members may be given or withheld, conditioned or delayed as the Members may determine in their sole and absolute discretion. In the event that the holders of Class B Common Units and/or Class C Common Units are required to vote under the Act, whether voting together with the Class A Common Units or as a separate class, each holder of Common Units shall have a number of votes equal to the number of Units owned by that Member, regardless of class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Meetings of Members</u>. Members are not required to hold meetings, and decisions may be reached through one or more informal consultations followed by agreement among Members holding a Majority Interest of the Class A Common Units or by a written consent signed by Members holding a Majority Interest of the Class A Common Units. Unless the consents of all Members entitled to vote have been solicited in writing, prompt notice shall be given of the taking of any action approved by less than unanimous written consent to those Members entitled to vote who have not consented in writing. In the event that Members wish to hold a formal meeting for any reason, the procedures set forth in the Act shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Outside Interests of Members, Conflicts</u>. (i) Any Member holding Class A Common Units (in its capacity as such), Manager and their respective Affiliates shall have the right to engage in and/or possess an interest in any other business of any kind; (ii) neither the Company, any Manager nor any Member shall have or be entitled to any rights, solely by virtue of this Agreement, in and to such independent ventures or the income and profits derived therefrom, nor shall any such Member holding Class A Common Units (in its capacity as such) or Manager have any obligation whatsoever to offer, share or offer to share any business opportunity of any kind to the Company, any other Manager or any other Member; and (iii) the Members and the Managers each hereby waive any and all rights and claims which they may otherwise have against such other Member holding Class A Common Units, Managers and their officers, directors, shareholders, partners, agents, employees and Affiliates as a result of such activities.

**ARTICLE 5**

**CAPITAL CONTRIBUTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Contribution of Other Members</u>. The Managers may decide from time to time to cause the Company to offer and sell other classes of Membership Interests, and may do so on such terms and conditions as they deem desirable and in the best interests of the Company and all Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Additional Capital Contributions</u>. To the extent approved by the Managers, based on the need for additional capital by the Company from time to time, the Members *may* be permitted, but shall not be obligated, to make additional Capital Contributions if and to the extent they so desire. The Managers shall revise <u>Exhibit A</u> to reflect all additional Capital Contributions (if any) made by a Member in accordance with Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Capital Accounts</u>. The Company shall establish an individual Capital Account for each Member. The Company shall determine and maintain each Capital Account in accordance with Regulations Section 1.704-1(b)(2)(iv). If a Member transfers all or a part of its, his or her Membership Interest in accordance with this Agreement, such Member's Capital Account attributable to the transferred Membership Interest shall carry over to the new owner of such Membership Interest pursuant to Regulations Section 1.704-1(b)(2)(iv)(l).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>No Interest on Capital Accounts</u>. No Member shall be entitled to receive any interest on its, his or her Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>No Withdrawal of Capital Contributions</u>. Except upon dissolution and liquidation of the Company, but subject to this Agreement and applicable law, no Member shall have the right to withdraw his, her or its Capital Contribution, or any part thereof. Except as set forth in Section 7.5 and Section 10.5, there is no agreement, nor time set, for the return of any Capital Contribution of any Member. A Member shall look solely to the assets of the Company for the return of his, her or its Capital Contributions, and if the assets remaining after the payment or discharge of the debts and liabilities of the Company are insufficient to return his, her or its Capital Contributions, the Members shall have no recourse against the Board of Managers or any other Member for such insufficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>No Obligation to Restore Negative Balances in Capital Account</u>. No Member shall have an obligation, at any time during the term of the Company or upon or following its liquidation, to pay to the Company or any other Member or third party an amount equal to any part or all of the negative balance in such Member's Capital Account.

**ARTICLE 6**

**MANAGEMENT AND CONTROL OF THE COMPANY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Exclusive Management by Managers; Deadlocks</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 Subject to the provisions of the Certificate, this Agreement and the Act relating to actions required to be approved by the Members, the Company's business, property and affairs shall be managed and all powers of the Company shall be exercised by or under the direction of the Managers. Any action which may be taken at any meeting of the Managers may be taken without a meeting, without a vote and without prior notice, if a consent in writing, setting forth the action so taken, is signed by a majority of the authorized number of Managers, except as may be otherwise specifically provided by the Act or by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 In the event of a tie or other deadlock of the Managers when voting or approving any action in accordance with this Agreement (a "<u>Deadlock</u>"), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Managers shall engage in good faith to resolve the Deadlock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Deadlock cannot be resolved, the Deadlock shall be submitted to a single mediator mutually agreeable to the Managers (or, if the Managers cannot agree on a mediator, to a mediator with the American Arbitration Association located in Orange County, California) to engage in good faith in a non-binding mandatory mediation process, which process shall be concluded within 15 days from the date that the mediator is retained. The costs of the mediation shall be borne by the Company. The Managers and Members acknowledge and agree that the mediator shall not have any binding decision making authority related to the Deadlock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Following such mediation, the Managers shall engage in good faith to resolve the Deadlock for three days. If the Deadlock cannot be resolved within such three day period, in order to achieve the requisite approval of the Managers, the Managers and the Members hereby agree that the Wettengel Manager shall have the authority to cast the deciding vote or approval to resolve the Deadlock, and each Member and Manager hereby agrees to take such actions as may be required to ensure that such deciding vote or approval is approved by the other Members and Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Election of Managers</u>. During the term of this Agreement, the authorized number of Managers shall be two (2). So long as the Wettengel Member continues to own any Membership Interests of the Company, the Wettengel Member shall have the right to appoint one Manager, who initially shall be Blake Wettengel (the "<u>Wettengel Manager</u>"). So long as the Muro Member continues to own any Membership Interests of the Company, the Muro Member shall have the right to appoint one Manager, who initially shall be Tanya Muro (the "<u>Muro Manager</u>"). Unless a Manager has previously resigned or been removed, each Manager shall hold office until his or her successor has been elected and qualified. During such time that the Company has only one Manager, if any, all references to "Managers" in this Agreement shall be deemed to refer to a single Manager.

Except for situations in which the approval of the Members is expressly required by this Agreement or the Act, the Managers shall have full, complete and exclusive authority, power and discretion to manage and control the business, property and affairs of the Company, to make all decisions regarding those matters and to perform any and all other acts customary or incident to the management of the Company's business, property and affairs. Each Manager shall have one vote. At all meetings of the Managers a majority of the authorized number of Managers shall constitute a quorum for the transaction of business and the act of a majority of the Managers present at any meeting at which there is a quorum shall be the act of the Managers, except as may be otherwise specifically provided by the Act, the Articles or by this Agreement. A Manager may not split, assign, delegate, sell, transfer or otherwise grant a proxy to vote its, his or her interest as a Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Resignation of Managers</u>. The Managers may resign at any time by giving written notice to the Members without prejudice to the rights, if any, of the Company under any contract to which such Manager is a party. The resignation of a Manager shall take effect upon receipt of that notice or at such later time specified in the notice. Unless otherwise specified in the notice, the acceptance of the resignation shall not be necessary to make the resignation effective. The resignation of a Manager who also is a Member shall not (a) affect the Manager's rights as a Member, (b) constitute a withdrawal of a Member or (c) affect any of the rights the Manager or the Manager's Affiliate may have under any written agreement with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Removal of the Managers</u>. The Wettengel Manager may be removed or replaced at any time from the Board, with or without cause, upon, and only upon, the written request of the Wettengel Member. The Muro Manager may be removed or replaced at any time from the Board, with or without cause, upon, and only upon, the written request of the Muro Member. Any removal shall be without prejudice to the rights, if any, of such Manager under any management contract and, if such Manager also is a Member, shall not affect such Manager's rights as a Member or constitute a withdrawal of a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Vacancies</u>. In the event that a Manager vacancy is created at any time due to the death, disability, retirement, resignation or removal of the Wettengel Manager, then the Wettengel Member shall have the right to designate an individual to fill such vacancy and the Company and each Member hereby agree to take such actions as may be required to ensure the election or appointment of such designee to fill such Manager vacancy. In the event that a Manager vacancy is created at any time due to the death, disability, retirement, resignation or removal of the Muro Manager, then the Muro Member shall have the right to designate an individual to fill such vacancy and the Company and each Member hereby agree to take such actions as may be required to ensure the election or appointment of such designee to fill such Manager vacancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Performance of Duties; Liability of Managers</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6.1 The Managers shall not be liable to the Company or to any Member for any loss or damage sustained by the Company or any Member, unless the loss or damage shall have been the result of fraud, deceit, gross negligence, reckless or intentional misconduct, or a knowing violation of law by such Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6.2 Notwithstanding that it may constitute a conflict of interest, any Manager may, and may cause their Affiliates to, engage in any transaction (including, without limitation, the purchase, sale, lease, or exchange of any property or the rendering of any service, or the establishment of any salary, other compensation, or other terms of employment) with the Company so long as such transaction is not expressly prohibited by this Agreement and so long as the terms and conditions of such transaction, on an overall basis, are fair and reasonable to the Company and are at least as favorable to the Company as those that are generally available from Persons capable of similarly performing them and in similar transactions between parties operating at arm's length.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Payments of Expenses to Managers</u>. The Managers shall be entitled to reimbursement for expenses reasonably incurred, and advances reasonably made, in furtherance of the Company's business. The Company shall also pay or reimburse the Managers or their respective Affiliates for organizational expenses (including without limitation, legal and accounting fees and costs) incurred to form the Company and prepare and file the Certificate and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Officers</u>. The Managers may appoint officers at any time. The officers of the Company, if deemed necessary by the Managers, may include a chairperson, president, chief executive officer, vice president, secretary, and chief financial officer. The officers shall serve at the pleasure of the Managers, subject to all rights, if any, of an officer under any contract of employment. Any individual may hold any number of offices. The officers shall exercise such powers and perform such duties as specified in this Agreement and as shall be determined from time to time by the Managers. The initial Chief Executive Officer of the Company shall be Blake Wettengel. The initial Chief Operating Officer of the Company shall be Tanya Muro. The initial Chief Financial Officer of the Company shall be Jennifer Welker. The initial Chief Investment Officer of the Company shall be Frank Muhlon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Removal, Resignation and Filling of Vacancy of Officers</u>. Subject to the rights, if any, of an officer under a contract of employment, any officer may be removed, either with or without cause, by the Managers at any time. Any officer may resign at any time by giving written notice to the Managers. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Company under any contract to which the officer is a party. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in this Agreement for regular appointments to that office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Limited Liability</u>. No person who is a Manager or officer, or both a Manager and officer of the Company, shall be personally liable under any judgment of a court, or in any other manner, for any debt, obligation, or liability of the Company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason of being a Manager or officer or both a Manager and officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Drag Along Rights</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11.1 <u>Sale of Units</u>. If (i) the Managers, and (ii) the holders of Class A Common Units which taken together exceed seventy percent (70%) of the aggregate of all Percentage Interests of the holders of Class A Common Units (collectively, the "<u>Drag-Along Sellers</u>")<u> </u>propose to sell to any Person, in any transaction or series of transactions, Common Units accounting for at least seventy percent (70%) of the aggregate of all Percentage Interests of all Members holding Common Units (determined on an as-converted basis of all then outstanding convertible securities, if any) or substantially all of the assets of the Company, then the Drag-Along Sellers may, at their option, require all of the other Members to sell, on the terms and subject to the conditions of this Section 6.11, all of such other Member's Common Units, including, without limitation, any or all of their convertible securities of the Company or otherwise approve such transaction. In connection therewith, the Company and each Member agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11.1.1 if such transaction requires member approval, with respect to all Common Units that such Member owns or over which such Member otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Common Units in favor of, and adopt, such transaction (together with any related amendment to the Certificate required in order to implement such transaction) and to vote in opposition to any and all other proposals that could delay or impair the ability of the Company to consummate such transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11.1.2 if such transaction is a Common Unit sale, to sell the same proportion of Common Units of the Company beneficially held by such Member as is being sold by the Drag-Along Sellers to the Person to whom such Members propose to sell their Common Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11.2 <u>Notice</u>. If the Drag-Along Sellers desire to exercise their right to require the other Members to participate in a sale pursuant to Section 6.11, then the Drag-Along Sellers shall give written notice to the Company and the other Members of their exercise of such right. The notice shall specify (a) the name of the proposed purchaser of the Common Units, (b) the aggregate consideration and the consideration per share to be paid by the purchaser for such Common Units, and (c) the other terms and conditions of the sale. The Drag-Along Sellers shall provide the Company and the other Members with all such other information that may reasonably be requested by such other Members in connection with the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11.3 <u>Stock Power</u>. Within 20 business days of receipt of such notice pursuant to Section 6.11.2, each of the other Members shall deliver to the Company certificates representing all of the Common Units owned by such other Member, the instruments representing all then outstanding convertible securities of the Company, and appropriate stock powers, duly executed in blank, and assignment instruments to permit the Transfer of all Common Units and convertible securities pursuant to this Section 6.11. Each of the other Members hereby irrevocably authorizes the Company to sell, deliver and transfer such Common Units and convertible securities owned by such other Member in accordance with the provisions of this Section 6.11, it being intended that this authorization shall constitute a power coupled with an interest. Each of the other Members shall also execute and deliver any other documents or instruments that may reasonably be required for the purpose of transferring the Common Units and convertible securities of the Company in accordance with this Section 6.11.

**ARTICLE 7**

**ALLOCATIONS AND DISTRIBUTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Allocations of Profit and Loss</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 <u>In General</u>. After taking into account the special allocations set forth in this <u>Article 7</u>, Profits and Losses for each calendar year (or portion thereof), shall be allocated among the Members in the manner that will cause their Partially Adjusted Capital Accounts to equal, as soon as possible, their Targeted Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 <u>Limitation on Loss Allocations</u>. If any allocation of Losses would cause a Member to have an Adjusted Capital Account Deficit, those Losses instead shall be allocated to the other Members in proportion to their Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Special Allocations</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1 <u>Minimum Gain Chargeback</u>. Notwithstanding Section 7.1, if there is a net decrease in Company Minimum Gain during any Fiscal Year, each Member shall be specially allocated items of Company income and gain for such Fiscal Year (and, if necessary, in subsequent fiscal years) in an amount equal to the portion of such Member's share of the net decrease in Company Minimum Gain that is allocable to the disposition of Company property, subject to a Nonrecourse Liability, which share of such net decrease shall be determined in accordance with Treasury Regulations Section 1.704-2(g)(2). Allocations pursuant to this Section 7.2.1 shall be made in proportion to the amounts required to be allocated to each Member under this Section 7.2.1. The items to be so allocated shall be determined in accordance with Treasury Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 7.2.1 is intended to comply with the minimum gain chargeback requirement contained in Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2 <u>Chargeback of Minimum Gain Attributable to Member Nonrecourse Debt</u>.<u> </u>Notwithstanding Section 7.1 of this Agreement, if there is a net decrease in Member Nonrecourse Debt Minimum Gain attributable to a Member Nonrecourse Debt during any Fiscal Year, each Member who has a share of the Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse Debt (which share shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(5)) shall be specially allocated items of Company income and gain for such Fiscal Year (and, if necessary, in subsequent Fiscal Years) in an amount equal to that portion of such Member's share of the net decrease in Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse Debt that is allocable to the disposition of Company property subject to such Member Nonrecourse Debt (which share of such net decrease shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(5)). Allocations pursuant to this Section 7.2.2 shall be made in proportion to the amounts required to be allocated to each Member under this Section 7 2.2. The items to be so allocated shall be determined in accordance with Treasury Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 7.2.2 is intended to comply with the minimum gain chargeback requirement contained in Treasury Regulations Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.3 <u>Nonrecourse Deduction</u>. Notwithstanding Section 7.1, any Nonrecourse Deductions for any Fiscal Year or other period shall be specially allocated to the Members in proportion to their Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.4 <u>Member Nonrecourse Deductions</u>. Notwithstanding Section 7.1, those items of Company loss, deduction, or Code Section 705(a)(2)(B) expenditures which are attributable to Member Nonrecourse Debt for any Fiscal Year or other period shall be specially allocated to the Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such items are attributable in accordance with Treasury Regulations Section 1.704-2(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.5 <u>Qualified Income Offset</u>. Notwithstanding Section 7.1, if a Member unexpectedly receives any adjustments, allocations, or distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), or any other event creates an Adjusted Capital Account Deficit with respect to such Member, items of Company income and gain (including gross items if necessary) shall be specially allocated to such Member in an amount and manner sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible; provided that an allocation pursuant to this Section 7.2.5 shall be made only if and to the extent that the Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Article 7 have been tentatively made as if this Section 7.2.5 were not in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Code Section 704(c) Allocations</u>. Notwithstanding any other provision in this Article 7, in accordance with Code Section 704(c) and the Treasury Regulations promulgated thereunder, income, gain, loss, and deduction with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its Gross Asset Value on the date of contribution. Allocations pursuant to this Section 7.3 are solely for purposes of federal, state and local taxes. As such, they shall not affect or in any way be taken into account in computing a Member's Capital Account or share of Profits and Losses, or other items of distributions pursuant to any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Allocation of Profit and Loss and Distributions in Respect of Transferred Interest</u>. If any Membership Interest is transferred, or is increased or decreased by reason of the admission of a new Member or otherwise, during any Fiscal Year of the Company, each item of income, gain, loss, deduction, or credit of the Company for such Fiscal Year shall to the extent permitted be assigned pro rata to each day in the particular period of such fiscal year to which such item is attributable (i.e., the day on or during which it is accrued or otherwise included) and the amount of each such item so assigned to any such day shall be allocated to the Member based upon its, his or her respective Membership Interest at the close of such day. However, for the purpose of accounting convenience and simplicity, the Company shall treat a transfer of, or an increase or decrease in, a Membership Interest which occur at any time during a semi-monthly period (commencing with the semi-monthly period including the date hereof) as having been consummated on the last day of such semi-monthly period, regardless of when during such semi-monthly period such transfer, increase, of decrease actually occurs (i.e., sales and dispositions made during the first 15 days of any month will be deemed to have been made on the 15th day of the month). Notwithstanding any provision above to the contrary, gain or loss of the Company realized in connection with a sale or other disposition of any of the assets of the Company shall be allocated solely to the parties owning Membership Interests as of the date such sale or other disposition occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1 <u>Distributions of Net Cash Proceeds</u>. From time to time the Managers may, in their sole discretion, determine the amount of Net Cash Proceeds to be distributed to the Members. To the extent permitted by law, such amount shall be distributed to the Members ("<u>Distributable Funds</u>") annually or more or less frequently, as determined by the Managers. Distributable Funds shall be paid to the Members in such amounts as shall be determined by the Managers, in their sole discretion, and the Members acknowledge and agree that such amounts need not be in accordance with the Member's Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2 <u>Form of Distribution</u>. A Member, regardless of the nature of the Member's Capital Contribution, has no right to demand and receive any distribution from the Company in any form other than money. No Member may be compelled to accept from the Company (a) a distribution of any asset in kind in lieu of a proportionate distribution of money being made to other Members or (b) a distribution of any asset in kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Restriction on Distributions</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.1 No distribution to Members shall be made unless all loans and advances from Members plus any accrued interest thereon shall have been repaid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2 No distribution shall be made if, after giving effect to the distribution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2.1 The Company would not be able to pay its debts as they become due in the usual course of business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2.2 The Company's total assets would be less than the sum of its total liabilities plus, unless this Agreement provides otherwise, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the preferential rights of other Members, if any, upon dissolution that are superior to the rights of the Member receiving the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3 The Managers may base a determination that a distribution is not prohibited on any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3.1 The Company's financial statements prepared on the basis of accounting practices and principles that are reasonable under the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3.2 A fair valuation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3.3 Any other method that is reasonable in the circumstances.

The effect of a distribution shall be measured as of the date the distribution is authorized if the payment occurs within 120 days after the date of authorization, or the date payment is made if it occurs more than 120 days of the date of authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.4 A Manager or a Member who votes for a distribution in violation of this Agreement or the Act is personally liable to the Company for the amount of the distribution that exceeds what could have been distributed without violating this Agreement or the Act if it is established that such Manager or Member did not act in compliance with Section 7.7 or Section 10.4. A Manager or any Member who is so liable shall be entitled to compel contribution from (i) each other Member or the Managers, as applicable, who also is so liable and (ii) each other Member for the amount the Member received with knowledge of facts indicating that the distribution was made in violation of this Agreement or the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Return of Distribution</u>. Except for distributions made in violation of the Act or this Agreement, no Member or Economic Interest Owner shall be obligated to return any distribution to the Company or pay the amount of any distribution for the account of the Company or to any creditor of the Company. The amount of any distribution returned to the Company by a Member or Economic Interest Owner or paid by a Member or Economic Interest Owner for the account of the Company or to a creditor of the Company shall be added to the account or accounts from which it was subtracted when it was distributed to the Member or Economic Interest Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Obligations of Members to Report Allocations</u>. The Members are aware of the income tax consequences of the allocations made by this Article 7 and hereby agree to be bound by the provisions of this Article 7 in reporting their shares of Company income and loss for income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Profits Interest</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.1 The Company acknowledges that the Internal Revenue Service ("<u>IRS</u>") issued Internal Revenue Service Notice 2005-43, I.R.B. 2005-24 (June 13, 2005), proposing to create a safe harbor election for "profits interests" (the safe harbor election referred to herein as the "<u>Safe Harbor Election</u>"). The IRS has not yet finalized the Safe Harbor Election. At any time after final guidance has been issued from the IRS and/or the Department of Treasury, the Manager, on behalf of all Members and the Company, shall (i) cause an amendment to this Agreement to be executed modifying any provisions necessary for the Company to qualify for the Safe Harbor Election and (ii) execute and file any other necessary forms or documents and take all other actions reasonably necessary to cause the Company and each Member to qualify for the Safe Harbor Election; *provided*, *however*, such Safe Harbor Election must be available to the Company and the Members under the terms of the final guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.2 The Class C Common Units shall be deemed to be "profits interests" for federal income tax purposes, and on the date of issuance, were intended to have a Capital Account balance and fair market value equal to zero. Each Member holding Class C Common Units shall be solely responsible for determining the tax consequences of its, his or her profits interests in connection with their ownership of such Class C Common Units, including, without limitation, the safe harbor provisions regarding transfer limitations of a profits interest during the first two (2) years of ownership, as discussed in Rev. Proc. 93-27, 1993-CB 343.

**ARTICLE 8**

**TRANSFER AND ASSIGNMENT OF INTERESTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Transfer and Assignment of Interests</u>. Except as provided in Section 8.4, no Member shall be entitled to transfer, assign, convey, sell, encumber or in any way alienate all or any part of its, his or her Membership Interest except with the prior written consent of the Managers, which consent may be withheld in their sole and absolute discretion. Transfers in violation of this Article 8 shall only be effective to the extent set forth in Section 8.5. After the consummation of any transfer of any part of a Membership Interest, the Membership Interest so transferred shall continue to be subject to the terms and provisions of this Agreement and any further transfers shall be required to comply with all the terms and provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Further Restrictions on Transfer of Interests</u>. In addition to other restrictions found in this Agreement, no Member shall transfer, assign, convey, sell, encumber or in any way alienate all or any part of its, his or her Membership Interest: (i) without compliance with applicable securities laws; or (ii) if the Membership Interest to be transferred, assigned, sold or exchanged, when added to the total of all other Membership Interests sold or exchanged in the preceding 12 consecutive months prior thereto, would cause the termination of the Company under the Code, as determined by the Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Substitution of Members</u>. A transferee of a Membership Interest shall have the right to become a substitute Member only if (i) the requirements of Sections 8.1 and 8.2 hereof are met, (ii) such Person executes a Joinder Agreement and provides a Consent of Spouse, if applicable, and (iii) such person pays any reasonable expenses in connection with its, his or her admission as a new Member. The admission of a substitute Member shall not result in the release of the Member who assigned the Membership Interest from any liability that such Member may have to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Certain Permitted Transfers</u>. The Membership Interest of any Member may be transferred (it being agreed that in executing this Agreement, each Member has consented to such transfers), subject to compliance with Section 8.2, (i) during its, his or her lifetime to a trust for the exclusive benefit of such Member or such Member's spouse, issue, including adopted children, and provided, in the case of such trust, that the Member has the power to act with respect to the trust's assets without court approval, (ii) to such Member's spouse and issue, including adopted children, (iii) to any Affiliate of the Member, (iv) in compliance with Section 8.6 or Section 8.7, or (v) as may otherwise be consented to in writing by the Managers. The Membership Interest of any Member may be transferred pursuant to this Section 8.4 subject to compliance with Section 8.2, and without the prior written consent of the Managers as required by Section 8.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>No Effect to Transfers in Violation of Agreement</u>. Any transfer of a Membership Interest in violation of this Article 8 shall be null and void and the purported transferee shall not become either a Member or an Economic Interest Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Rights of First Refusal</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.1 Each time a Member proposes to transfer, assign or convey, sell, encumber or in any way alienate its, his or her Membership Interest (or as required by operations of law or other involuntary transfer) other than pursuant to Section 8.4 (the "<u>Transferring Member</u>"), such Transferring Member shall first offer such Membership Interest to each remaining holder of Class A Common Units under the procedures as outlined in Sections 8.6.2 through 8.6.6 for a period of 90 days after which it, he or she shall be free to transfer its, his or her Membership Interests on the terms outlined in the notice, as long as the sale is completed within 130 days of the notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.2 Transferring Member shall deliver a written notice to the Company and the remaining holders of Class A Common Units stating (a) such Transferring Member's bona fide intention to transfer such Membership interest, (b) the name and address of the proposed transferee, (c) the Membership Interest to be transferred, and (d) the purchase price and terms of payment for which the Transferring Member proposes to transfer such Membership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.3 Within 90 days after receipt of the notice described in Section 8.6.1, each participating holder of Class A Common Units shall notify the Managers in writing of its, his or her desire to purchase all or a portion of the Membership Interest being so transferred. The failure of any holder of Class A Common Units to submit a notice within the applicable period shall constitute an election on the part of that holder of Class A Common Units not to purchase any of the Membership Interest which may be so transferred. Each holder of Class A Common Units so electing to purchase shall be entitled to purchase all or a portion of such Membership Interest in the same proportion that the Percentage Interest of such holder of Class A Common Units bears to the aggregate Percentage Interests of all of the holders of Class A Common Units electing to so purchase the Membership Interest being transferred. In the event any holder of Class A Common Units elects to purchase none or less than all of its, his or her pro rata share of such Membership Interest, then the other participating holders of Class A Common Units can elect to purchase more than their pro rata share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.4 If such participating holders of Class A Common Units fail to purchase the entire Membership Interest being transferred, the Company may purchase any remaining share of such Membership Interest. The Company's right shall be exercisable within, and shall expire after, 10 business days after receipt of the expiration of the 90-day exercise period of the holders of Class A Common Units described in Section 8.6.3. If the Company desires to exercise its right, it shall do so by delivering to the Secretary within such 100-calendar day exercise period a notice specifying such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.5 Within 90 days after receipt of the notice described in Section 8.6.1, the Company and the holders of Class A Common Units electing to purchase such Membership Interest shall have the first right to purchase or obtain such Membership Interest upon the price and terms of payment designated in such notice. If such notice provides for the payment of non-cash consideration, the Company and such purchasing Members each may elect to pay the consideration in cash equal to the good faith estimate of the present fair market value of the non-cash consideration offered as determined by the Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.6 If the Company or the holders of Class A Common Units elect not to purchase or obtain all of the Membership Interest designated in such notice, then the Transferring Member may transfer all of the Membership Interest described in the notice to the proposed transferee, providing such transfer (i) is completed within 30 days after the expiration of the Company's and the holders of Class A Common Units' right to purchase such Membership Interest, (ii) is made on terms no less favorable to the Transferring Member than as designated in the notice, and (iii) securities and tax requirements hereof are met. If such Membership Interest is not so transferred, the Transferring Member must give notice in accordance with this Section prior to any other or subsequent transfer of such Membership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Optional Purchase Event</u>. On the occurrence of an Optional Purchase Event that is not a permitted transfer pursuant to Section 8.4, the Company and the remaining holders of Class A Common Units shall have the option to purchase, and if such option is exercised, the Member whose actions or conduct resulted in the Optional Purchase Event or such Member's legal representative (each, a "<u>Transferor</u>") shall sell, the Transferor's Membership Interest as provided in this Section 8.7; <u>provided</u>, <u>however</u>, that in the case of the dissolution of marriage of a Member, only the Membership Interests, if any, awarded to such Member's spouse shall be subject to repurchase under this Section 8.7. Each Transferor shall provide prompt notice of the Optional Purchase Event to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.1 The purchase price for the Transferor's Membership Interest shall be the fair market value of the Transferor's Membership Interest as mutually agreed upon by the Transferor and the Company. For purposes of this Section, "fair market value" shall mean an amount the Transferor would receive if (i) the Company sold all of its assets as a going concern to a financially-able third party purchaser for their gross fair market value less liabilities and taking into account all relevant factors determinative of value including discounts for the lack of liquidity of such securities and minority interests as well as a reserve for contingent and unforeseen liabilities, (ii) the Company paid or provided for all of its liabilities pursuant to Section 10.5, and (iii) the Company made its liquidating distributions pursuant to Section 10.5. If the Transferor and the Company are not able to agree upon the fair market value within 60 days after the Optional Purchase Event, then the fair market value of the Transferor's Membership Interest shall be determined by an independent appraiser (any such appraiser must be recognized as an expert in valuing companies such as the Company) selected by the Managers. In determining the fair market value, the appraiser appointed under this Agreement shall (a) consider all opinions and relevant evidence submitted to it by the parties, or otherwise obtained by it, and (b) shall set forth its determination in writing together with its opinion and the considerations on which the opinion is based, with a signed counterpart to be delivered to each party, within 60 days after commencing the appraisal. Notwithstanding the foregoing, if the Optional Purchase Event results from a breach of this Agreement by the Transferor, the purchase price shall be reduced by an amount equal to the damages suffered by the Company or the Members as a result of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.2 Within 15 calendar days after the purchase price is determined in accordance with Section 8.7.1, the Company shall notify the remaining holders of Class A Common Units of such price. Within 30 days after receipt of such notice, each participating holder of Class A Common Units shall notify the Company in writing of its, his or her desire to purchase a portion of the Transferor's Membership Interest. The failure of any holder of Class A Common Units to submit a notice within the applicable period shall constitute an election on the part of that holder not to purchase any of the Transferor's Membership Interest. Each holder of Class A Common Units so electing to purchase shall be entitled to purchase a portion of such Transferor's Membership Interest in the same proportion that the Percentage Interest of such participating holder of Class A Common Units bears to the aggregate Percentage Interests of all of the holders of Class A Common Units electing to so purchase the Transferor's Membership Interest. In the event any holder of Class A Common Units elects to purchase none or less than all of its, his or her pro rata share of such Transferor's Membership Interest, then the other participating holders of Class A Common Units can elect to purchase more than their pro rata share. If such participating holders of Class A Common Units fail to purchase the entire Transferor's Membership Interest, the Company may purchase any remaining share of such Membership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.3 The purchase price shall be paid by the holders of Class A Common Units or the Company, as the case may be, by either of the following methods, each of which may be selected separately by any of such holders of Class A Common Units or the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the closing, the holders of Class A Common Units or the Company shall pay in cash the total purchase price for the Transferor's Membership Interests; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the closing, the holders of Class A Common Units or the Company, as the case may be, shall pay one-fifth of the purchase price in cash, and the balance of the purchase price shall be paid in arrears in equal monthly installments over a four-year period, based on a 48 month amortization schedule, plus accrued interest at the lower of the Prime Rate or the maximum rate permitted by law. The balance of the purchase price shall be evidenced by separate promissory notes executed by the Company or any participating holder of Class A Common Units, as applicable. Each note shall be in an original principal amount equal to the portion owed by the Company or such holder of Class A Common Units. The Company or such holders of Class A Common Units shall have the right to prepay the note in full or in part at any time without penalty. The note shall contain customary terms, including a provision for the payment of attorneys' fees to the prevailing party if litigation is commenced to enforce the note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.4 Unless court approval is required, the closing for the sale of a Transferor's Membership Interest pursuant to this Section 8.7 shall be held at 10:00 a.m. at the principal office of Company no later than 60 days after the determination of the purchase price, except that, if the closing date falls on a Saturday, Sunday or legal holiday, then the closing shall be held on the next succeeding business day. If court approval is required, (a) the closing shall occur not later than five business days after entry of the order approving such sale, (b) the Transferor shall file the application seeking court approval within 30 days following the determination of the purchase price, and (c) the parties to the court proceeding shall make every effort to obtain the court's approval in an expeditious manner. At the closing, the Transferor shall deliver to the Company and/or the participating Members an instrument of transfer (containing warranties of title and no encumbrances) conveying the Transferor's Membership Interest. The Transferor, the Company and the participating holders of Class A Common Units shall do all things and execute and deliver all papers as may be necessary to consummate fully such sale and purchase in accordance with the terms and provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.5 Notwithstanding anything in this Article 8 to the contrary, if a Member is a party to an employment agreement, restricted membership interest purchase agreement, option agreement or similar agreement which provides for the disposition of the Membership Interests subject thereto upon an Optional Purchase Event, then the terms and conditions of such other agreement shall prevail and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Consent of Spouse</u>. If any Member who is an individual is married on the date of this Agreement, such Member's spouse shall execute and deliver to the Company a consent of spouse in the form of <u>Exhibit B</u> hereto (the "<u>Consent of Spouse</u>"). Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in such Member's Membership Interests that do not otherwise exist by operation of law or the agreement of the parties. If any individual Member should marry or remarry subsequent to the date of this Agreement, or in the event that any individual should become a Member hereunder, whether by transfer, assignment, operation of law or otherwise, such Member shall within 30 days thereafter obtain his or her spouse's acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

**ARTICLE 9**

**ACCOUNTING, RECORDS, REPORTING BY MEMBERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Books and Records</u>. The books and records of the Company shall be kept, and the financial position and the results of its operations recorded, in accordance with the accounting methods followed for federal income tax purposes. The books and records of the Company shall reflect all the Company transactions and shall be appropriate and adequate for the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Bank Accounts</u>. The Managers shall maintain the funds of the Company in one or more separate bank accounts in the name of the Company, and shall not permit the funds of the Company to be commingled in any fashion with the funds of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Tax Matters for the Company Handled by Managers and Tax Representative</u>. The Managers shall from time to time cause the Company to make such tax elections as it deems to be in the best interests of the Company and the Members, including the designation of the "<u>Tax</u> <u>Matters Partner</u>," as defined under the Code (for tax periods beginning prior to January 1, 2018) or "<u>Partnership Representative</u>," as defined under the Code (for tax periods beginning on or after January 1, 2018), or any person to act in lieu of a Tax Matters Partner or Partnership Representative as applicable (any such designated person, the "<u>Tax Representative</u>"). If required by Treasury Regulations Section 301.6223-1(b)(3)(ii), the Managers shall appoint a "designated individual" to act on behalf of the Partnership Representative, provided, however, such designated individual (x) shall have no greater authority than the Partnership Representative, (y) shall be subject to the restrictions on action imposed on the Partnership Representative, and (z) may only act with the consent of the Partnership Representative.

**ARTICLE 10**

**DISSOLUTION AND WINDING UP**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Dissolution</u>. The Company shall be dissolved, its assets shall be disposed of, and its affairs wound up on the first to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 Upon the happening of any event of dissolution specified in the Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 Upon the vote of the Members holding a Majority Interest of the Class A Common Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3 Upon the entry of a decree of judicial dissolution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4 Upon the sale of all or substantially all of the assets of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Certificates</u>. As soon as possible following the occurrence of any of the events specified in Section 10.1, any Manager shall execute all such documents as shall be prescribed by the Delaware Secretary of State and file such documents as required by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Winding Up</u>. Upon the occurrence of any event specified in Section 10.1, the Company shall continue solely for the purpose of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors. The Managers shall be responsible for overseeing the winding up and liquidation of Company, shall take full account of the liabilities of Company and assets, shall either cause its assets to be sold or distributed, and if sold as promptly as is consistent with obtaining the fair market value thereof, shall cause the proceeds therefrom, to the extent sufficient therefor, to be applied and distributed as provided in Section 10.5. The Persons winding up the affairs of the Company shall give written notice of the commencement of winding up by mail to all known creditors and claimants whose addresses appear on the records of the Company. The Managers winding up the affairs of the Company shall be entitled to reasonable compensation for such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Distributions in Kind</u>. Any non-cash asset distributed to one or more Members shall first be valued at its fair market value to determine the Profit or Loss that would have resulted if such asset were sold for such value, such Profit or Loss shall then be allocated pursuant to Article 7, and the Members' Capital Accounts shall be adjusted to reflect such allocations. The amount distributed and charged to the Capital Account of each Member receiving an interest in such distributed asset shall be the fair market value of such interest (net of any liability secured by such asset that such Member assumes or takes subject to). The fair market value of such asset shall be determined by the Managers or by the Members or, if any Member objects, by an independent appraiser (any such appraiser must be recognized as an expert in valuing the type of asset involved) selected by the Managers or liquidating trustee and approved by the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Order of Payment of Liabilities and Distributions Upon Dissolution</u>. After determining that all known debts and liabilities of the Company in the process of winding-up, including, without limitation, debts and liabilities to Members who are creditors of the Company, have been paid or adequately provided for, the remaining assets shall be distributed to the Members in accordance with their positive Capital Account balances, after taking into account income and loss allocations for the Company's taxable year during which liquidation occurs, and second, after all positive capital accounts have been reduced to zero, to the Members pro rata according to their Percentage Interests. Such liquidating distributions shall be made by the end of the Company's taxable year in which the Company is liquidated, or, if later, within 90 days after the date of such liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Limitations on Payments Made in Dissolution</u>. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely at the assets of Company for the return of its, his or her positive Capital Account balance and shall have no recourse for its, his or her Capital Contribution and/or share of Profits (upon dissolution or otherwise) against the Managers or any other Member except as provided in Article 11.

**ARTICLE 11**

**INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>Indemnification</u>. The Company shall indemnify any Member or Manager who was or is a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, and whether formal or informal (a "<u>Proceeding</u>"), including a Proceeding brought on behalf of the Members of the Company, because such Person is or was a Member or Manager of the Company, or is or was serving at the request of the Company as a manager, director, trustee, partner or officer of another entity, against any liability and reasonable expenses (including reasonable attorneys' fees) incurred by such Person in connection with such Proceeding unless such Person has engaged in willful misconduct or a knowing violation of the criminal law. No amendment of this Article 11 shall have any effect on the rights provided herein with respect to any act or omission occurring prior to such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Advances and Reimbursements</u>. The Company shall promptly make advances or reimbursements for reasonable expenses (including attorneys' fees) incurred by any Person claiming indemnification under this Article 11, unless it has been determined that such Person is not entitled to indemnification because of a failure to meet the standards set forth in this Article 11. Such advances or reimbursements shall be conditioned upon receipt from the Person claiming indemnification of a written undertaking to repay the amount of such advances or reimbursements if it is ultimately determined that such Person is not entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <u>Determination of Applicability</u>. The determination that indemnification under this Article is permissible, and of the reasonableness of expenses and attorneys' fees, shall be determined by the Managers, if the claimant is a Member and not a Manager, and by legal counsel agreed upon by the Company and the Person claiming indemnification if the claimant is a Manager. The determination may be made before or after a claim for indemnification is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. <u>Exceptions to Indemnification</u>. No Person shall be entitled to indemnification pursuant to this Article to the extent such Person is entitled to indemnification by another, including an insurer.

**ARTICLE 12**

**MEMBER DUTIES; CONFIDENTIALITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Confidentiality</u>. The Members acknowledge and agree that all information provided to them by or on behalf of the Company or the Managers concerning the business or assets of the Company or any Member shall be deemed strictly confidential and shall not, without the prior consent of the Managers, be (a) disclosed to any Person (other than a Member) or (b) used by a Member other than for a Company purpose or a purpose reasonably related to protecting such Member's Interest (in a manner not inconsistent with the interests of the Company). The Managers hereby consent to the disclosure by each Member of the Company information to such Member's accountants, attorneys and similar advisors bound by a duty of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>Return of Materials</u>. Upon the Company's written request, a Member shall promptly return to the Company, at its offices in California or any other location serving as the Company's offices, all confidential information (other than information necessary for such Member to prepare such Member's federal and state income tax returns) and all items derived from the confidential information that is in such Member's possession (other than income tax returns) or in the possession such member's Advisors, and neither such Member nor any Advisor will retain any document or information in any media (electronic or otherwise) containing, including or relating to confidential information. As used herein, "<u>Advisors</u>" means the Member's attorneys, certified public accountants and professional financial advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <u>Injunctive Relief</u>. Each Member acknowledges that the covenants and the restrictions contained in this Article 12 are a material factor to such Member's execution of this Agreement and are necessary and required for the protection of the Company, (ii) such covenants relate to matters that are of a special, unique and extraordinary character that gives each of such covenants a special, unique and extraordinary value, and (iii) a breach of any of such covenants will result in irreparable harm and damages to the Company in an amount difficult to ascertain and that cannot be compensated adequately by a monetary award. Accordingly, in addition to any of the relief to which the Company may be entitled at law or in equity, the Company shall be entitled to temporary and/or permanent injunctive relief from any breach or threatened breach by a Member of the provisions of this Article 12 without proof of actual damages that have been or may be caused to the Company by such breach or threatened breach; and each Member further agrees to waive any requirement for the securing or posting of any bond in connection with such remedies.

**ARTICLE 13**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <u>Complete Agreement</u>. This Agreement and the Certificate constitute the complete and exclusive statement of agreement among the Members with respect to the subject matter herein and therein and replace and supersede in their entirety all prior written and oral agreements or statements by and among the Members or any of them with respect to the subject matter herein and therein. No representation, statement, condition or warranty not contained in this Agreement or the Certificate will be binding on the Members or have any force or effect whatsoever. To the extent that any provision of the Certificate conflict with any provision of this Agreement, the Certificate shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Binding Effect</u>. Subject to the provisions of this Agreement relating to transferability, this Agreement will be binding upon and inure to the benefit of the Members, and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Interpretation</u>. In the event any claim is made by any Member relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular Member or its, his or her counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <u>Dispute Resolution</u>. Any claims or controversies in any way arising out of, relating to or associated with this Agreement (a "<u>Dispute</u>") shall be resolved as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties will first attempt in good faith to promptly resolve the Dispute by negotiations between such parties or (if applicable) senior executives of such parties who have the actual authority to settle the Dispute. The disputing party shall give the other party written notice of the Dispute. Within 20 days after receipt of such notice, the receiving party shall submit to the other a written response. The notice and response shall include (i) a statement of each party's position and a summary of the evidence and arguments supporting its position, and (ii) the name and title of the executive who will represent that party. The executives shall meet at a mutually acceptable time and place within 30 days of the date of the disputing party's notice and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the Dispute. During such thirty (30) day period following delivery of the dispute notice, the parties agree to negotiate in good faith with a view to resolving their disagreements over the disputed items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Dispute has not been resolved by the disputing parties within 60 days after the disputing party's notice, or if the party receiving such notice will not agree to meet with the disputing party within 30 days after its receipt of such notice, either party may initiate mediation of the Dispute, which mediation shall be conducted at the offices, and pursuant to the rules and policies, of JAMS in the County of Orange, California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Dispute has not been resolved pursuant to the mediation procedure referred to above, within 90 days of the initiation of such procedure, or if either party will not participate in a mediation, then the aggrieved party may file an appropriate action in any state or federal court located within the County of Orange in the State of California. Each of the parties consents to the jurisdiction of any state or federal court located within the County of Orange in the State of California. Each of the parties hereby waives any objection to venue of any action instituted hereunder and consents to the granting of such legal or equitable relief as is deemed appropriate by any aforementioned court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 <u>Appointment of Managers as Attorney-In-Fact</u>. Each Member, by executing this Agreement, irrevocably constitutes and appoints each of the Managers, or any one of them, acting alone as such Member's true and lawful attorney-in-fact and agent, with full power and authority in such Member's name, place, and stead to execute, acknowledge, and deliver, and to file or record in any appropriate public office: (a) any certificate or other instrument that may be necessary, desirable, or appropriate to qualify the Company as a limited liability company or to transact business as such in any jurisdiction in which the Company conducts business; (b) any certificate or amendment to the Certificate or to any certificate or other instrument that may be necessary desirable, or appropriate to reflect an amendment approved by the Members in accordance with the provisions of this Agreement; (c) any certificates or instruments that may be necessary, desirable, or appropriate to reflect the dissolution and winding up of the Company; and (d) any certificates necessary to comply with the provisions of this Agreement. This power of attorney will be deemed to be coupled with an interest and will survive the Transfer of the Member's Economic Interest. Notwithstanding the existence of this power of attorney, Member agrees to join in the execution, acknowledgment, and delivery of the instruments referred to above if requested to do so by the Managers. This power of attorney is a limited power of attorney and does not authorize the Managers to act on behalf of a Member except as described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 <u>Severability</u>. If any provision of this Agreement or the application such provision to any person or circumstance shall be held invalid, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 <u>Additional Documents and Acts</u>. Each Member agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate in the view of the Managers to effectuate, carry out and perform all of the terms, provisions, and conditions of this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 <u>Notices</u>. Any notice to be given or to be served upon the Company or any party hereto in connection with this Agreement must be in writing (which may include facsimile) and will be deemed to have been given and received when delivered to the address specified by the party to receive the notice. Such notices will be given to a Member at the address held in the records of the Company or to the Managers at the address held in the records of the Company. Any Member or Manager may, at any time by giving five days prior written notice to the Managers or the Members, respectively, designate any other address in substitution of the foregoing address to which such notice will be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 <u>Amendments; Waivers</u>. All amendments or waivers to this Agreement will be in writing and signed by (i) the Managers, and (ii) Members holding a Majority Interest of the Class A Common Units. Any amendment or waiver so effected shall be binding upon the Company, the Members and all of their respective successors and permitted assigns whether or not such party, assignee or other member entered into or approved such amendment or waiver; <u>provided</u>, <u>however</u>,<u> </u>that any such amendment or waiver that would disproportionately and adversely affect the rights or obligations of a Member hereunder, without similarly affecting the rights or obligations hereunder of the other Members of such Member's class of Common Units, shall not be effective as to such Member without such Member's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 <u>No Interest in Company Property; Waiver of Action for Partition</u>. No Member or Economic Interest Owner has any interest in specific property of the Company. Without limiting the foregoing, each Member and Economic Interest Owner irrevocably waives during the term of the Company any right that it, he or she may have to maintain any action for partition with respect to the property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 <u>Multiple Counterparts; Electronic Signatures</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Facsimile or electronic signatures shall be acceptable as if original signatures had been exchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12 <u>Attorney Fees</u>. In the event that any dispute between the Company and the Members or among the Members should result in litigation or arbitration, the prevailing party in such dispute shall be entitled to recover from the other party all reasonable fees, costs and expenses of enforcing any right of the prevailing party, including without limitation, reasonable attorneys' fees and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13 <u>Remedies Cumulative</u>. The remedies under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14 <u>No Third Party Beneficiaries</u>. Except as set forth in Article 11, none of the provisions of this Agreement shall be for the benefit of or enforceable by any of the creditors of the Company or any other Person not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15 <u>Legal Representation</u>. EACH OF THE MEMBERS ACKNOWLEDGES THAT THE LAW FIRM OF PIVOTAL LAW FIRM, INC. REPRESENTS ONLY THE COMPANY AND NOT ANY OF THE MEMBERS IN CONNECTION WITH THIS AGREEMENT. EACH OF THE MEMBERS HAS BEEN, AND IS HEREBY, ADVISED TO SEEK INDEPENDENT LEGAL COUNSEL BEFORE SIGNING THIS AGREEMENT.

**ARTICLE 14**

**REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Representations and Warranties of the Members</u>. (a) Each Member hereby makes the following representations and warranties to the Company and each other Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1 If such Member is not an individual, such Member has been duly formed and is validly existing in good standing, with all requisite power and authority to execute, deliver and perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.2 The execution and delivery of this Agreement have been authorized by all necessary action on behalf of such Member, and this Agreement constitutes a valid and binding obligation of such Member, and is enforceable against such Member in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.3 The execution and delivery of this Agreement and the consummation of the transactions contemplated herein will not conflict with or result in any violation of or default under any provision of any charter, bylaws, trust agreement, operating agreement or other governing instrument applicable to such Member or under any material agreement or other instrument to which such Member is a party or by which such Member, or any of its property is bound, or any permit, franchise, judgment, decree, statute, order, writ, rule or regulation applicable to such Member or its business or property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.4 Such Member acknowledges that the Membership Interests have not been registered under the Securities Act or any other applicable blue sky laws in reliance in part on such Member's representations, warranties and agreements herein.

[ *Signature Page Follows* ]

**IN WITNESS WHEREOF**, the Company, the Founding Members and each other Member, if any, has executed this Agreement, effective as of the date written above.

---

| | | | |
|:---|:---|:---|:---|
| **THE "COMPANY":**<br>VERSITY INVEST, LLC,<br> a Delaware limited liability company  | **THE "COMPANY":**<br>VERSITY INVEST, LLC,<br> a Delaware limited liability company  | <br> **THE "FOUNDING MEMBERS":** | <br> **THE "FOUNDING MEMBERS":** |
| By: | ![](versity_ex2cimg33.jpg) | ![](versity_ex2cimg34.jpg) | ![](versity_ex2cimg34.jpg) |
|  | Blake Wettengel, Manager | BLAKE WETTENGEL | BLAKE WETTENGEL |
|  |  | Address: |  |
|  |  | TANYA MURO | TANYA MURO |
|  |  | Address: | 18 Kendall Street |
|  |  |  | Laguna Niguel, CA 92677 |

---

**<u>EXHIBIT A</u>**

**SCHEDULE OF CAPITAL ACCOUNTS**

As of April ___, 2022

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of Member** | **Fair Market**<br> **Value of**<br> **Capital** <br> **Contribution** | **Number** <br> **of Units** | **Type of** <br> **Common** <br> **Units** | **Hurdle** <br> **Amount** | **Class A** <br> **Percentage** <br> **Interest** | **Total** <br> **Percentage** <br> **Interest** |
|  Blake Wettengel | $760 | 760000 | Class A | N/A | 76% | 76% |
|  Tanya Muro | $240 | 240000  | Class A | N/A | 24%  | 24% |
|  |  | **1000000** |  |  | **100.00%**  | **100.00%**  |

---

*Exhibit A*

*Page 1 of 1*

**<u>EXHIBIT B</u>**

**CONSENT OF SPOUSE**

I acknowledge that I have read the foregoing Limited Liability Company Agreement (the "<u>Limited Liability Company Agreement</u>") of Versity Invest, LLC, a Delaware limited liability company (the "<u>Company</u>"), and that I know its contents. I am aware that by its provisions, my spouse agrees, among other things, to the granting of rights to purchase and to the imposition of certain restrictions on the transfer of, the Membership Interests of the Company, pursuant to the Limited Liability Company Agreement, including my community property interest therein (if any), which rights and restrictions may survive my spouse's death. I hereby consent to such rights and restrictions and approve of the provisions of the Limited Liability Company Agreement.

I further agree that in the event of a dissolution of the marriage between myself and my spouse, in connection with which I secure or am awarded Membership Interests of the Company, or any interest therein through property settlement agreement or otherwise, I shall receive and hold said Membership Interests subject to all the provisions and restrictions contained in the Limited Liability Company Agreement.

I also acknowledge that I have been advised to obtain independent counsel to represent my interests with respect to this Limited Liability Company Agreement but that I have declined to do so and I hereby expressly waive my right to such independent counsel.

DATED:____________ ____, 20__

---

| |
|:---|
| [Signature of Spouse] |
| [Print Name of Spouse] |

---

*Exhibit B*

*Page 1 of 1*

**<u>EXHIBIT C</u>**

**JOINDER AGREEMENT**

The undersigned Member agrees to be bound by the terms of the Limited Liability Company Agreement of Versity Invest, LLC, a Delaware limited liability company, executed by the Company and its Member, and agrees to all of the terms thereof.

---

| | |
|:---|:---|
| **FOR MEMBERS THAT ARE INDIVIDUALS:** |  |
| Date: | Signature:  |
| Address: | Name (please print): |
| **FOR MEMBERS THAT ARE TRUSTS:** |  |
| Date: | Name of Trust: _____________________________ |
| Address: |  |
|  | *Signature of Trustee* |
|  | Name (printed): _____________________________ |
|  | If applicable: |
|  | *Signature of Co-Trustee* |
|  | Name (printed): _____________________________ |
| **FOR MEMBERS THAT ARE CORPORATIONS, LIMITED LIABILITY COMPANIES OR PARTNERSHIPS:** | **FOR MEMBERS THAT ARE CORPORATIONS, LIMITED LIABILITY COMPANIES OR PARTNERSHIPS:** |
| Date: | Name of Entity:______________________________ |
|  | Address: __________________________________ |
|  | By: ______________________________________ |
|  | Name: ____________________________________ |
|  | Title: _____________________________________ |

---

*Exhibit C*

*Page 1 of 1*

## Ex1A-3

**EXHIBIT (3)(a)**

**VERSITY INVEST, LLC**

**a Delaware limited liability company**

**AND**

**UMB Bank, N.A.**

**Trustee**

**INDENTURE**

**Dated as of [______________], 2023**

**Debt Securities**

i<br>

****TABLE OF CONTENTS**<sup>(1)</sup>**

---

| | | | |
|:---|:---|:---|:---|
| ARTICLE I | DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | 1 |
|  | Section 1.01 | Definitions of Terms. | 1 |
|  | Section 1.02 | Rules of Construction. | 6 |
|  | Section 1.03 | Form of Documents Delivered to Trustee. | 6 |
| ARTICLE II | ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES | ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES | 7 |
|  | Section 2.01 | Form of Bonds and Trustee's Certificate.  | 7 |
|  | Section 2.02 | Denominations: Provisions for Payment, Maturity. | 7 |
|  | Section 2.03 | Execution and Authentication. | 9 |
|  | Section 2.04 | Registration of Transfer and Exchange. | 10 |
|  | Section 2.05 | [Intentionally Deleted]. | 11 |
|  | Section 2.06 | Mutilated, Destroyed, Lost or Stolen Bonds. | 11 |
|  | Section 2.07 | Cancellation. | 12 |
|  | Section 2.08 | Benefits of Indenture. | 12 |
|  | Section 2.09 | Authenticating Agent. | 12 |
|  | Section 2.10  | Global Form of Bonds. | 13 |
|  | Section 2.11 | Book-Entry Registration for Uncertificated Bonds. | 13 |
|  | Section 2.12 | CUSIP Numbers. | 13 |
| ARTICLE III | REDEMPTION OF SECURITIES | REDEMPTION OF SECURITIES | 14 |
|  | Section 3.01 | Redemption. | 14 |
|  | Section 3.02 | Notice of Redemption. | 14 |
|  | Section 3.03 | Payment Upon Redemption. | 15 |
|  | Section 3.04 | Redemption Upon Death or Disability or Bankruptcy. | 15 |
| ARTICLE IV | COVENANTS | COVENANTS | 16 |
|  | Section 4.01 | Payment of Principal, Premium and Interest.  | 16 |
|  | Section 4.02 | Maintenance of Office or Agency. | 16 |
|  | Section 4.03 | Paying Agents. | 16 |
|  | Section 4.04 | Appointment to Fill Vacancy in Office of Trustee. | 17 |
|  | Section 4.05 | Compliance with Consolidation Provisions. | 17 |
|  | Section 4.06 | Bond Service Reserve. | 17 |
|  | Section 4.07 | Payment of Taxes and Other Claims. | 18 |

---

ii<br>

---

| | | | |
|:---|:---|:---|:---|
| ARTICLE V | BONDHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE  | BONDHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE  | 18 |
|  | Section 5.01 | Company to Furnish Trustee Names and Addresses of Bondholders.  | 18 |
|  | Section 5.02 | Preservation of Information; Communications with Bondholders. | 18 |
|  | Section 5.03 | Reports by the Company. | 19 |
| ARTICLE VI | REMEDIES OF THE TRUSTEE AND BONDHOLDERS ON EVENT OF DEFAULT  | REMEDIES OF THE TRUSTEE AND BONDHOLDERS ON EVENT OF DEFAULT  | 19 |
|  | Section 6.01 | Event of Default. | 19 |
|  | Section 6.02 | Collection of Indebtedness and Suits for Enforcement by Trustee. | 21 |
|  | Section 6.03 | Application of Moneys Collected. | 22 |
|  | Section 6.04 | Limitation on Suits. | 23 |
|  | Section 6.05 | Rights and Remedies Cumulative; Delay or Omission Not Waiver. | 23 |
|  | Section 6.06 | Control by Bondholders. | 24 |
|  | Section 6.07 | Undertaking to Pay Costs. | 24 |
| ARTICLE VII | CONCERNING THE TRUSTEE | CONCERNING THE TRUSTEE | 24 |
|  | Section 7.01 | Certain Duties and Responsibilities of Trustee. | 24 |
|  | Section 7.02 | Notice of Defaults. | 25 |
|  | Section 7.03 | Certain Rights of Trustee. | 25 |
|  | Section 7.04 | Trustee Not Responsible for Recitals or Issuance or Bonds. | 26 |
|  | Section 7.05 | May Hold Bonds.  | 27 |
|  | Section 7.06 | Moneys Held in Trust. | 27 |
|  | Section 7.07 | Compensation and Reimbursement.  | 27 |
|  | Section 7.08 | Reliance on Manager's Certificate. | 28 |
|  | Section 7.09 | Disqualification; Conflicting Interests.  | 28 |
|  | Section 7.10 | Corporate Trustee Requires; Eligibility. | 28 |
|  | Section 7.11 | Resignation and Removal; Appointment of Successor. | 28 |
|  | Section 7.12 | Acceptance of Appointment By Successor. | 29 |
|  | Section 7.13 | Merger, Conversion, Consolidation or Succession to Business.  | 30 |
| ARTICLE VIII | CONCERNING THE BONDHOLDERS | CONCERNING THE BONDHOLDERS | 30 |
|  | Section 8.01 | Evidence of Action by Bondholders.  | 30 |
|  | Section 8.02 | Proof of Execution by Bondholders. | 31 |
|  | Section 8.03 | Who May be Deemed Owners. | 31 |
|  | Section 8.04 | Certain Bonds Owned by Company Disregarded. | 31 |
|  | Section 8.05 | Actions Binding on Future Bondholders.  | 31 |
| ARTICLE IX | SUPPLEMENTAL INDENTURES | SUPPLEMENTAL INDENTURES | 32 |
|  | Section 9.01 | Supplemental Indentures without the Consent of Bondholders.  | 32 |
|  | Section 9.02 | Supplemental Indentures with Consent of Bondholders. | 33 |
|  | Section 9.03 | Effect of Supplemental Indentures. | 33 |
|  | Section 9.04 | Bonds Affected by Supplemental Indentures.  | 33 |
|  | Section 9.05 | Execution of Supplemental Indentures. | 34 |

---

iii<br>

---

| | | | |
|:---|:---|:---|:---|
| ARTICLE X | SUCCESSOR ENTITY | SUCCESSOR ENTITY | 34 |
|  | Section 10.01 | Company May Consolidate, Etc. | 34 |
|  | Section 10.02 | Successor Entity Substituted.  | 35 |
|  | Section 10.03 | Evidence of Consolidation, Etc. to Trustee. | 35 |
| ARTICLE XI | SATISFACTION AND DISCHAREGE; DEFEASANCE | SATISFACTION AND DISCHAREGE; DEFEASANCE | 35 |
|  | Section 11.01 | Satisfaction and Discharge.  | 35 |
|  | Section 11.02 | Deposited Moneys to be Held in Trust. | 35 |
|  | Section 11.03 | Payment of Moneys Held by Paying Agents. | 36 |
|  | Section 11.04 | Repayment of Company. | 36 |
|  | Section 11.05 | Reinstatement. | 36 |
| ARTICLE XII | IMMUNITY OF ORGANIZERS, MEMBERS, OFFICERS AND MANAGERS | IMMUNITY OF ORGANIZERS, MEMBERS, OFFICERS AND MANAGERS | 36 |
|  | Section 12.01 | No Recourse. | 36 |
| ARTICLE XIII | MISCELLANEOUS PROVISIONS | MISCELLANEOUS PROVISIONS | 41 |
|  | Section 13.01 | Effect on Successors and Assigns. | 41 |
|  | Section 13.02 | Actions by Successor. | 41 |
|  | Section 13.03 | Surrender of Company Powers. | 41 |
|  | Section 13.04 | Notices. | 41 |
|  | Section 13.05 | Governing Law.  | 41 |
|  | Section 13.06 | Treatment of Bonds as Debt.  | 42 |
|  | Section 13.07 | Compliance Certificates and Opinions. | 42 |
|  | Section 13.08 | Payments on Business Days. | 42 |
|  | Section 13.09 | Counterparts. | 42 |
|  | Section 13.10 | Separability. | 42 |
|  | Section 13.11 | Electronic Storage. | 43 |
| Form of A Bond | Form of A Bond |  | Exhibit A-1 |
| Form of R Bond | Form of R Bond |  | Exhibit A-2 |

---

_____________

<sup>(1)</sup> This **Table of Contents** does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

iv<br>

**INDENTURE**

**INDENTURE**, dated as of January [__], 2023, between VERSITY INVEST, LLC, a Delaware limited liability company (the "Company"), and UMB Bank, N.A., a national banking association, as trustee (the "Trustee"):

**WHEREAS**, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of secured debt securities (hereinafter referred to as the "Bonds") to be issued as registered Bonds without coupons, to be authenticated by the certificate of the Trustee;

**WHEREAS**, to provide the terms and conditions upon which the Bonds are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and

**WHEREAS**, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

**NOW, THEREFORE**, in consideration of the premises and the purchase of the Bonds by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Bonds.

**ARTICLE I**

**DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION**

**Section 1.01 Definitions of Terms.**

The terms defined in this Section (except as in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in said Trust Indenture Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

"**A Bonds**" are a series of Bonds authorized for issuance under the Indenture, the form of which is attached to this Indenture as Exhibit A-1.

**"Affiliate"** as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

"**Authenticating Agent**" means an authenticating agent with respect to the Bonds appointed by the Trustee pursuant to Section 2.09.

"**Bankruptcy**" shall mean, with respect to any Bondholder the final adjudication related to (i) the filing of any petition seeking to adjudicate the Bondholder bankrupt or insolvent, or seeking for itself any liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of such Bondholder or such Bondholder's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking, consenting to, or acquiescing in the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for such Person or for any substantial part of its property, or (ii) without the consent or acquiescence of such Bondholder, the entering of an order for relief or approving a petition for relief or reorganization or any other petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or other similar relief under any bankruptcy, liquidation, dissolution, or other similar statute, law, or regulation, or, without the consent or acquiescence of such Bondholder, the entering of an order appointing a trustee, custodian, receiver, or liquidator of such Bondholder or of all or any substantial part of the property of such Bondholder which order shall not be dismissed within ninety (90) days.

"**Bankruptcy Law**" means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

"**Bonds**" means any debt security authorized, authenticated and delivered under this Indenture, together with all classes, sub-classes, series and sub-series of any such securities. As of the date of this Indenture, the only Bonds available for issuance hereunder were A Bonds and R Bonds.

"**Bondholder**", "**holder** of **Bonds**", "**registered holder**", or other similar term, means the Person or Persons in whose name or names a particular Bond shall be registered on the books of the Company kept for that purpose in accordance with the terms of this Indenture.

"**Bond Register**" has the meaning given in Section 2.04.

"**Bond Registrar**" has the meaning given in Section 2.04.

"**Bond Service Obligation**" means the amount payable by the Company in principal and interest on the Bonds each Interest Accrual Period.

"**Business Day**" means any day other than a day on which federal or state banking institutions in the City of New York, New York, are authorized or obligated by law, executive order or regulation to close.

"**Cash and Cash Equivalents**" shall have the meaning prescribed by GAAP.

"**Certificate**" means a certificate signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company. The Certificate need not comply with the provisions of Section 13.07.

"**Closing**" means each closing of sales of the Bonds.

"**Commission**" means the United States Securities and Exchange Commission.

"**Company**" means Versity Invest, LLC, a limited liability company duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article X, shall also include its successors and assigns.

"**Company Assets**" means, with respect to the Company, all assets and interests in assets of the Company, whether real, personal or mixed, whether directly owned or indirectly owned, including without limitation interests owned in Subsidiaries, whether now owned or existing or hereafter acquire or arising and wheresoever located.

"**Corporate Trust Office**" means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 928 Grand Blvd, 12th Floor, Kansas City, Missouri 64106, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

"**Custodian**" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

"**Default**" means any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

"**Defaulted Interest**" has the meaning given in Section 2.02.

**"Depositary"** means, with respect to the Bonds, DTC and/or Phoenix American Financial Services, Inc., and any and all successors thereto appointed by the Issuer as Depositary hereunder and having become such pursuant to the applicable provision of this Indenture.

**"Disability"** means with respect to any Bondholder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Bondholder or beneficial holder first acquired Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

"**DTC**" means The Depository Trust Company.

"**Event of Default**" means any event specified in Section 6.01, continued for the period of time, if any, therein designated.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

"**Governmental Obligations**" means securities that are (i) direct obligations (other than obligations subject to variation in principal repayment) of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are not callable or redeemable prior to maturity at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; *provided, however*, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

"**Herein**", "**hereof**" and "**hereunder**", and other words of similar import, refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

"**Holder Redemption Event**" has the meaning set forth in Section 3.04(a).

"**Indebtedness**" means, with respect to any Person and without duplication, any indebtedness of such Person, whether or not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) or representing the balance deferred and unpaid of the purchase price of any property (including capital lease obligations) or the expenditure for any services or representing any hedging obligations, including without limitation, any such balance that constitutes an accrued expense or an account or trade payable, if and to the extent any of the foregoing indebtedness (other than letters of credit and hedging obligations) would appear as a liability upon a balance sheet of such Person prepared in accordance with GAAP, and also includes, to the extent not otherwise included, (a) the guarantee of items that would be included within this definition, and (b) liability for items that would arise by operation of a Person's status as a general partner of a partnership.

"**Indenture**" means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively.

"**Initial Interest Payment Date**" means the Interest Payment Date corresponding to the first full month following the initial issuance of the Bonds.

"**Interest Accrual Period**" means the applicable month immediately preceding an Interest Payment Date.

"**Interest Payment Date**" means any January 15<sup>th</sup>, February 15<sup>th</sup>, March 15<sup>th</sup>, April 15<sup>th</sup> , May 15<sup>th</sup>, June 15<sup>th</sup>, July 15<sup>th</sup>, August 15<sup>th</sup>, September 15<sup>th</sup>, October 15<sup>th</sup>, November 15<sup>th</sup>, and December 15<sup>th</sup> beginning with the Initial Interest Payment Date and continuing until the Bonds have been repaid in full or are otherwise no longer Outstanding.

"**Lien**" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code, or equivalent statutes, of any jurisdiction).

"**Maturity Date**" means, with respect to any Security, the date on which the principal of such Security becomes due and payable as therein provided.

"**Maturity Record Date**" means, with respect to any Security, as of the close of business on the first Business Day that is at least 31 days prior to the Maturity Date or redemption date applicable to such Security.

"**Opinion of Counsel**" means an opinion in writing of legal counsel, who may be an employee of or counsel for the Company that is delivered to the Trustee in accordance with the terms hereof.

"**Outstanding**" means, subject to the provisions of Section 8.04, as of any particular time, all Bonds theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Bonds theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Bonds or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been irrevocably set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); *provided, however*, that if such Bonds or portions of such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article III or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authenticated and delivered pursuant to the terms of Section 2.06.

"**Person**" means any individual, corporation, limited liability company, partnership, joint-venture, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

"**Predecessor Bond**" of any particular Bond means every previous Bond evidencing all or a portion of the same debt as that evidenced by such particular Bond; and, for the purposes of this definition, any Bond authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or stolen Bond shall be deemed to evidence the same debt as the lost, destroyed or stolen Bond.

"**Price to Public**" means $1,000 per Bond.

"**R Bonds**" are a series of Bonds authorized for issuance under the Indenture, the form of which is attached to this Indenture as Exhibit A-2.

"**Record Date**" means, for each month, the last day of such month.

"**Repayment Election**" means a written notice from a Bondholder to the Company stating that repayment of the Bondholder's Bonds is required in connection with the maturity of such Bonds.

"**Repurchase Date**" shall have the meaning set forth in Section 3.04(b).

"**Repurchase Penalty**" means, if the Repurchase Date is within 12 months, 24 months or 36 months of the date of issuance of the applicable A Bond or beneficial interest therein, then 10%, 8%, and 6% respectively of the initial principal amount of such Bond or beneficial interest being repurchased and if the Repurchase Date is within 12 months of the date of issuance of the applicable R Bond or beneficial interest therein, then 4% of the initial principal amount of such Bond or beneficial interest being repurchased.

"**Repurchase Price**" means, with respect to any Bond to be repurchased, the principal amount of such Security plus the interest accrued but unpaid during the Interest Accrual Period up to but not including the Repurchase Date for such Bond, minus the Repurchase Penalty, if any.

"**Repurchase Request**" means a written notice from a Bondholder to the Company stating that such Bondholder is making an irrevocable request for the Company to repurchase such Bondholder's Bonds pursuant to Section 3.04.

"**Responsible Officer**" when used with respect to the Trustee means the Chairman of the Board of Directors, the President, any Vice President, the Secretary, the Treasurer, any trust officer, any corporate trust officer or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

"**Senior Indebtedness**" means any secured indebtedness of the Company which may be from time to time outstanding.

"**Subsidiary**" means, with respect to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership, limited liability company, joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner.

"**Trustee**" means UMB Bank, N.A., and, subject to the provisions of Article VII, shall also include its successors and assigns, and, if at any time there is more than one Person acting in such capacity hereunder, "Trustee" shall mean each such Person.

"**Voting Stock**", as applied to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

**Section 1.02 Rules of Construction.**

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States of America, and, except as otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the words "herein", "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the word "or" is always used inclusively (for example, the phrase "A or B" means "A or B or both", not "either A or B but not both");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the masculine gender includes the feminine and the neuter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) references to agreements and other instruments include subsequent amendments and supplements thereto.

**Section 1.03 Form of Documents Delivered to Trustee.**

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such officer knows, or in the exercise of reasonable care should know, that the opinion with respect to the matters upon which his certificate or opinion is based is erroneous. Any such Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company, a governmental official or officers or any other Person or Persons, stating that the information with respect to such factual matters is in the possession of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate, opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture or any Bond, they may, but need not, be consolidated and form one instrument.

**ARTICLE II**

**ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND**

**EXCHANGE OF SECURITIES**

**Section 2.01 Form of Bonds and Trustee's Certificate.** 

The Bonds may be issued in book-entry form, uncertificated form, or certificated form. Except for Bonds held by a Depositary through a global note, Bonds will only be certificated at the Company's discretion. In the event the Bonds are issued in certificated form, the Bonds and the Trustee's certificate of authentication shall be substantially in the form of <u>Exhibit A</u> hereto. The Bonds may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Bonds may be listed, or to conform to usage. The terms and conditions contained in the Bonds shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Bond conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling.

The aggregate principal amount of Bonds that may be issued under this Indenture is unlimited. Bonds shall be issued from time to time upon receipt by the Trustee of a written order of the Company certifying that a Closing has occurred, stating the terms and conditions of the Bonds and principal amount of Bonds to be issued and that it has delivered to the Trustee the items required by Section 2.03. All Bonds issued under this Indenture shall rank pari passu. For Bonds issued, at the request of the Trustee, the Company shall deliver prior to issuance of such Bonds a Form W-9 for each registered holder of such Bonds and any other information required by law or as reasonable requested by the Paying Agent/Registrar to maintain the Bond Register and make the payments to the registered holders. The Paying Agent/Registrar may conclusively rely upon such information provided by the Company.

**Section 2.02 Denominations, Provisions for Payment, Maturity.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bonds shall be issuable as registered Bonds and in the denominations of One Thousand U.S. dollars ($1,000) or any integral multiple thereof. The Bonds shall bear interest from the date of issuance at the rate prescribed on the Bond, payable monthly in arrears on each Interest Payment Date. Interest payable shall be calculated using the Interest Accrual Period immediately preceding such Interest Payment Date. Each Bond shall be dated the date of its authentication by the Trustee. Interest on the Bonds shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The interest installment on any Bond that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name said Bond (or one or more Predecessor Bonds) is registered at the close of business on the Record Date for such interest installment. In the event that any Bond is called for redemption and the redemption date is subsequent to a Record Date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Bond will be paid upon presentation and surrender of such Bond as provided in Section 3.03. Notwithstanding any other provisions of this Section 2.02, payment of principal and any interest on the Bonds shall be made by the Paying Agent to the registered owner of the Bonds or to a Depositary or its nominee, as the case may be, as the sole registered owner and holder of the Bonds for all purposes under this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any interest on any Bond that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease to be payable to the registered holder on the relevant Record Date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company may make payment of any Defaulted Interest on Bonds to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Bond and the date of the proposed payment, and at the same time the Company shall deposit with the paying agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Bondholder at his or her address as it appears in the Bond Register (as hereinafter defined), not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered on such special record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company may make payment of any Defaulted Interest on any Bonds in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Bonds may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. Subject to the foregoing provisions of this Section, each Bond delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No more than 60 days prior to a Maturity Date for any Bond, the Company will send to each holder of such a Bond as of its Maturity Record Date a Notice of Maturity (via first class U.S. mail, facsimile or electronic transmission). The Notice of Maturity will notify the holder of the Bond's pending maturity and that the automatic renewal provision described in subsection (d) will take effect, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company states in the Notice of Maturity that it will not allow the holder to renew the Bond, in which case the Company shall pay the holder all outstanding principal, accrued but unpaid interest and any other amounts owed under the terms of such Bond on the Maturity Date, subject to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension after the Repayment Election and at least 60 days prior to the Maturity Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the holder sends to the Company, at least 150 days prior to the Maturity Date, a Repayment Election for the payment of all outstanding principal and accrued but unpaid interest due on the Bond as of the Maturity Date; provided, however, that the holder of a global note may elect to receive payment of outstanding principal, accrued but unpaid interest and any other amounts owed under the terms of such Bond respecting less than all principal represented by such global note.

If a Notice of Maturity permits the holder to renew the Bond, then the Company shall also include the then-current applicable offering statement or prospectus, if any, together with a statement urging the holder to review such documentation prior to any renewal. Upon receipt of a Notice of Maturity, the holder of a maturing Bond may in its discretion send to the Company a Repayment Election; provided that such Repayment Election must be sent to the Company no later than 150 days prior to the Maturity Date. If the Company receives a Repayment Election on or prior to the 150<sup>th</sup> day before the Maturity Date, the Company will pay all outstanding principal, accrued but unpaid interest and any other amounts owed under the terms of such Bond (through the Maturity Date) no later than Maturity Date, subject to the Company's ability to extend the maturity date for an additional six months in its sole and absolute discretion by providing written notice of such extension after the Repayment Election and at least 60 days prior to the Maturity Date; provided that if the Company shall have previously paid interest to the holder for any period *after* the Maturity Date, then such interest shall be deducted from such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Holder of a maturing Bond has not delivered a Repayment Election for repayment of the Bond on or prior to the 150<sup>th</sup> day before the Maturity Date, and the Company did not notify the holder of its intention to repay the Bond in the Notice of Maturity, then such maturing Bond shall be extended automatically for an additional term as indicated on the Bond and shall be deemed to be renewed by the holder and the Company as of the Maturity Date of such maturing Bond. A maturing Bond will thereafter continue to renew as described herein absent a subsequent Redemption Notice by the Company, a Repurchase Request by the Bondholder, or an indication by the Company that it will repay and not allow the Bond to be renewed in any subsequent Notice of Maturity. Interest on the renewed Bond shall accrue from the Maturity Date of the maturing Bond. Such renewed Bond will be deemed to have the identical terms and provisions of the maturing Bond, including provisions relating to payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The above Sections 2.02(c) and 2.02(d) shall govern redemption or maturity of Bonds at maturity notwithstanding anything contained to the contrary in Article III of this Indenture.

**Section 2.03 Execution and Authentication.**

If the Bonds are certificated, the Bonds shall be signed on behalf of the Company by an authorized signatory. Signatures may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have been an authorized signatory, notwithstanding the fact that at the time the Bonds shall be authenticated and delivered or disposed of such Person shall have ceased to be an authorized signatory of the Company. The Bonds may contain such notations, legends or endorsements required by law, stock exchange rule or usage. A Bond shall not be valid until authenticated manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Bonds executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Bonds, signed by an authorized signatory of the Company and the Trustee in accordance with such written order shall authenticate and deliver such Bonds.

Prior to the initial issuance of any Bonds, in accepting the additional responsibilities under this Indenture in relation to such Bonds and any Bonds to be issued thereafter, the Trustee shall be entitled to receive (i) an Opinion of Counsel to the Issuer stating that (a) the Company is permitted by law to enter into this Indenture, (b) the form and terms of the Bonds have been established in conformity with the provisions of this Indenture, the Regulation A Offering Statement on Form 1-A filed with the SEC on __________, 2023 as amended, all SEC requirements, and other applicable laws and regulations, and (3) that all Bonds, when issued by the Company and if applicable, authenticated by the Trustee will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to any Bankruptcy Law or other insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles (regardless of whether enforcement is sought in a proceeding in equity or at law) and (ii) a Manager's Certificate stating that all conditions precedent provided for in this Indenture relating to the issuance of the Bonds have been complied with and that, to the best of the knowledge of the signers of such Manager's Certificate, no Event of Default with respect to any of the Bonds shall have occurred and be continuing. Additionally, prior to the issuance of any Bonds after the initial issuance, the Company shall deliver to the Trustee a Manager's Certificate stating that all conditions precedent provided for in this Indenture relating to the issuance of the Bonds have been complied with and that, to the best of the knowledge of the signers of such Manager's Certificate, no Event of Default with respect to any of the Bonds shall have occurred and be continuing. The Trustee may conclusively rely upon the Opinion of Counsel and Manager's Certificate in authenticating the Bonds (if applicable) and accepting the responsibility under this Indenture. The Trustee shall not be required to authenticate such Bonds if the issue of such Bonds pursuant to this Indenture will affect the Trustee's own rights, duties or immunities under the Bonds and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.

**Section 2.04 Registration of Transfer and Exchange.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bonds may be exchanged upon presentation thereof at the office or agency of the Bond Registrar (as defined herein), for other Bonds of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Bonds so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Bond or Bonds that the Bondholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall keep, or cause to be kept, at its office or agency designated for such purpose by the Company, a register or registers (herein referred to as the "Bond Register") in which, subject to such reasonable regulations as it may prescribe, the Bond Registrar shall register the Bonds and the transfers of Bonds as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Bonds and transfer of Bonds as herein provided shall be appointed as authorized by an authorized signatory of the Company (the "Bond Registrar"). The initial Bond Registrar is UMB Bank, n.a. Upon surrender for transfer of any certificated Bond at the office or agency of the Bond Registrar or upon receipt of the written request of the registered holder of any uncertificated Bonds together with all documentation required by law or a reasonably requested by the Bond Registrar, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Bond as the Bond presented for a like aggregate principal amount. All uncertificated and certificated Bonds presented or surrendered for exchange or registration of transfer (or with respect to uncertificated Bonds, requested to be transferred), as provided in this Section, shall be accompanied (if so required by the Company or the Bond Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Bond Registrar, duly executed by the registered holder or by such holder's duly authorized attorney in writing.

For the avoidance of doubt, in purchasing any uncertificated Bonds, the bondholders of such uncertificated Bonds and the Company expressly acknowledge and agree that the transfer requirements with respect to certificated Bonds may be imposed for the transfer of any uncertificated Bonds and the transfer of any uncertificated Bonds shall be in accordance with any SEC regulations or other applicable laws, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No service charge shall be made for any exchange or registration of transfer of Bonds, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.04, Section 3.03(b) and Section 9.04 not involving any transfer. The Company shall not be required (i) to issue, exchange or register the transfer of any Bonds during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Bonds and ending at the close of business on the day of such mailing, nor (ii) to register the transfer or exchange any Bonds called for redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The transfer and exchange of beneficial interests in the Bonds represented by global notes will be effected through the respective Depositary, in accordance with the procedures of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At any time prior to cancellation of a Bond, if any beneficial interest in a Bond represented by a global note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Bond, the registered holder of the such Bond will provide written direction to the Trustee to reduce the principal amount represented by such Bond held by the Depository and an endorsement will be made on such Bond by the Trustee or by the respective Depositary to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Bond, the registered holder of such Bond will provide written direction to the Trustee to increase such other Bond and an endorsement will be made on such Bond by the Trustee or by the respective Depositary. The Trustee may conclusively rely upon any such written direction from the registered holders received in accordance with this Section.

**Section 2.05 [Intentionally Deleted].**

**Section 2.06 Mutilated, Destroyed, Lost or Stolen Bonds.**

In case any certificated Bond shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company's request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Bond bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Bond, or in lieu of and in substitution for the Bond so destroyed, lost or stolen. In every case the applicant for a substituted Bond shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant's Bond and of the ownership thereof. The Trustee may authenticate any such substituted Bond and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Bond, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. In case any Bond that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Bond, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Bond) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Bond and of the ownership thereof. Every replacement Bond issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Bonds duly issued hereunder. All Bonds shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Bonds, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

**Section 2.07 Cancellation.** 

All certificated Bonds surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Bonds shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. The Trustee may dispose of canceled Bonds in accordance with its standard procedures and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Bonds, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Bonds unless and until the same are delivered to the Trustee for cancellation.

**Section 2.08 Benefits of Indenture.**

Nothing in this Indenture or in the Bonds, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Bonds any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Bonds.

**Section 2.09 Authenticating Agent.**

So long as any of the Bonds remain Outstanding there may be an Authenticating Agent for any or all Bonds which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Bonds issued upon exchange, transfer or partial redemption thereof, and Bonds so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately. Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided that such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

**Section 2.10 Global Form of Bonds.**

If the Company issues the Bonds in global form, the Company may issue a Bond only to a Depositary. A Depositary may transfer a Bond only to its nominee or to a successor Depositary. A Bond shall represent the amount of the securities specified therein. A Bond may have variations that the Depositary requires or that the Company considers appropriate for such a security.

Prior to due presentment of the Bond(s) for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name such Bond(s) is registered as the owner of such Bonds for the purpose of receiving payment of principal of and interest on such Bond(s) and for all other purposes whatsoever, whether or not such Bond(s) be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

Beneficial owners of part or all of a Bond held in global form with a Depositary are subject to the rules of the Depositary as in effect from time to time. The Company, the Trustee and any agent of the Company or Trustee shall not be responsible for any acts or omissions of a Depositary, for any Depositary records of beneficial ownership interests or for any transactions between the Depositary and beneficial owners.

**Section 2.11 Book-Entry Registration for Uncertificated Bonds.** 

Except for certificated Bonds or bonds held with a Depositary, the Bond Registrar shall maintain a book-entry registration and transfer system through the establishment and maintenance of the Bond Register for the benefit of Bondholders as the sole method of recording the ownership and transfer of ownership interests in such Bonds. The registered owners established by the Bond Registrar in connection with the purchase or transfer of the Bonds shall be deemed to be the Bondholders of the Bonds outstanding for all purposes under this Indenture. The Company (or its duly authorized Agent) shall promptly notify the Bond Registrar of the acceptance of a subscriber's purchase of a Bond and, upon receipt of such notice, the Bond Registrar shall establish an account for such Bond by recording a credit to its book-entry registration and transfer system to the account of the related Bondholder for the principal amount of such Bond owned by such Bondholder and issue a confirmation to the Bondholder, with a copy being delivered to the Trustee, on behalf of the Company. The Bond Registrar shall make appropriate credit and debit entries within each account to record all of the applicable actions under this Indenture that relate to the ownership of the related Bonds and issue confirmations to the related Bondholders as set forth herein, with copies being delivered to the Trustee, on behalf of the Company. For example, the total amount of any principal or interest due and payable to the Bondholders of the accounts maintained by the Bond Registrar as provided in this Indenture shall be credited to such accounts by the Bond Registrar within the time frames provided in this Indenture, and the amount of any payments of principal and/or interest distributed to the Bondholders of the accounts as provided in this Indenture shall be debited to such accounts by the Bond Registrar. The Trustee may review the book-entry registration and transfer system upon request.

**Section 2.12 CUSIP Numbers.**

The Company may obtain and use one or more CUSIP numbers for the Bonds (if then generally in use) and may also obtain and use different CUSIP numbers for Bonds of the same class or series that have different issuance dates, Maturity Dates or interest rates. If CUSIP numbers are so obtained, the Trustee shall use CUSIP numbers in notices of redemption or purchase as a convenience to Bondholders; provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Bonds or as contained in any notice of a redemption or purchase, and any such redemption or purchase shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers.

**ARTICLE III**

**REDEMPTION OF SECURITIES**

**Section 3.01 Redemption.**

The Bonds may be redeemed, in whole or from time to time in part, subject to the conditions and at the redemption prices set forth in this Article III or on the Bonds, together with accrued and unpaid interest to the redemption date. If the Company elects to redeem Bonds pursuant to this Article III, it shall notify the Trustee in writing of the redemption date, the redemption price and the principal amount of Bonds to be redeemed. The Company shall give notice of redemption to the Trustee not less than five (5) days and not more than sixty (60) days before the redemption date, together with such documentation and records as shall enable the Trustee to select the Bonds to be redeemed.

**Section 3.02 Notice of Redemption.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Bonds in accordance with the right reserved so to do, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Bonds to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than five (5) days and not more than sixty (60) days before the date fixed for redemption to such holders at their last addresses as they shall appear upon the Bond Register unless a shorter period is specified in the Bonds to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Bond designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Bonds. In the case of any redemption of Bonds prior to the expiration of any restriction on such redemption provided in the terms of such Bonds or elsewhere in this Indenture, the Company shall furnish the Trustee with a Manager's Certificate evidencing compliance with any such restriction. Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Bonds are to be redeemed, and shall state that payment of the redemption price of such Bonds to be redeemed will be made at the office or agency of the Company in the City of Aliso Viejo, California, or such other location designated by the Company, upon presentation and surrender of such Bonds, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue, and the CUSIP number of the Bonds and state that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in the notice or printed on the Bonds. If less than all the Bonds are to be redeemed, the notice to the holders of Bonds to be redeemed in whole or in part shall specify the particular Bonds to be so redeemed. In case any Bond is to be redeemed in part only, the notice that relates to such Bond shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the redemption date, upon surrender of such Bond, a new Bond or Bonds in principal amount equal to the unredeemed portion thereof will be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If less than all the Bonds of a particular series are to be redeemed, the Company shall give the Trustee at least fifteen (15) days' notice (unless a shorter period is satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Bonds to be redeemed, and thereupon the Trustee shall select in a manner that complies with the requirements, if any, of any applicable stock exchange or which the Bonds are listed and that the Trustee deems appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Bonds of a denomination larger than $1,000, the Bonds to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Bonds to be redeemed, in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an authorized signatory of the Company, instruct the Trustee or any paying agent to call all or any part of the Bonds for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent as it may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Bond Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.

**Section 3.03 Payment Upon Redemption.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the giving of notice of redemption shall have been completed as above provided, the Bonds or portions of Bonds to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Bonds or portions of Bonds shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Bond or portion thereof. On presentation and surrender of such Bonds on or after the date fixed for redemption at the place of payment specified in the notice, said Bonds shall be paid and redeemed at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable Record Date pursuant to Section 2.02).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon presentation of any Bond that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Bond is presented shall deliver to the holder thereof, at the expense of the Company, a new Bond of authorized denominations in principal amount equal to the unredeemed portion of the Bond so presented.

**Section 3.04 Redemption upon Death or Disability or Bankruptcy.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsection (b) below, within 90 days of the death, Disability or Bankruptcy of the (i) holder, (ii) beneficial holder of Bonds represented by a global note, (iii) or the beneficiary of an irrevocable trust that is a holder Bonds (a "Holder Redemption Event"), the estate of such Person, such Person, or legal representative of such Person may require the Company to repurchase, in whole but not in part, without penalty, the Bonds held or beneficially held by such Person (including Bonds of such Person held or beneficially held in his or her individual retirement accounts), as the case may be, by delivering to the Company a Repurchase Request; provided, however, that in the case of a Repurchase Request by a Person who beneficially holds represented by a global note, such Repurchase Request shall be valid only if delivered through the Depositary, in its capacity as the registered holder of the global note with respect to which such beneficial holder holds his or her beneficial interest in a Bond.

Any Repurchase Request shall specify the particular Holder Redemption Event giving rise to the right of the holder or beneficial holder to have his or her Securities or beneficial interest in a global note repurchased by the Company. If a Bond or beneficial interest in a global note is held jointly by natural persons who are legally married, then a Repurchase Request may be made by (i) the surviving holder or beneficial holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or (ii) the disabled or bankrupt holder or beneficial holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Disability or Bankruptcy. In the event a Bond or beneficial interest in a global note is held together by two or more natural persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such Bond or beneficial interest in a global note unless a Holder Redemption Event has occurred for all such co-holders or co-beneficial holders of such Bond. A holder or beneficial holder that is not an individual natural person does not have the right to request repurchase under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon receipt of a Repurchase Request under subsection (a) above, the Company shall designate a date for the repurchase of such Security (the "Repurchase Date") and notify the Trustee of such Repurchase Date, which date shall not be later than 120 days following the date on which the Company receives facts or certifications establishing to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event. On the Repurchase Date, the Company shall pay the Repurchase Price to the Paying Agent for payment to the holder, or the estate of the holder, in accordance with the terms of the Bond being repurchased and the Paying Agent shall pay out such Repurchase Price upon the surrender of the Bond to the Trustee. No interest shall accrue on a Bond to be repurchased under this Section for any period of time on or after the Repurchase Date for such Bond, provided that the Company has timely tendered the Repurchase Price to the Paying Agent.

**ARTICLE IV**

**COVENANTS**

**Section 4.01 Payment of Principal, Premium and Interest.**

The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any), interest and any other amounts due on the Bonds at the time and place and in the manner provided herein and established with respect to such Bonds.

**Section 4.02 Maintenance of Office or Agency.**

So long as the Bonds remain Outstanding, the Company agrees to cause to be maintained an office of the Bond Registrar, where (i) Bonds may be presented for payment, (ii) Bonds may be presented as herein above authorized for registration of transfer and exchange, and an office of the Company where notices and demands to or upon the Company in respect of the Bonds and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by an authorized signatory of the Company and delivered to the Trustee, designate some other office or agency in the City of Aliso Viejo, California for such purposes or any of them.

**Section 4.03 Paying Agents.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company hereby appoints UMB Bank, N.A. as the initial paying agent for Bonds (the "Paying Agent"); provided if the Depository so elects and notifies the Paying Agent in writing, the Company may make payments directly to the Depositary (and not through the Paying Agent). If the Company shall appoint one or more Paying Agent for the Bonds, other than the Trustee, the Company will cause each such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall agree, subject to the provisions of this Section:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Bonds (whether such sums have been paid to it by the Company or by any other obligor of such Bonds) in trust for the benefit of the Persons entitled thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Bonds) to make any payment of the principal of (and premium, if any) or interest on the Bonds when the same shall be due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) that it will perform all other duties of paying agent as set forth in this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company shall act as its own paying agent with respect to the Bonds, it will on or before each due date of the principal of (and premium, if any) or interest on Bonds, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Bonds) to take such action. Whenever the Company shall have one or more paying agents, it will, prior to each due date of the principal of (and premium, if any) or interest, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Section to the contrary,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be released from all further liability with respect to such money.

**Section 4.04 Appointment to Fill Vacancy in Office of Trustee.** 

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.11, a Trustee, so that there shall at all times be a Trustee hereunder.

**Section 4.05 Compliance with Consolidation Provisions.** 

The Company will not, while any of the Bonds remain Outstanding, consolidate with or merge into any other Person, in either case where the Company is not the survivor of such transaction, or sell, convey, transfer or otherwise dispose of its property as an entirety or substantially as an entirety to any other Person unless the provisions of Article X hereof are complied with.

**Section 4.06 Bond Service Reserve.**

The Company shall deposit with the Trustee, and Trustee shall maintain in a separate reserve account, three and three-quarters percent (3.75%) of the gross proceeds of all Bonds issued pursuant to this Indenture (or with respect to any Bond in global form, upon the increase of any amounts outstanding under such Bond in global form). The Company shall provide Trustee an accounting of such proceeds and payment along with each funding and certify that the Company has deposited the amounts required of it under this Section. The Trustee may conclusively rely upon such direction and shall have no obligation to determine the amounts required to be deposited hereunder. While on deposit with the Trustee, all such funds shall be invested as directed in writing by the Company. If no such investment direction is received, the funds will be held un-invested.

Any such reserves shall be held for a period of one (1) year from the date of the initial issuance of Bonds (or with respect to any Bond in global form, 1 year from the date of the increase of the amount outstanding under such Bond in global form) and except as otherwise set forth herein, during such period shall be available to the Trustee solely for the payment of principal of (and premium, if any) and interest due on the Bonds and payable during such period to the extent the Company or any Paying Agent notifies the Trustee in writing that insufficient funds have been delivered to the Paying Agent to make the payments required pursuant to Section 4.01. Provided no Event of Default has occurred and is continuing, upon the first anniversary of the initial issuance of Bonds (or with respect to any Bond in global form, upon the first anniversary of any increase of the amounts outstanding under such Bond in global form), the Trustee shall release and transmit to the Company, upon written direction of the Company, all amounts remaining in the reserve account specifically related to such Bond, subject to the payment of fees and costs related to the maintenance of the reserve account. If an Event of Default shall have occurred and is continuing, the Trustee shall apply the amounts in the Bond Service Reserve in accordance with Section 6.05.

**Section 4.07 Payment of Taxes and Other Claims.**

The Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent: (i) all taxes, assessments and governmental charges levied or imposed upon us or upon our income, profits or Company Assets; and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon any Company Asset; provided, however, that we will not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings or for which we have set apart and maintain an adequate reserve.

**ARTICLE V**

**BONDHOLDERS' LISTS AND REPORTS BY THE COMPANY AND**

**THE TRUSTEE**

**Section 5.01 Company to Furnish Trustee Names and Addresses of Bondholders.**

The Company will furnish or cause to be furnished to the Trustee at such times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of the names and addresses of the registered holders of the Bonds as of a date not more than 15 days prior to the time such list is furnished of the registered owners; *provided, however*, that no such list need be furnished for any Bonds for which the Trustee shall be the Bond Registrar.

**Section 5.02 Preservation of Information; Communications with Bondholders.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Bonds contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Bonds received by the Trustee in its capacity as Bond Registrar (if acting in such capacity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Bondholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Bondholders with respect to their rights under this Indenture or under the Bonds.

**Section 5.03 Reports by the Company.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) within 45 days after filing with the SEC, paper copies or, if such documents are readily available on the Commission's website, notification of the availability of, the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the Commission may by rules and regulations prescribe) that the Company is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act or as otherwise required by the Securities Act or by rule or regulation of the Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) so long as not contrary to the then-current recommendations of the American Institute of Certified Public Accountants, annual financial statements delivered pursuant to clause (i) above shall be accompanied by a written statement of the Company's independent public accountants to the effect that, in making the examination necessary for certification of such financial statements, nothing has come to their attention which would lead them to believe that the Company has violated the provisions of Section 4.01 of this Indenture or, if any such violation has occurred, specifying the nature and period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company, or such other entity as the Company shall designate as Bond Registrar, shall provide the Trustee at intervals of not more than six months with management reports providing the Trustee with such information regarding the accounts maintained by the Company for the benefit of the Bondholders as the Trustee may reasonably request, which information shall include at least the following for the relevant time interval from the date of the immediately preceding report: (i) the outstanding balance of each account at the end of the period; (ii) interest credited for the period; (iii) repayments, repurchases and redemptions, if any, made during the period; and (iv) the interest rate paid on each Bond in such account maintained by the Bond Registrar during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provision of this Indenture to the contrary, the Company shall not have any obligation to maintain any of its securities (including the Securities hereunder), including without limitation its common stock, as securities registered under the Exchange Act or the Securities Act, or as securities listed and publicly traded on any national securities exchange.

**ARTICLE VI**

**REMEDIES OF THE TRUSTEE AND BONDHOLDERS ON EVENT OF DEFAULT**

**Section 6.01 Events of Default.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever used herein, "Event of Default" means any one or more of the following events that has occurred and is continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company defaults in the payment of any installment of interest upon any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days; provided, however, that a valid extension of an interest payment period agreed-to by the Trustee (at the direction of holders of at least a majority in principal amount of the Bonds at the time Outstanding) in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company defaults in the payment of the principal of (or premium, if any, on) any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days, whether at maturity, upon redemption, by declaration or otherwise; provided, however, that a valid extension of the maturity of such Bonds in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company fails to observe or perform any other of its covenants or agreements contained in this Indenture or the Bonds for a period of 120 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a "Notice of Default" hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least a majority in principal amount of the Bonds at the time Outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Company pursuant to or within the meaning of any Bankruptcy Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) commences a voluntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consents to the entry of an order for relief against it in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) makes a general assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) a court of competent jurisdiction enters an order under any Bankruptcy Law that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is for relief against the Company in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appoints a Custodian of the Company or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) orders the liquidation of the Company, and the orders remain unstayed and in effect for 90 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) entry by any court having jurisdiction over the Company of a final and non-appealable judgment or order for the payment of money in excess of $25,000,000.00 (before the application of any pre-judgment interest), singly or in the aggregate for all such final judgments or orders against any Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the Company ceases conducting its business (including, for this purpose, the business conducted by or through any direct or indirect Subsidiaries) or liquidates all or substantially all of its assets (meaning, for this purpose, all or substantially all of the combined assets of the Company and its direct and indirect Subsidiaries).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In each and every such case, unless the principal of all the Bonds shall have already become due and payable, either the Trustee or the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Bondholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest on all the Bonds to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At any time after the principal of the Bonds shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Bonds and the principal of (and premium, if any, on) any and all Bonds that shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Bonds to the date of such payment or deposit) and the amount payable to the Trustee under Section 7.07, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any and all Events of Default under the Indenture, other than the nonpayment of principal on Bonds that shall not have become due by their terms, shall have been remedied or waived as provided in Section 6.06.

No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In case the Trustee shall have proceeded to enforce any right with respect to Bonds under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

**Section 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in case it shall default in the payment of any installment of interest on any of the Bonds, as and when the same shall have become due and payable, and such default shall have continued for a period of 60 days, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Bonds when the same shall have become due and payable, whether upon maturity or upon redemption, and such default shall have continued for a period of 60 days,

then, upon demand of the Trustee or the Bondholders of a majority in aggregate principal amount of the Bonds, the Company will pay to the Trustee, for the benefit of the holders of the Bonds, the whole amount that then shall have become due and payable on all such Bonds for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Bonds; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Bonds and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or other obligor upon the Bonds, wherever situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Bonds allowed for the entire amount due and payable by the Company under the Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.07; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Bonds to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Bondholders, to pay to the Trustee any amount due it under Section 7.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to the Bonds, may be enforced by the Trustee without the possession of any of such Bonds, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.07, be for the ratable benefit of the holders of the Bonds. In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Bondholder any plan of reorganization, arrangement, adjustment or composition affecting the Bonds or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Bondholder in any such proceeding.

**Section 6.03 Application of Moneys Collected.**

Any moneys collected by the Trustee pursuant to this Article together with any funds held by the Trustee shall be applied in the following order, at the date or dates fixed by the Trustee:

FIRST: To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.07;

SECOND: To the payment of the amounts then due and unpaid upon Bonds of principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Bonds for principal (and premium, if any) and interest, respectively;

THIRD: Upon written direction of the Company, to the payment of the remainder, if any, to the Company or any other Person as directed by the Company.

**Section 6.04 Limitation on Suits.**

No holder of any Bond shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof specifying such Event of Default, as hereinbefore provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) notwithstanding anything contained herein to the contrary, the right of any holder of any Bond to receive payment of the principal of (and premium, if any) and interest on such Bond, as therein provided, on the respective due dates expressed in such Bond (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Bond hereunder it is expressly understood, intended and covenanted by the taker and holder of every Bond with every other such taker and holder and the Trustee, that no one or more holders shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Bonds, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Bonds. For the protection and enforcement of the provisions of this Section, each and every Bondholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

**Section 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All powers and remedies given by this Article to the Trustee or to the Bondholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Bonds, by judicial proceedings to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No delay or omission of the Trustee or of any holder of any of the Bonds to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or on acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Bondholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Bondholders.

**Section 6.06 Control by Bondholders.** 

The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding, determined in accordance with Section 8.01, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture. Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or Officers of the Trustee or its counsel, determine that the proceeding so directed would involve the Trustee in personal liability. The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding affected thereby, determined in accordance with Section 8.01, may on behalf of the holders of all of the Bonds waive any past default in the performance of any of the covenants contained herein and its consequences, except a default in the payment of the principal of (or premium, if any) or interest on any of the Bonds as and when the same shall become due by the terms of such Bonds otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c)) or in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent of the holder of each Outstanding Bond affected. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Bonds shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

**Section 6.07 Undertaking to Pay Costs.** 

All parties to this Indenture agree, and each holder of any Bonds by such holder's acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Bondholder, or group of Bondholders, holding more than 10% in aggregate principal amount of the Outstanding Bonds, or to any suit instituted by any Bondholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Bond, on or after the respective due dates expressed in such Bond or established pursuant to this Indenture.

**ARTICLE VII**

**CONCERNING THE TRUSTEE**

**Section 7.01 Certain Duties and Responsibilities of Trustee.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default that may have occurred, shall undertake to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default has occurred (that has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own grossly negligent action, its own grossly negligent failure to act, or its own willful misconduct, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) prior to the occurrence of an Event of Default and after the curing or waiving of all such Events of Default that may have occurred: the duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the Trustee shall only be responsible for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was grossly negligent in ascertaining the pertinent facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Bonds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

**Section 7.02 Notice of Defaults.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall not be required to take notice or be deemed to have notice of any Default or Event of Default hereunder, unless a Responsible Officer of the Trustee shall be specifically notified in writing of such default or Event of Default by the Company, or the holders of at least **25%** in principal amount of all Outstanding Bonds, and in the absence of such notice so delivered, the Bond Trustee may conclusively assume there is no default except as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Event of Default occurs hereunder of which the Trustee has notice or is deemed to have notice in accordance with Section 7.02(a), the Trustee shall promptly give the holders notice of such Event of Default; provided, however, that in the case of any Event of Default of the character specified in clause (3) of Section 6.01(a), no such notice to holders shall be given until at least 30 days after the occurrence thereof.

**Section 7.03 Certain Rights of Trustee.** 

Except as otherwise provided in Section 7.01:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an instrument signed in the name of the Company, by an authorized signatory thereof (unless other evidence in respect thereof is specifically prescribed herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee may consult with counsel of its selection and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from any liability in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Bondholders, pursuant to the provisions of this Indenture, unless such Bondholders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred therein or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Bonds (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) None of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise to incur any liability, financial or otherwise, in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not assured to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In no event shall the Trustee, including its Responsible Officers, be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers or duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder should it act as Paying Agent or Registrar at any time and each agent, custodian and other person employed by the Trustee to act hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or gross negligence on the part of any agent or attorney appointed with due care by it hereunder.

**Section 7.04 Trustee Not Responsible for Recitals or Issuance or Bonds.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The recitals contained herein and in the Bonds shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee makes no representations as to the validity, adequacy or sufficiency of this Indenture, of the Bonds and shall have no obligation with respect to the recording or rerecording, filing or refiling of this Indenture or any financing statement in connection therewith or for the validity of the execution by the Company of this Indenture or of any supplemental indentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee shall not be accountable for the use or application by the Company of any of the Bonds or of the proceeds of such Bonds, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture, or for the use or application of any moneys received by any paying agent other than the Trustee.

**Section 7.05 May Hold Bonds.**

The Trustee or any paying agent or Bond Registrar, in its individual or any other capacity, may become the owner or pledgee of Bonds with the same rights it would have if it were not Trustee, paying agent or Bond Registrar.

**Section 7.06 Moneys Held in Trust.**

Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held un-invested in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

**Section 7.07 Compensation and Reimbursement.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), as the Company and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the Trustee (including, without limitation, fees for extraordinary services rendered), and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ and the reimbursement of all extraordinary expenses incurred) except any such expense, disbursement or advance as may arise from its gross negligence or bad faith, as determined by a court of competition jurisdiction. The fees, charges and expenses specified herein are for the typical and customary services as trustee. Fees for additional or extraordinary services not now part of the customary services provided, such as special services during default or additional government reporting requirements will be charged at the then current rates for such services.

The Company also covenants to indemnify the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, claims, damages, liability or expense incurred without gross negligence or bad faith on the part of the Trustee, as determined by a court of competent jurisdiction, and arising out of or in connection with the acceptance or administration of this trust and the performance of its duties hereunder including the costs and expenses of defending itself against any claim of liability in the premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a Lien prior to that of the Bonds upon all property and funds held or collected by the Trustee as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any other provision of this Indenture to the contrary, any provision in the Indenture intended to provide the right to payment of fees and expenses, protection, immunity, and indemnification to the Trustee shall be interpreted to include any action of the Trustee whether it be deemed to be in its capacity as Trustee, a Bond Registrar or a Paying Agent,

**Section 7.08 Reliance on Manager's Certificate.** 

Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by a Manager's Certificate delivered to the Trustee and such certificate, in the absence of gross negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

**Section 7.09 Disqualification; Conflicting Interests.** 

If the Trustee has or shall acquire any "conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act, it shall, within 90 days after ascertaining that it has a conflicting interest, or within 30 days after receiving written notice from the Company that it has a conflicting interest, either eliminate such conflicting interest or resign in the manner and with the effect specified in Section 7.11.

**Section 7.10 Corporate Trustee Required; Eligibility.**

There shall at all times be a Trustee with respect to the Bonds issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least fifty million ($50,000,000), and subject to supervision or examination by Federal, State, Territorial, or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.11.

**Section 7.11 Resignation and Removal; Appointment of Successor.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee or any successor hereafter appointed, may at any time resign by giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Bondholders, as their names and addresses appear upon the Bond Register. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of an authorized signatory of the Company, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee, or any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case at any time any one of the following shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Trustee shall fail to comply with the provisions of Section 7.09 after written request therefor by the Company or by any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.10 and shall fail to resign after written request therefor by the Company or by any such Bondholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, the Company may remove the Trustee with respect to all Bonds and appoint a successor trustee by written instrument, in duplicate, executed by order of an authorized signatory of the Company, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, unless, in the case of a failure to comply with Section 7.09, any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding may at any time remove the Trustee by so notifying the Trustee and the Company and may appoint a successor Trustee with the consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Bonds pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.12.

**Section 7.12 Acceptance of Appointment by Successor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of the appointment hereunder of a successor trustee with respect to all Bonds, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail, first class postage prepaid, to the Bondholders, as their names and addresses appear upon the Bond Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

**Section 7.13 Merger, Conversion, Consolidation or Succession to Business.** 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.09 and eligible under the provisions of Section 7.10, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. In case any Bonds shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Bonds so authenticated with the same effect as if such successor Trustee had itself authenticated such Bonds.

**ARTICLE VIII**

**CONCERNING THE BONDHOLDERS**

**Section 8.01 Evidence of Action by Bondholders.** 

Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Bonds may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders in Person or by agent or proxy appointed in writing. If the Company shall solicit from the Bondholders any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by a Manager's Certificate, fix in advance a record date for the determination of Bondholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Bondholders of record at the close of business on the record date shall be deemed to be Bondholders for the purposes of determining whether Bondholders of the requisite proportion of Outstanding Bonds have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Bonds shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Bondholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

**Section 8.02 Proof of Execution by Bondholders.** 

Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Bondholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of the Bonds shall be sufficient if made in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The ownership of Bonds shall be proved by the Bond Register of such Bonds or by a certificate of the Bond Registrar thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

**Section 8.03 Who May be Deemed Owners.**

Prior to the due presentment for registration of transfer of any Bond, the Company, the Trustee, any paying agent and any Bond Registrar may deem and treat the Person in whose name such Bond shall be registered upon the books of the Company as the absolute owner of such Bond (whether or not such Bond shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Bond Registrar) for the purpose of receiving payment of or on account of the principal of (and premium, if any) and (subject to Section 2.02) interest on such Bond and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Bond Registrar shall be affected by any notice to the contrary.

**Section 8.04 Certain Bonds Owned by Company Disregarded.** 

In determining whether the holders of the requisite aggregate principal amount of Bonds have concurred in any direction, consent of waiver under this Indenture, the Bonds that are owned by the Company or any other obligor or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Bonds that the Trustee actually knows are so owned shall be so disregarded. The Bonds so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right so to act with respect to such Bonds and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

**Section 8.05 Actions Binding on Future Bondholders.** 

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action, any holder of a Bond that is shown by the evidence to be included in the Bonds the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Bond. Except as aforesaid any such action taken by the holder of any Bond shall be conclusive and binding upon such holder and upon all future holders and owners of such Bond, and of any Bond issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Bond. Any action taken by the holders of the majority or percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Bonds.

**ARTICLE IX**

**SUPPLEMENTAL INDENTURES**

**Section 9.01 Supplemental Indentures without the Consent of Bondholders.**

In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto, without the consent of the Bondholders, for one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to cure any ambiguity, defect, or inconsistency or to correct any scriveners error or other mistake herein or in the Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to comply with Article X;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to provide for uncertificated Bonds in addition to or in place of certificated Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all of the Bonds, to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Bonds (prior to the issuance thereof), as herein set forth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) to make any change that does not adversely affect the rights of any Bondholder in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) to provide for the issuance of and establish the form and terms and conditions of the Bonds, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or Bonds, or to add to the rights of the holders of any Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 7.12; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) to comply with any requirements of the Commission or any successor.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee's own rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Bonds at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

**Section 9.02 Supplemental Indentures with Consent of Bondholders.**

With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Bonds under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Bond then Outstanding and affected thereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) extend the maturity of the principal of, or any installment of principal of or interest on, any Bond, or reduce the principal amount thereof, or reduce the rate of interest or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, or reduce the amount of the principal of any other Bond which would be due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01 or change the coin or currency in which any Bond or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the maturity thereof (or, in the case of redemption, on or after the redemption date), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the percentage in principal amount of the Outstanding Bonds, the consent of whose holders is required for any such supplemental indenture, or the consent of whose holders is required for any waiver of certain defaults hereunder and their consequences provided for in this Indenture, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) modify any of the provisions of this Section or Section 6.06 relating to waivers of default, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the holder of each Outstanding Bond affected thereby; provided, however, that this clause shall not be deemed to require the consent of any holder with respect to changes in the references to "the Trustee" and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of Sections 7.12 and 9.01(8).

**Section 9.03 Effect of Supplemental Indentures.** 

Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Bonds shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

**Section 9.04 Bonds Affected by Supplemental Indentures.** 

Bonds affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange upon the Bonds may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Bonds so modified as to conform, in the opinion of an authorized signatory of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Bonds then Outstanding.

**Section 9.05 Execution of Supplemental Indentures.** 

Upon the request of the Company and upon the filing with the Trustee of evidence of the consent of Bondholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture. Prior to the execution of any supplemental indenture or amendment to the indenture, the Trustee, shall receive from the Company an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution thereof.

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Bondholders as their names and addresses appear upon the Bond Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

**ARTICLE X**

**SUCCESSOR ENTITY**

**Section 10.01 Company May Consolidate, Etc.** 

Except as set forth in a Manager's Certificate, or established in one or more indentures supplemental to this Indenture, nothing contained in this Indenture or in any of the Bonds shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or other disposition, (a) the due and punctual payment of the principal of (and premium, if any) and interest on all of the Bonds in accordance with the terms thereof, according to their tenor and the due and punctual performance and observance of all the covenants and conditions of this Indenture to be kept or performed by the Company shall be expressly assumed, by supplemental indenture satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property and (b) in the event that the Bonds then Outstanding are convertible into or exchangeable for shares of common stock or other securities of the Company, such entity shall, by such supplemental indenture, make provision so that the Bondholders shall thereafter be entitled to receive upon conversion or exchange of such Bonds the number of securities or property to which a holder of the number of shares of common stock or other securities of the Company deliverable upon conversion or exchange of those Bonds would have been entitled had such conversion or exchange occurred immediately prior to such consolidation, merger, sale, conveyance, transfer or other disposition.

**Section 10.02 Successor Entity Substituted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set forth under Section 10.01 on all of the Bonds Outstanding and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Company, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case of any such consolidation, merger, sale, conveyance, transfer or other disposition such changes in phraseology and form (but not in substance) may be made in the Bonds thereafter to be issued as may be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

**Section 10.03 Evidence off Consolidation, Etc. to Trustee.**

The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.

**ARTICLE XI**

**SATISFACTION AND DISCHARGE; REDEMPTION**

**Section 11.01 Satisfaction and Discharge.**

This Indenture will be discharged and will cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Bonds herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all Bonds theretofore authenticated and delivered (other than (i) any Bonds that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.06 and (ii) Bonds for whose payment money or noncallable Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 11.05) have been delivered to the Trustee for cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company has delivered to the Trustee a Manager's Certificate and an Opinion of Counsel, each stating that all the conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Trustee under Section 7.07 and, if money shall have been deposited with the Trustee pursuant to subclause (y) of clause (1) of this Section, the obligations of the Trustee under Sections 11.03 and 11.05 shall survive.

**Section 11.02 Deposited Moneys to be Held in Trust.** 

All moneys or Governmental Obligations deposited with the Trustee pursuant to Section 11.01 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the Bondholders for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

**Section 11.03 Payment of Moneys Held by Paying Agents.** 

In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.

**Section 11.04 Repayment to Company.** 

Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of (or premium, if any) or interest on the Bonds that are not applied but remain unclaimed by the holders of such Bonds for at least two years after the date upon which the principal of (and premium, if any) or interest on such Bonds shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned property law, shall be repaid to the Company on May 31 of each year or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Bonds entitled to receive such payment shall thereafter, as an unsecured general creditor, look only to the Company for the payment thereof as an unsecured general creditor, unless an abandoned property law designates another Person.

**Section 11.05 Reinstatement.** 

If the Trustee (or other qualifying trustee or any paying agent appointed as provided herein) is unable to apply any moneys or Government Obligations in accordance with this Article 11 by reason of any legal proceeding or any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Bonds shall be revived and reinstated as though no such deposit had occurred, until such time as the Trustee (or other qualifying trustee or paying agent) is permitted to apply all such moneys and Government Obligations in accordance with this Article 11; *provided*, *however*, that if the Company makes any payment of the principal of or premium, if any, or interest if any, on the Bonds following the reinstatement of its obligations as aforesaid, the Company shall be subrogated to the rights of the Bondholders to receive such payment from the funds held by the Trustee (or other qualifying trustee or paying agent).

**ARTICLE XII**

**IMMUNITY OF ORGANIZERS, MEMBERS, OFFICERS**

**AND MANAGERS**

**Section 12.01 No Recourse.** 

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Bond, or for any claim based thereon or otherwise in respect thereof, shall be had against any organizer, member, officer or manager, past, present or future as such, of the Company or of any predecessor or successor entity, either directly or through the Company or any such predecessor or successor entity, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the organizers, members, officers or managers as such, of the Company or of any predecessor or successor entity, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Bonds or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such organizer, member, officer or manager as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Bonds or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Bonds.

**ARTICLE XIII**

**SUBORDINATION**

**Section 13.01 Agreement to Subordinate.**

The indebtedness evidenced by the Bonds including the principal amount thereof shall be unsecured, and is hereby made, subordinate and subject in right of payment, to the extent and in the manner hereinafter set forth in the following sections of this Article, to the prior payment in full of all Senior Indebtedness of the Company, whether now outstanding or hereafter incurred. Each Bondholder, by the acceptance thereof, agrees to and shall be bound by the provisions of this Article. Nothing contained in this Article XIII will apply to the claims of, or payments to, the Trustee under Section 7.07 of the Indenture

**Section 13.02 Distribution on Dissolution, etc.**

Upon any distribution of the assets of the Issuer upon any dissolution or winding-up or total liquidation of the Issuer (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors of the Issuer or otherwise):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all indebtedness for Senior Indebtedness shall first be paid in full, or provision made for such payment, before any payment is made on account of the principal amount or interest accrued on the indebtedness evidenced by in this Indenture or in any of the Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any payment or distribution of assets of the Issuer, whether in cash, property or securities, to which Bondholders would be entitled except for the provisions of this Article, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for benefit of creditors or other liquidating agent making such payment or distribution, directly to the holders of Senior Indebtedness or their representative or representatives, to the extent necessary to pay all Senior Indebtedness in full after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Issuer, whether in cash, property or securities, shall be received by Bondholders before all Senior Indebtedness is paid in full or provision made for its payment, such payments or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to the holders of such Senior Indebtedness or their representative or representatives, for application to the payment of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all such Senior Indebtedness after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any payments or distributions paid over to the holders of the Senior Indebtedness pursuant to this section and not applied in reduction of the amounts owing to Bondholders shall be deemed not to have discharged any of the obligations of the Issuer hereunder (and, to the extent that by operation of applicable law they are treated as doing so, the Issuer hereby agrees to indemnify the Bondholder on demand from and against any loss suffered or incurred by it in consequence thereof.

Upon any payment or distribution of assets of the Issuer referred to in this section, the Bondholder and the Trustee shall be entitled to rely upon a certificate of the trustee in bankruptcy, receiver, assignee for benefit of creditors or other liquidating agent making such payment for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Issuer, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this section.

**Section 13.03 Subrogation of Indenture and Bonds.**

Subject to the payment in full of all Senior Indebtedness, to the extent that the Issuer has made payment or distribution of assets to holders of Senior Indebtedness pursuant to section 13.02 or 13.04 hereof, Bondholder shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the Issuer made on the Senior Indebtedness, until the principal and interest on the Bond shall be paid in full and no such payments or distributions to the holder of cash, property or securities which otherwise would be payable or distributable to the holders of Senior Indebtedness shall, as between the Issuer, its creditors other than the holders of Senior Indebtedness, and the Bondholders be deemed to be a payment by the Issuer to or on account of the Senior Indebtedness, it being understood that the provisions of this Article are and are intended solely for the purpose of defining the relative rights of the Bondholders on the one hand, and the holders of Senior Indebtedness, on the other hand. Nothing contained in this Article XIII or elsewhere in this Indenture is intended to or shall impair, as between the Issuer and its creditors (other than the holders of Senior Indebtedness and the Bondholders) the obligation of the Issuer, which is unconditional and absolute, to pay to the Bondholders the principal of the Bonds and the interest accrued thereon, as and when the same shall become due and payable in accordance with its terms, or affect the relative rights of the Bondholders and creditors of the Issuer other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the holder from exercising all remedies otherwise permitted by applicable law upon default under this Indenture subject to the rights, if any, under this Article of the holders of Senior Indebtedness in respect of cash, property or securities of the Issuer received upon the exercise of any such remedy. For greater certainty, the fact that payment hereunder is prohibited by section 3.2 or 3.4 shall not prevent the failure to make such payment from being an Event of Default.

**Section 13.04 No Payment if Senior Indebtedness in Default.**

Upon demand for payment being made on the Senior Indebtedness or upon maturity of any Senior Indebtedness by lapse of time, acceleration or otherwise, then all principal and premium, if any, and interest and related fees and expenses associated with all such Senior Indebtedness shall first be paid in full, or shall first have been duly provided for, before any payment on account of principal of the Bond or any interest accrued thereon is made unless and until such default shall have been cured or waived or shall cease to exist. In the case of default with respect to any Senior Indebtedness permitting the holders thereof to accelerate maturity thereof or demand payment thereof or in the case of any default in making payment on demand of any Senior Indebtedness which is payable on demand, then unless and until such default shall have been cured or waived or shall cease to exist:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no payment or distribution of assets of the Issuer (whether in cash, property or securities) shall be made by the Issuer with respect to the principal of the Bonds or any interest accrued thereon after the happening and during the continuance of such a default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any payment or distribution of assets of the Issuer, (whether in cash, property or securities) to which the Bondholders would be entitled except for the provisions of this Article XIII, shall be paid or delivered directly to the holders of such Senior Indebtedness or their representative or, to the extent necessary to pay all Senior Indebtedness which is the subject of default in full after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Issuer, whether in cash, property or securities, shall be received by the Bondholders before all Senior Indebtedness is paid in full or provision made for its payment, such payment or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any of such Senior Indebtedness may have been issued, for application to the payment of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all such Senior Indebtedness after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any payments or distributions paid over to the holders of the Senior Indebtedness pursuant to this section and not applied in reduction of the amounts owing to the Bondholders shall be deemed not to have discharged any of the obligations of the Issuer hereunder (and, to the extent that by operation of applicable law they are treated as doing so, the Issuer hereby agrees to indemnify the Bondholders on demand from and against any loss suffered or incurred by them it consequence thereof).

Upon any payment or distribution of assets of the Issuer referred to in this section, the Bondholders and the Trustee shall be entitled to rely upon a certificate of the trustee in bankruptcy, receiver, assignee for benefit of creditors or other liquidating agent making such payment or distribution, delivered to the Bondholders, for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Issuer, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this section.

**Section 13.05 Standstill.**

As long as any Senior Indebtedness remains outstanding, the Trustee shall not, without prior written consent of the holder of the Senior Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) exercise or seek to exercise any right or remedy with respect to an Event of Default including any collection or enforcement right or remedy; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) institute any action or proceeding against the Issuer or any of its assets including without limitation any possession, sale or foreclosure action or proceeding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contest, protest or object to any enforcement proceeding or other action commenced under the Senior Indebtedness.

for a period of 90 days after delivery of notice of an Event of Default to the holder of the Senior Indebtedness (the "Standstill Period"). The Trustee shall only be permitted to commence such enforcement proceedings upon the receipt of written consent from the holder of the Senior Indebtedness or upon the following of the expiration of the Standstill Period.

**Section 13.05 Rights of Bondholder Reserved.**

Nothing contained in this Article or elsewhere in this Indenture is intended to or shall impair, as between the Issuer and the Bondholders, the obligation of the Issuer, which is absolute and unconditional, to pay to the holder of the Bond the principal amount of the Bond and interest accrued thereon as and when the same shall become due and payable in accordance with its terms, nor shall anything herein prevent the Bondholders from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XIII of the holders of Senior Indebtedness in respect of cash, property or securities of the Issuer received upon the exercise of any such remedy.

Nothing contained in this Article or elsewhere in this Indenture, shall affect the obligation of the Issuer to make, or prevent the Issuer from making, at any time payment of principal of the Bond, except (i) during the pendency of any dissolution, winding-up or liquidation of the Issuer or reorganization proceedings specified in section 13.02 hereof affecting the affairs of the Issuer and (ii) if it is in default with respect to any Senior Indebtedness or if such payment would result in a default under any Senior Indebtedness.

**Section 13.06 Subrogation Not to be Impaired.**

No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Issuer or by any act or failure to act, in good faith, by any such holder, or by any non-compliance by the Issuer with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or be otherwise charged with.

**Section 13.07 Notice to the Trustee.**

The Company will give prompt written notice to the Trustee of any fact known to the Company that would prohibit the Company from making any payment to or by the Trustee in respect of the Bonds in accordance with the provisions of this Article XIII. The Trustee will not be charged with the knowledge of the existence of any Senior Indebtedness or an event that would prohibit the making of any payment to or by the Trustee or any Paying Agent unless and until a Responsible Officer of the Trustee has received a written notice specifying such signed by the Company, or by a holder of Senior Indebtedness; and prior to the receipt of any such written notice, the Trustee will be entitled to assume that no such facts exist; provided that, if the Trustee will not have received the notice of any event that would prohibit the making of any payment to or by the Trustee or any Paying Agent provided for in this Section 13.07 at least five Business Days prior to the date upon which, by the terms of the Indenture, any monies will become payable for any purpose (including, without limitation, the payment of the principal of or interest on any Bond), then, notwithstanding anything herein to the contrary, the Trustee will have full power and authority to receive any monies from the Company and to apply the same to the purpose for which they were received, and will not be affected by any notice to the contrary that may be received by it on or after such prior date except for an acceleration of the Bonds prior to such application. The foregoing will not apply if the Paying Agent is the Company. The Trustee will be entitled to conclusively rely on the delivery to it of a written notice by a Person representing himself or itself to be a holder of any Senior Indebtedness (or a trustee on behalf of, or agent of, such holder) to establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or agent on behalf of any such holder.

In the event that the Trustee determines in good faith that any evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution in accordance with this Article XI, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XI and, if such evidence is not furnished to the Trustee, the Trustee may defer any payment to such Person pending such evidence being furnished to the Trustee or a judicial determination that such Person has the right to receive such payment.

**Section 13.08 Senior Indebtedness to Trustee**.

The Trustee, will not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness by reason of the execution of this Indenture, or any other supplemental indenture entered into in accordance with this Indenture, and will not be liable to any such holders if it will in good faith mistakenly pay over or distribute to or on behalf of the Holders or the Company moneys or assets to which any holders of Senior Indebtedness will be entitled by virtue of this Article XIII or otherwise.

**ARTICLE XIV**

**MISCELLANEOUS PROVISIONS**

**Section 14.01 Effect on Successors and Assigns.** 

All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.

**Section 14.02 Actions by Successor**.

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.

**Section 14.03 Surrender of Company Powers.** 

The Company by instrument in writing executed by authority of an authorized signatory and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

**Section 14.04 Notices.**

Except as otherwise expressly provided herein any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Bonds to or on the Company may be given or served by being deposited first class postage prepaid in a post-office letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows: c/o Versity Invest, LLC [ ]<sup>1</sup>. Any notice, election, request or demand by the Company or any Bondholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

**Section 14.05 Governing Law.** 

This Indenture and each Bond shall be deemed to be a contract made under the internal laws of the State of Delaware, and for all purposes shall be construed in accordance with the laws of said State.

_____________

<sup>1</sup> Note to Versity: To provide notice information.

**Section 14.06 Treatment of Bonds as Debt.** 

It is intended that the Bonds will be treated as indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture shall be interpreted to further this intention.

**Section 14.07 Compliance Certificates and Opinions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company, shall furnish to the Trustee a Manager's Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture shall include

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a statement that the Person making such certificate or opinion has read such covenant or condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

**Section 14.08 Payments on Business Days.** 

Except as set forth in a Manager's Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Bond or the date of redemption of any Bond shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.

**Section 14.09 Counterparts.**

This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**Section 14.10 Separability.** 

In case any one or more of the provisions contained in this Indenture or in the Bonds shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Bonds, but this Indenture and such Bonds shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

**Section 14.11 Electronic Storage.** 

The parties agree that the transaction described herein may be conducted and related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.

*[Remainder of page intentionally left blank. Signature page follows.]*

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day and year first above written.

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| | |
|:---|:---|
| VERSITY INVEST, LLC | VERSITY INVEST, LLC |
| a Delaware limited liability company | a Delaware limited liability company |
| By: |  |
| Name:  |  |
| Its: | Authorized Signatory |
| UMB BANK, N.A., as Trustee | UMB BANK, N.A., as Trustee |
| By:  |  |
| Name:  |  |
| Title:  |  |

---

EXHIBIT A-1

**(Form of A Bond)**

**(Filed as Exhibit 3(b) to the Company's Offering Statement)**

EXHIBIT A-2

**(Form of R Bond)**

**(Filed as Exhibit 3(c) to the Company's Offering Statement)**

## Ex1A-3

**EXHIBIT (3)(b)**

**VERSITY INVEST, LLC**

**8.00% Unsecured Bonds (A Bonds)**

CUSIP No. [•]

ISIN No. [•]

---

| | |
|:---|:---|
| No. [•] | No. of 8.00% Unsecured Bonds (the "**A Bonds**"): [•] <br> Principal Amount of the Bonds: $[•] |

---

VERSITY INVEST, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to [•], or its registered assigns, the principal sum of up to $[•], on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments commencing [•] and occurring on each January 15<sup>th</sup>, February 15<sup>th</sup>, March 15<sup>th</sup>, April 15<sup>th</sup>, May 15<sup>th</sup>, June 15<sup>th</sup>, July 15<sup>th</sup>, August 15<sup>th</sup>, September 15<sup>th</sup>, October 15<sup>th</sup>, November 15<sup>th</sup>, and December 15th thereafter until the A Bonds are no longer outstanding.

Record Dates: The last day of each month pertaining to an Interest Accrual Period (as defined in the Indenture).

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [•]

---

| | |
|:---|:---|
| VERSITY INVEST, LLC, | VERSITY INVEST, LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

The Bonds are the 8.00% Series A Bonds described in the within-mentioned Indenture.

Dated: [•].

---

| | |
|:---|:---|
| UMB Bank, N.A., as Trustee, | UMB Bank, N.A., as Trustee, |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

(Reverse of Bond)

8.00% Unsecured Bonds (A Bonds)

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March [__], 2023 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of $75,000,000 in the aggregate of A Bonds of the Company. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Bonds represented by this certificate at 8.00% per annum from the date of issuance, up to but not including the third anniversary of the initial issuance date (the "**Maturity Date**") subject: (i) to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension after the Repayment Election and at least 60 days prior to the Maturity Date and (ii) any renewal of the A Bonds as prescribed in the Indenture. Any such renewal of an A Bond will be for a term of three years. The Company will pay interest due on the A Bonds on the Interest Payment Dates. Interest on the A Bonds will accrue from the most recent date interest has been paid or, if no interest has been paid, from the date of issuance. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the A Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the A Bonds to the Persons who are registered holders of A Bonds at the close of business on Record Date, even if such A Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The A Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the A Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, interest any other amounts due on the A Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of A Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of the Trustee maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. Initially, UMB Bank, N.A. will act as registrar, and UMB Bank, N.A. will act as initial paying agent for Bonds issued and held through the book-entry systems and procedures of Depository Trust Corporation ("DTC") and registered in the name of Cede & Co., or such other entity nominated as nominee holder by DTC. Phoenix American Financial Services, Inc., will act as paying agent for Bonds held in other name. The Company may change the paying agent or registrar without notice to the holders of A Bonds. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the A Bonds under the Indenture. The terms of the A Bonds include those stated in the Indenture for a complete description of the terms of the A Bonds. The A Bonds are subject to all such terms, and holders of A Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. We may redeem the A Bonds, in whole or in part, at any time prior to the Maturity Date. Any redemption of an A Bond will be at a price equal to all accrued and unpaid interest, up to but not including the date on which the Bonds are redeemed, plus 1.1 times the then outstanding principal amount of the A Bonds. If we plan to redeem the A Bonds, we will give notice of redemption not less than 5 days nor more than 60 days prior to any redemption date to each such holder's address appearing in the securities register maintained by the trustee. The Company will redeem the A Bonds on a first-issued, first-redeemed basis and in the event we elect to redeem less than all of the A Bonds, the particular A Bonds to be redeemed will be selected by the Trustee by such method as the Trustee shall deem fair and appropriate. Except as set forth in this Section 5, or pursuant to Section 3.04 of the Indenture, the A Bonds may not be redeemed by the Company.

SECTION 6. <u>Redemption at Option of Holder</u>.

(a) Beginning immediately and continuing through the Maturity Date, the holders of the A Bonds will have the right to cause the Company to redeem all or any portion of the holder's A Bonds. To effect a redemption, the applicable holder (the "**Redeeming Holder**") must submit a written request to the Company, with a copy to the Trustee, for the redemption of all or a portion of its A Bonds (the "**Redemption Request** "). All redemptions under this Section 6 will be subject to and limited by the Annual Cap (as defined below). No further redemptions will be permitted under this Section 6 in a calendar year if the sum of the aggregate principal amount of A Bonds previously redeemed during such calendar year pursuant to this Section 6 or Section 3.04 of the Indenture meets or exceeds the Annual Cap. Interest will accrue on any A Bond redeemed hereunder until the actual date of redemption of such Bond, which date shall be not later than 120 days following the Company's actual receipt of the applicable Redemption Request (the "**Redemption Date** "). Redemptions will be effected by payment of the applicable Redemption Price (as defined below) on the Redemption Date, as further described below. Any A Bond not accepted for redemption will continue to be outstanding and accrue interest pursuant to its terms.

(b) For purposes of this Section 6, the capitalized terms set forth below shall have the definitions herein ascribed to them:

(1) "Annual Cap" shall mean for any calendar year an amount up to fifteen percent (15%) of the outstanding principal amount of Bonds as of January 1 of such calendar year, provided, however, the Annual Cap will be further limited to 3.75% of the principal amount of the outstanding Bonds calculated on a quarterly basis as of the first day of the fiscal quarter in which such redemption occurs (the " <u>3.75% Limit</u> "). To the extent that the 3.75% Limit is not fully used in a given quarter, the unused portion shall not be added to the 3.75% Limit for any future quarter, and any redemptions in excess of such limit or to the extent suspended, shall be redeemed in subsequent quarters on a first come, first served, basis.

(2) "Redemption Price" shall mean, $900 if redeemed after the first anniversary of the issuance date of the A Bonds, $920 if redeemed after the second anniversary of the issuance date of the A Bonds but before the third anniversary of the issuance date of the Bonds and $940 if redeemed after the third anniversary of the A Bonds, plus any accrued but unpaid interest, on the A Bond due to such Bondholder.

(c) No later than ten (10) business days following its receipt of a Redemption Request, the Company shall mail a notice to the Redeeming Holder notifying such holder whether its A Bonds are to be redeemed. The notice shall state that it is a notice of redemption, identify the A Bonds to be liquidated and shall state:

(1) the Redemption Date;

(2) the name and address of the Paying Agent; and

(3) that if the A Bonds to be redeemed have been issued in certificated form, (other than in respect of a global certificate issued to a Depositary), such certificate(s) must be surrendered to the Paying Agent to collect the redemption price.

(d) No later than the day before the Redemption Date, the Company shall deposit with the Paying Agent (or, if the Company or any Affiliate is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of all A Bonds to be redeemed on that date. Unless the Company shall default in the payment of the Redemption Price on the A Bonds to be redeemed, Interest on such A Bonds shall cease to accrue after the Redemption Date.

(e) Except as set forth in this Section 6 and Section 3.04 of the Indenture, the Company shall not be required to make mandatory redemptions with respect to the A Bonds.

SECTION 7. <u>Persons Deemed Owners</u>. The registered holder of A Bonds may be treated as its owner for all purposes.

SECTION 8. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the A Bonds then outstanding. Without notice to or consent of any holder of A Bonds, the parties thereto may amend or supplement the Indenture and the A Bonds as provided in the Indenture.

SECTION 9. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding A Bonds may declare the principal of, premium, if any, and accrued interest on the A Bonds to be due and payable immediately in accordance with the provisions of Section 6.01. Holders of A Bonds may not enforce the Indenture or the A Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding A Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of A Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the A Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the A Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2).

SECTION 10. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 11. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the A Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the A Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the A Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the A Bonds.

SECTION 12. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

SECTION 13. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of A Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 14. <u>CUSIP and ISIN Numbers</u>. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused the CUSIP and ISIN numbers to be printed on this Certificate and the Trustee may use the CUSIP or ISIN numbers in notices of redemption as a convenience to holders of A Bonds. No representation is made as to the accuracy of such numbers either as printed on this Certificate or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

SECTION 15. <u>Registered Form</u>. The A Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 16. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of Delaware.

The Company will furnish to any holder of A Bonds upon written request and without charge a copy of the Indenture.

## Ex1A-3

**EXHIBIT (3)(c)**

**VERSITY INVEST, LLC**

**8.00% Unsecured Bonds (R Bonds)**

CUSIP No. [•]

ISIN No. [•]

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| | |
|:---|:---|
| No. [•]<br>| No. of 8.00% Unsecured Bonds (the "**R Bonds**"): [•] <br> Principal Amount of the Bonds: $[•] |

---

VERSITY INVEST, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to [•], or its registered assigns, the principal sum of up to $[•], on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments commencing [•] and occurring on each January 15<sup>th</sup>, February 15<sup>th</sup>, March 15<sup>th</sup>, April 15<sup>th</sup>, May 15<sup>th</sup>, June 15<sup>th</sup>, July 15<sup>th</sup>, August 15<sup>th</sup>, September 15<sup>th</sup>, October 15<sup>th</sup>, November 15<sup>th</sup>, and December 15th thereafter until the R Bonds are no longer outstanding.

Record Dates: The last day of each month pertaining to an Interest Accrual Period (as defined in the Indenture).

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [•]

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| | |
|:---|:---|
| VERSITY INVEST, LLC, | VERSITY INVEST, LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: |  |
| Name:  |  |
| Its: | Authorized Signatory |

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TRUSTEE'S CERTIFICATE OF AUTHENTICATION

The Bonds are the 8.00% Series R Bonds described in the within-mentioned Indenture.

Dated: [•].

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| | |
|:---|:---|
| UMB Bank, N.A., as Trustee, | UMB Bank, N.A., as Trustee, |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

(Reverse of Bond)

8.00% Unsecured Bonds (R Bonds)

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March [__], 2023 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of up to $15,000,000 in the aggregate of R Bonds of the Company. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Bonds represented by this certificate at 8.00% per annum from the date of issuance, up to but not including eighteen months after the initial issuance date (the "**Maturity Date**") subject: (y) to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension after the Repayment Election and at least 60 days prior to the Maturity Date and (z) any renewal of the R Bonds as prescribed in the Indenture. Any such renewal of an A Bond will be for a term of eighteen months. The Company will pay interest due on the R Bonds on the Interest Payment Dates. Interest on the R Bonds will accrue from the most recent date interest has been paid or, if no interest has been paid, from the date of issuance. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the R Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the R Bonds to the Persons who are registered holders of R Bonds at the close of business on Record Date, even if such R Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The R Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the R Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, interest any other amounts due on the R Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of R Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of the Trustee maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. Initially, UMB Bank, N.A. will act as registrar, and UMB Bank, N.A. will act as initial paying agent for Bonds issued and held through the book-entry systems and procedures of Depository Trust Corporation ("DTC") and registered in the name of Cede & Co., or such other entity nominated as nominee holder by DTC. Phoenix American Financial Services, Inc., will act as paying agent for Bonds held in other name. The Company may change the paying agent or registrar without notice to the holders of R Bonds. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the R Bonds under the Indenture. The terms of the R Bonds include those stated in the Indenture for a complete description of the terms of the R Bonds. The R Bonds are subject to all such terms, and holders of R Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. We may redeem the R Bonds, in whole or in part, at any time prior to the Maturity Date. Any redemption of an R Bond will be at a price equal to all accrued and unpaid interest, up to but not including the date on which the Bonds are redeemed, plus 1.1 times the then outstanding principal amount of the R Bonds. If we plan to redeem the R Bonds, we will give notice of redemption not less than 5 days nor more than 60 days prior to any redemption date to each such holder's address appearing in the securities register maintained by the trustee. The Company will redeem the R Bonds on a first-issued, first-redeemed basis and in the event we elect to redeem less than all of the R Bonds, the particular R Bonds to be redeemed will be selected by the Trustee by such method as the Trustee shall deem fair and appropriate. Except as set forth in this Section 5, or pursuant to Section 3.04 of the Indenture, the R Bonds may not be redeemed by the Company.

SECTION 6. <u>Redemption at Option of Holder</u>.

(a) Beginning immediately and continuing through the Maturity Date, the holders of the R Bonds will have the right to cause the Company to redeem all or any portion of the holder's R Bonds. To effect a redemption, the applicable holder (the "**Redeeming Holder**") must submit a written request to the Company, with a copy to the Trustee, for the redemption of all or a portion of its R Bonds (the "**Redemption Request** "). All redemptions under this Section 6 will be subject to and limited by the Annual Cap (as defined below). No further redemptions will be permitted under this Section 6 in a calendar year if the sum of the aggregate principal amount of R Bonds previously redeemed during such calendar year pursuant to this Section 6 or Section 3.04 of the Indenture meets or exceeds the Annual Cap. Interest will accrue on any R Bond redeemed hereunder until the actual date of redemption of such Bond, which date shall be not later than 120 days following the Company's actual receipt of the applicable Redemption Request (the "**Redemption Date** "). Redemptions will be effected by payment of the applicable Redemption Price (as defined below) on the Redemption Date, as further described below. Any R Bond not accepted for redemption will continue to be outstanding and accrue interest pursuant to its terms.

(b) For purposes of this Section 6, the capitalized terms set forth below shall have the definitions herein ascribed to them:

(1) "Annual Cap" shall mean for any calendar year an amount up to fifteen percent (15%) of the outstanding principal amount of Bonds as of January 1 of such calendar year, provided, however, the Annual Cap will be further limited to 3.75% of the principal amount of the outstanding Bonds calculated on a quarterly basis as of the first day of the fiscal quarter in which such redemption occurs (the "3.75% Limit"). To the extent that the 3.75% Limit is not fully used in a given quarter, the unused portion shall not be added to the 3.75% Limit for any future quarter, and any redemptions in excess of such limit or to the extent suspended, shall be redeemed in subsequent quarters on a first come, first served, basis.

(2) "Redemption Price" shall mean, $960 if redeemed prior to eighteen months after the issuance date of the R Bonds for which redemption is sought, plus any accrued but unpaid interest, on the Bond due to such Bondholder.

(c) No later than ten (10) business days following its receipt of a Redemption Request, the Company shall mail a notice to the Redeeming Holder notifying such holder whether its R Bonds are to be redeemed. The notice shall state that it is a notice of redemption, identify the R Bonds to be liquidated and shall state:

(1) the Redemption Date;

(2) the name and address of the Paying Agent; and

(3) that if the R Bonds to be redeemed have been issued in certificated form, (other than in respect of a global certificate issued to a Depositary), such certificate(s) must be surrendered to the Paying Agent to collect the redemption price.

(d) No later than the day before the Redemption Date, the Company shall deposit with the Paying Agent (or, if the Company or any Affiliate is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of all R Bonds to be redeemed on that date. Unless the Company shall default in the payment of the Redemption Price on the R Bonds to be redeemed, Interest on such R Bonds shall cease to accrue after the Redemption Date.

(e) Except as set forth in this Section 6 and Section 3.04 of the Indenture, the Company shall not be required to make mandatory redemptions with respect to the R Bonds.

SECTION 7. <u>Persons Deemed Owners</u>. The registered holder of R Bonds may be treated as its owner for all purposes.

SECTION 8. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the R Bonds then outstanding. Without notice to or consent of any holder of R Bonds, the parties thereto may amend or supplement the Indenture and the R Bonds as provided in the Indenture.

SECTION 9. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding R Bonds may declare the principal of, premium, if any, and accrued interest on the R Bonds to be due and payable immediately in accordance with the provisions of Section 6.01. Holders of R Bonds may not enforce the Indenture or the R Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding R Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of R Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the R Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the R Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2).

SECTION 10. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 11. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the R Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the R Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the R Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the R Bonds.

SECTION 12. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

SECTION 13. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of R Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 14. <u>CUSIP and ISIN Numbers</u>. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused the CUSIP and ISIN numbers to be printed on this Certificate and the Trustee may use the CUSIP or ISIN numbers in notices of redemption as a convenience to holders of R Bonds. No representation is made as to the accuracy of such numbers either as printed on this Certificate or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

SECTION 15. <u>Registered Form</u>. The R Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 16. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of Delaware.

The Company will furnish to any holder of R Bonds upon written request and without charge a copy of the Indenture.

4<br>

## Ex1A-4

**EXHIBIT (4)**

**VERSITY INVEST, LLC**

**VIP BONDS**

**SUBSCRIPTION AGREEMENT INSTRUCTION PAGE**

We, Versity Invest, LLC ("we," "our," "us," or the "Company"), are offering a maximum of $75,000,000 in the aggregate, of our 8.0% Class A VIP Bonds, and its 8.0% Class R VIP Bonds, and collectively the "Bonds," pursuant to the offering circular (the "Offering Circular") dated (TBD) (the "Offering") as amended. The purchase price per Bond is $1,000 (or as discounted for net of commission transactions), with a minimum purchase amount of $5,000. The maximum offering amount of Bonds across both classes is $75,000,000; however, the sale of the Class R Bonds will be limited to a maximum of $15,000,000.

The Company will conduct closings in this offering on the first and third Thursday of each month or the "closing dates," and each, a "closing date," until the offering termination. For all closings, subscription funds will be deposited into a Company bank or brokerage account. Once a subscription has been submitted and accepted by the Company, an investor will not have the right to request the return of its subscription payment prior to the next closing date. If subscriptions are received on a closing date and accepted by the Company prior to such closing, any such subscriptions will be closed on that closing date. If subscriptions are received on a closing date but not accepted by the Company prior to such closing, any such subscriptions will be closed on the next closing date. It is expected that settlement will occur on the same day as each closing date. On each closing date, offering proceeds for that closing will be disbursed to us and Bonds will be issued to investors, or the "Bondholders." If the Company is dissolved or liquidated after the acceptance of a subscription, the respective subscription payment will be returned to the subscriber.

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| | |
|:---|:---|
| **DOCUMENT DELIVERY** | **PAYMENT INSTRUCTIONS** |
| **Physical Mailing Address** | **Wiring Instructions** |
| WealthForge Securities | Versity Invest, LLC - VIP Bonds |
| Attn: Versity Invest, LLC - VIP Bonds | ABA No: 063114030 |
| 3015 W. Moore Street, Suite 102 | Acct No: XXXXXXXX |
| Richmond, VA 23230 | Beneficiary: Versity Invest, LLC - VIP Bonds |
| 804-308-0431 | Bank Name: SouthState Bank, N.A. |
|  | Bank Address: 1101 First Street South |
| **E-mail Address** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Winter Haven, FL 33880 |
| <u>Documents@Wealthforge.com</u> |  |
|  | **Check Instructions** |
| **INQUIRIES** | Make payable to: Versity Invest, LLC - VIP Bonds |
| For questions about the subscription process, please contact Versity Invest Investor Relations at (949)540-9164 | *(Please include name, phone and email address in case of questions)* |

---

\*For IRA Accounts, mail investor signed documents to the IRA Custodian for signatures.

**<u>INSTRUCTIONS TO SUBSCRIBERS</u>**

**Section 1:** Indicate investment amount for Class A Bonds or Class R Bonds

**Section 2:** Indicate your method of payment. Make all checks for subscription payments payable to "Versity Invest, LLC - VIP Bonds". Wire funds pursuant to the instructions set forth above.

**Section 3:** Indicate type of ownership.

**Section 4:** Fill in all names, addresses, dates of birth, Social Security or Tax ID numbers of all investors or trustees.

**Section 5:** Indicate distribution option.

**Section 6:** Indicate if you consent to the electronic delivery of documents.

**Section 7:** Indicate your qualification for purchasing the Bonds. **If you are claiming to be an Accredited Investor, you must complete Addendum A.**

**Section 8:** Read each of the acknowledgements and representations. Your signature in Section 8 indicates that you have read the document, in its entirety, and the Company may rely on your signature that you understand and/or meet the acknowledgements and representations contained therein.

**<u>NON-CUSTODIAL OWNERSHIP</u>**

· Accounts with more than one owner must have ALL PARTIES SIGN in Section 8.

· Be sure to attach copies of all plan documents for Pension Plans, Trusts or Corporate Partnerships required in Section 3.

**<u>CUSTODIAL OWNERSHIP</u>**

· For New IRA/Qualified Plan Accounts, please complete the form/application provided by your custodian of choice in addition to this Subscription Agreement and forward to the custodian for processing.

· For existing IRA Accounts and other Custodial Accounts, information must be completed BY THE CUSTODIAN.

· Have all documents signed by the appropriate officers as indicated in the Corporate Resolution (which are also to be included).

Instructions

**VERSITY INVEST, LLC**

**Class A – 8.0% VIP Bonds** 

**Class R – 8.0% VIP Bonds**

**<u>SUBSCRIPTION AGREEMENT</u>**

<u>**1.**</u>  **<u>Investment</u>** (Select only one)

Initial Investment *(minimum initial investment of $5,000)*

Additional Investment in this Offering *(minimum of $1,000)*

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| | | |
|:---|:---|:---|
| **Purchase Type:**  | Brokerage | Fee-Based *(Ensure the subscription amount and # of bonds reflects correct type)* |

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Class A Bonds Subscription Amount: $_____________________________________

*(Both Fields Required)* # of Bonds: _____________________________________

*(Brokerage - $1000 per bond)*

Class R Bonds Subscription Amount: $_____________________________________

*(Both Fields Required)* # of Bonds: _____________________________________

*(Fee-Based - $1000 per bond)*

<u>**2.**</u> <u>**Investment Instructions**</u> 

**By Mail** — Checks should be made payable to "Versity Invest, LLC - VIP Bonds"

**By Wire Transfer** — Forward this Subscription Agreement to the address listed above. Wiring instructions are as set forth below:

Versity Invest, LLC - VIP Bonds

ABA No: 063114030

Acct No: XXXXXXX

Beneficiary Name: Versity Invest, LLC - VIP Bonds

Bank Name: SouthState Bank, N.A.

Bank Address: 1101 First Street South, Winter Haven, FL 33880

**Custodial Accounts** — Forward this Subscription Agreement directly to the custodian.

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 1 of 6 |

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**3.** **Type of Ownership** *(Select only one)* 

Non-Custodial Ownership Custodial Ownership

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| | | |
|:---|:---|:---|
| **Individual** — One signature required. | **Traditional IRA** — Owner and custodian signatures required. | **Traditional IRA** — Owner and custodian signatures required. |
| **Joint Tenants with Rights of Survivorship** — All parties must sign. | **Roth IRA** — Owner and custodian signatures required. | **Roth IRA** — Owner and custodian signatures required. |
| **Community Property** — All parties must sign. | **Simplified Employee Pension/Trust (SEP)** — Owner and custodian signatures required. | **Simplified Employee Pension/Trust (SEP)** — Owner and custodian signatures required. |
| **Tenants in Common** — All parties must sign. | **KEOGH** — Owner and custodian signatures required. | **KEOGH** — Owner and custodian signatures required. |
| **Uniform Gift to Minors Act**— State of Custodian signature required. | **Other**— ________________________________________________________ | **Other**— ________________________________________________________ |
|  | Owner and custodian signatures required. | Owner and custodian signatures required. |
| **Uniform Transfer to Minors Act** — State of Custodian signature required. |  |  |
| **Qualified Pension or Profit Sharing Plan** — Include plan documents. | **Custodian Information** *(To be completed by custodian)* | **Custodian Information** *(To be completed by custodian)* |
| **Trust** — Include title, signature and "Powers of the Trustees" pages. | Name of Custodian: | MSG |
| **Corporation** — Include corporate resolution, articles of incorporation and bylaws. Authorized signature required. | Mailing Address: City: State: |  |
| **Partnership** — Include partnership agreement. Authorized signature(s) required. | Zip Code: |  |
| **Other (Specify)** —________________________  | Custodian Tax ID #: |  |
| Include title and signature pages. |  |  |
|  | Custodian Account #: |  |
|  | Custodian Phone #: |  |

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**4.** **Investor Information** (You must include a physical street address if your mailing address is a P.O. Box)

**Individual/Beneficial Owner/Trustee**: (Please print name(s) to whom Bonds are to be registered)

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| | |
|:---|:---|
| First, Middle, Last Name:<br>| Social Security #: |
| Physical Address:<br>| City, State, Zip Code: |
| Mailing Address *(If different than above)*:<br>| City, State, Zip Code: |
| Phone #:<br>| Date of Birth: |
| Citizenship *(If Not a US Citizen, Specify Country)*:<br>| E-mail Address: |

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**Joint Owner/Co-Trustee:** (If applicable)

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| | |
|:---|:---|
| First, Middle, Last Name:<br>| Social Security #: |
| Physical Address:<br>| City, State, Zip Code: |
| Mailing Address *(If different than above)*:<br>| City, State, Zip Code: |
| Phone #:<br>| Date of Birth: |
| Citizenship *(If Not a US Citizen, Specify Country)*:<br>| E-mail Address: |

---

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 2 of 6 |

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**Trust:** (Exactly as registered with the IRS)

*Provide either (i)Trustee Certification or (ii) copies of the trust pages showing: the name of the trust; trustee(s); date of the trust; signatures.*

Name of Trust: <br> Tax ID #: Date of Trust:

**Corporation/Partnership/Other:** *(Exactly as registered with the IRS)*

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| | |
|:---|:---|
| Name of Entity: | Name of Entity: |
| Tax ID #:<br>| Date of Entity Formation: |
| Name(s) of Officer(s), General Partner or Authorized:<br>| Additional Name of Authorized Person *(if any)*: |
| Legal Street Address:<br>| City, State, Zip Code: |

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\*If there is more than one trustee or beneficial owner, we will require documents for the requested information for each additional trustee and/or beneficial owner.

**Distribution Options For Non-Qualified Accounts** *(Select only one)*

I (we) hereby subscribe for the Bond(s) of Versity Invest, LLC and elect the distribution option indicated below (choose one of the three options):

**I choose to have distributions mailed to me at the address listed in Section 4.**

**I choose to have distributions mailed to me at the following address.____________________________________** 

**I choose to have distributions deposited in a checking, savings or brokerage account.**

I authorize the Company or its agent to deposit my distribution to the account indicated below. This authority will remain in force until I notify the Company to cancel it. In the event that the Company deposits funds erroneously into my account, the Company is authorized to debit my account for the amount of the erroneous deposit.

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| | |
|:---|:---|
| Financial Institution: | ABA Routing #: |
| Account #: | Name on Account or FBO: |
| Financial Institution Mailing Address: | City, State, Zip Code: |
|  | City, State, Zip Code: |
| Account Type: Checking Savings Brokerage | City, State, Zip Code: |

---

Distributions for custodial accounts will be sent directly to the "custodian of record" referenced in the Custodial Ownership section.

For Electronic Funds Transfers, the signatures of the bank account owner(s) must appear exactly as they appear on the bank registration. If the registration at the bank differs from that on this Subscription Agreement, all parties must sign below.

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| | |
|:---|:---|
| Signature of Individual/Beneficial Owner/Trustee  | Date |
| Printed Name |  |
| Signature of Joint Owner/Co-trustee | Date |
| Printed Name |  |

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 3 of 6 |

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***6.*** ***Electronic Delivery of Documents** (Optional)* 

In lieu of receiving documents by mail, I authorize the company to make available on its web site at <u>https://versityinvest.com/bonds</u> its semi-annual reports, annual reports, or other reports required to be delivered to me, as well as any investment or marketing updates, and to notify me via e-mail when such reports or updates are available. Any investor who elects this option must provide an e-mail address below. Please carefully read the following representations before consenting to receive documents electronically. If you check this box, you represent the following:

(a) I acknowledge that access to the internet, email and the World Wide Web is required in order to access documents electronically. I may receive by email notification the availability of a document in electronic format. The notification e-mail will contain a web address (or hyperlink) where the document can be found. By entering this address into my web browser, I can view, download and print the document from my computer. I acknowledge that there may be costs associated with the electronic access, such as usage charges from my internet provider and telephone provider, and that these costs are my responsibility.

(b) I acknowledge that documents distributed electronically may be provided in Adobe's Portable Document Format (PDF). The Adobe Reader software is required to view documents in PDF. The reader software is available free of charge from Adobe's web site athttps://get.adobe.com/reader/. The Adobe Reader software must be correctly installed on my system before I will be able to view documents in PDF. Electronic delivery also involves risks related to system or network outage that could impair my timely receipt of or access to stockholder communications.

(c) I acknowledge that I may receive a paper copy of any documents delivered electronically by calling my financial advisor.

(d) I understand that if the e-mail notification is returned to the Company as "undeliverable," a letter will be mailed to me with instructions on how to update my e-mail address to begin receiving communications via electronic delivery. I further understand that if the Company is unable to obtain a valid e-mail address for me, the Company will resume sending a paper copy of its filings by U.S. mail to my address of record.

(e) I understand that my consent may be updated or cancelled, including any updates in e-mail address to which documents are delivered, at any time by calling my financial advisor.

E-mail Address: ___________________________________

**7.** **Investor Eligibility Certifications** 

I understand that to purchase Bonds, I must either be an "accredited investor" as such term is defined in Rule 501 of Regulation D promulgated under the act, or I must limit my investment in the Bonds to a maximum of: (i) 10% of my net worth or annual income, whichever is greater, if I am a natural person; or (ii) 10% of my revenues or net assets, whichever is greater, for my most recently completed fiscal year, if I am a non-natural person.

I understand that if I am a natural person I should determine my net worth for purposes of these representations by calculating the difference between my total assets and total liabilities. I understand this calculation must exclude the value of my primary residence and may exclude any indebtedness secured by my primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of the Bonds.

I hereby represent and warrant that I meet the qualifications to purchase Bonds because (please mark one):

I am a natural person, and the aggregate purchase price for the Bonds I am purchasing in the offering does not exceed 10% of my net worth or annual income, whichever is greater.

I am a non-natural person, and the aggregate purchase price for the Bonds I am purchasing in the offering does not exceed 10% of my revenues or net assets, whichever is greater, for my most recently completed fiscal year.

I am an accredited investor.

**If you marked that you are an accredited investor, please complete <u>Addendum A</u>, attached hereto, and return it with this Subscription Agreement. If <u>Addendum A</u> is not received with this Subscription Agreement, your subscription will not be accepted.**

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 4 of 6 |

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**Investor Acknowledgements and Representations**

a. I understand that the Company reserves the right to, in its sole discretion, accept or reject this subscription, in whole or in part, for any reason whatsoever, and to the extent not accepted, unused funds transmitted herewith shall be returned to the undersigned in full.

b. I have received the Offering Circular.

c. I am purchasing the Bonds for my own account.

d. I agree that my rights and responsibilities relative to my ownership of the Bonds subscribed for in this offering shall be governed (i) by that certain Indenture by and between the Company and UMB Bank, N.A., as trustee, filed as an exhibit to the Offering Circular; and (ii) the Form of Bond filed as an exhibit to the Offering Circular.

e. I hereby represent and warrant that I am not, and am not acting as an agent, representative, intermediary or nominee for any person identified on the list of blocked persons maintained by the Office of Foreign Assets Control, U.S. Department of Treasury. In addition, I have complied with all applicable U.S. laws, regulations, directives, and executive orders relating to anti-money laundering including but not limited to the following laws: (1) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56; and (2) Executive Order 13224 (Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) of September 23, 2001.

**By making the foregoing representations you have not waived any right of action you may have under federal or state securities law. Any such waiver would be unenforceable. The company will assert your representations as a defense in any subsequent litigation where such assertion would be relevant. This subscription agreement and all rights hereunder shall be governed by, and interpreted in accordance with, the laws of the State of Delaware without giving effect to the principles of conflict of laws.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **IRS Form W-9 Certification** <br>

I declare that the information supplied in this Subscription Agreement is true and correct and may be relied upon by the Company in connection with my investment in the Company. I hereby certify, under penalty of perjury, that (i) the number shown as the Investor Social Security Number, Trust Tax ID and/or Taxpayer Identification Number in Section 4 of this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), (ii) I am not subject to backup withholding either because (a) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (b) the IRS has notified me that I am no longer subject to backup withholding, (iii) I am a U.S. citizen or other U.S. person (including a U.S. resident alien), and (iv) the FATCA code(s) entered on this form, if any, indicating that I am exempt from reporting is correct. Exemption codes apply only to certain entities, not individuals.

Exempt payee code (if any):

Exemption from FATCA reporting code (if any):

**NOTE: CLAUSE (ii) IN THIS CERTIFICATION SHOULD BE CROSSED OUT IF YOU HAVE BEEN NOTIFIED BY THE IRS THAT YOU ARE CURRENTLY SUBJECT TO BACKUP WITHOLDING BECAUSE YOU HAVE FAILED TO REPORT ALL INTEREST AND DIVIDENDS ON YOUR TAX RETURN.**

**8.** **Investor Signatures** 

Digital ("electronic") signatures, often referred to as an "e-signature", enable paperless contracts and help speed up business transactions. The 2001 E-Sign Act was meant to ease the adoption of electronic signatures. The mechanics of this Subscription Agreement's electronic signature include your signing this Agreement below by typing in your name, with the underlying software recording your IP address, your browser identification, the timestamp, and a securities hash within an SSL encrypted environment. This electronically signed Subscription Agreement will be available to both, you and the Company, as well as any associated brokers, so they can store and access it at any time, and it will be stored and accessible on <u>https://starportalt2.phxa.com/VIL.</u> You and the Company each hereby consents and agrees that electronically signing this Subscription Agreement constitutes your signature, acceptance and agreement as if actually signed by you in writing. Further, all parties agree that no certification authority or other third-party verification is necessary to validate any electronic signature; and that the lack of such certification or third-party verification will not in any way affect the enforceability of your signature or resulting contract between you and the Company. You understand and agree that your e-signature executed in conjunction with the electronic submission of this Subscription Agreement shall be legally binding and such transaction shall be considered authorized by you. You agree your electronic signature is the legal equivalent of your manual signature on this Subscription Agreement. You consent to be legally bound by this Subscription Agreement's terms and conditions. Furthermore, you and the Company, each hereby agrees that all current and future notices, confirmations and other communications regarding this Subscription Agreement specifically, and future communications in general between the parties, may be made by email, sent to the email address of record as set forth in this Subscription Agreement or as otherwise from time to time changed or updated and disclosed to the other party, without necessity of confirmation of receipt, delivery or reading, and such form of electronic communication is sufficient for all matters regarding the relationship between the parties. If any such electronically sent communication fails to be received for any reason, including but not limited to such communications being diverted to the recipients spam filters by the recipients email service provider, or due to a recipient's change of address, or due to technology issues by the recipient's service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and received. No physical, paper documents will be sent to you, and if you desire physical documents then you agree to be satisfied by directly and personally printing, at your own expense, the electronically sent communication(s) and maintaining such physical records in any manner or form that you desire.

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 5 of 6 |

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**Your Consent is Hereby Given:** By signing this Subscription Agreement electronically, you are explicitly agreeing to receive documents electronically including your copy of this signed Subscription Agreement as well as ongoing disclosures, communications and notices.

**SIGNATURES:**

THE UNDERSIGNED HAS THE AUTHORITY TO ENTER INTO THIS PURCHASER QUESTIONNAIRE AND SUBSCRIPTION AGREEMENT ON BEHALF OF THE PERSON(S) OR ENTITY REGISTERED ABOVE.

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| | |
|:---|:---|
| Signature of Individual/Trustee/Beneficial Owner/Custodian  | Date |
| Printed Name |  |
| Signature of Joint Owner/Co-trustee | Date |
| Printed Name |  |
| **ADVISOR/FIRM ACKNOWLEDGEMENT:** |  |
| Signature – Advisor | Date |
| Printed Name |  |
| Broker-Dealer/RIA Name | Broker-Dealer/RIA Name |
| Advisor Address *(Required)* | Advisor Address *(Required)* |
| Signature – Firm Principal  | Date |
| Printed Name |  |
| Firm Address *(Required)* |  |

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**SUBSCRIPTION ACCEPTED:**

Versity Invest, LLC

a Delaware limited liability company

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| | |
|:---|:---|
| By: |  |
| Name: | Name: |
| Its: | __________________________________________Dated:___________________ |

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| | |
|:---|:---|
| ![](versity_ex4img47.jpg) | page 6 of 6 |

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**<u>Addendum A</u>**

**If you marked that you are an accredited investor as that term is defined in Rule 501 of Regulation D of the Securities Act of 1933, please complete this Addendum A.**

If a natural person, I hereby represent and warrant that *(mark as appropriate):*

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| | |
|:---|:---|
| (a) | ______ I have an individual net worth, or joint net worth with my spouse, of more than $1,000,000, excluding primary residence, see calculation below; or |
| (b) | ______ I have individual income in excess of $200,000 or joint income with my spouse in excess of $300,000, in each of the two most recent years and I have a reasonable expectation of reaching the same income level in the current year. |
| (c) | ______ I am an executive officer or general partner of the Company or a manager or executive officer of the general partner of the Company. |
|  | *If other than a natural person, I represent and warrant that I am: (mark as appropriate):* |
| (a) | ______ an organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, a corporation, Massachusetts or similar business trust, partnership, or organization described in Code Section 501(c)(3), not formed for the specific purpose of acquiring Bonds, with total assets over $5,000,000; |
| (b) | ______ a trust, with total assets over $5,000,000, not formed for the specific purpose of acquiring Bonds and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in the Bonds as described in Rule 506(b)(2)(ii) under the Securities Act of 1933 (the "Securities Act")s;. |
| (c) | ______ a broker-dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended; |
| (d) | ______ an investment company registered under the Investment Company Act of 1940, as amended (the "Investment Company Act") or a business development company (as defined in Section 2(a)(48) of the Investment Company Act); |
| (e) | ______ a small business investment company licensed by the Small Business Administration under Section 301(c) or (d) or the Small Business Investment Act of 1958, as amended |
| (f) | ______ an employee benefit plan within the meaning of ERISA, if the investment decision is made by a plan fiduciary (as defined in Section 3(21) of ERISA), which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if such employee benefit plan has total assets over $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons who are accredited investors; |
| (g) | ______ a private business development company (as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended); |
| (h) | ______ a bank as defined in Section 3(a)(2) of the Securities Act, any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity, or any insurance company as defined in Section 2(13) of the Securities Act; |
| (i) | ______ a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets of more than $5,000,000; or |
| (j) | ______ an entity (including an Individual Retirement Account) in which all of the equity owners are accredited investors. |

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Note: For the purposes of calculating your net worth, Net Worth is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the donor or grantor is the fiduciary and the fiduciary directly or indirectly provides funds for the purchase of the Bonds.

Addendum A

## Ex1A-6

**EXHIBIT (6)**

***Execution Version***

**FIRST AMENDMENT**

THIS FIRST AMENDMENT (this "<u>First Amendment</u>"), dated as of April 12, 2022, is made by and among Versity EquityCo, LLC, a Delaware limited liability company ("<u>EquityCo</u>"), Versity EquityCo II, LLC, a Delaware limited liability company ("<u>EquityCo II</u>", and together with EquityCo, the "<u>Borrowers</u>" and each a "<u>Borrower</u>"), the undersigned lenders (the "<u>Lenders</u>"), KHCA Funding LLC, as administrative agent for the Lenders (the "<u>Administrative Agent</u>"), KHCA Funding LLC, as collateral agent for the benefit of the Secured Parties (the "<u>Collateral</u> <u>Agent</u>"), Versity EquityCo Parent, LLC, a Delaware limited liability company ("<u>Original Parent</u>"), Versity EquityCo Parent II, LLC, a Delaware limited liability company ("<u>New Parent</u>"), Versity Investments, LLC, a Delaware limited liability company ("<u>Original Sponsor</u>"), and Versity Invest, LLC, a Delaware limited liability company ("<u>New Sponsor</u>"), Brian Nelson ("<u>Nelson</u>"), Tanya Muro ("<u>Muro</u>") and Blake Wettengel ("<u>Wettengel</u>").

WHEREAS, EquityCo, the Lenders, the Administrative Agent and the Collateral Agent entered into that certain Senior Secured Term Loan Agreement, dated as of May 27, 2021 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified prior to the First Amendment Effective Date (as defined below), the "<u>Existing Loan Agreement</u>");

WHEREAS, the Borrowers, the Lenders, the Administrative Agent and the Collateral Agent desire to amend the Existing Loan Agreement as provided for herein (the Existing Loan Agreement, as amended hereby, the "<u>Amended Loan Agreement</u>");

WHEREAS, EquityCo entered into that certain Borrower Security Agreement, dated as of May 27, 2021 in favor of the Collateral Agent (the "<u>Existing Borrower Security Agreement</u>") and EquityCo desires to amend the Existing Borrower Security Agreement as provided for herein;

WHEREAS, Nelson is the sole member of Original Sponsor, a sponsor and syndicator of equity interests in student and multi-family housing projects;

WHEREAS, Original Sponsor is the sole member of Original Parent;

WHEREAS, Original Parent is the sole member of EquityCo;

WHEREAS, Wettengel and Muro are the chief executive officer and chief operating officer, respectively, of Original Sponsor, and their compensation as executives is based, in large part, upon the success of Original Sponsor's syndication operations;

WHEREAS, Wettengel and Muro have not been permitted to invest equity in Original Sponsor due to outstanding loan obligations of Original Sponsor that do not permit equity transfers in Original Sponsor;

WHEREAS, Original Sponsor makes fees from its syndication activities, as well as, to a much lesser degree, its equity investments in housing projects that it syndicates, and Nelson is the sole beneficiary of such fees, net of expenses of Original Sponsor and profit sharing with Wettengel, Muro and other members of the management team of Original Sponsor;

WHEREAS, Nelson also separately earns material commissions from the sale of equity interests in the housing projects, which commissions are earned by Nelson in his individual capacity and not in his capacity as the sole member of Original Sponsor;

WHEREAS, in order for Original Sponsor to acquire housing projects for syndication, Nelson must guaranty certain obligations owed to acquisition lenders, which guaranties must remain outstanding during the entire term of the acquisition loans, which terms are typically between 7 and 10 years in length;

WHEREAS, absent Nelson's willingness to guaranty such loan obligations, Original Sponsor would not qualify to acquire housing projects for syndication, and unless Original Sponsor acquires housing projects for syndication, Nelson would not have equity interests to sell for commissions;

WHEREAS, Nelson has indicated that he no longer wishes to guaranty such acquisition loan obligations, due to the length of the term of the obligations, but he desires to continue to sell equity interests in housing projects in order to continue to earn significant commissions on such sales;

WHEREAS, Nelson has requested that his management team, Wettengel and Muro, continue to acquire housing projects for syndication, and replace him as the guarantors on new acquisitions loans, in order to provide Nelson with housing project equity interests that he can sell for commissions;

WHEREAS, Nelson is willing to forgo the fees he would earn on the syndication of equity interest in exchange for being relieved of the obligation to guaranty certain acquisition loan obligations, and in exchange for his management team's willingness to guaranty acquisition loans in order to provide a future stream of equity interests he can sell for commissions;

WHEREAS, Original Sponsor presently obtains a portion of the funds required to acquire housing projects from the Lenders pursuant to the Existing Loan Agreement, which is guaranteed by Nelson, Original Sponsor and Original Parent;

WHEREAS, the Lenders are presently unwilling to provide funds for housing project acquisitions to Wettengel and Muro based upon their credit alone, but have indicated a willingness to provide funds to Wettengel and Muro if each of Nelson, Original Sponsor and Original Parent continues to co-guaranty the repayment of such funds;

WHEREAS, Nelson is willing to continue to co-guaranty all obligations under the Amended Loan Agreement, including all obligations under the Carve Out Guaranty (as defined in the Amended Loan Agreement and as further amended, restated, or otherwise modified from time to time);

WHEREAS, absent Nelson's willingness to continue to co-guaranty such obligations, Wettengel and Muro would not qualify for funds under the Amended Loan Agreement and as a result they would be unable to acquire large, quality housing projects, but instead would be limited to acquiring much smaller, less attractive housing projects that do not generate material syndication fees;

WHEREAS, the success of Wettengel and Muro in acquiring large first-class housing projects for syndication is of material benefit to Nelson, who desires to continue to earn material commissions from the sale of equity interests in such first-class projects; and

WHEREAS, as a result of Nelson requiring his management team to continue to acquire housing projects, Wettengel and Muro have formed New Sponsor, which is the sole member of New Parent, which is the sole member of EquityCo II, and which will be solely owned by Wettengel and Muro, and which will continue to acquire housing projects for syndication;

WHEREAS, Nelson's willingness to continue to sell equity interest in housing projects acquired by New Sponsor and its subsidiaries is of material benefit to New Sponsor, as the prompt marketing and sale of equity interests is critical to the success of New Sponsor's proposed syndication business; and

WHEREAS, based on the foregoing, each of Nelson, Old Sponsor, Old Parent, EquityCo, Wettengel, Muro, New Sponsor, New Parent and EquityCo II is expected to benefit, directly or indirectly, from this First Amendment, the Amended Loan Agreement, any extensions of credit thereunder, and each other Loan Document.

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, the parties hereto hereby agree as follows:

1 .<u>Definitions</u>. Capitalized terms used but not otherwise defined in this First

Amendment shall have the meanings ascribed to such terms in the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendments to Existing Loan Agreement</u>. In reliance on the representations, warranties, covenants, and agreements contained in this First Amendment, and subject to the satisfaction of the conditions precedent set forth in <u>Section 5</u> hereof, as of the First Amendment Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 the body of the Existing Loan Agreement (exclusive of Schedules or Exhibits thereto) is hereby amended by deleting the stricken text (indicated textually in the same manner as the following example:<u>stricken text</u>) and by inserting the double-underlined text (indicated textually in the same manner as the following example:**<u>double-underlined text</u>**) as set forth in the pages attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Exhibit A to the Existing Loan Agreement shall be amended and restated in its entirety in the form of Exhibit A-1 attached hereto, and Exhibit A-1 attached hereto shall be deemed to be attached as Exhibit A to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Exhibit B to the Existing Loan Agreement shall be amended and restated in its entirety in the form of Exhibit B-1 attached hereto, and Exhibit B-1 attached hereto shall be deemed to be attached as Exhibit B to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Exhibit D to the Existing Loan Agreement shall be amended and restated in its entirety in the form of Exhibit D-1 attached hereto, and Exhibit D-1 attached hereto shall be deemed to be attached as Exhibit D to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Exhibit E to the Existing Loan Agreement shall be amended and restated in its entirety in the form of Exhibit E-1 attached hereto, and Exhibit E-1 attached hereto shall be deemed to be attached as Exhibit E to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Exhibit H to the Existing Loan Agreement shall be amended and restated in its entirety in the form of Exhibit H-1 attached hereto, and Exhibit H-1 attached hereto shall be deemed to be attached as Exhibit H to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Schedule 8.2 attached hereto is hereby added as Schedule 8.2 to the Existing Loan Agreement and shall be deemed to be attached as Schedule 8.2 to the Existing Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Amendments to Existing Borrower Security Agreement</u>. In reliance on the representations, warranties, covenants, and agreements contained in this First Amendment, and subject to the satisfaction of the conditions precedent set forth in <u>Section 5</u> hereof, as of the First Amendment Effective Date the body of the Existing Borrower Security Agreement is hereby amended by deleting the stricken text (indicated textually in the same manner as the following example:<u>stricken text</u>) and by inserting the double-underlined text (indicated textually in the same manner as the following example: **double-underlined text**) as set forth in the pages attached hereto as Exhibit I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>4. Joinder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 EquityCo II hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) accepts the duties and responsibilities of a Borrower under the Amended Loan Agreement, any Notes and the other Loan Documents, and agrees to assume the duties and be bound by each of the obligations of a Borrower and is hereby made a party to, and a Borrower under, the Amended Loan Agreement, any Notes and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) makes each of the representations and warranties made by the Borrowers under the Amended Loan Agreement and each other Loan Document, as if each such representation or warranty was set forth herein, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) makes each of the covenants and agreements made by the Borrowers under the Amended Loan Agreement and each other Loan Document, as if each such covenant was set forth herein, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) certifies that no event has occurred or is continuing as of the date hereof, or will result from the transactions contemplated hereby, that would constitute an Event of Default or a Default.

(5)(a) agrees it will comply with all the terms and conditions of the Amended Loan Agreement applicable to it as a Borrower as if it were an original signatory thereto and (b) agrees to provide to the Administrative Agent all such documents, instruments, agreements, and certificates reasonably required by the Administrative Agent in connection with its execution of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The representations, covenants, warranties and obligations of each Borrower Party hereunder and under the Amended Loan Agreement and the other Loan Documents shall be joint and several. Each entity that constitutes Borrower acknowledges and agrees that it shall be jointly and severally liable for the Loan and all other Obligations arising under this First Amendment, the Amended Loan Agreement and/or any of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Conditions Precedent</u>. This First Amendment shall become effective upon the satisfaction of the following (the date of such satisfaction, the "<u>First Amendment Effective Date</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Administrative Agent shall have received certificate(s), addressed to the Administrative Agent and each Lender, dated as of the First Amendment Effective Date, from each of the Borrower Parties (as defined in the Amended Loan agreement) as to the following, and such certificate(s) shall be accurate in all respects:

5.1.1 the certification of the resolutions, in full force and effect, authorizing, to the extent relevant, the execution, delivery and performance of this First Amendment and each other Loan Document (including, the granting of any security interests by such Borrower Party under the Security Documents to which it is or is to be a party) to be executed by it on the date hereof (together with this First Amendment, the " <u>First Amendment Documents</u> ") and the performance of its obligations contemplated hereby and thereby;

5.1.2 the incumbency and signatures of those Responsible Officers (as defined in the Amended Loan Agreement) who have signed or will sign each First Amendment Document to which the Borrower Parties are or will be parties, or who are, until replaced by another such Responsible Officer duly authorized for such purpose, authorized to act with respect to each First Amendment Document;

5.1.3 the Governing Documents (as defined in the Amended Loan Agreement) for the Borrower Parties;

5.1.4 a recent certificate of good standing for the Borrower Parties from the Secretary of State of the State of Delaware;

5.1.5 certification that (i) each of the conditions precedent to the First Amendment Effective Date has been satisfied in form and substance acceptable to, or waived by, the Administrative Agent and (ii) the representations and warranties contained in the Amended Loan Agreement and each of the Loan Documents are true and correct in all material respects (except to the extent qualified by materiality, "Material Adverse Effect" or like qualification, in which case such representations and warranties are true and correct in all respects);

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| | |
|:---|:---|
| 5.1.6  | certification that each of the Borrower Parties immediately before and after giving effect to the transactions contemplated by the Loan Documents is, and will be, Solvent (as defined in the Amended Loan Agreement); |
| <br> such certificate(s) to be executed by a Responsible Officer and addressed to the Administrative Agent and each Lender and accompanied by copies of all documents referred to in clauses 5.1.1 through 5.1.6 immediately above, in each case as then in effect, certified to be true, complete and correct and, that, except as provided to the Administrative Agent with the certificate(s), each such document has not been amended, restated, amended and restated, supplemented or modified and is in full force and effect. | <br> such certificate(s) to be executed by a Responsible Officer and addressed to the Administrative Agent and each Lender and accompanied by copies of all documents referred to in clauses 5.1.1 through 5.1.6 immediately above, in each case as then in effect, certified to be true, complete and correct and, that, except as provided to the Administrative Agent with the certificate(s), each such document has not been amended, restated, amended and restated, supplemented or modified and is in full force and effect. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The Administrative Agent shall have received an opinion of Borrowers' counsel, addressed to Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Lenders may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Each of the First Amendment Documents shall have been duly authorized, executed and delivered by each of the parties thereto and shall be in full force and effect, and the Administrative Agent and the Collateral Agent shall have received fully executed originals of such First Amendment Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The Administrative Agent shall have received such other documents from New Sponsor, Original Sponsor, each Borrower, New Parent, Original Parent and each other Guarantor as it may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 The filings, recordings and other actions necessary, in the opinion of the Collateral Agent, in order to establish and to perfect the security interests in the Collateral to be granted to the Collateral Agent for the benefit of the Secured Parties have been made or taken or shall be made concurrently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 To the extent reflected in a statement of such counsel rendered to the Borrower Representative (as defined in the Amended Loan Agreement) prior to the First Amendment Effective Date, the Borrowers shall have paid all reasonable and documented out-of-pocket expenses of Akin Gump Strauss Hauer & Feld LLP, counsel to the Administrative Agent and Collateral Agent, that were incurred in connection with this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Representations and Warranties</u>. In order to induce Administrative Agent, Collateral Agent, and the Lenders to enter into this First Amendment, Borrowers represent and warrant to the Lenders, for itself and on behalf of the Borrower Parties, as of the First Amendment Effective Date that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Each of the Borrower Parties (a) is duly organized or formed, validly existing and in good standing under the Laws (as defined in the Amended Loan Agreement) of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (x) own its assets and carry on its business, and (y) execute, deliver and perform its obligations under this First Amendment and (c) is in material compliance with all Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 The execution, delivery and performance by each of the Borrower Parties of this First Amendment have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person's (as defined in the Amended Loan Agreement) Governing Documents (as defined in the Amended Loan Agreement), (b) conflict with or result in any breach or contravention of, or the creation of any Lien (as defined in the Amended Loan Agreement) under, or require any payment to be made under (i) any Contractual Obligation (as defined in the Amended Loan Agreement) to which such Person is a party or affecting such Person or the assets of such Person or any of its Subsidiaries (as defined in the Amended Loan Agreement) or any joint venture in which it is a member or (ii) any order, injunction, writ or decree of any Governmental Authority (as defined in the Amended Loan Agreement) or any arbitral award to which such Person or its assets is subject, or (c) violate any Law (as defined in the Amended Loan Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Other than as required in the ordinary course of business and in connection with the filing or recording of the Security Documents (as defined in the Amended Loan Agreement), no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against any Loan Party, any Guarantor (as defined in the Amended Loan Agreement) or any Sponsor (as defined in the Amended Loan Agreement) of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 This First Amendment has been duly executed and delivered by each of the Borrower Parties. This First Amendment constitutes a legal, valid and binding obligation of each of the Borrower Parties, enforceable against such Person in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 The representations and warranties contained in the Amended Loan Agreement and each other Loan Document and certificate delivered to the Administrative Agent or the Lenders pursuant to any Loan Document on or prior to the First Amendment Effective Date are correct in all material respects on and as of the First Amendment Effective Date as though made on and as of such date, except to the extent that such representations and warranties (or any schedules related thereto) expressly relate solely to an earlier date (in which case such representations and warranties are true and correct in all material respects on and as of such date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Additional Obligations</u>. The Advance on the First Amendment Effective Date in connection with the Core Asset Investment contemplated by Vintage IB, LLC and all Gross Receipts in connection with the sale or syndication of the DST Interests in Vintage, DST shall be deposited into EquityCo's Collection Account. EquityCo II shall open the Accounts at the Deposit Bank and enter into a DACA Agreement with the Deposit Bank and Administrative Agent pursuant to Section 10 of the Amended Loan Agreement prior to any additional Advances, and in any event within 21 days after the First Amendment Effective Date. All Gross Receipts shall be deposited into an Account covered by a DACA Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Scope of Amendment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Except as expressly modified by <u>Section 2</u> hereof, the Existing Loan Agreement shall remain in full force and effect on and after the date hereof. Each reference in the Existing Loan Agreement to "this Agreement", "hereunder", "hereof", "herein", or words of like import shall mean and be a reference to the Amended Loan Agreement, and each reference to the Existing Loan Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Existing Loan Agreement shall mean and be a reference to the Amended Loan Agreement, and each reference to any other Loan Document in any other document, instrument or agreement executed and/or delivered in connection with the Existing Loan Agreement or the Amended Loan Agreement shall mean and be a reference to such other Loan Document, as amended by this First Amendment, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>9. Borrower Representative</u>. Each Borrower hereby designates EquityCo II as the Borrower Representative (as defined in the Amended Loan Agreement) as its representative and agent on its behalf for the purposes of issuing Funding Requests, giving instructions with respect to the disbursement of the proceeds of the Advances, giving and receiving all other notices and consents hereunder or under any of the other Loan Documents (as defined in the Amended Loan Agreement) and taking all other actions (including in respect of compliance with covenants) on behalf of any Borrower or the Borrowers under the Loan Documents. The Borrower Representative hereby accepts such appointment. The Lenders and the Administrative Agent may regard any notice or other communication pursuant to any Loan Document from Borrower Representative as a notice or communication from all Borrowers, and may give any notice or communication required or permitted to be given to any Borrower or Borrowers hereunder to Borrower Representative on behalf of such Borrower or Borrowers. Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement and undertaking made on its behalf by Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to the same extent as if the same had been made directly by such Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>10. No Waiver</u>. Neither the execution by the Administrative Agent, the Collateral Agent or the Lenders of this First Amendment, nor any other act or omission by the Administrative Agent, the Collateral Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent, the Collateral Agent or the Lenders of any Defaults or Events of Default that may exist, that may have occurred prior to the First Amendment Effective Date under the Existing Loan Agreement or that may occur in the future under the Amended Loan Agreement and/or the other Loan Documents. Similarly, nothing contained in this First Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent's, the Collateral Agent's or the Lenders' right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default or (b) constitute any course of dealing or other basis for altering any obligation of any Loan Party or any right, privilege or remedy of the Administrative Agent, the Collateral Agent or the Lenders under the Existing Loan Agreement, the other Loan Documents, or any other contract or instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>11. Ratification</u>. Each of the Borrowers, the Parents, the Sponsors, and the Guarantors (i) confirms and ratifies all of its obligations under the Loan Documents to which it is party, in each case immediately after giving effect to this First Amendment, including its respective guarantees, pledges, grants of security interests and other obligations, as applicable, under and subject to the terms of each Loan Document to which it is party, and (ii) agrees that such guarantees, pledges, grants of security interests and other obligations, and the terms of each Loan Document to which it is a party, are not impaired or adversely affected in any manner whatsoever and shall continue to be in full force and effect in accordance with their terms and, as applicable, shall guarantee and secure all Obligations (as defined in the Existing Loan Agreement), as modified pursuant to this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Release.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 In consideration of the agreements of the Administrative Agent, Collateral Agent and the Lenders party hereto contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower Party, on behalf of itself and its successors and assigns, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges each of the Secured Parties, its successors and assigns, and its direct and indirect owners, partners, members, managers, affiliates, subsidiaries, divisions, directors, officers, employees and agents (the Secured Parties and all such other Persons being hereinafter referred to collectively as the "<u>Releasees</u>" and individually as a "<u>Releasee</u>") of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, recoupment, rights of setoff, demands and liabilities whatsoever (individually, a "<u>Claim</u>" and collectively, "<u>Claims</u>") of every name and nature, known or unknown, contingent or mature, suspected or unsuspected, both at law and in equity, which any Borrower Party or any of its respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Agreement, in each case arising in connection with this Agreement or any of the other Loan Documents or transactions thereunder or related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Each Borrower Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 Each Borrower Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 In entering into this First Amendment, each Borrower Party has consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the release set forth above does not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity hereof. The release set forth herein shall survive the termination of this First Amendment and the Loan Documents and the payment in full of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 Each Borrower Party acknowledges and agrees that the release set forth above may not be changed, amended, waived, discharged or terminated orally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Conflicts</u>. To the extent there may be a conflict between the terms of this First Amendment, on the one hand, and the Existing Loan Agreement or any other Loan Document, on the other hand, the terms of this First Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governing Law</u>. This First Amendment shall be deemed to be a contract under the laws of the State of New York and for all purposes shall be governed by, construed and enforced in accordance with the internal laws of the State of New York without regard to its conflict of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Counterparts</u>. This First Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This First Amendment constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This First Amendment shall become effective when it shall have been executed by Administrative Agent and when Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this First Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this First Amendment. Delivery of any executed counterpart of this First Amendment by facsimile or transmitted electronically in either a Tagged Image Format File ("TIFF") or Portable Document Format ("PDF") shall be equally effective as delivery of a manually executed counterpart of this First Amendment. Any party delivering an executed counterpart by facsimile TIFF, or PDF shall also deliver a manually executed counterpart of this First Amendment, but failure to do so shall not affect the validity, enforceability or binding effect of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Payment of Expenses</u>. Borrowers jointly and severally agree to pay or reimburse the Administrative Agent and Collateral Agent for all reasonable and documented out-of-pocket expenses incurred in connection with this First Amendment in accordance with <u>Section 13.4</u> of the Amended Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>NO ORAL AGREEMENT</u>. THIS WRITTEN FIRST AMENDMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Severability</u>. If any provision of this First Amendment is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this First Amendment shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>19. Successors and Assigns</u>. The provisions of this First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns (in each case, as permitted by <u>Section 13.6</u> of the Amended Loan Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>20. Loan Document</u>. This First Amendment shall constitute a "Loan Document" under and as defined in <u>Section 1.1</u> of the Amended Loan Agreement.

**[SIGNATURES BEGIN ON NEXT PAGE]**

IN WITNESS WHEREOF, the undersigned have caused this First Amendment to be executed and delivered under seal as of the date first set forth above.

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| | |
|:---|:---|
| <u>BORROWERS:</u> | <u>BORROWERS:</u> |
| VERSITY EQUITYCO, LLC, | VERSITY EQUITYCO, LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: Versity Investments, LLC, a Delaware <br> limited liability company, its Manager | By: Versity Investments, LLC, a Delaware <br> limited liability company, its Manager |
| By: |  |
| Title: | Authorized Signatory |
| VERSITY EQUITYCO II, LLC, <br> a Delaware limited liability company | VERSITY EQUITYCO II, LLC, <br> a Delaware limited liability company |
| By: Versity Invest, LLC, a Delaware <br> limited liability company, its Manager | By: Versity Invest, LLC, a Delaware <br> limited liability company, its Manager |
| By: | ![](versity_ex6img8.jpg) |
| Name:  | Ta Muro |
| Title:  | Authorized Signatory |

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[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT:</u>** | **<u>ADMINISTRATIVE AGENT:</u>** |
| **MICA FUNDING LLC** | **MICA FUNDING LLC** |
| By: Crayhill Principal Strategies Partners LLC, | By: Crayhill Principal Strategies Partners LLC, |
| its Manager | its Manager |
| By: | ![](versity_ex6img9.jpg) |
| Name:  | Joshua P. Eaton |
| Title: | President |

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| | |
|:---|:---|
| **<u>COLLATERAL AGENT:</u>** | **<u>COLLATERAL AGENT:</u>** |
| **MICA FUNDING LLC** | **MICA FUNDING LLC** |
| By: Crayhill Principal Strategies Partners LLC, | By: Crayhill Principal Strategies Partners LLC, |
| its Manager | its Manager |
| By: | ![](versity_ex6img10.jpg) |
| Name:  | Joshua P. Eaton |
| Title: | President |

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| | |
|:---|:---|
| **<u>LENDER:</u>** | **<u>LENDER:</u>** |
| **KNIGHTS HILL IRELAND II DAC** | **KNIGHTS HILL IRELAND II DAC** |
| By: Crayhill Capital Management LP, | By: Crayhill Capital Management LP, |
| its Investment Manager | its Investment Manager |
| By: | ![](versity_ex6img11.jpg) |
| Name:  | Joshua P. Eaton  |
| Title: | Managing Partner |

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| | |
|:---|:---|
| **<u>PARENTS:</u>** | **<u>PARENTS:</u>** |
| **VERSITY EQUITYCO PARENT, LLC,**  | **VERSITY EQUITYCO PARENT, LLC,**  |
| a Delaware limited liability company | a Delaware limited liability company |
| By: Versity Investments, LLC, a Delaware <br> limited liability company, its Manager | By: Versity Investments, LLC, a Delaware <br> limited liability company, its Manager |
| By: |  |
| Name:  | Brian Nelson |
| Title: | Authorized Signatory |
| **VERSITY EQUITYCO PARENT II, LLC,** <br> a Delaware limited liability company | **VERSITY EQUITYCO PARENT II, LLC,** <br> a Delaware limited liability company |
| By: Versity Invest, LLC, a Delaware limited liability company,  | By: Versity Invest, LLC, a Delaware limited liability company,  |
| its Manager | its Manager |
| By: |  |
| Name:  | any uro |
| Title:  | Authorized Signatory |

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| | |
|:---|:---|
| **<u>SPONSORS:</u>** | **<u>SPONSORS:</u>** |
| **VERSITY INVESTMENTS, LLC,** <br> a Delaware limited liability company | **VERSITY INVESTMENTS, LLC,** <br> a Delaware limited liability company |
| By: |  |
| Name:  | Nelson |
| Title: | Authorized Signatory |
| **VERSITY INVEST, LLC,** <br> a Delaware limited liability company | **VERSITY INVEST, LLC,** <br> a Delaware limited liability company |
| By: | ![](versity_ex6img12.jpg) |
| Name:  | Tanya Muro |
| Title:  | Authorized Signatory |

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<u>NELSON:</u>

BRI<u>I</u>T NELSON

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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![](versity_ex6img13.jpg)<br>

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| |
|:---|
| <u>WETTENGEL:</u> |
| ![](versity_ex6img14.jpg) |
| BLAKE WETTEN L |

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Signature Page to First Amendment

**Exhibit A** 

**Loan Agreement**

[see attached]

***<u>EXECUTION</u><u>VERSION</u> Execution Version***

![](versity_ex6img1000.jpg)

**SENIOR SECURED TERM LOAN AGREEMENT**

**Dated as of May 27, 2021**

**among**

**VERSITY EQUITYCO, LLC, as Borrower, <u>VERSITY EQUITYCO II, LLC, as Borrower and as Borrower Representative,</u>**

**<u>THE BORROWERS FROM TIME TO TIME PARTY HERETO,</u>**

**THE LENDERS FROM TIME TO TIME PARTY HERETO, KHCA FUNDING LLC, as Administrative Agent**

**and**

**KHCA FUNDING LLC, as Collateral Agent**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS | ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Defined Terms | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Uniform Commercial Code | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 1.3 | Construction | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 1.4 | Time Periods | 35 |
| ARTICLE 2 THE LOAN | ARTICLE 2 THE LOAN | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Loan | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Advances. | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Timing and Amount of Advances. | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Disbursements from the Core Asset Cost Account. | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Lender's Right to Increase the Maximum Commitments | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.6 | Use of Proceeds | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 2.7 | Draw Fee | 38 |
| ARTICLE 3 APPROVAL OF CORE ASSET INVESTMENTS | ARTICLE 3 APPROVAL OF CORE ASSET INVESTMENTS | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Greenlight Approval | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Administrative Agent's Due Diligence | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Final Approval | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | General Conditions to Designating a Core Asset as an Eligible Core Asset | 39 |
| ARTICLE 4 REPAYMENTS, PREPAYMENTS, INTEREST AND FEES | ARTICLE 4 REPAYMENTS, PREPAYMENTS, INTEREST AND FEES | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Repayments and Prepayments; Application | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.2 | Repayment of Loan; Maturity Date | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.3 | Prepayments; Repayments | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.4 | Interest | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.5 | Application of Payments | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.6 | Fees | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.7 | Evidence of Debt | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.8 | Payments Generally | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.9 | Security | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 4.10 | Affiliate Management Fees | 42 |
| ARTICLE 5 TAXES AND CERTAIN OTHER PROVISIONS | ARTICLE 5 TAXES AND CERTAIN OTHER PROVISIONS | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 5.15.2 | Taxes | 43 |
| ARTICLE 6 CONDITIONS PRECEDENT TO CLOSING AND ADVANCES | ARTICLE 6 CONDITIONS PRECEDENT TO CLOSING AND ADVANCES | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | Conditions to the Closing | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Conditions to Funding of Advances and Disbursements | 49 |

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i<br>

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| | | |
|:---|:---|:---|
| ARTICLE 7 REPRESENTATIONS AND WARRANTIES | ARTICLE 7 REPRESENTATIONS AND WARRANTIES | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Existence, Qualification and Power; Compliance with Laws | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 | Authorization; No Contravention | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 | Governmental Authorization; Other Consents | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.4 | Binding Effect | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.5 | Litigation | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.6 | No Default | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.7 | Ownership of Core Assets; Liens | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.8 | Indebtedness | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.9 | Insurance | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.10 | Taxes | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.11 | ERISA Compliance | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.12 | Subsidiaries; Joint Ventures | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.13 | Margin Regulations; Investment Company Act; Public Utility Holding Company Act | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.14 | Disclosure | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.15 | Compliance | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.16 | Compliance with Environmental Laws | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.17 | Zoning | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.18 | Material Agreements; No Defaults | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.19 | No Expropriation | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.20 | Senior Mortgage Loan Documents | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.21 | Oral Agreements; Matters Not of Record | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.22 | Creation, Perfection and Priority of Liens | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.23 | Equity Interests / DST Interests | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.24 | No Agreements to Merge | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.25 | Labor Matters | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.26 | Brokerage Commissions | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.27 | Agreements with Affiliates | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.28 | Foreign Assets Control, Etc. | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.29 | Representations and Warranties Upon Delivery of Financial Statements, Documents, and Other Information | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 7.30 | Benefits | 59 |
| ARTICLE 8 AFFIRMATIVE COVENANTS | ARTICLE 8 AFFIRMATIVE COVENANTS | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Financial Statements and Other Reports | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Approved Budget | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | Furnishing Information and Inspection of Owned Core Assets | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Notices | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.5 | Payment of Obligations | 63 |

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ii<br>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.6 | Preservation of Existence, Etc. | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.7 | Maintenance of Properties | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.8 | Maintenance of Insurance | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.9 | Compliance | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.10 | Books and Records | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.11 | Intangible, Recording and Stamp Tax | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.12 | Further Assurances | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.13 | Special Covenants Relating to Collateral | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.14 | Performance under Contractual Obligations | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.15 | Owned DSTs; Failure to Syndicate DST Interests | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.16 | Change of Control and Ownership of the Borrower and the Depositors | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.17 | Accounts | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 8.18 | Single Purpose Entity/Separateness | 69 |
| ARTICLE 9 NEGATIVE COVENANTS | ARTICLE 9 NEGATIVE COVENANTS | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.1 | Other Indebtedness | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.2 | Other Liens | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.3 | Dispositions | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.4 | Investments | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.5 | Material Agreement; Fundamental Changes | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.6 | Transactions with Affiliates | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.7 | Permitted Payments | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.8 | Margin Regulations | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.9 | No Other Negative Pledge | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.10 | No Change in Fiscal Year | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.11 | Stay, Extension and Usury Laws | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.12 | No Subsidiaries; No Pledge of Equity Interests | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.13 | Litigation | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.14 | Use of Proceeds | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.15 | Governing Documents | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.16 | Principal Place of Business | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.17 | Key Service Providers | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.18 | Conduct of Business | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.19 | Core Asset Investments | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.20 | Approved Budget | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.21 | Operating Expenses | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.22 | No Employees | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.23 | Senior Mortgage Loan | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 9.24 | Division/Series | 81 |

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iii<br>

---

| | | |
|:---|:---|:---|
| ARTICLE 10 CASH MANAGEMENT | ARTICLE 10 CASH MANAGEMENT | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.1 | Establishment and Maintenance of the Accounts | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.2 | Acknowledgement of Security Interests | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.3 | The Loan Parties Rights | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.4 | The Collection Account | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.5 | Core Asset Cost Account | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.6 | Reinvestment Account | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.7 | Operating Account | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 10.8 | DST Reserve Account | 85 |
| ARTICLE 11 EVENTS OF DEFAULT AND REMEDIES | ARTICLE 11 EVENTS OF DEFAULT AND REMEDIES | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 11.1 | Event of Default | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 11.2 | Remedies Upon Event of Default | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 11.3 | Commitment Termination Rights | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 11.4 | Application of Funds | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 11.5 | Protective Advances/Cure Rights | 89 |
| ARTICLE 12 ADMINISTRATIVE AGENT AND COLLATERAL AGENT | ARTICLE 12 ADMINISTRATIVE AGENT AND COLLATERAL AGENT | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.1 | Appointment and Authority | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.2 | Rights as a Lender | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.3 | Exculpatory Provisions | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.4 | Reliance by Agent | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.5 | Delegation of Duties | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.6 | Resignation or Removal of the Administrative Agent or Collateral Agent | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.7 | Non-Reliance on Agent and Other Lenders | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 12.8 | Administrative Agent May File Proofs of Claim | 93 |
| ARTICLE 13 MISCELLANEOUS | ARTICLE 13 MISCELLANEOUS | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.1 | Amendments, Actions Under this Agreement, etc. | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.2 | Notices; Effectiveness; Electronic Communication | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.3 | No Waiver; Cumulative Remedies | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.4 | Expenses; Indemnity; Damage Waiver | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.5 | Payments Set Aside | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.6 | Successors And Assigns | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.7 | Right of Setoff | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.8 | Interest Rate Limitation | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.9 | Counterparts; Integration; Effectiveness | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.10 | Survival of Representations and Warranties | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.11 | Severability | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.12 | Governing Law; Jurisdiction; Etc. | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.13 | WAIVER OF JURY TRIAL | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.14 | Relationship of Parties | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.15 | USA Patriot Act Notice | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.16 | Time Of The Essence | 106 |

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iv<br>

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.17 | Telephone and Electronic Authorization | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.18 | Waiver of Fiduciary Duties | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.19 | Repayment in Full After Termination or Expiration of Reinvestment Period | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 13.20 | Joint and Several. | 107 |
| ARTICLE 14 SENIOR MORTGAGE LOANS | ARTICLE 14 SENIOR MORTGAGE LOANS | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 14.1 | Senior Mortgage Loan Defaults | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 14.2 | Indemnification | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 14.3 | Release | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 14.4 | Turnover | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp; Section 14.5 | Senior Mortgage Loan Estoppel | 109 |

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EXHIBITS:

Exhibit A – Form of Note

Exhibit B – Form of Assignment and Assumption

Exhibit C – [Reserved]

Exhibit D – Form of Compliance Certificate

Exhibit E – Form of Depositor Operating Agreement

Exhibit F – Form of DST Trust Agreement

Exhibit G – Eligibility Criteria

Exhibit H – Form of Lender Joinder Agreement

SCHEDULES:

Schedule A – DST Interests Syndication Costs

Schedule 3.3 – Investment Memo Content

Schedule 7.16 – Environmental Matters

Schedule 8.2 – Borrower's Borrowers' Operating Budget Budgets

Schedule 13.17 – Borrower's Borrower Representative's Authorized Signors

v<br>

**SENIOR SECURED TERM LOAN AGREEMENT**

THIS SENIOR SECURED TERM LOAN AGREEMENT, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022 (as the same may be further amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time, this "Agreement"), among Versity EquityCo, LLC, a Delaware limited liability company ("EquityCo"), as a borrower, Versity EquityCo II, LLC, a Delaware limited liability company ("EquityCo II" , together with its Subsidiaries and itsEquityCo and their successors and assigns, the "Borrowers" and each a "Borrower"), and as the initial representative of all of the borrowers (in such capacity, the "Borrower Representative"), the lenders from time to time party hereto, KHCA FUNDING LLC, as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the "Administrative Agent") and KHCA FUNDING LLC, as collateral agent for the benefit of the Secured Parties (together with its successors and assigns, in such capacity, the "Collateral Agent").

WHEREAS, subject to the terms and conditions of this Agreement and the other Loan Documents, Borrower hason the Closing Date EquityCo requested that the Lenders extend, and the Lenders have agreed to extend, a senior secured loan to Borrower in an aggregate principal amount of up to Fifty Million Dollars ($50,000,000) (which may be further increased by Administrative Agent up to an aggregate principal amount of up to Two Hundred Million Dollars ($200,000,000) in accordance with the terms herein) for the uses provided for herein, and Borrower isBorrowers are willing to grant security interests in the Collateral to the Collateral Agent for the benefit of the Secured Parties in order to secure Borrower's Borrowers' obligations hereunder.

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, the parties hereto hereby agree as follows:

**ARTICLE 1**

**DEFINITIONS AND ACCOUNTING TERMS**

Section 1.1 Defined Terms.

As used in this Agreement, the following terms have the meanings set forth below:

"<u>Accounts</u>" means any checking, savings or other deposit account maintained by the <u>BorrowerBorrowers</u> (including the Collection <u>AccountAccounts</u> and the Sub-Accounts). All funds in each Account shall be conclusively presumed to be Collateral or the proceeds of Collateral and neither the Collateral Agent nor any Lender shall have any duty to inquire as to the source of the amounts on deposit in any Account.

"<u>Act</u>" has the meaning assigned to such term in <u>Section 8.18(c)</u>.

"<u>Administrative Agent</u>" has the meaning assigned to such term in the preamble hereto.

"<u>Administrative Agent Fees and Expenses</u>" means all costs, fees, charges, indemnities and other obligations due and payable to Administrative Agent, Collateral Agent or the Lenders under the express terms of the Loan Documents (other than payments of principal and interest).

"<u>Administrative Agent's Office</u>" means Administrative Agent's address and, as appropriate, account as set forth on the signature page, or such other address or account as Administrative Agent may from time to time notify to the Borrower <u>Representative</u> and the Lenders.

"<u>Advance</u>" means an advance of any portion of the Loan Amount pursuant to the provisions of this Agreement.

"<u>Advance Amount</u>" means, with respect to any Approved Core Asset Investment, the lesser of (a) eighty-seven and one-half percent (87.5%) of the Junior Capital of such Approved Core Asset Investment and (b) ninety-five percent (95.0%) of the Core Asset Costs of such Approved Core Asset Investment.

"<u>Advance Date</u>" means the date on which any Advance is made.

"<u>Affiliate</u>" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. Notwithstanding the foregoing, under no circumstance shall any of the Administrative Agent, the Collateral Agent or any Lender or any of their respective Affiliates be deemed to be an Affiliate of any of the Borrower Parties or any Owned DST for purposes of this Agreement or any other Loan Document.

"<u>Affiliate Management Fee</u>" means any management or other fee payable to any Borrower Party or any of <u>itstheir</u> Affiliates pursuant to any Asset Management Agreement or Property Management Agreement.

"<u>Affiliate Purchase</u>" has the meaning specified in <u>Section</u> <u>8.15(b)Section</u> <u>8.15(b)</u>.

"<u>Agent</u>" means Administrative Agent or Collateral Agent, as applicable.

"<u>Agreement</u>" has the meaning specified in the preamble hereto.

"<u>Anti-Terrorism Law</u>" means each of: (a) the Executive Order, (b) the Patriot Act, (c) the Money Laundering Control Act of 1986, 18 U.S.C. Sect. 1956, and (d) any other Law now or hereafter enacted to monitor, deter or otherwise prevent terrorism or the funding or support of terrorism.

"<u>Applicable Percentage</u>" means with respect to any Lender as of any date, the percentage (carried out to the ninth decimal place) of the Principal Amount of the Loan owed to such Lender at such time.

"<u>Applicable Rate</u>" means a rate per annum equal to twelve and one-half percent (12.50%) compounded monthly.

"<u>Approved Budget</u>" has the meaning specified in <u>Section</u> <u>8.2Section 8.2</u>.

"<u>Approved Core Asset Investment</u>" means each Core Asset Investment for which (a) Final Approval has been obtained pursuant to <u>Article</u> <u>3Article 3</u>, (b) an Owned DST has acquired the applicable Core Asset or 100% of the Equity Interests in an entity that owns the applicable Core Asset and (c) Parent has made the Required Equity Contribution on or prior to the Disbursement Date with respect to the applicable Core Asset Investment.

"<u>Asset Management Agreement</u>" means individually and collectively, as applicable, each management agreement entered into by an Owned DST (or a wholly owned Subsidiary thereof) with respect to the ownership, operation or administration of such Owned DST (or wholly owned Subsidiary) or Owned Core Asset.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section 13.6(a)</u>) or any other transferee or assignee of a Lender's interest approved by <u>the</u> Borrower <u>Representative</u> in accordance with <u>Section 13.6(a)</u>, and accepted by Administrative Agent, in substantially the form of <u>Exhibit "B</u>" attached hereto and made a part hereof or any other form approved by Administrative Agent.

"<u>Available Cash</u>" means as of any date of determination, the amounts on deposit in the Collection Account on such date.

"<u>Bankruptcy Action</u>" means with respect to any Person (a) such Person filing a voluntary petition under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, assignee, sequestrator (or similar official), liquidator, or examiner for such Person or any portion of the Collateral; (e) the filing of a petition against a Person seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Bankruptcy Code or any other applicable law, (f) under the provisions of any other law for the relief or aid of debtors, an action taken by any court of competent jurisdiction that allows such court to assume custody or Control of a Person or of the whole or any substantial part of its property or assets; (g) such Person making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due; or (h) to take action in furtherance of any of the foregoing.

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy", as now and hereinafter in effect, or any successor statute.

"<u>Bankruptcy Event</u>" means any of the following: if a receiver, liquidator or trustee shall be appointed for any Borrower Party or if any Borrower Party shall be adjudicated as bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, any Borrower Party, or if any proceeding for the dissolution, liquidation, insolvency, bankruptcy or wind-up (voluntary or involuntary) of any Borrower Party shall be instituted.

"<u>Borrower</u>" <u>has the meaning and</u> <u>"Borrowers" have the meanings</u> assigned to such <u>termterms</u> in the preamble hereto.

"<u>Borrower's Knowledge</u>" means the actual knowledge of <u>each</u>any Borrower Party after commercially reasonable investigation and inquiry.

"<u>Borrower Operating Agreement</u>" means that certain Amended and Restated Limited Liability Company Agreement of Borrower, dated as of the date hereof, by and between Parent, as the sole member, and Sponsor, as the manager, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Borrower Party</u>" means, individually and collectively, the Loan Parties, the <u>SponsorSponsors</u>, and the Guarantors.

"<u>Borrower Pledge</u> Agreement<u>Agreements</u>" means <u>(i) with respect to EquityCo,</u> that certain Pledge Agreement, dated as of the date hereof, pursuant to which Borrower<u>EquityCo</u> pledged all of its Equity Interests in each <u>EquityCo</u> Depositor (whether now existing or hereafter from time to time arising or acquired) in favor of Collateral Agent for the benefit of the Secured Parties all as set forth in <u>thesuch</u> Borrower Pledge Agreement, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

, (ii) with respect to EquityCo II, "Borrower Security Agreement" means that certain SecurityPledge Agreement, dated as of the date hereof, between the Borrower, on the one hand, and theApril 12, 2022, pursuant to which EquityCo II pledged all of its Equity Interests in each EquityCo II Depositor (whether now existing or hereafter from time to time arising or acquired) in favor of Collateral Agent, on the other hand for the benefit of the Secured Parties all as set forth in such Borrower Pledge Agreement, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time and (iii) any additional Pledge Agreement entered into by a Borrower for the benefit of the Secured Parties.

"<u>Borrower Representative</u>" has the meaning set forth in the preamble hereto.

"<u>Broker Dealer</u>" means (i) Emerson Equity LLC or (ii) another managing broker dealer hired by the Signatory Trustee/Manager and approved by Administrative Agent to syndicate the DST Interests (not to be unreasonably withheld, conditioned or delayed).

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the State of New York or the city in which the corporate trust office of the Administrative Agent is located.

"<u>Capital Lease Obligations</u>" means, with respect to any Person for any period, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as liabilities on a balance sheet of such Person under GAAP and the amount of which obligations shall be the capitalized amount thereof determined in accordance with GAAP.

"<u>Carve-Out Guaranty</u>" means that certain <u>Amended and Restated</u> Carve-Out Guaranty of even date herewith executed by <u>Guarantorthe</u> <u>Original Guarantors and New Guarantors</u> in favor of the Administrative Agent for the benefit of the Lenders, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time <u>and any additional Carve-Out Guaranties entered into by any Guarantor for the benefit of the Lenders</u>.<u> </u>

"<u>Cash Equivalents</u>" means (a) any readily-marketable securities (i) issued by, or directly, unconditionally and fully guaranteed or insured by the United States federal government or (ii) issued by any agency of the United States federal government the obligations of which are fully backed by the full faith and credit of the United States federal government, (b) any readily-marketable direct obligations issued by any other agency of the United States federal government, any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case having a rating of at least "<u>A-1</u>" from S&P or at least "<u>P-1</u>" from Moody's (c) any commercial paper rated at least "<u>A-1</u>" by S&P or "<u>P-1</u>" by Moody's and issued by any Person organized under the laws of any state of the United States, (d) any Dollar-denominated time deposit, insured certificate of deposit, overnight bank deposit or bankers' acceptance issued or accepted by (i) any Lender or (ii) any commercial bank that is (A) organized under the laws of the United States, any state thereof or the District of Columbia, (B) "adequately capitalized" (as defined in the regulations of its primary federal banking regulators) and (C) has Tier 1 capital (as defined in such regulations) in excess of $250,000,000, (e) shares of any United States money market fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clause (a)</u>, <u>(b)</u>, <u>(c)</u> or <u>(d)</u> above with maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000,000 and (iii) has obtained from either S&P or Moody's the highest rating obtainable for money market funds in the United States and (f) any other assets approved by Administrative Agent from time to time; <u>provided</u>, <u>however</u>, that the maturities of all obligations specified in any of <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above shall not exceed 365 days.

"<u>Cash Interest</u>" has the meaning specified in <u>Section</u> <u>4.4(a)Section 4.4(a)</u>.

"<u>Change of Control</u>" means an event or series of events by which, without the consent of the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Brian Nelson shall cease to own, legally and beneficially, 100% of the combined Equity Interests of <u>Original</u> Sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Original Sponsor shall cease to own, legally and beneficially, 100% of the combined Equity Interests of Original Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Original Parent shall cease to own, legally and beneficially, 100% of the combined Equity Interests of Borrower EquityCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower EquityCo shall cease to own, legally and beneficially, 100% of the combined Equity Interests of each any EquityCo Depositor;

() The Depositors shall, collectively, cease to own, legally and beneficially, 100% of the DST Interests in each DST of its DSTs except to the extent such DST Interests are redeemed by the DST pursuant to the terms, and subject to the conditions, set forth in the applicable DST Trust Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Brian Nelson shall cease to Control (directly or indirectly) any of Original Sponsor, Original Parent or BorrowerEquityCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tanya Muro and Blake Wettengel shall cease to own, legally and beneficially, 100% of the combined Equity Interests of New Sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) New Sponsor shall cease to own, legally and beneficially, 100% of the combined Equity Interests of New Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) New Parent shall cease to own, legally and beneficially, 100% of the combined Equity Interests of EquityCo II;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) EqutiyCo II shall cease to own, legally and beneficially, 100% of the combined Equity Interests of any EquityCo II Depositor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Tanya Muro and Blake Wettenegel shall cease to Control (directly or indirectly) any of New Sponsor, New Parent or EquityCo II;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gl) The Signatory Trustee/Manager of any EquityCo Owned DST shall be any Person other than a direct or indirect Subsidiary of Original Sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Signatory Trustee/Manager of any EquityCo II Owned DST shall be any Person other than a direct or indirect Subsidiary of New Sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hn) Any Borrower Party or any Owned DST (or its wholly owned Subsidiary) shall consolidate or merge with any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(io) Original Sponsor, New Sponsor or any other Borrower Party Disposes of any material portion of its assets other than in a Permitted DST Interests Redemption, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jp) Any Borrower Party or any Owned DST (or its wholly owned Subsidiary) adopts a plan relating to its liquidation or dissolution.

"<u>Claims</u>" has the meaning specified in Section 13.4(b).

"<u>Closing Advance</u>" has the meaning specified inSection2.3Section 2.3.

"<u>Closing Date</u>" means a date selected bythe Administrative Agentoccurring within three (3) Business Days following such date asall of theconditions precedent in Section 6.1 are satisfied or waived by the Administrative Agent May 27, 2021.

"<u>Code</u>" means the Internal Revenue Code of 1986, and the regulations promulgated thereunder, as amended and in effect.

"<u>Collateral</u>" means all assets securing or intending to secure the Obligations, including the collateral pledged pursuant to the Security Documents.

"<u>Collateral Agent</u>" has the meaning specified in the preamble to this Agreement.

"<u>Collection Account</u>" means the account of the Borrower maintained at the Deposit Bank and named the "Collection Account".

"<u>Collection Accounts</u>" means (i) with respect to EquityCo, the account of EquityCo maintained at the Deposit Bank and named the "Collection Account" and (ii) with respect to EquityCo II, the account of EquityCo II maintained at the Deposit Bank and named the "Collection Account".

"<u>Commitment Termination Event</u>" means a written notice from the Administrative Agent to the BorrowerRepresentative that the Administrative Agent has determined that any of the following events has occurred and is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the failure of the Loan Parties to draw at least Twenty-Five Million and 00/100 Dollars ($25,000,000) of Advances in the aggregate for the acquisition of Approved Core Assets prior to the first anniversary of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as of any date of determination (i) during the three hundredsixtyfivesixty-five (365) days prior to such date of determination, two (2) or more Approved Core Asset Investments were Uncured Delinquent Assets or (ii) the outstanding Advances made with respect to any group of Uncured Delinquent Assets constitute more thanthirtyfivethirty-five percent (35.00%) of all Advances (excluding Advances made on any Uncured Delinquent Asset) outstanding as of such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent provides written notice to the BorrowerRepresentative that the Administrative Agent has determined that an amendment to Section 1031 of the U.S. Internal Revenue Code or to any of the rules and regulations governing deferred like-kind exchanges has or could reasonably be expected to have a material adverse effect on the syndication of DST Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower <u>Representative</u>, after consultation with the Administrative Agent, provides written notice to the Administrative Agent that it has reasonably determined in good faith that an amendment to Section 1031 of the U.S. Internal Revenue Code or to any of the rules and regulations governing deferred like-kind exchanges has had a Material Adverse Effect on the Loan Parties' syndication of the DST Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the occurrence of a Key-Person<u>Key</u><u>Person</u> Event; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the occurrence and continuation of a Default.

For the avoidance of doubt, a Commitment Termination Event does not itself constitute an Event of Default and Available Cash shall during the period of any Commitment Termination Event continue to be applied as provided for in <u>Section</u><u>10.4Section 10.4</u> so long as no Event of Default has occurred and is continuing.

"<u>Compliance Certificate</u>" means a compliance certificate, in substantially the form of <u>Exhibit D</u> attached hereto and made a part hereof or any other form approved by Administrative Agent.

"<u>Contract</u>" means any and all contracts, instruments, agreements, leases, invoices, notes or undertaking.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any Contract to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" (including the correlative meanings, the terms, "controlling", "controlled by" and "under common control with") of any specified Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a such Person, whether through the ownership of voting securities, by agreement or otherwise.

"<u>Convertible Fund Loan</u>" means an unsecured loan made by the Fund to the<u>any</u> Sponsor to fund a Core Asset Equity Contribution that may be converted into DST Interests in such Owned DST only (i) at any time prior to the expiration of the Reinvestment Period for such Owned DST, after the accounts described in clauses (i) through (xi) of Section 10.4(c) are fully funded, and (ii) at any time after the expiration of the Reinvestment Period for such Owned DST, after the accounts described in clauses (i) through (vii) of Section 10.4(d) are fully funded.

"<u>Core Asset</u>" means a commercial Real Estate property that satisfies the Eligibility Criteria (except to the extent waived by the Administrative Agent).

"<u>Core Asset Cost Account</u>" means<u>(i) with respect to EquityCo,</u> the account, or sub-account of the Collection Account, of <u>the</u> <u>Borrower EquityCo maintained at the Deposit Bank and named the "Core Asset Cost Account" and (ii) with respect to EquityCo II, the account, or</u> <u>sub-account of the Collection Account, of EquityCo II</u> maintained at the Deposit Bank and named the "Core Asset Cost Account".

"<u>Core Asset Costs</u>" means, with respect to each Core Asset Investment and without duplication, (a) the cash purchase price actually paid by an Owned DST (or wholly owned Subsidiary) or other Borrower Party to acquire such Core Asset Investment, plus (b) third-party, out-of-pocket expenses incurred in connection with due diligence investigations and negotiations actually paid by such Owned DST (or wholly owned Subsidiary) or other Borrower Party in connection with such acquisition (including to the extent not added under clause (c) below, those amounts incurred in connection with any related Senior Mortgage Loan) plus (c) all closing costs (i.e. transfer taxes, deed stamps, recording costs, title premiums, loan brokerage commissions, real estate brokerage commissions, prorations and escrow fees) actually paid by such Owned DST (or wholly owned Subsidiary) or other Borrower Party in connection with such acquisition and any related Senior Mortgage Loan.

"<u>Core Asset Equity Contribution</u>" has the meaning described in the definition of "Required Equity Contribution".

"<u>Core Asset Investment</u>" means an acquisition by an Owned DST of an Approved Core Asset or 100% of the Equity Interests in an entity that owns an Approved Core Asset that is eligible for investment pursuant to the terms and conditions provided for in this Agreement and the other Loan Documents if such investment receives Final Approval.

"<u>Cured Delinquent Asset</u>" means a Delinquent Asset with respect to which aany Guarantor, or an Affiliate thereof (other than any Loan Party or other Owned DST (or wholly owned subsidiary thereof)), purchases all (but not less than all) of the DST Interests in the applicable DST owned by a Depositor pursuant to an Affiliate Purchase; provided that no more than two Delinquent Assets during any twelve (12) month period shall constitute Cured Delinquent Assets. For illustrative purposes, if a Guarantor, or an Affiliate thereof (other than any Loan Party or other Owned DST (or wholly owned subsidiary thereof)), purchases all (but not less than all) of the DST Interests in a Delinquent Asset in an Affiliate Purchase, the first two (in order of the time at which the Affiliate Purchase occurs) will constitute Cured Delinquent Assets and the third will constitute an Uncured Delinquent Asset.

"<u>DACA Agreement</u>" or "<u>DACA</u>" means, with respect to any Account established by <u>theany</u> Borrower, an agreement in form and substance satisfactory to the Collateral Agent establishing "control" (as defined in the UCC) of such Account by the Collateral Agent and whereby the bank maintaining such account agrees, upon the occurrence and during the continuance of an Event of Default, to comply only with the instructions originated by the Collateral Agent, without the further consent of <u>the</u>any Borrower or any other Loan Party all as set forth in such DACA Agreement, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Debtor Relief Laws</u>" means each of the (a) the Bankruptcy Code, and (b) all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"<u>Default</u>" means any event, act or condition described in <u>Section</u> <u>11.1Section 11.1</u> that is, with the giving of notice, lapse of time, or both, and would, unless cured or waived, constitute an Event of Default.

"<u>Default Rate</u>" means an interest rate equal seventeen percent (17.0%) per annum compounded monthly.

"<u>Defaulting Lender</u>" means any Lender that (a) has failed to fund any portion of an Advance when required hereunder, (b) has otherwise failed to pay over to Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

"<u>Delinquent Asset</u>" means, with respect to any Approved Core Asset Investment, the occurrence of any of (i) the failure of a Borrower to consummate the sale of at least ten percent (10%) of DST Interests in the applicable Owned DST as part of the syndication of the DST Interests in such Owned DST on or prior to ninety (90) days following the acquisition date of the applicable Owned Core Asset, (ii) failure of a Borrower to consummate the sale of at least fifty percent (50%) of the DST Interests in the applicable Owned DST as part of the syndication of the DST Interests in such Owned DST on or prior to one hundred and fifty (150) days following the acquisition date of the applicable Owned Core Asset, or (iii) the failure the applicable Owned DST to fully redeem the DST Interests issued by such Owned DST on or prior to two hundred and seventy (270)] days of the acquisition date of the applicable Owned Core Asset.

"<u>Deposit Bank</u>" means CitiBank, N.A. or such other bank or banks selected by Administrative Agent to maintain the Collection Account and all other Accounts. Administrative Agent may request that Borrower change the Deposit Bank from time to time.

"<u>Depositor</u>" means a Delaware limited liability company whether existing on the Closing Date or hereafter existing (i) that complies with the provisions of this Agreement applicable to a Depositor, (ii) has a Governing Document consisting of a Depositor Operating Agreement, (iii) 100% of the Equity Interests in such Depositor is owned by any Borrower, and (iv) such Depositor is controlled by <u>any</u> Borrower.

"<u>Depositor Operating Agreement</u>" means, with respect to each Depositor, such Depositor's limited liability company operating agreement in substantially the form of <u>Exhibit E</u> attached hereto.

"<u>Designated Person</u>" means any Person who (a) is named on the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control and/or any other similar lists maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control pursuant to authorizing statute, executive order or regulation, (b) (i) is a Person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of the Executive Order or any related legislation or any other similar executive order(s) or (ii) engages in any dealings or transactions prohibited by Section 2 of the Executive Order or is otherwise associated with any such Person in any manner violative of Section 2 of the Executive Order or (c) (i) is an agency of the government of a country, (ii) an organization controlled by a country, or (iii) a Person resident in a country that is subject to a sanctions program identified on the list maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control, or as otherwise published from time to time, as such program may be applicable to such agency, organization or Person.

"<u>Direct Sale Assets</u>" has the meaning specified in <u>Section 8.15(b)(i)</u>.<u> </u>

"<u>Disability</u>" means with respect to any Person, (a) any illness or physical or mental disability or incapacity that substantially prevents such Person from performing the functions and services currently being performed by such Person with respect to the Versity DST Business that has continued for at least one hundred eighty (180) days in any three hundred and sixty (360) day period or (b) such Person is eligible to receive long-term disability benefits under any plan or policy available to him (including a state-sponsored program). Any dispute as to whether or not such Person is disabled within the meaning of the preceding sentence shall be resolved by a qualified, independent physician reasonably satisfactory to <u>the applicable</u> Borrower and Administrative Agent, and the determination of such physician shall be final and binding upon both <u>the applicable</u> Borrower and Administrative Agent. All fees and expenses of any such physician shall be borne solely by the <u>applicable</u> Borrower.

"<u>Disbursement</u>" means a disbursement from the Core Asset Costs Account pursuant to <u>Section</u> <u>2.4(a)Section 2.4(a)</u>.

"<u>Disbursement Date</u>" means the date a Disbursement is made.

"<u>Disposition</u>" or "<u>Dispose</u>" means, with respect to any Person, the sale, lease, sale and leaseback, assignment, conveyance, transfer, division or other voluntary disposition (whether in one transaction or series of transactions) of any property (including, without limitation, any Equity Interests) by such Person (or the granting of any option or other right to do any of the foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith, and including any Expropriation of any property of such Person. For the avoidance of doubt, the entry by any DST into any Master Lease, tenant lease or license agreement for all or any portion of any Core Asset or the Expropriation of all or any portion of any Core Asset shall not constitute a "Disposition" hereunder.

"<u>Division/Series Transaction</u>" means, with respect to any Person that is a limited liability company organized under the laws of the State of Delaware, that any such Person (a) divides into two or more Persons (whether or not the original Person or Subsidiary thereof survives such division) or (b) creates, or reorganizes into, one or more series, in each case, as contemplated under the laws of the State of Delaware.

"<u>Dollar</u>" and "$" mean dollars in lawful money of the United States.

"<u>Draw Fee</u>" means, with respect to each Approved Core Asset Investment, two percent (2.0%) of the aggregate Advance Amount for such Approved Core Asset Investment, which shall be deemed earned on the date of the acquisition of the applicable Approved Core Asset; fifty percent (50%) of such Draw Fee shall be paid on such date and the other fifty percent (50%) of such Draw Fee shall be paid as provided for in <u>Section 10.4</u>.<u> </u>

"<u>Draw Fee Equity Contribution</u>" has the meaning described in the definition of "Required Equity Contribution".

"<u>DST</u>" means a Delaware Statutory Trust whether existing on the Closing Date or hereafter existing (i) that is subject to a DST Trust Agreement, (ii) with respect to which all of its DST Interests will be held by a Depositor on the date the DST acquires a Core Asset and (iii) with respect to which the signatory trustee and sole manager is a direct or indirect Subsidiary of a Sponsor (each a "<u>Signatory Trustee/Manager</u>").

"<u>DST Interests</u>" means beneficial ownership interests in a DST that owns a Core Asset pursuant to the terms of the applicable DST Trust Agreement.

"<u>DST Interests Syndication Costs</u>" means all sales commissions actually paid by a Loan Party or Owned DST in connection with the syndication or sale of DST Interests, which shall not exceed the amounts set forth on <u>Schedule A</u> attached hereto with respect to any Owned DST.

"<u>DST Reserve Account</u>" means a reserve account of the applicable Owned DST that is separate from the reserve accounts established by the applicable Owned DST pursuant to its Senior Mortgage Loan Documents.

"<u>DST Trust Agreement</u>" means, with respect to each DST, such DST's trust agreement in substantially the form of <u>Exhibit F</u> attached hereto.

"<u>Eligibility Criteria</u>" has the meaning specified in <u>Section</u> <u>3.4(c)Section 3.4(c)</u>.

"<u>Eligible Account</u>" means an identifiable account separate from all other funds held by the holding institution that is either (i) an account or accounts (or subaccounts thereof) maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution, or (ii) a segregated trust account or accounts (or subaccounts thereof) maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in any case a combined capital and surplus of at least Seventy Five Million and No/100 Dollars ($75,000,000.00) and subject to supervision or examination by federal and state authorities. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument.

"<u>Eligible Assignee</u>" means any Person (other than a natural person) that is not a Designated Person; provided that notwithstanding the forgoing, "Eligible Assignee" shall not include Borrower or any of Borrower's Affiliates.

"<u>Eligible Core Asset</u>" means, as of the date of determination, those Core Assets that satisfy all of the conditions set forth in <u>Section</u> <u>3.4Section 3.4</u>.

"<u>Eligible Institution</u>" means a depository institution or trust company the short term unsecured debt obligations or commercial paper of which are rated at least A-1+ by S&P, P-1 by Moody's, and F-1+ by Fitch in the case of accounts in which funds are held for thirty (30) days or less, or, in the case of letters of credit or accounts in which funds are held for more than thirty (30) days, the long term unsecured debt obligations of which are rated at least "A" by Fitch and S&P and "A2" by Moody's.

"<u>Eligible Participant</u>" means any Person (other than a natural person) that is not a Designated Person; provided that notwithstanding the foregoing, "Eligible Participant" shall not include Borrower or any of Borrower's Affiliates.

"<u>Environmental Laws</u>" means any and all Laws relating to the creation or discharge of hazardous waste, air pollutants, water pollutants or process wastewater or otherwise relating to the environmental condition of any property or Hazardous Materials including the Federal Toxic Substances Control Act ("TCSA"), the Federal Solid Waste Disposal Act, the Federal Clean Air Act, the Federal Water Pollution Control Act ("CWA"), the Federal Resource and Conservation and Recovery Act of 1976 ("RCRA") or the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), the Hazardous Materials Transportation Act, the Solid Waste Management Act (" SWMA") and the regulations of the Federal Environmental Protection Agency now or at any time hereafter in effect.

"<u>Environmental Liability</u>" means any liability, obligation, damage, loss, claim, action, suit, judgment, order, fine, penalty, fee, expense, or cost, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of <u>any</u> Borrower or any of its Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the presence, generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any Environmental Law or Hazardous Materials.

<u>"EquityCo" has the meaning specified in the preamble hereto.</u>

<u>"EquityCo II" has the meaning specified in the preamble hereto.</u>

<u>"EquityCo Depositor" means, any Depositor owned directly or indirectly by EquityCo.</u>

<u>"EquityCo II Depositor" means, any Depositor owned directly or indirectly by EquityCo II.</u>

<u>"EquityCo Owned DST" means an Owned DST owned directory or indirectly by EquityCo.</u>

<u>"EquityCo II Owned DST" means an Owned DST owned directory or indirectly by EquityCo II.</u><u> </u>

"<u>Equity Interests</u>" means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants or options for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, membership or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Event of Default</u>" has the meaning specified in <u>Section</u> <u>11.1Section 11.1</u>.

"<u>Excluded Amounts</u>" means Required Equity Contributions, DST Interests Syndication Costs, Loan Proceeds, and amounts distributed to the<u>any</u> Borrower pursuant to <u>Section</u> <u>10.4Section</u> <u>10.4</u>.

"<u>Excluded Taxes</u>" means, with respect to the Administrative Agent or any Lender or any other recipient of any payment to be made by or on account of any obligation of any Loan Party or any Owned DST hereunder, (a) Taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is located, or, in the case of any Lender that is a bank, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States or any similar Tax imposed by any other jurisdiction in which any Loan Party or any Owned DST is located (c) in the case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or, if it is a bank, designates a new lending office) or is attributable to such Foreign Lender's failure or inability (other than as a result of a Change in Law after such Foreign Lender becomes a party hereto) to comply with Section 4.1, except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (if it is a bank) or assignment, to receive additional amounts from the Loan Parties with respect to such withholding tax pursuant to Section 4.1, (a) and (d) any U.S. federal withholding taxes imposed on amounts payable by <u>any</u> Borrower pursuant to FATCA.

"<u>Exclusivity and ROFO Agreement</u>" means that certain <u>Amended and Restated</u> Exclusivity and Right of First Offer Agreement <u>of even date herewith,</u> <u>dated as of April 12, 2022,</u> executed by and among Crayhill Capital Management LP, a Delaware limited partnership, Administrative Agent, <u>and each of the Borrower</u> <u>Parties.EquityCo, EquityCo II, Original Parent, New Parent, Brian</u> <u>Nelson, Tanya Muro, Blake Wettengel, New Sponsor and Original Sponsor in each case</u> <u>as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.</u>

"<u>Executive Order</u>" means Executive Order No. 13224 on Terrorist Financings: - Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support

Terrorism issued on 23rd September, 2001, as amended by Order No. 132684, as so amended.

"<u>Expropriation</u>" means any compulsory transfer or taking by condemnation, eminent domain or exercise of a similar power, or transfer under threat of such compulsory transfer or taking, of any part of the Owned Core Assets, by any agency, department, authority, commission, board, instrumentality or political subdivision or another Governmental Authority having jurisdiction.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not more onerous to comply with), any regulations or official interpolations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code, any applicable intergovernmental agreements with respect to the implementation of the foregoing, and non-U.S. implementing laws, regulations and official administrative guidance to the extent implementing such intergovernmental agreements.

"<u>Final Approval</u>" has the meaning specified in <u>Section</u> <u>3.3Section 3.3</u>.

"<u>Final Investment Memo</u>" has the meaning specified in <u>Section</u> <u>3.3Section 3.3</u>.<u> </u>

<u>"First Amendment"</u> <u>means that certain</u> <u>First Amendment,</u> <u>dated as of</u> <u>April 12, 2022, among EquityCo, EquityCo II, Parents, Sponsors, Guarantors, Administrative Agent, Collateral Agent and Lender.</u>

<u>"First Amendment Effective Date" means April 12, 2022.</u>

"<u>First Extended Maturity Date</u>" has the meaning specified in the definition of Scheduled Maturity Date.

"<u>First Extension Option</u>" has the meaning specified in the definition of <u>Scheduled Maturity</u> <u>DateReinvestment Period</u>.

"<u>First Extension Notice</u>" has the meaning specified in the definition of <u>Scheduled Maturity</u> <u>DateReinvestment Period</u>.

"<u>Fiscal Quarter</u>" means each of the calendar quarters during any Fiscal Year, except that the first Fiscal Quarter following the Closing Date shall commence on the Closing Date and end on June 30, 2021 and the last Fiscal Quarter during the term of this Agreement shall begin on the first day following the end of the immediately preceding Fiscal Quarter and end on the Maturity Date.

"<u>Fiscal Year</u>" means any period of twelve (12) consecutive months ending on December 31st of any calendar year, except that the first Fiscal Year following the Closing Date shall commence on the Closing Date and end on December 31, 2021 and the last Fiscal Year during the term of this Agreement shall begin on the first day following the end of the immediately preceding Fiscal Year and end on the Maturity Date.

"<u>Fitch</u>" means Fitch, Inc.

"<u>Foreign Lender</u>" means any Lender that is organized under the laws of a jurisdiction other than the United States for federal income tax purposes. For purposes of this definition, the United States shall be deemed to include each State thereof and the District of Columbia.

"<u>Fund</u>" means an investment fund or Person that makes one or more unsecured loans to <u>any</u> Sponsor, for use by <u>any</u> Sponsor, among other uses, to acquire Owned Core Assets.

"<u>Funding Request</u>" has the meaning specified in <u>Section</u> <u>2.2(b)Section 2.2(b)</u>.

"<u>GAAP"</u> means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

"<u>Governing Documents</u>" means (a) (i) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (ii) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement, and (iii) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture, trust agreement or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity; (b) any certificate of designation or instrument relating to the rights of holders (including preferred shareholders) of Equity Interests in such entity; and (c) any shareholder rights agreement, voting trusts or other similar agreement.

"<u>Governmental Authority</u>" means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Greenlight Approval</u>" has the meaning specified in <u>Section</u> <u>3.1Section 3.1</u>.

"<u>Gross Receipts</u>" shall mean, without duplication, all amounts received by any Borrower Party other than Excluded Amounts derived from any source with respect to the Versity DST Business whatsoever including (a) all distributions from an Owned DST to a Borrower Party arising from the ownership and operation of an Owned Core Asset, (b) all amounts received by any Borrower Party or Owned DST (including any sponsor fees) with respect to the sale or syndication of DST Interests in an Owned DST, (c) all amounts received by any Borrower Party or Owned DST (or any wholly owned Subsidiary of an Owned DST) with respect to the Disposition of an Owned Core Asset or the Equity Interests in a Subsidiary of an Owned DST (net of third-party broker commissions paid or payable to any Person other than a Borrower Party or Owned DST or their respective Affiliates in connection with such Disposition), (d) any broker commissions or other fees or concessions (including any sponsor fees) paid or payable or provided to any Borrower Party with respect to the acquisition or Disposition of an Owned Core Asset or the Equity Interests in a Subsidiary of an Owned DST, (e) all insurance proceeds, condemnation awards, rents, leasehold payments and similar payments received in connection with any Owned Core Asset and (f) all amounts paid by any Property Manager, asset manager under an Asset Management Agreement or lessee under a Master Lease to a Loan Party. For the avoidance of doubt, in no event shall Gross Receipts include any funds pledged to any Senior Mortgage Lender under the applicable Senior Mortgage Loan Documents or payable to any DST investor other than Depositor pursuant to the applicable DST Trust Agreement, any reserves which are required to be maintained pursuant to any Senior Mortgage Loan Documents or any DST Trust Agreement or any income of any Owned DST (or wholly owned Subsidiary) which is applied to pay the operating expenses of such Owned DST and the applicable Owned Core Asset or is otherwise applied in satisfaction of the Owned DST's (or wholly owned Subsidiary's) liabilities.

"<u>Guarantee</u>" or "<u>Guaranty</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "Guarantee" as a verb has a corresponding meaning.

"Guarantor" means, individually and collectively, the Parent, the Sponsor, and Brian Nelson Original Guarantors and the New Guarantors.

"<u>Hazardous Materials</u>" means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants, pollutants or words of similar meaning or regulatory effect under any present or future Hazardous Materials Laws, the presence of which on, in or under any Owned Core Asset is prohibited or requires investigation or remediation under Hazardous Materials Law, including petroleum and petroleum by-products, asbestos and asbestos-containing materials, toxic mold, polychlorinated biphenyls, lead and radon, and compounds containing them (including gasoline, diesel fuel, oil and lead-based paint), pesticides and radioactive materials, flammables and explosives and compounds containing them, but excluding those substances commonly present on, or used in the operation and maintenance of properties, of kind and nature similar to those of any Owned Core Asset that are present or are used at, the Owned Core Asset in compliance with all Hazardous Materials Laws.

"<u>Hazardous Materials Laws</u>" means any and all present and future federal, state and local laws, statutes, ordinances, orders, rules, regulations and the like, as well as common law, any judicial or administrative orders, decrees or judgments thereunder, and any permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to (i) the pollution, protection or cleanup of the environment, (ii) the impact of Hazardous Materials on property, health or safety, (iii) the use or Release of Hazardous Materials, (iv) occupational safety and health, industrial hygiene or the protection of human, plant or animal health or welfare or (v) the liability for or costs of other actual or threatened danger to health or the environment. The term "Hazardous Materials Law" includes, but is not limited to, the following statutes, as amended, any successors thereto, and any regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation and Recovery Act (including Subtitle I relating to underground storage tanks); the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act. The term "Hazardous Materials Law" also includes, but is not limited to, any present and future federal state and local laws, statutes ordinances, rules, regulations and the like, as well as common law, conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of a property; or requiring notification or disclosure of Releases of Hazardous Materials or other environmental conditions of a property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property.

"<u>Indebtedness</u>" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers' acceptances, bank guaranties, surety bonds and similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) net obligations of such Person under any rate protection agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the aggregate amount of all Capital Lease Obligations of such Person which, in accordance with GAAP, is required to be shown on the balance sheet of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Guarantees of such Person in respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under any rate protection agreement on any date shall be deemed to be the swap termination value thereof determined at "mid-market" as of such date. Indebtedness shall not include any trade account payables arising from the acquisition of goods, supplies, merchandise or services, paid within 60 days of the incurrence of such trade account payables, each in the ordinary course of such Person's business or any obligations to tenants under leases or Master Leases.

"<u>Independent Accountant</u>" means any firm of nationally recognized, certified public accountants which is independent and which is selected by Borrower <u>Representative</u> and acceptable to Administrative Agent.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by any Loan Party or any Owned DST under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in <u>Section 13.4(b)</u>.<u> </u>

"<u>Initial Investment Memo</u>" means an initial investment memorandum prepared by <u>any</u> Borrower in connection with a Core Asset Investment containing the information on <u>Schedule</u>___ 3.3<u>3.3</u> attached hereto.

"<u>Initial Scheduled Maturity Date</u>" has the meaning specified in the definition of "Scheduled Maturity Date".

"<u>Inspection</u>" has the meaning specified in <u>Section 8.3Section 8.3</u>.

"<u>Interest Period</u>" means, with respect to any Payment Date, (i) initially, the period commencing on the Closing Date and ending on the last day of the calendar month during which the Closing Date occurs, (ii) thereafter until the Maturity Date, each period commencing on (and including) the first (1st) day of the preceding calendar month and terminating on (and including) the last day of the preceding calendar month and (iii) that occurs on the Maturity Date, commencing the first (1<sup>st</sup>) day of the calendar month in which the Maturity Date occurs and terminating on the Maturity Date.

"<u>Interest Shortfall Amount</u>" means, as of the Business Day immediately prior to any date of determination, the positive excess, if any, of Cash Interest payable on the Payment Date immediately following such date of determination over the amount on deposit in the Collection Account on such date of determination (without giving effect to any Draw Fee Equity Contribution then on deposit in the Collection Account that has not been disbursed to the Agent) that will be available for payment of Cash Interest pursuant to <u>Section 10.4(c)(ii)</u> and <u>Section 10.4(d)(ii)</u>.<u> </u>

"<u>Interest Shortfall Equity Contribution</u>" has the meaning specified in the definition of "Required Equity Contribution".

"<u>Investment</u>" means, with respect to any Person, all direct or indirect investments by that Person in other Persons (including Affiliates) in the forms of loans (including guarantees or other obligations), advances, extensions of credit or capital contributions, purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. The acquisition by a Loan Party or Owned DST of a Person that holds an Investment in any third Person shall be deemed to be an Investment by the Loan Party or Owned DST in that third Person in an amount equal to the fair market value of the Investment held by the acquired Person in that third Person.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Junior Capital</u>" means, with respect to each Approved Core Asset Investment, an amount equal to the difference between (a) the total Core Asset Costs of such Approved Core Asset Investment, minus (b) the amount of the Senior Mortgage Loan entered into by the applicable Owned DST (or its wholly owned Subsidiary) in connection with the acquisition of such Approved Core Asset Investment.

"<u>Key Person</u>" means, individually and collectively, <u>Tanya Muro,</u> Blake Wettengel and Brian Nelson.

"<u>Key Person Event</u>" means at any time there are Obligations outstanding, the death or Disability of any Key Person or any Key Person ceases to dedicate substantially all of his or her business time or attention to the Versity DST Business.

"<u>Laws</u>" means, collectively, each international, foreign, Federal, state, provincial, territorial, municipal and local statute, treaty, rule, guideline, regulation, ordinance, code and administrative or judicial precedent or authority, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and each applicable administrative order, directive, decree, policies, directed duty, request, license, authorization and permit of, and agreement with, any Governmental Authority, in each case whether or not having the force of law.

"<u>Lender</u>" means each Person that is an Eligible Assignee and that with the Administrative Agent's consent becomes a party to this Agreement as a lender by entering into a Lender Joinder Agreement.

"<u>Lender Joinder Agreement</u>" means a lender joinder agreement, in substantially the form of <u>Exhibit H</u> attached hereto and made a part hereof or any other form approved by Administrative Agent.

"<u>Lien</u>" means any recorded or unrecorded, express or implied, written or oral mortgage, pledge, deed of trust, hypothecation, assignment, deposit arrangement, encumbrance, Preemptive Purchase or Lease Rights, lien (statutory or other), charge, preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale, Capital Lease Obligation, Synthetic Lease Obligation or other title retention agreement, any covenant, condition, restriction, lease, easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Loan</u>" means any extension of credit by a Lender <u>to Borrower</u> under this Agreement or any other Loan Document.

"<u>Loan Amount</u>" means the loan to be advanced pursuant to this Agreement not to exceed at any one time outstanding a principal amount of Fifty Million and 00/100 Dollars ($50,000,000) not including PIK Interest, as may be increased by the Administrative Agent in accordance with <u>Section 2.5</u> to an amount not to exceed at any one time outstanding of Two Hundred Million and 00/100 Dollars ($200,000,000), not including PIK Interest.

"<u>Loan Documents</u>" means, collectively, this Agreement, the Note, the Security Documents, the DACA <u>Agreement(s)Agreements</u>, the Carve-Out Guaranty, the Exclusivity and Right of First Offer <u>AgreementAgreements</u> and all other documents, instruments, letters and agreements executed or delivered in connection with the Loan or this Agreement<u>, in each case as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from</u> <u>time to time</u>.<u> </u>

"<u>Loan Parties</u>" means, collectively, the <u>Parent, BorrowerParents, the Borrowers</u> and each Depositor.

"<u>Loan Proceeds</u>" means the aggregate Advances made by the Lenders <u>to the Borrower</u> pursuant to the Loan Documents.

"<u>Manager</u>" means <u>the</u>a manager of the <u>applicable</u> Borrower and each Depositor under their respective Governing Documents. The initial Manager <u>of EquityCo</u> is the <u>Original</u> Sponsor. <u>The initial Manager of EquityCo II is the New Sponsor.</u> 

"<u>Manager Expenses</u>" means (i) the operating, administrative and overhead expenses of the <u>applicable</u> Manager (but excluding legal, accounting, financial reporting, insurance and other operating and administrative expenses of Borrower<u>the Borrowers</u>), (ii) any Core Asset Costs incurred prior to Greenlight Approval of a potential Core Asset Investment, and (iii) any Core Asset Costs in connection with a potential Core Asset Investment that does not receive Final Approval.

"<u>Master Lease</u>" means a lease of all or any portion of any Owned Core Asset by and between the applicable Owned DST (or wholly owned Subsidiary thereof that owns such Owned Core Asset) as lessor and an Affiliate of <u>the applicable</u> Sponsor as lessee, pursuant to which the lessee has the right to sublease the premises that is approved by Administrative Agent at the time of Final Approval which Master Lease during any time that Depositor owns any DST Interests in such Owned DST, shall not be amended, modified or any of its terms waived (other than in accordance with the express terms thereof) unless such amendment, modification or waiver is approved by Administrative Agent.

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business or financial condition or assets of <u>any</u> Borrower Party or any Owned DST (or its wholly owned Subsidiary); (b) a material impairment of the legality, validity or binding effect against any Borrower Party or any Owned DST (or its wholly owned Subsidiary) of any Loan Document to which it is a party or (c) a material impairment of the validity, perfection or priority of the security interest created pursuant to the Security Documents.

"<u>Material Agreements</u>" means all material contracts, purchase and sale agreements, instruments and other agreements under which <u>any</u> Borrower, any Depositor or any Owned DST (or its wholly owned Subsidiary) has a potential outstanding liability in excess of $100,000 under any one of the foregoing or under any category of the foregoing (including any Senior Mortgage Loan Documents).

"<u>Maturity Date</u>" means the last date on which the Principal Amount of the Loan becomes due and payable as herein provided, whether at the Scheduled Maturity Date or by declaration of acceleration, call for redemption, extension or otherwise.

"<u>Maximum Commitments</u>" means (a) as to any Lender, the aggregate commitment of such Lender to make its ratable portion of the Loan and (b) as to all Lenders, the aggregate commitment of all Lenders to make the Loan which aggregate commitment shall be $50,000,000, as may be increased in an aggregate amount of up to $200,000,000 in the event Lenders elect to increase the Loan Amount in accordance with <u>Section 2.5Section 2.5</u>.

"<u>Maximum Rate</u>" has the meaning specified in <u>Section 13.8Section 13.8</u>.

"<u>Minimum Utilization Amount</u>" means, as of any date of determination, fifty percent (50%) of the lesser of (i) the Maximum Commitments with respect to all Lenders as of such date, and (ii) fifty million dollars ($50,000,000).

"<u>Moody's</u>" means Moody's Investors Service, Inc.

<u>"New Guarantors" means, individually and collectively, the New Parent, the New Sponsor, Tanya Muro and Blake Wettengel.</u>

<u>"New Parent" means, Versity EquityCo Parent II, LLC, a Delaware limited liability company.</u>

<u>"New Sponsor" means, Versity Invest, LLC, a Delaware limited liability company.</u>

"<u>Note</u>" means a promissory note made by Borrower(s) in favor of a Lender evidencing such Lender's Loan, substantially in the form of <u>Exhibit A</u> attached hereto and made a part hereof, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Obligations</u>" means any and all present and future Indebtedness (principal, interest, fees, costs and expenses, indemnities, attorneys' fees and other amounts), liabilities and obligations (including, without limitation, guaranty obligations, indemnity obligations and reimbursement obligations) of the Loan Parties to the Administrative Agent, Collateral Agent, any Lender and/or any indemnified person evidenced by or arising under or in respect of this Agreement, any Note and/or any of the other Loan Documents, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees, costs, expenses and indemnities that accrue after the commencement by or against any Loan Party or any Subsidiary thereof of any proceeding under Debtor Relief Laws naming such Person as the debtor in such proceeding regardless of whether any such amounts are allowed claims in such proceeding.

"<u>Operating Account</u>" means<u>, (i) with respect to EquityCo,</u> the account, or sub-account of the Collection Account, of <u>the BorrowerEquityCo maintained at the Deposit Bank and named the</u> <u>"Operating Account" and (ii) with respect to EquityCo II, the account, or sub-account of the Collection Account, of EquityCo II</u> maintained at the Deposit Bank and named the "Operating Account".

"<u>Operating Costs Stated Amount</u>" means, with respect to any period, the Operating Expenses expected by the <u>BorrowerBorrowers</u> and the Depositors, on a combined basis, and approved by the Administrative Agent, to be due or past due in such period with respect to the operation of the Versity DST Business.

"<u>Operating Expenses</u>" means all out-of-pocket third party operating expenses incurred by the Loan Parties and the Owned DSTs (to the extent, in the case of the Owned DSTs, not paid by the Owned DST from its own cash resources) in the ordinary course of the Versity DST Business, including (i) administration, legal, auditing, consulting, financing and accounting fees and expenses and any other operating expenses; (ii) insurance fees and expenses; and (iii) expenses associated with the financial statements, Tax returns and Internal Revenue Service Schedule K-1s; (iv) extraordinary expenses, including litigation costs (expenses and damages); (v) DST Interests Syndication Costs (to the extent not netted out of Gross Receipts), (vi) expenses associated with holding, maintenance support and Disposition of Owned Core Assets, (vii) any Taxes, fees or other governmental charges levied against such parties and (viii) the property management and asset management fees due under any Asset Management Agreement or Property Management Agreement (other than Affiliate Management Fees); provided that notwithstanding the foregoing, "Operating Expenses" shall not include (A) Core Asset Costs, (B) Manager Expenses, (C) any Affiliate Management Fees, or (D) the administrative, overhead, operating or other costs of the <u>ParentParents</u> or the <u>SponsorSponsors</u>.

"<u>Operating Expense Equity Contribution</u>" has the meaning specified in the definition of "Required Equity Contribution".

<u>"Original Guarantors" means individually and collectively, the Original Parent, the Original Sponsor, and Brian Nelson</u>.<u> </u>

<u>"Original Parent" means Versity EquityCo Parent, LLC, a Delaware limited liability company.</u>

<u>"Original Sponsor" means Versity Investments, LLC, a Delaware limited liability company</u>.<u> </u>

"<u>Other Taxes</u>" means all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

"<u>Outside Sale Date</u>" has the meaning specified in <u>Section 8.15(b)(i)</u>.<u> </u>

"<u>Owned Core Asset</u>" means a Core Asset owned by an Owned DST (or its wholly owned Subsidiary). For clarity, at such time as the applicable DST is no longer an Owned DST, the applicable Core Asset will no longer be an Owned Core Asset.

"<u>Owned DST</u>" means a DST with respect to which a Depositor owns any DST Interests. An Owned DST shall continue to be an Owned DST until such time as all of the DST Interests issued by such Owned DST are redeemed and thereafter until all Gross Receipts that are derived from the ownership, operation, or disposition of the applicable Owned Core Asset and the sale or syndication of DST Interests on or prior to such time are deposited into thea Collection Account.

"<u>Owned DST Reserve Equity Contribution</u>" has the meaning described in the definition of "Required Equity Contribution".

"<u>Parent" means Versity Equity Co Parent, LLC, a Delaware limited liability company.</u> <u>"Parents" means Original Parent and New Parent.</u>

"<u>Parent Pledge Agreement</u>" means <u>(i)</u> that certain Pledge Agreement, dated as of the date hereof, pursuant to which <u>Original</u> Parent pledged all of its Equity Interests in Borrower<u>EquityCo</u> in favor of Collateral Agent for the benefit of the Secured Parties all as set forth in <u>thesuch</u> Parent Pledge Agreement, as the same may be amended, restated, amended and restated<u>, replaced, supplemented or otherwise modified from time to time and (ii) that certain Pledge Agreement, dated as of April 12, 2022, pursuant to which New Parent pledged all of its Equity Interests in EquityCo II in favor of Collateral Agent for the benefit of the Secured Parties all as set forth in such Parent Pledge Agreement, as the same may be amended, restated, amended and restated,</u> replaced, supplemented or otherwise modified from time to time.

"<u>Participant</u>" has the meaning specified in <u>Section 13.6(d)</u>.<u> </u>

"<u>Patriot Act</u>" means the USA PATRIOT Improvement and Reauthorization Act of 2005, Pub. L. 109-77, signed into law March 9, 2006, as amended.

"<u>Payment Date</u>" means (a) the fifth Business Day of each calendar month and (b) the Maturity Date.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

"<u>Permitted DST Interests Redemption</u>" means the redemption of DST Interests by an Owned DST which complies with the provisions of <u>Section 9.3(a)Section 9.3(a)</u>.

"<u>Permitted Exceptions</u>" means (i) all items shown in Schedule B Part 1 of the applicable Title Policy that have been approved by the Collateral Agent; (ii) Liens granted to Collateral Agent for the benefit of the Secured Parties to secure the Obligations; (iii) Taxes for the current or future Tax year not yet delinquent; (iv) the Senior Mortgage Loan Documents; (v) the applicable Master Lease and (vi) all other exceptions approved in writing by the Collateral Agent.

"<u>Permitted Indebtedness</u>" has the meaning specified in <u>Section 9.1Section 9.1</u>.

"<u>Permitted Investments</u>" has the meaning specified in <u>Section 9.4Section 9.4</u>.

"<u>Permitted Liens</u>" has the meaning specified in <u>Section 9.2Section 9.2</u>.

"<u>Permitted Restricted Payments</u>" has the meaning provided for in <u>Section 9.7Section 9.7</u>.

"<u>Permitted Transferees</u>" means an Affiliate of a Guarantor or a Sponsor if consented to by the Administrative Agent.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>PIK Interest</u>" has the meaning specified in <u>Section 4.4(a)Section 4.4(a)</u>.

"<u>Pledge Agreements</u>" means, collectively, the Borrower Pledge <u>AgreementAgreements</u> and the Parent Pledge <u>AgreementAgreements</u>.

"<u>Pledged Equity Interests</u>" means (i) 100% of the Equity Interest in each Depositor and (ii) 100% of the Equity Interest in<u>each</u> Borrower.

"<u>Preemptive Purchase or Lease Right</u>" means any option, put, right of first or last refusal, right of first or last offer, right of first or last negotiation, or any other preemptive rights to purchase, sell or lease any Core Asset.

"<u>Preferred Return</u>" means a yield equal to twelve and one-half percent (12.50%) per annum on all Required Equity Contributions Earning Preferred Return actually contributed by thea Parent to <u>the applicable</u> Borrower.

"<u>Principal Amount</u>" means, (i) when used with respect to the Loan, at any time, the then outstanding principal amount of the Loan (including any PIK Interest accrued and unpaid thereon); provided that in <u>Section 4.4</u> the term Principal Amount shall be deemed to be the greater of (x) the then outstanding principal amount of the Loan (not including any PIK Interest accrued and unpaid thereon) and (y) the Minimum Utilization Amount, and (ii) when used with respect to any other Indebtedness, the then outstanding principal amount or accreted value of such Indebtedness, as the same may be increased or decreased, as a result of prepayment or otherwise, from time to time, including interest that accrues and remains unpaid in accordance with this Agreement or any agreement governing such other Indebtedness.

"<u>Property Manager</u>" means, individually and collectively, as applicable, Book and Ladder LLC, and such other property managers as <u>the applicable</u> Borrower selects from time to time and as are reasonably approved by Administrative Agent.

"<u>Property Management Agreement</u>" means individually and collectively, as applicable, each Property Management Agreement or Asset and Property Management Agreement entered into with Property Manager for each Approved Core Asset Investment.

"<u>Purchase Agreement</u>" means any purchase and sale agreement or other agreement entered into by thea Sponsor or its Affiliate or an Owned DST (or its wholly owned Subsidiary), as purchaser, and a Seller, as seller, for the purchase and sale of an Approved Core Asset or 100% of the Equity Interests in an entity that owns an Approved Core Asset; provided that if <u>such</u> Sponsor or its Affiliate is the buyer thereunder, then such Purchase Agreement will be assigned to an Owned DST (or its wholly owned Subsidiary) as buyer thereunder, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Real Estate</u>" means all land, together with the buildings, structures, parking areas, and other improvements thereon, including all easements, rights-of-way, and similar rights appurtenant thereto.

"<u>Redemption Price</u>" means, for a DST Interest, the price at which such DST Interest is offered to investors that are not Affiliates of <u>the</u>a Sponsor in the Final Investment Memo for such DST Interest.

"<u>Reinvestment Account</u>" means <u>(i) with respect to EquityCo,</u> the account, or sub-account of the Collection Account, maintained by Borrower<u>EquityCo at the Deposit Bank and named the "Reinvestment Account" and (ii) with respect to EquityCo II, the account, or sub-account of the Collection Account, maintained by EquityCo II</u> at the Deposit Bank and named the "Reinvestment Account".

"<u>Reinvestment Account Cap</u>" means Five Million Dollars ($5,000,000).

"<u>Reinvestment Period</u>" means the period commencing on the Closing Date and expiring on <u>the earlier to occur of (a) the later to occur of (i)</u> May 27, 2024; (<u>ii) if the "Initial Termination Date"); provided, however, the Administrative Agent shall have (a) the option (the "First Extension Option is exercised by the "), by revocable written notice (the "First Extension Notice") delivered from</u> Administrative Agent, <u>to the Borrower Representative no later than ninety (90) days prior to, but not more than one hundred eighty (180) days prior to, the Initial Termination Date, to extend the Reinvestment Period to</u> that date which is one hundred eighty (180) days following the Initial <u>Scheduled Maturity Date and (iii) if the Termination Date (the "First Extended Termination Date") and (b) if Administrative Agent exercises the First Extension Option, the option (the "Second Extension Option is exercised by the "), by revocable written notice (the "Second Extension Notice") delivered from</u> Administrative Agent, <u>to the Borrower Representative no later than ninety (90) days prior to, but not more than one hundred eighty (180) days prior to, the First Extended Termination Date, to extend the Reinvestment Period to</u> that date which is one hundred eighty (180) days following the First Extended <u>Maturity Date, and (b) Termination Date (the "Second Extended Termination Date"); provided, however, the exercise of the First Extension Option and the Second Extension Option will become final and irrevocable, if exercised, on that date which is ninety (90) days prior to the First Extended Termination Date and the Second Extended Termination Date, as</u> <u>applicable. Notwithstanding the foregoing the Reinvestment Period shall expire on</u> the date on which the Administrative Agent notifies <u>any</u> Borrower that the Reinvestment Period has been terminated following the occurrence and during the continuance of an Event of Default or a Commitment Termination Event; provided that, upon the occurrence of and during the continuance of an Event of Default or Commitment Termination Event, in lieu of terminating the Reinvestment Period, the Administrative Agent may suspend the Reinvestment Period, in which case the suspension of the Reinvestment Period shall (i) be removed upon cure of the event causing such suspension or at any earlier time set forth in a notice from Administrative Agent to Borrower and (ii) not toll or otherwise extend the Reinvestment Period.

"<u>Related Fund" means with respect to any Lender which is a fund (or in which a fund has a</u> <u>beneficial ownership interest of at least twenty five percent (25%)) that is allowed or permitted</u> <u>under its Governing Documents to make or invest in loans, any other fund that is allowed or</u> <u>permitted by its Governing Documents to make or invest in loans and that is managed by the same investment advisor as such Lender or by an Affiliate of such Lender or such investment advisor.</u>

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees and administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Required Equity Contribution</u>" means a capital contribution in cash by the a Parent in the following amounts, to be contributed to <u>the applicable</u> Borrower at the following times: (a) on or prior to each Disbursement Date, with respect to an Approved Core Asset Investment, an amount equal to the greater of (i) twelve and one-half percent (12.5%) of the Junior Capital for such Approved Core Asset Investment and (ii) five percent (5.0%) of the total Core Asset Costs for such Approved Core Asset Investment (the "<u>Core Asset Equity Contribution</u>"), (b) on or prior to each Disbursement Date, fifty percent (50%) of the Draw Fee with respect to such Advance (the "<u>Draw Fee Equity Contribution</u>"), (c) on or prior to each Payment Date and each <u>OwnedCore</u> Asset Closing Date (i) the excess of the Operating Costs Stated Amount for the three calendar months following the month in which such Payment Date or <u>OwnedCore</u> Asset Closing Date occurs over the amount on deposit in the Operating Account on such date (after any disbursements from such Operating Account on such date) (the "<u>Operating Expense Equity Contribution</u>"), (d) on each Payment Date, the Interest Shortfall Amount (if any), (determined after giving effect to any distributions from the Collections Account on such date) (the "<u>Interest Shortfall Equity Contribution</u>"), and (e) on or prior to each <u>OwnedCore</u> Asset Closing Date, the amount necessary to fund all reserves (including all capital expenditures, tenant improvement and leasing commission reserves) that are required to be maintained under the applicable Senior Mortgage Loan Documents or this Agreement (the "<u>Owned DST Reserve Equity Contribution)</u>".<u> </u>

"<u>Required Equity Contributions Earning Preferred Return</u>" means the Core Asset Equity Contributions, the Draw Fee Equity Contributions and the Owned DST Reserve Equity Contributions from the time such Required Equity Contributions are actually contributed to the <u>applicable</u> Borrower by a Parent until such time as such Required Equity Contributions distributed to <u>Parent</u> pursuant to <u>Section 10.4(c)(xii) and Section 10.4(d)(viii)Section 10.4(c)(ix), Section 10.4(c)(x), Section 10.4(c)(xii) and Section 10.4(d)(viii)</u> (amounts so distributed to be applied to reduce unreturned Required Equity Contributions Earning Preferred Return until the balance of unreturned Required Equity Contributions Earning Preferred Return is reduced to zero); provided, however, such Required Equity Contributions shall constitute Required Equity Contributions Earning Preferred Return only during such times such amounts are invested in Owned Core Assets and not during such times as such amounts are deposited in the Reinvestment Account waiting to be reinvested.

"<u>Required Lenders</u>" means Lenders holding at least a majority of the aggregate Principal Amount of the Loan, from time to time; provided, however, that any such amounts held by any of the Borrower Parties or any of their respective Affiliates or by any Defaulting Lender shall be excluded for all purposes under this definition for determining "Required Lenders" for any purpose.

"<u>Responsible Officer</u>" means the chief executive officer, president, chief financial officer, treasurer or the general counsel of a Borrower or any Person designated by a Responsible Officer to act on behalf of a Responsible Officer, or other duly authorized Person acceptable to Administrative Agent; provided that such designated Person may not designate any other Person to be a Responsible Officer. Any document delivered hereunder that is signed by a Responsible Officer of a Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of <u>such</u> Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf <u>such</u> Borrower.

"<u>Restoration" means the repair and restoration of an Owned Core Asset after a casualty as nearly as possible to the condition the Owned Core Asset was in immediately prior to such casualty,</u> <u>with such alterations as may be approved by Collateral Agent (not to be unreasonably withheld).</u>

"<u>Restricted Payment</u>" means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of theany Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent of any thereof), or any option, warrant or other right to acquire any such dividend or other distribution or payment. Without limiting the foregoing, "Restricted Payments" with respect to any Person shall also include all payments made by such Person with any proceeds of a dissolution or liquidation of such Person.

"<u>Right to Direct the Sale</u>" has the meaning specified in <u>Section 8.15Section 8.15</u>.

"<u>S&P</u>" means Standard & Poor's Financial Services LLC, a division of McGraw-Hill Financial Inc., and any successor thereto.

"<u>Scheduled Maturity Date</u>" means May 27, <u>20242025</u> (the "<u>Initial Scheduled Maturity Date</u>"); provided, however, <u>if</u> the <u>Administrative Agent shall have (a) the option (the</u> "First Extension Option"<u>), by revocable written notice (the "First Extension Notice") delivered from</u> is <u>exercised by the</u> Administrative Agent <u>to the Borrower no later than ninety (90) days prior to, but</u> <u>not more than one hundred eighty (180) days prior to</u>, the Scheduled Maturity Date, <u>to shall</u> extend <u>the Scheduled Maturity Date</u> to that date which is one hundred eighty (180) days following the Initial Scheduled Maturity Date (the "<u>First Extended Maturity Date</u>") and <u>(b) if Administrative Agent exercises the First Extension Option, the option (the</u> "<u>if the</u> Second Extension Option"<u>), by</u> <u>revocable written notice (the "Second Extension Notice") delivered from is exercised by the</u> Administrative Agent <u>to the Borrower no later than ninety (90) days prior to, but not more than one hundred eighty (180) days prior to, the First Extended Maturity Date, to extend</u>, the Scheduled Maturity Date <u>shall extend</u> to that date which is one hundred eighty (180) days following the First Extended Maturity Date (the "<u>Second Extended Maturity Date</u>")<u>; provided, however, the exercise of the First Extension Option and the Second Extension Option will become final and irrevocable, if</u> <u>exercised, on that date which is ninety (90) days prior to the First Extended Maturity Date and the Second Extended Maturity Date, as applicable.</u>.

"<u>SEC" means the Securities and Exchange Commission, or any Gove</u>rnm<u>ental Authority</u> <u>succeeding to any of its principal functions.</u>

"<u>Second Extended Maturity Date</u>" has the meaning specified in the definition of Scheduled Maturity Date.

"<u>Second Extension Option</u>" has the meaning specified in the definition of <u>Scheduled</u> <u>Maturity DateReinvestment Period</u>.

"<u>Second Extension Notice</u>" has the meaning specified in the definition of <u>Scheduled</u> <u>Maturity DateReinvestment Period</u>.

"<u>Secured Parties</u>" means, collectively, the Administrative Agent, the Collateral Agent and the Lenders.

"<u>Security</u> Agreement<u>Agreements</u>" means <u>(i)</u> that certain Security Agreement, dated as of the date hereof, between <u>the BorrowerEquityCo</u> and the Collateral Agent, as the same may be amended, restated, amended and restated<u>, replaced, supplemented or otherwise modified from time to time and (ii) that certain Security Agreement, dated as of the date hereof, between EquityCo II and the Collateral Agent, as the same may be amended, restated, amended and restated,</u> replaced, supplemented or otherwise modified from time to time.

"<u>Security Documents</u>" means the Security <u>AgreementAgreements</u>, the Pledge Agreements, the DACA Agreements, and all other security agreements or other instruments, agreements, and documents (including Uniform Commercial Code financing statements, fixture filings and landlord waivers) executed and delivered by or on behalf of a Loan Party to the Collateral Agent granting a Lien to secure any of the Obligations<u>, in each case as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time</u>.<u> </u>

"<u>Seller</u>" means a seller that is under contract to sell a Core Asset to <u>either</u> Sponsor (or its Affiliate) or an Owned DST (or its wholly owned Subsidiary) under a Purchase Agreement.

"<u>Senior Mortgage Lender</u>" means a third party lender providing a Senior Mortgage Loan to a DST.

"<u>Senior Mortgage Loan</u>" means, with respect to each Approved Core Asset Investment, a senior mortgage loan from a Senior Mortgage Lender to a DST for the purpose of financing the acquisition of the applicable Core Asset on terms approved by Administrative Agent, which Senior Mortgage Loan shall be secured by the applicable Core Asset; provided, however, such Senior Mortgage Loan shall be non-recourse to the Borrower Parties and in an amount equal to no more than sixty five percent (65%) of the total Core Asset Costs for such Core Asset except to the extent otherwise approved by Administrative Agent.

"<u>Senior Mortgage Loan Documents</u>" means, with respect to each Senior Mortgage Loan, the applicable loan agreement, promissory note, deed of trust or mortgage and all other documents, instruments, letters and agreements executed or delivered in connection with such Senior Mortgage Loan.

"<u>Senior Mortgage Loan Event of Default</u>" has the meaning specified in <u>Section</u> <u>11.1(r)Section 11.1(r)</u>.

"<u>Signatory Trustee/Manager</u>" has the meaning specified in the definition of "DST".

"<u>Single Purpose Entity</u>" means a Person, other than an individual, that is formed or organized solely for the purpose of conducting the Versity DST Business subject to this Agreement and does not engage in any business unrelated to the Acquired Eligible Assets, does not have any assets other than, (a) in the case of thea Borrower, the Accounts and the Equity Interests in the Depositors and (b) in the case of the Depositors, the DST Interests in the Owned DSTs, as the case may be, or any indebtedness other than as permitted by this Agreement, has its own separate books and records and its own accounts, in each case which are separate and apart from the books and records and accounts of any other Person (other than being included in a consolidated group for tax reporting purposes), holds itself out as being a Person, separate and apart from any other Person and complies in all material respects with the requirements set forth in <u>Section 8.18Section</u> <u>8.18</u>. In the case of thea Borrower and any Depositor, its limited liability agreement shall provide that upon the occurrence of any event that causes its sole member to cease to be a member during the term of this Agreement, the pledgee under the applicable Pledge Agreement shall automatically be admitted as the sole member and shall preserve and continue the existence of the entity without dissolution.

"<u>Solvent</u>" and "<u>Solvency</u>" means, with respect to any Person on a particular date, that on such date (a) at fair valuation, all of the properties and assets of such Person are greater than the sum of the debts, including contingent liabilities, of such Person, (b) the present fair saleable value of the properties and assets of such Person is not less than the amount that would be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its properties and assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts beyond such Person's ability to pay as such debts mature, (e) such Person is not engaged in a business or a transaction, and is not about to engage in a business or transaction, for which such Person's properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing practices in the industry in which such Person is engaged, and (f) such Person is not "insolvent" within the meaning of Section 101(32) of the Bankruptcy Code. The amount of all guarantees or other contingent liabilities at any time shall be computed in accordance with GAAP.

"<u>Sponsor</u>" means <u>Versity Investments, LLC, a Delaware limited liability company</u>, <u>individually and collectively, Original Sponsor and New Sponsor</u>.<u> </u>

"<u>Sponsor Fee</u>" means with respect to any Owned DST, the amount specified in the Final Investment Memo as the fee due to the <u>applicable</u> Sponsor upon the consummation of the syndication of 100% of the DST Interests issued by such Owned DST and the deposit of the Gross <u>ProceedsReceipts</u> from such syndication into the <u>applicable</u> Collection Account.

"<u>Sponsor Fee Distribution Ratio</u>" means, for the applicable Approved Core Asset Investment, the ratio resulting from the division of (i) the Sponsor Fee payable for such Approved Core Asset Investment by (ii) the <u>sum of (a) the Sponsor Fee for such Approved Core Asset Investment and (b) the</u> Required Equity Contribution for such Approved Core Asset Investment.

"<u>Sponsor Fee Waterfall Limit</u>" means in respect to the Sponsor Fee for an Owned DST, an amount not to exceed five percent (5%) of the Junior Capital for such Owned DST.

"<u>Sub-Account</u>" has the meaning specified in <u>Section 10.1Section 10.1</u>.

"<u>Submission Package</u>" means a written notice from the Borrower <u>Representative</u> to Administrative Agent that <u>Borrower requestsBorrowers request</u> to make a Core Asset Investment, which package shall include an Initial Investment Memo, drafts of copies of letters of intent or term sheets for the acquisition and/or senior financing of such Core Asset Investment, if available, and any other documents or agreements governing the Core Asset Investment as Administrative Agent may request. The Submission Package shall include a disclosure of any Environmental Liabilities affecting the applicable Core Asset Investment which disclosure shall be in the same form as <u>Schedule</u> 7.167.16 (an "<u>Environmental Disclosure</u>") to the extent available, provided that (i) if such items are not available when the Submission Package is delivered to Administrative Agent, <u>the</u> Borrower <u>Representative</u> shall update the Submission Package to include such disclosure promptly after it becomes available and (ii) if such Core Asset Investment becomes an Approved Core Asset Investment then <u>Schedule</u> 7.16<u>7.16</u> of this Agreement shall be automatically updated to include such Environmental Disclosure, as updated from time to time prior to the issuance of Final Approval for the applicable Core Asset Investment.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which at least ten percent (10%) of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise Controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of <u>each</u> Borrower<u>, as applicable</u>.<u> </u>

"<u>Synthetic Lease Obligation</u>" means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or Tax retention lease, or (b) an agreement for the use or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Termination Date</u>" means the date on which all of the Obligations (other than contingent indemnification and expense reimbursement obligations for which no claim has been asserted) have been paid in full in cash and the Reinvestment Period has expired.

"<u>Title Company</u>" means any nationally recognized title insurance company approved by Administrative Agent (not to be unreasonably withheld).

"<u>Title Policy</u>" means an Extended Coverage American Land Title Association owners policy of title insurance (on the 2006 form) showing fee or leasehold title to the applicable Core Asset vested in such DST acquiring such Core Asset with arbitration provisions deleted and such endorsements (including a mezzanine endorsement if available in the state which the applicable Core Asset is located) as may be required by the Collateral Agent, and which shall provide coverage, subject only to Permitted Exceptions.

"<u>Transfer</u>" means any direct or indirect sale, transfer, conveyance, division, installment sale, master lease, grant of Lien or other interest, license, lease, alienation or assignment, whether voluntary or involuntary, of all or any portion of the direct or indirect legal or beneficial ownership of, or any interest in (a) the Collateral, any Owned Core Asset or any part thereof, or (b) any Borrower Party or any Owned DST (or a Subsidiary thereof), including any agreement to transfer or cede to another Person any voting, management or approval rights, or any other rights, appurtenant to any such legal or beneficial ownership or other interest, but excluding any Master Lease approved by Administrative Agent.

"<u>Transactions</u>" means the transactions provided for in, or contemplated by, the Loan Documents.

"<u>Trust Reserve Cap</u>" means, with respect to each Owned Core Asset, on each date of determination, those reserves established to fund capital expenditures, working capital, property taxes and insurance expenses as disclosed in the applicable DST Interests syndication documents as approved by the Administrative Agent pursuant to <u>Section 3.3Section 3.3</u>, but in no event greater than (x) individually (i) $2,000,000 for capital expenditures, (ii) $1,000,000 for working capital, (iii) the forecasted property tax with respect to such Owned Core Asset for the following twelve (12) months, and (iv) $125,000 for insurance, and (y) the lesser of (i) $2,000,000 and (ii) three percent (3%) of Core Asset Costs in the aggregate for all such reserves.

"<u>UCC</u>" or "<u>Uniform Commercial Code</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York and all terms used in this Agreement or any other Loan Document and not otherwise defined herein or therein shall have the respective meanings (if any) given such terms in the UCC; provided that, if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof, the term shall have the meaning set forth in Article 9; provided further that, if by reason of mandatory provisions of law, perfection, or the effect of perfection, priority or non-perfection, of a security interest in any of the Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, "Uniform Commercial Code" means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be.

"<u>Uncured Delinquent Asset</u>" means, as of any date of determination, each Delinquent Asset that is not a Cured Delinquent Asset.

"<u>United States</u>" and "<u>U.S</u>." mean the United States of America.

"<u>Versity DST Business</u>" means the business of (i) acquiring and holding Approved Core Asset Investments in Owned DSTs (or their wholly owned Subsidiaries) and (ii) syndicating the DST Interests in Owned DSTs.

Section 1.2 <u>Uniform Commercial Code</u>. Any terms used in this Agreement that are defined in the UCC shall be construed and defined as set forth in the UCC unless otherwise defined herein, <u>provided</u>, <u>however</u>, that to the extent that the UCC is used to define any term herein and such term is defined differently in different Divisions of the UCC, unless expressly stated otherwise the definition of such term contained in Article 9 of the UCC shall govern.

Section 1.3 <u>Construction</u>. All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term "financial statements" shall include the notes and schedules thereto. Unless otherwise specified herein or therein, all terms defined in this Agreement shall have the definitions given them in this Agreement when used in any other Loan Document or in any certificate or other document made or delivered pursuant thereto. All uses of the word "including" means "including, without limitation" unless the context shall indicate otherwise. Unless otherwise specified, the words "hereof', "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. With respect to terms defined by cross-reference to another agreement, such defined terms shall have the definitions set forth in such other agreement as of the <u>ClosingFirst Amendment Effective</u> Date, and no modifications to such agreement shall have the effect of changing such definitions for the purposes of this Agreement unless Agent expressly agrees that such definitions as used in this Agreement have been revised. The parties hereby acknowledge and agree that, as to any clauses or provisions contained in this Agreement or any of the other Loan Documents to the effect that any Borrower (a) represents or warrants on behalf of, or covenants on behalf of, any other Loan Party or an Affiliate thereof, (b) shall cause any other Loan Party or an Affiliate thereof to act or refrain from acting, to comply with, to permit, to perform, to pay, to furnish, to cure, to remove, to observe, to deliver, to suffer, to initiate, to provide, to make available, to furnish in any manner, or (c) shall cause to occur or not to occur, or otherwise be obligated in any manner with respect to, any matters pertaining to any other Loan Party or an Affiliate thereof, such clause or provision is intended to mean, and shall be construed as meaning, (i) that <u>such</u> Borrower shall cause such other Loan Party or such Affiliate to take such action (and in all cases throughout the Loan Documents the words "Borrower shall" or "Borrower shall not" (or words of similar meaning) means "Borrower shall cause the applicable Loan Party or the applicable Affiliate" or "Borrower shall not permit such applicable Loan Party or the applicable Affiliate)" to so act or not to so act, as applicable, as the context may require (and any instance in the Loan Documents where such words already appear shall not be deemed or construed to mean that any other instance where such words do not appear were not intended to be interpreted as provided above). Unless otherwise expressly provided for herein or in any other Loan Document, any determination, approval, consent or action required or permitted to be taken by any Lender, Required Lenders, Collateral Agent or Administrative Agent pursuant to this Agreement and any other Loan Document may be exercised, made or withheld in the sole discretion of the Lender, Required Lenders, Collateral Agent or Administrative Agent, as applicable.

Section 1.4 <u>Time Periods</u>. In this Agreement, in the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding". Periods of days referred to in this Agreement shall be counted in calendar days unless Business Days are expressly prescribed. Any period determined hereunder by reference to a month or months or year or years shall end on the day in the relevant calendar month in the relevant year, if applicable, immediately preceding the date numerically corresponding to the first day of such period, provided, that if such period commences on the last day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month during which such period is to end), such period shall, unless otherwise expressly required by the other provisions of this Agreement, end on the last day of the calendar month. Unless otherwise specified, all references to specific times means and be a reference to such time in New York, New York.

**ARTICLE 2**

**THE LOAN**

Section 2.1 <u>Loan</u>. On the terms and subject to the conditions of this Agreement, the Lenders agree to lend to <u>Borrower and Borrower agreesBorrowers and Borrowers agree</u> to borrow from Lenders, in installments, the Loan in a maximum principal amount at any time outstanding not to exceed at any time the Maximum Commitments (as may be increased pursuant to <u>Section 2.5Section 2.5</u>) or such lesser amount as shall then be available pursuant to the terms of this Agreement.

Section 2.2 <u>Advances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Reinvestment Period, and on the terms and subject to the conditions of this Agreement (including, if applicable, the satisfaction or waiver of each of the conditions precedent set forth in <u>Section 6.2), BorrowerSection 6.2), Borrowers</u> may request Advances to be funded pursuant to this Agreement for any purpose permitted under <u>Section 2.6</u> in the aggregate principal amount at any one time outstanding of up to the Loan Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon <u>Borrower's</u> delivery <u>by the Borrower Representative</u> to the Administrative Agent of a written funding request (each, a "<u>Funding Request</u>") for an Advance in accordance with the terms of <u>Section 2.3Section 2.3</u>, and subject to satisfaction or waiver of each of the conditions precedent set forth in <u>Section 6.2Section 6.2</u> (to the extent required pursuant to <u>Section 2.3Section 2.3</u>), such Advance shall be deposited into thea Core Asset Cost Account. The Borrower <u>Representative</u> may make a maximum of two Funding Requests during any calendar month, provided, that the Borrower <u>Representative</u> may make additional Funding Requests if approved by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Each Borrower hereby designates the Borrower Representative as its</u> <u>representative and agent on its behalf for the purposes of issuing Funding Requests, giving instructions with respect to the disbursement of the proceeds of the Advances, giving and receiving all other notices and consents hereunder or under any of the other Loan Documents and taking all other actions (including in respect of compliance with covenants) on behalf of any Borrower or the Borrowers under the Loan Documents. The Borrower Representative hereby accepts such appointment. The Lenders and the Administrative Agent may regard any notice or other communication pursuant to any Loan Document from Borrower Representative as a notice or communication from all Borrowers, and may give any notice or communication required or permitted to be given to any Borrower or Borrowers hereunder to Borrower Representative on behalf of such Borrower or Borrowers. Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement and undertaking made on its behalf by Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to the same extent as if the same had been made directly by such Borrower.</u>

Section 2.3 <u>Timing and Amount of Advances</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) In connection with the consummation of any Approved Core Asset Investment with respect to which an Advance is requested pursuant to a Funding Request, subject to satisfaction or waiver of each of the conditions precedent set forth in <u>Section 6.2Section 6.2</u>, and <u>Section 2.3(b)Section 2.3(b)</u>, (i) <u>the applicable</u> Parent shall make the Core Asset Equity Contribution and (ii) Lender shall make an Advance (a "<u>Closing Advance</u>") in an amount equal to the Advance Amount with respect to such Approved Core Asset Investment. The contributions, transfers and Closing Advance described above shall be made on or prior to the closing date established pursuant to the Purchase Agreement for the applicable Approved Core Asset Investment (as such date may be extended in accordance with the applicable Purchase Agreement or pursuant to <u>Section 3.3Section 3.3</u>, the "<u>Core Asset Closing Date</u>"). <u>The</u> Borrower <u>Representative</u> shall (i) promptly notify Administrative Agent upon the establishment of the Core Asset Closing Date to the extent a date certain is not specified in the applicable Purchase Agreement, (ii) provide Administrative Agent with drafts of acquisition and Senior Mortgage Loan settlement statements, as such drafts become available and (iii) submit a final Funding Request once such settlement statements are finalized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at the time of any Core Asset Closing Date applicable to a Funding Request there are any amounts on deposit in the Reinvestment Account, such amounts shall be applied to reduce the amount of the <u>applicable</u> Parent's Core Asset Equity Contribution (but not to an amount less than $0). There shall be transferred from the Reinvestment Account to the Core Asset Cost Account an amount equal to the aggregate amount of such reduction described in the preceding sentence on or prior to the applicable Core Asset Closing Date.

Section 2.4 <u>Disbursements from the Core Asset Cost Account</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to satisfaction or waiver of each of the conditions precedent set forth in <u>Section 6.2Section 6.2</u>, and subject to Agent's and the Lender's rights to exercise control over the Core Asset Cost Account pursuant to the applicable DACA and subject to the proviso below, <u>the applicable</u> Borrower may release funds from the Core Asset Cost Account on the applicable Core Asset Closing Date (i) to the applicable Owned DST in an amount equal to the Core Asset Cost of such Approved Core Asset Investment (less the amount of the Senior Mortgage Loan entered into by the applicable Owned DST (or its wholly owned Subsidiary) in connection with the acquisition of such Approved Core Asset Investment) to be applied to the Core Asset Costs of such Approved Core Asset within one (1) Business Day after the Disbursement Date; provided that <u>such</u> Borrower shall not be permitted to make any Disbursement if (A) the Disbursement Date is after the expiration of the Reinvestment Period or (B) immediately prior to or after making such Disbursement (and giving effect thereto) an Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Event of Default occurs and is continuing, or the Maturity Date occurs, any amounts in the Core Asset Cost Account or deposited thereafter shall, at the written request of the Administrative Agent, be distributed to the Administrative Agent, for the benefit of the Lenders, as a mandatory prepayment of the Advances and payment of the other Obligations.

Section 2.5 <u>Lender's Right to Increase the Maximum Commitments</u>. Administrative Agent may, at any time and from time to time during the Reinvestment Period, upon written notice to the Borrower <u>Representative</u>, increase the Maximum Commitments up to Two Hundred Million Dollars ($200,000,000) in the aggregate, in which case the Maximum Commitment of each Lender shall increase accordingly without the consent of any Lender.

Section 2.6 <u>Use of Proceeds</u>(ac) . The Loan shall be used to pay Core Asset Costs. In no event shall any portion of the Loan Proceeds be used to make any Restricted Payment or pay any Operating Expenses, Administrative Agent Fees and Expenses, any Manager Expenses or any of the administrative, overhead or other expenses of <u>the either</u> Sponsor.

Section 2.7 <u>Draw Fee</u>. Borrower<u>Borrowers</u> shall pay to the Administrative Agent on each Advance Date out of <u>the</u>a Collection Account the Draw Fee then payable with respect to such Advance.

**ARTICLE 3**

**APPROVAL OF CORE ASSET INVESTMENTS**

Section 3.1 <u>Greenlight Approval</u>. If during the Reinvestment Period Borrower <u>desiresBorrowers desire</u> to make any Core Asset Investment it<u>Borrower Representative</u> shall first deliver to Administrative Agent a Submission Package with respect to such proposed Core Asset Investment. Within ten (10) Business Days of receiving the Submission Package for any proposed Core Asset Investment, the Administrative Agent shall notify <u>the</u> Borrower <u>Representative</u> in writing as to whether the Administrative Agent has elected to proceed to evaluate such Core Asset Investment for funding by <u>BorrowerBorrowers</u> (each such approval a "<u>Greenlight Approval</u>"); provided, however, the Administrative Agent may request any additional information with regard to any proposed Core Asset Investment, and if such additional information is requested, the Administrative Agent will have an additional three (3) Business Days from the date of receiving such additional information to provide Greenlight Approval with respect to such Core Asset Investment. The failure to give such notice of Greenlight Approval within the time periods provided for herein shall be deemed to be a determination by the Administrative Agent to withhold such Greenlight Approval.

Section 3.2 <u>Administrative Agent's Due Diligence</u>. Following Greenlight Approval for a potential Core Asset Investment, the Administrative Agent, its legal counsel and other representatives, will have the opportunity to conduct its own due diligence on each Core Asset Investment (including any related Senior Mortgage Loan financing) presented for approval under this Agreement (including, the right to be informed of ongoing diligence by <u>theany</u> Borrower, to participate in any Borrower diligence processes and to receive all diligence reports prepared by or received by theany Borrower). Administrative Agent's due diligence shall be conducted in conjunction with <u>BorrowerBorrowers</u> within the due diligence period specified in the applicable Purchase Agreement.

Section 3.3 <u>Final Approval</u>. Not later than five (5) Business Days prior to conclusion of the due diligence period under the Purchase Agreement for the Core Asset Investment that has received Greenlight Approval, the Borrower <u>Representative</u> will present such Core Asset Investment to Administrative Agent for final approval prior to making the Core Asset Investment and funding Core Asset Costs with respect thereto ("<u>Final Approval</u>"). In connection with obtaining Greenlight or Final Approval for any Core Asset Investment, <u>the</u> Borrower <u>Representative</u> may seek approval to subject the applicable Core Asset to a Master Lease. <u>The</u> Borrower <u>Representative</u> will provide the Administrative Agent with a final investment memorandum containing the information listed on <u>Schedule</u> 3.3 <u>3.3</u> (the "<u>Final Investment Memo</u>") and detailing the relevant information regarding the Core Asset Investment required by the Administrative Agent, including an update to the information presented in the Submission Package (including the Core Asset Costs applicable to such Core Asset Investment), copies of the definitive Core Asset Investment documents and Senior Mortgage Loan Documents, including a description of any material variations to the approved forms thereof, a copy of the Master Lease (if applicable) and evidence that all conditions in connection with the Core Asset Investment have been satisfied (or description of any proposed waivers thereof). <u>The</u> Borrower <u>Representative</u> will use commercially reasonable efforts to keep the Administrative Agent informed as to the timing of the delivery of the Final Investment Memo and to provide Administrative Agent with as much advance notice as is reasonably possible regarding the timing of the delivery of the Final Investment Memo to facilitate the Administrative Agent's approval process. Within two (2) Business Days of receiving the Final Investment Memo from the Borrower <u>Representative</u> for any Core Asset Investment, the Administrative Agent shall notify <u>the</u> Borrower <u>Representative</u> in writing as to whether the Administrative Agent has elected to grant Final Approval with respect to the Core Asset Investment; provided, however, the Administrative Agent may request any additional information with regard to the Administrative Agent's evaluation of the Final Investment Memo, and if such additional information is requested, the Administrative Agent will have an additional two (2) Business Days from the date of receiving such additional information to provide Final Approval with respect to such Core Asset Investment, which period shall be extended to the extent necessary to permit Administrative Agent and its counsel to review the final Senior Mortgage Loan Documents and to negotiate any necessary provisions to permit compliance with the terms and conditions of this Agreement and the other Loan Documents. The failure to give such notice of Final Approval within the time periods provided for herein shall be deemed to be a determination by the Administrative Agent to withhold such Final Approval. For purposes of clarification, the Lenders shall be under no obligation to elect to fund any Advances in connection with a Core Asset Investment that has not received Final Approval.

Section 3.4 General Conditions to Designating a Core Asset as an Eligible Core Asset. Unless waived by Administrative Agent at the time of Greenlight Approval, each Core Asset must satisfy (or reasonably be expected to satisfy upon consummation of the applicable Core Asset Investment) each of the following conditions in order to be an Eligible Core Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Core Asset shall be owned directly or indirectly by an Owned DST (or its wholly owned Subsidiary), which ownership may be a fee interest, subject only to the Permitted Exceptions, at the time of the closing of the acquisition of the Core Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Event of Default shall have occurred and be continuing both immediately before and immediately after the Core Asset is designated an Approved Core Asset Investment and the Owned DST (or its wholly owned Subsidiary) has consummated the purchase of the Core Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Core Asset shall have met the eligibility criteria set forth on <u>Exhibit G</u> attached hereto ("<u>Eligibility Criteria</u>"), except for any deviations therefrom approved in writing by the Administrative Agent (including deviations approved by Administrative Agent as part of the Greenlight Approval for the applicable Core Asset Investment).

**ARTICLE 4**

**REPAYMENTS, PREPAYMENTS, INTEREST AND FEES**

Section 4.1 <u>Repayments and Prepayments; Application</u>. The Borrower <u>agreesBorrowers, jointly and severally, agree</u> that the Loan shall be repaid and prepaid pursuant to the provisions of this <u>Article 4Article 4</u>.

Section 4.2 <u>Repayment of Loan; Maturity Date</u>. <u>BorrowerBorrowers</u> shall repay to the Lenders on the Scheduled Maturity Date the aggregate Principal Amount of the Loan on such date in full, together with all accrued and unpaid interest, fees, costs and other Obligations then due and owing to Lender, Collateral Agent or Administrative Agent on the Loan. Prior thereto repayments of the Loan shall be made as set forth below in <u>Section 4.3Section 4.3</u>.

Section 4.3 <u>Prepayments; Repayments</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower<u>Borrowers</u> may not voluntarily prepay the Loan in whole or in part prior to the Scheduled Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower<u>Borrowers</u> shall prepay the Loan, together with all unpaid interest, fees and costs to the date of such prepayment, and all other outstanding Obligations with respect thereto, as provided for in <u>Section 10.4Section 10.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in this Agreement or any other Loan Document or otherwise, upon the prepayment or repayment of the Loan in whole or in part (whether such prepayment is a mandatory prepayment, or a repayment upon acceleration pursuant to <u>Section 11.2(a),Section 11.2(a),</u> whether by notice or automatically (or on account of a Bankruptcy Event or otherwise)), the Borrower<u>Borrowers</u> shall pay to Administrative Agent for the ratable benefit of the Lenders in accordance with each Lender's Applicable Percentage all accrued but unpaid interest (including any PIK Interest), the Administrative <u>Agent</u> Fees and Costs to the date of such prepayment or repayment on the amount prepaid and any and all other outstanding Obligations which may be payable hereunder and under the other Loan Documents.

Section 4.4 <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of <u>Section 4.4(b)Section 4.4(b)</u>, the Principal Amount of the Loan will bear interest at a rate per annum equal to the Applicable Rate in effect during the applicable Interest Period and all accrued and unpaid interest on the Loan shall be paid in arrears for the applicable Interest Period on each Payment Date, commencing with the first Payment Date following the Closing Date and on each Payment Date thereafter up to and including the Maturity Date; provided, that, so long as no Event of Default has occurred and is continuing, such interest in an amount equal to eight percent (8.00%) per annum shall be payable in cash (the "<u>Cash Interest</u>") and, to the extent there is not sufficient funds on deposit in the Collection <u>DateAccounts</u> on such Payment Date to make such payment in cash, four and one-half percent (4.50%) per annum shall accrue and be capitalized into the Principal Amount (the "<u>PIK Interest</u>") and the PIK Interest shall bear interest at the Applicable Rate from the date on which such PIK Interest has been so added.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After an Event of Default has occurred and is continuing, the entire Principal Amount (including any PIK Interest added thereto) shall bear interest, at a rate per annum equal to the Default Rate, and all interest accrued on the Loan shall be payable on demand in cash and no portion of such interest shall constitute PIK Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest shall accrue from and including the Closing Date through payment in full of the Obligations. All interest shall be calculated by multiplying (i) the actual number of days elapsed in the Interest Period for which the calculation is being made by (ii) a daily rate based on a three hundred sixty (360) day year (that is, the Applicable Rate or the Default Rate, as then applicable, in effect during such Interest Period expressed as an annual rate divided by 360) by (ii) the Principal Amount; provided, however, that if any payment made under the Loan is ever rescinded, voided, or must otherwise be returned by the Lenders to Borrower<u>Borrowers</u> in connection with any bankruptcy, reorganization, receivership, insolvency, or otherwise, the amount returned shall bear interest from the date returned to <u>BorrowerBorrowers</u> until the date such amount is paid to the Lenders.

Section 4.5 <u>Application of Payments</u>. So long as no Event of Default has occurred and is continuing, all payments, repayments and prepayments shall be applied in accordance with <u>Section 10.4Section 10.4</u>.

Section 4.6 <u>Fees</u>. All Administrative <u>Agent</u> Costs and Fees owing under any of the Loan Documents shall be paid by the Loan Parties (who shall be jointly and severally liable therefor), in immediately available funds, at the times and in the amounts set forth in such Loan Documents.

Section 4.7 <u>Evidence of Debt</u>. The Loan made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by Administrative Agent in the ordinary course of business. The accounts or records maintained by Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Loan made by the Lenders to <u>BorrowerBorrowers</u> and the interest, costs and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of <u>BorrowerBorrowers</u> hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of Administrative Agent in respect of such matters, the accounts and records of Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through Administrative Agent, <u>BorrowerBorrowers</u> shall execute and deliver to such Lender (through Administrative Agent) a Note, which shall evidence such Lender's Loan in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, amount and maturity of its Loan and payments with respect thereto.

Section 4.8 <u>Payments Generally</u>. All payments to be made by Borrower<u>Borrowers</u> shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by Borrower<u>Borrowers</u> hereunder shall be made to (a) Administrative Agent, for the account of the respective Lenders to which such payments are owed, at Administrative Agent's Office or (b) at the direction of Administrative Agent, directly to the respective Lenders to which such payment are owed, at the applicable Lender's lending office, in each case, in Dollars and in immediately available funds not later than 3:00 p.m. on the date(s) specified herein. Administrative Agent will (or will direct <u>BorrowerBorrowers</u> to) promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's lending office. All payments received by Administrative Agent after 3:00 p.m. shall be deemed received on the next following Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by <u>BorrowerBorrowers</u> shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

Section 4.9 <u>Security</u>.

(a)The Loan, together with all other Obligations, shall be secured by the Liens granted by the Borrower Parties under the Security Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower<u>Borrowers</u> shall deliver, and shall cause each other Loan Party or Owned DST (or its wholly owned Subsidiary) to deliver, to Collateral Agent such additional security agreements, DACA Agreements and other instruments, agreements, certificates, opinions and documents (including Uniform Commercial Code financing statements, fixture filings and landlord waivers) as Collateral Agent may request to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) grant, perfect, maintain, protect and evidence security interests in favor of the Collateral Agent, for the benefit of the Secured Parties, in any or all present and future Collateral with priority over the Liens or other interests of any Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) otherwise establish, maintain, protect and evidence the rights provided to the Collateral Agent, for the benefit of the Secured Parties, pursuant to the Security Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ac) The <u>BorrowerBorrowers</u> and each other Loan Party shall fully cooperate with the Collateral Agent and perform all additional acts deemed necessary by the Collateral Agent to put to effect the purposes of this <u>Section 4.9Section 4.9</u>.

Section 4.10 <u>Affiliate Management Fees</u>. No Affiliate Management Fee accruing under any Asset Management Agreement or Property Management Agreement shall be paid to any Borrower Party or any Affiliate thereof with respect to the ownership, operation or administration of an Owned DST (or wholly owned Subsidiary thereof) or Owned DST<u>Core</u> Asset during any period any DST Interests issued by the applicable DST to a Depositor have not been fully redeemed.

**ARTICLE 5**

**TAXES AND CERTAIN OTHER PROVISIONS**

Section <u>5.1</u>5.2 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all payments by or on account of any of the Obligations hereunder or under any other Loan Document shall be made free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes, provided that if a Loan Party shall be required by applicable Law to deduct or withhold, or a Lender or the Administrative Agent, as applicable, shall be required to remit, any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions, withholdings or remittances (including deductions, withholdings or remittances applicable to additional sums payable under this <u>Article 5Article 5</u>), the applicable Lender or Agent receives an amount equal to the sum it would have received had no such deductions, withholdings or remittances been made, (ii) the <u>BorrowerBorrowers</u> shall, or shall cause the applicable other Loan Party to, make any such deductions or withholdings and (iii) the <u>BorrowerBorrowers</u> shall, or shall cause the other applicable Loan Party to, timely pay the full amount deducted or withheld to the relevant and applicable Governmental Authority in accordance with applicable Law. Notwithstanding the foregoing, <u>BorrowerBorrowers</u> may at its option contest or appeal any Other Taxes with the applicable Governmental Authority and Borrower shall not be required to make payment hereunder unless required to do so in connection with such appeal or contest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting or duplicating the provisions of <u>Section 5.1(a)</u>, the <u>BorrowerBorrowers</u> shall, or shall cause the applicable Loan Party, to timely pay any Other Taxes to the relevant and applicable Governmental Authority in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Borrower'sBorrowers'</u> right to appeal and contest the Other Taxes, the <u>BorrowerBorrowers</u> shall indemnify the Administrative Agent and each Lender within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this <u>Article 5Article 5</u>) paid by the Administrative Agent or such Lender, as the case may be, and any penalties, interest and expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant and applicable Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower <u>Representative</u> by a Lender or by the Administrative Agent on its own behalf, as applicable, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As soon as practicable after any payment of Indemnified Taxes (imposed with respect to this Agreement or any other Loan Document) or Other Taxes by a Loan Party to an applicable Governmental Authority, the Borrower <u>Representative</u> shall deliver to the applicable Lender or the Administrative Agent, as the case may be, the original or a certified copy of a receipt issued by such applicable Governmental Authority evidencing such payment, a copy of the return reporting such payment, if any, or other evidence of such payment satisfactory to the applicable Lenders or the Administrative Agent, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Foreign Lender that is entitled to an exemption from, or reduction of withholding tax under the Law of the jurisdiction in which any Loan Party is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower <u>Representative</u>, at the time or times prescribed by applicable Law or reasonably requested by the Borrower <u>Representative</u>, such properly completed and executed documentation prescribed by applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding. Such delivery shall be required on the Closing Date (or, in the case of an assignee, on the date of assignment) and on or before the date such documentation expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent documentation so delivered or as may reasonably be requested by the Borrower <u>Representative</u>. In addition, any Lender, if requested by the Borrower <u>Representative</u>, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower <u>Representative</u> as will enable the <u>BorrowerBorrowers</u> to determine whether or not such Lender is sub<u>j</u>ect to backup withholding requirements._____

Without limiting the generality of the foregoing, in the event that any Loan Party is resident for tax purposes in the United States, any Foreign Lender that is entitled to an exemption from or reduction of, withholding tax shall deliver to the Borrower <u>Representative</u> (in such number of copies as shall be reasonably requested by the Borrower <u>Representative</u>) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly completed copies of Internal Revenue Service Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) duly completed copies of Internal Revenue Service Form W-8IMY;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a Foreign Lender that is entitled to claim the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a "bank" within the meaning of section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of <u>the</u>a Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a "controlled foreign corporation" related to <u>the Issuera Borrower</u>, as described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in United States federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower<u>Borrowers</u> to determine the withholding or deduction required to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) FATCA Documentation. If a payment made to a Foreign Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Foreign Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Foreign Lender shall deliver to the Borrower <u>Representative</u> at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower <u>Representative</u> such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower <u>Representative</u> as may be necessary for the Borrower<u>Borrowers</u> to comply with its obligations under FATCA and to determine that such Foreign Lender has complied with such Foreign Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this paragraph, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Notwithstanding the foregoing, no Lender shall be required to provide any documentation pursuant to <u>Section 5.1(e)(vi)Section 5.1(e)(vi)</u> that it is not legally permitted to provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any Lender or the Administrative Agent determines that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts pursuant to this <u>Article 5Article 5</u>, it shall pay to the applicable Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by such Loan Party under this <u>Article 5Article 5</u> with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the applicable Lender or Administrative Agent, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), *provided that* the Loan Parties, upon the request of such Lender or Administrative Agent, as applicable, to repay the amount paid over to such Loan Party (plus any penalties, interest or other charges imposed by the relevant and applicable Governmental Authority) to such Lender or the Administrative Agent, as applicable, in the event such Lender or Administrative Agent, as applicable, is required to repay such refund to such applicable Governmental Authority. This <u>Section 5.1(f)Section 5.1(f)</u> shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to any Loan Party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If the Loan Parties are required to pay any additional amount to the Administrative Agent or any Lender that is a bank or any Governmental Authority for the account of any Lender or Administrative Agent that is a bank pursuant to this <u>Article</u> 5<u>Article 5</u>, then such Agent or such Lender, as applicable, shall use reasonable efforts to designate a different lending office for funding or booking its Loan hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Agent or such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Article 5Article 5</u> in the future, and (ii) would not subject such Agent or such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Agent or such Lender. The Borrower hereby agree to pay all costs and expenses incurred by such Agent or such Lender in connection with any such designation or assignment.

**ARTICLE 6**

**CONDITIONS PRECEDENT TO CLOSING AND ADVANCES**

Section 6.1 <u>Conditions to the Closing</u>. The occurrence of the Closing Date is subject to the satisfaction or waiver by the Administrative Agent of each of the conditions precedent set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall have received certificate(s), addressed to the Administrative Agent and each Lender, dated as of the Closing Date, from the Borrower as to the following, and such certificate(s) shall be accurate in all material respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the certification of the resolutions, in full force and effect, authorizing, to the extent relevant, the execution, delivery and performance of this Agreement and each other Loan Document to be executed by it and the performance of its obligations contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the incumbency and signatures of those Responsible Officers who have signed or will sign each Loan Document to which the Borrower is or will be a party, or who is, until replaced by another such Responsible Officer duly authorized for such purpose, authorized to act with respect to each Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Governing Documents for the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recent certificate of good standing for the Borrower from the Secretary of State of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) certification that (i) each of the conditions precedent to the Closing <u>Date</u> (other than in <u>(n)(n)</u> and <u>(o)</u>(o)) has been satisfied and (ii) the representations and warranties contained in this Agreement and each of the other Loan Documents are true and correct in all material respects (except to the extent qualified by materiality, "Material Adverse Effect" or like qualification, in which case such representations and warranties are true and correct in all respects);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) certification that the Borrower immediately before and after giving effect to the transactions contemplated by this Agreement and the other Loan Documents is, and will be, Solvent; such certificate(s) to be executed by a Responsible Officer and addressed to the Administrative Agent and each Lender and accompanied by copies of all documents referred to in clauses (i) through (vi) immediately above, in each case as then in effect, certified to be true, complete and correct and, that each such document has not been amended, supplemented or modified (other than in connection with any amendment, supplement or modification so delivered) and is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Loan Documents</u>. The Loan Documents shall have been duly authorized, executed and delivered by each of the parties thereto and shall be in full force and effect, and the Administrative Agent and the Collateral Agent shall have received fully executed originals of each Loan Document, including without limitation any amendments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Opinions of Counsel</u>. The Administrative Agent shall have received an opinion of Borrower's counsel, addressed to Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Lenders may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certificates of Other Borrower Parties</u>. The Administrative Agent shall have received certificate(s), dated as of the Closing Date, from each Borrower Party (other than the Borrower) as to the following (to the extent applicable):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The certification of the resolutions, in full force and effect, authorizing, to the extent relevant, the execution, delivery and performance of the Loan Documents to be executed by it and the performance of its obligations contemplated thereby (including, the granting of any security interests by such Person under the Security Documents to which it is or is to be a party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the incumbency and signatures of those Responsible Officers who have signed or will sign each Loan Document to which such Person is or will be a party, or who is, until replaced by another such Responsible Officer duly authorized for such purpose, authorized to act with respect to each Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) its Governing Documents, in full force and effect as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate of good standing from the Secretary of State of the State of formation of such Person, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) certification that such Person immediately before and after giving effect to the transactions contemplated by each Loan Document to which such Person is a party is, and will be, Solvent;

such certificate(s) to be executed by a Responsible Officer and addressed to the Administrative Agent and each Lender and accompanied by copies of all documents referred to in clauses (i) through (v) immediately above, in each case as then in effect, certified to be true, complete and correct and that each such document has not been amended, supplemented or modified (other than in connection with any amendment, supplement or modification so delivered) and is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall have received copies of certificates of insurance evidencing the existence of all insurance required to be maintained by the Loan Parties under the Loan Documents, including such insurance required under <u>Section 8.8Section 8.8</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All Administrative Agent Fees and Expenses due to be paid under the Loan Documents on the Closing Date have been paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Accounts have been established and are subject to effective DACA Agreements and any amounts required to be deposited therein pursuant to the Loan Documents have been so deposited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No pending or, to the Borrower's Knowledge, threatened litigation or proceeding against the Borrower Parties or any Owned DST (or its wholly owned Subsidiary) exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There shall be no preliminary or permanent injunction or temporary restraining order or other order issued by a Governmental Authority or other legal restraint or prohibition enjoining or preventing, in whole or in part, the making of the Loan or the transactions contemplated by the Loan Documents, or which, in the judgment of the Administrative Agent, would make it illegal for any of the Administrative Agent, the Collateral Agent or a Lender to perform its obligations under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The filings, recordings and other actions necessary, in the opinion of the Collateral Agent, in order to establish and to perfect the security interests in the Collateral to be granted to the Collateral Agent for the benefit of the Secured Parties have been made or taken or shall be made concurrently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There has not been a Material Adverse Effect or, to the knowledge of any Borrower Party, any condition or event existing that would result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) After giving effect to the Transactions, no Event of Default shall have occurred and be continuing or shall occur as a result of any Loan(s) or Advance(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Each of the representations and warranties made by the Loan Parties in the Loan Documents are true and correct in all material respects (except to the extent qualified by materiality, "Material Adverse Effect" or like qualification, in which case such representations and warranties are true and correct in all respects) as if made on the Closing Date or the applicable Disbursement Date, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Administrative Agent shall have received such other documents from the Borrower Parties as it may request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (o) Administrative Agent shall have received from Borrower evidence satisfactory to it that no Loan Party or any Owned DST (or its wholly owned Subsidiary) is in default of any Contractual Obligation under any Material Agreement (including any Senior Mortgage Loan Documents);

Section 6.2 <u>Conditions to Funding of Advances and Disbursements</u>. The obligation of each Lender to make any Advance, and each Disbursement from the Core Asset Cost Account, is subject to satisfaction or waiver by the Administrative Agent of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the conditions set forth in <u>Section 6.1Section 6.1</u> shall have been satisfied;

(b)The Administrative Agent shall have received from Borrower<u>Borrowers</u> evidence satisfactory to it, that as of such date, <u>the applicable</u> Sponsor has made all Required Equity Contributions to <u>the applicable</u> Borrower required to have been made as of such date (after giving effect to the Advance or Disbursement to be made on such date) and deposited such amounts into the applicable Account.

(c)Immediately following such date, with respect to each Owned DST (or its wholly owned Subsidiary) that acquires an Approved Core Asset using such Advance or Disbursement, (i) the applicable Depositor shall own all of the DST Interests issued by the DST proposing to purchase the Approved Core Asset or 100% of the Equity Interests in the entity that owns the Approved Core Asset, (ii) each Owned DST shall have entered into a consent in substantially the form attached to the <u>applicable</u> Borrower Pledge Agreement as <u>Exhibit A</u>, (iii) <u>the applicable</u> Borrower shall have delivered to Collateral Agent the original certificate evidencing the Pledged Equity Interests for such Depositor, together with an undated limited liability company membership power, covering such certificate duly executed in blank pursuant to the terms of the <u>applicable</u> Borrower Pledge Agreement, (iv) Borrower<u>Borrowers</u> shall have entered into a limited liability company operating agreement of such Depositor in substantially the form attached hereto as <u>Exhibit E</u> and (v) such Depositor shall have entered into a DST Trust Agreement for the applicable Owned DST in substantially the form attached hereto as <u>Exhibit F</u>;<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Immediately following such date, with respect to each Owned DST (or its wholly owned Subsidiary) that acquires an Approved Core Asset using such Advance or Disbursement, such Owned DST (or its wholly owned Subsidiary) shall own, free and clear of all Liens, such Approved Core Asset. All rights arising out of the Approved Core Asset shall be vested in such Owned DST or a wholly owned Subsidiary of such Owned DST, and on or prior to the acquisition of such Approved Core Asset, <u>BorrowerBorrowers</u> shall have provided to Collateral Agent an irrevocable commitment from the Title Company to issue an owner's Title Policy in favor of the applicable Owned DST (and its wholly owned Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Administrative Agent shall have received, with respect to each Approved Core Asset to be acquired using such Advance or Disbursement, (i) copies of the Senior Mortgage Loan Documents for such Approved Core Asset, (ii) evidence satisfactory to it that each of the conditions precedent under such Senior Mortgage Loan Documents shall have been satisfied or waived by the Senior Mortgage Lender, and (iii) evidence satisfactory to it that the representations of the Owned DST (or its wholly owned Subsidiary) in the Senior Mortgage Loan Documents shall be true and correct in all material respects on and as of the date of such date.

**ARTICLE 7**

**REPRESENTATIONS AND WARRANTIES**

In order to induce Administrative Agent, Collateral Agent and the Lenders to enter into this Agreement, <u>Borrowereach of the Borrowers</u> represents and warrants to the Lenders, for itself and each of the other Loan Parties, as of the <u>Closing DateFirst Amendment Effective</u> and each Disbursement Date, that:

Section 7.1 <u>Existence, Qualification and Power; Compliance with Laws</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party (i) is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (X) own its assets and carry on its business, and (Y) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (iii) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, and (iv) is in compliance in all material respects with all applicable Laws,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Owned DST (and its wholly owned Subsidiary) (i) is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to own its assets and carry on its business, (iii) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, and (iv) is in compliance in all material respects with all applicable Laws.

Section 7.2 <u>Authorization; No Contravention</u>. The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is a party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person's Governing Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the assets of such Person or any of its Subsidiaries or any joint venture in which it is a member or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its assets is subject, or (c) violate in any material respect any applicable Law.

Section 7.3 <u>Governmental Authorization; Other Consents</u>. Other than as required in the ordinary course of business and in connection with the filing or recording of the Security Documents, no approval, consent, exemption, authorization, or other action by, notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against any Loan Party of any Loan Document to which it is a party.

Section 7.4 <u>Binding Effect</u>. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party that is a party thereto, enforceable against each Loan Party that is party thereto in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.

Section 7.5 <u>Litigation</u>. There are no actions, inquiries, suits, proceedings, claims or disputes pending or, to <u>any</u> Borrower's Knowledge, threatened, at law, in equity, in arbitration or before any Governmental Authority, by or against any Borrower Party or any Owned DST (or its wholly owned Subsidiary) or against any of its assets or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby or, (b) purport to affect or pertain to any Owned Core Asset (other than, in the case of this clause (b), any such actions, inquiries, suits, proceedings, claims or disputes (i) which are fully covered by insurance or (ii) which, if adversely determined against the applicable Borrower Party or Owned DST (or its wholly owned Subsidiary) or its assets or revenues, would not reasonably be expected to give rise to a liability in excess of $50,000.

Section 7.6 <u>No Default</u>. No Borrower Party is in default under or with respect to any Contractual Obligation under any Material Agreement (taking into account any applicable notice and/or cure periods set forth therein). No Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

Section 7.7 <u>Ownership of Core Assets; Liens</u>. Each Owned DST (or its wholly owned Subsidiary), as applicable, has good and marketable fee or leasehold title (either directly or through a wholly owned Subsidiary) to the applicable Owned Core Assets and good title to the other components of the property owned by such applicable Owned DST (or its wholly owned Subsidiary) free and clear of all Liens, subject only to Permitted Liens. Each Owned DST (or its wholly owned Subsidiary), as applicable, owns or leases all Owned Core Assets and personal property necessary for the use, management, operation, marketing and sale of such Owned DST's (or its wholly owned Subsidiary's) Owned Core Assets. Except for Permitted Exceptions, there are no delinquent ground rents, assessments or other similar outstanding charges or impositions (taking into account any applicable notice/and or cure periods) affecting the Owned Core Assets other than those being contested by the applicable Owned DST (or its wholly owned Subsidiary) in good faith and in accordance with any applicable Laws. Except for Permitted Exceptions, no buildings, material structures or other material improvements lie outside the boundaries and building restriction lines of the Owned Core Assets or encroach onto any easements (unless affirmatively insured by a Title Policy), and no buildings, structures or other improvements on adjoining properties encroach upon the Owned Core Assets in any manner which would reasonably be expected to interfere in any material respect with the use of the Owned Core Asset by the applicable Owned DST (or its wholly owned Subsidiary). The Title Policy premium has been fully paid or will be fully paid at the closing of the acquisition of the applicable Owned Core Asset. Except for customary gap undertakings, neither any Owned DST (or its wholly owned Subsidiary), Borrower nor any Loan Parties has provided any title indemnities (or analogous documentation) or deposits of cash or other security to the title insurer to obtain any Title Policy other than any customary indemnifications (*i.e.*, mechanics lien indemnities). The Permitted Exceptions do not and would not reasonably be expected to interfere in any material respect with use, management, development, operation, marketing or sale of the Owned Core Assets, or the marketability or value of the Owned Core Assets. Other than with respect to a Permitted DST Interests Redemption, each Owned DST (and its wholly owned Subsidiary), <u>each</u> Borrower and each Loan Party will preserve its right, title and interest in and to the Owned Core Assets for so long as the Obligations remain outstanding (other than unasserted contingent indemnification Obligations), and will, warrant and defend same from and against any and all claims of title other than the Permitted Exceptions. <u>Each</u> Borrower and each Loan Party will preserve its right, title and interest in and to the Collateral for so long as the Obligations remain outstanding (other than unasserted contingent indemnification Obligations), and will, warrant and defend same and the validity and priority of the Liens in favor of Collateral Agent arising pursuant to the Loan Documents from and against any and all Claims whatsoever.

Section 7.8 <u>Indebtedness</u>. No Loan Party or any Owned DST (or its wholly owned Subsidiary) has any outstanding Indebtedness, other than Permitted Indebtedness.

Section 7.9 <u>Insurance</u>. The Loan Parties and each Owned DST (and its wholly owned Subsidiary) maintain insurance in compliance with <u>Section 8.8Section 8.8</u>.

Section 7.10 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Loan Parties and each Owned DST (and its wholly owned Subsidiary) have filed all Federal, state and other tax returns and reports required to be filed, and have paid all Federal, state and other Taxes, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. No Loan Party or Owned DST (or its wholly owned Subsidiary) is party to any Tax sharing agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is<u>are</u> no proposed Tax assessments against <u>any</u> Borrower, any Depositor or any Owned DST (or its wholly owned Subsidiary).

Section 7.11 <u>ERISA Compliance</u>. None of the Loan Parties or the Owned DSTs (or their wholly owned Subsidiaries) is obligated to contribute to, and is not itself an "employee benefit plan," as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975 of the Code, and none of the assets of any Loan Party or Owned DST (or their wholly owned Subsidiary) constitutes or will constitute "plan assets" of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a) no Loan Party and no Owned DST (or its wholly owned Subsidiary) is not, and no Loan Party and no Owned DST (or its wholly owned Subsidiary) is, a "governmental plan" within the meaning of Section 3(32) of ERISA and (b) no transaction by or with any Loan Party or Owned DST (or its wholly owned Subsidiary) are not subject to any state or other statute, regulation or other restriction regulating investments of, or fiduciary obligations with respect to, governmental plans within the meaning of Section 3(32) of ERISA which is similar to the provisions of Section 406 of ERISA or Section 4975 of the Code and which prohibit or otherwise restrict the transactions contemplated by this Loan Agreement or any other Loan Document.

Section 7.12 <u>Subsidiaries; Joint Ventures</u>. <u>Borrower hasBorrowers have</u> no Subsidiaries other than the Depositors and the Owned DSTs (and any wholly owned Subsidiary of an Owned DST which holds title to the applicable Core Asset) and the Depositors have no Subsidiaries other than the Owned DSTs (and any wholly owned Subsidiary of an Owned DST which holds title to the applicable Core Asset). (i) <u>Borrower doesBorrowers do</u> not own or hold of record and/or beneficially (whether directly or indirectly) any Equity Interests in any Person other than the Depositors and the Owned DSTs (and any wholly owned Subsidiary of an Owned DST which holds title to the applicable Core Asset), (ii) the Depositors do not own or hold of record and/or beneficially (whether directly or indirectly) any Equity Interests in any Person other than the Owned DSTs (and any wholly owned Subsidiary of an Owned DST which holds title to the applicable Core Asset) and (iii) the Owned DSTs do not own or hold of record and/or beneficially (whether directly or indirectly) any Equity Interests in any Person other than any wholly owned Subsidiary of an Owned DST which holds title to the applicable Core Asset.

Section 7.13 <u>Margin Regulations; Investment Company Act; Public Utility Holding Company Act</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Loan Proceeds will be used in violation of Regulations U or X of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 221 and 207) (the "Margin Regulations"), for the purpose of purchasing or carrying any "margin stock" as defined in the Margin Regulations or reducing or retiring any Indebtedness which was originally incurred to purchase or carry margin stock or for any other purpose which might make this transaction a "purpose credit" within the meaning of the Margin Regulations. Neither any of the Loan Parties or any of the Owned DSTs (or its wholly owned Subsidiary) nor any Person acting on behalf of any of the Loan Parties or the any of the Owned DSTs (or its wholly owned Subsidiary) have taken or will take any action which would cause any Loan Document to violate the Margin Regulations or any other regulations of the Board of Governors of the Federal Reserve System or to violate Section 7 of the Securities Exchange Act of 1934, or any rule or regulation promulgated thereunder, in each case as now in effect or as the same may hereafter be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrower isBorrowers are</u> not subject to regulation under the Public Utility Holding Company Act of 2005, the Federal Power Act, the Investment Company Act of 1940, the Interstate Commerce Act (as any of the preceding have been amended), or any other law which regulates the incurring by <u>any</u> Borrower of indebtedness, including laws relating to common or contract carriers or the sale of electricity, gas, steam, water or other public utility services.

Section 7.14 <u>Disclosure</u>. To <u>each</u> Borrower's Knowledge, no report, financial statement, certificate or other information furnished by or at the direction of any Borrower to Administrative Agent or any Lender in connection with the Transactions and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any misstatement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading as of the date made.

Section 7.15 <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To <u>each</u> Borrower's Knowledge, the location, construction, occupancy, development, management, operation, sale, marketing and use of the Owned Core Assets comply in all material respects with the terms of the Permitted Exceptions relating to the Owned Core Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Each</u> Borrower, each Loan Party and, to <u>each</u> Borrower's Knowledge, all of the Owned Core Assets are in compliance in all material respects with all applicable zoning ordinances (other than legal non-conformances), restrictive covenants, Laws and governmental requirements affecting each Owned Core Asset, including all Environmental Laws, applicable to it or to the Owned Core Assets.

Section 7.16 <u>Compliance with Environmental Laws</u>. To the<u>each</u> Borrower's Knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Loan Party nor any Owned DST has violated or is in violation, or alleged violation, in any material respect of any Environmental Laws affecting any Owned Core Asset(s). No Loan Party or any Owned DST, nor any operator of the Owned Core Assets or any operations thereon have failed to obtain or comply in all material respects with any permit required to be obtained by the owner of the applicable Owned Core Asset pursuant to Environmental Laws for the occupation of any Owned Core Assets or to conduct the operations thereon. Borrower<u>Borrowers</u> shall take or cause the applicable Owned DST (or its wholly owned Subsidiary) to take, all actions required to cause the Owned Core Assets to comply in all material respects with all Environmental Laws and to comply in all material respects with all compliance orders brought under and to the extent required by Environmental Law affecting the Owned Core Asset(s) (including, without limitation, the taking of commercially reasonable actions to enforce the obligations of any tenants or third parties with respect thereto). All of the Environmental Liabilities are listed on <u>Schedule</u> <u>7.16</u>7.16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of <u>any</u> Borrower, any Depositor or any Owned DST (or its wholly owned Subsidiary) nor any of their Related Parties has received written notice from any third party including any federal, state or local Governmental Authority: (i) regarding any actual or alleged violation of Environmental Laws or any Environmental Liabilities, including any investigatory, remedial, or corrective liabilities, relating to any of the Owned Core Assets (other than any violations of Environmental Laws which have been remediated in accordance with applicable Environmental Laws); (ii) that any such Person has been identified by the United States Environmental Protection Agency as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, with respect to a site listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B (1986); (iii) that any Hazardous Materials which any such Person has generated, transported or disposed of has been found at any site at which a federal, state or local Governmental Authority or other third party has conducted or has ordered that any such Person conduct a remedial investigation, removal or other response action pursuant to any Environmental Law (except to the extent that such remediation, removal or other response action has been completed in accordance with Environmental Law); or (iv) that any such Person is a named party to any claim, action, cause of action, complaint, or legal or administrative proceeding (in each case, contingent or otherwise) arising out of any third party's incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with the release or presence of Hazardous Materials in violation of Environmental Law. With respect to any notice received by any of the Related Parties of <u>any</u> Borrower, any Depositor or any Owned DST, such notice shall only be subject to this <u>Section 7.16(b)Section 7.16(b)</u> if such notice is in connection with an Owned Core Asset, any Borrower, any Depositor or any Owned DST.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) No Loan Party or any Owned DST (or its wholly owned Subsidiary), nor any operator of any Owned Core Asset has handled, processed, treated, stored, disposed of, arranged for or permitted the disposal of any Hazardous Material at any Owned Core Asset in violation in any material respect of Environmental Law, and, no portion of the Owned Core Assets has been used for the handling, processing, treatment, storage or disposal of Hazardous Materials except in accordance with applicable Environmental Laws; (ii) no underground tank or other underground storage receptacle for Hazardous Materials, friable asbestos containing material, materials or equipment containing polychlorinated biphenyls, or landfills, or surface impoundments, are located on any portion of the Owned Core Assets; (iii) in the course of any activities conducted by any Borrower, any Depositor or any Owned DST (or its wholly owned Subsidiary) or operators of the Owned Core Assets, no Hazardous Materials have been generated or are being used on the Owned Core Assets except in accordance in all material respects with applicable Environmental Laws; (iv) there have been no releases (i.e. any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping) or threatened releases of Hazardous Materials in violation in any material respect of Environmental Law on, upon, into or from any Owned Core Assets (and no such Owned Core Asset is contaminated with any such substance) other than those which have been remediated in accordance with Environmental Law; (v) there have been no releases in violation of Environmental Law on, upon, from or in to any Owned Core Asset in the vicinity of any of the Owned Core Asset which, through soil or groundwater migration, may have come to be located on the Owned Core Asset other than those which have been remediated in accordance with Environmental Laws; and (vi) any Hazardous Materials that have been generated, accumulated or stored on any of the Owned Core Asset by or on behalf of any Owned DST (or its wholly owned Subsidiary) have been transported offsite only by carriers having an identification number issued by the Environmental Protection Agency if required by Environmental Law, treated or disposed of only by treatment or disposal facilities maintaining valid permits as required under applicable Environmental Laws, which transporters and facilities have been and are, operating in compliance with such permits and applicable Environmental Laws.

Section 7.17 <u>Zoning</u>. The current and any anticipated use of each Owned Core Asset complies in all material respects with all applicable zoning, land use and similar laws, ordinances, regulations and restrictive covenants affecting such Owned Core Asset, all material use restrictions of any Governmental Authority having jurisdiction have been satisfied, and no material violation of any Law or regulation exists with respect thereto. No Loan Party or Owned DST (or its wholly owned Subsidiary) has received any written notice of any material violation of any zoning Laws relating to the Owned Core Assets (other than legal non-conformances and violations which have been cured).

Section 7.18 <u>Material Agreements; No Defaults</u>. No event has occurred which constitutes a default under any Material Agreement (subject to any applicable notice and/or cure periods set forth in the applicable Material Agreement).

Section 7.19 <u>No Expropriation</u>. To <u>each</u> Borrower's Knowledge, no Expropriation proceeding is pending, or threatened against any Owned Core Asset which would materially impair the use, entitlement, management, development, operation, marketing and sale of such Owned Core Asset; *provided, however*, that the commencement of any Expropriation proceeding with respect to any Owned Core Asset after the date of the acquisition thereof by the applicable DST shall not give rise to any Default or Event of Default hereunder so long as the such DST complies in all material respects with the applicable terms of the applicable Senior Mortgage Loan Documents in connection therewith.

Section 7.20 <u>Senior Mortgage Loan Documents</u>. To the extent an Owned DST (or its wholly owned Subsidiary) is the borrower under a Senior Mortgage Loan, there is no default or event of default under any of the applicable Senior Mortgage Loan Documents which if not cured, would permit the Senior Mortgage Lender to accelerate the obligations under the Senior Mortgage Loan that has occurred and is continuing unless such default or event of default has been waived by the Senior Mortgage Lender.

Section 7.21 <u>Oral Agreements; Matters Not of Record</u>. <u>Borrower has notNo Borrowers have</u> entered into any oral agreement or matters that are not of record that are or would otherwise be Liens on any of the Owned Core Assets, or appear as exceptions to the Title Policy.

Section 7.22 <u>Creation, Perfection and Priority of Liens</u>. As of the <u>Closing</u>First <u>Amendment Effective</u> Date, the execution and delivery of the Security Documents by each Loan Party, together with the filing of any Uniform Commercial Code financing statements delivered to Administrative Agent, are effective to create in favor of Collateral Agent for the benefit of the Secured Parties, as security for the Obligations, a valid and perfected first priority Lien on all of the Collateral then in existence that may be perfected by filing or recording and all filings and other actions necessary to perfect such Lien will have been duly taken.

Section 7.23 <u>Equity Interests / DST Interests</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All outstanding Equity Interests in each Loan Party and Owned DST are duly authorized, validly issued, fully paid and non-assessable. There are no outstanding subscriptions, options, conversion rights, warrants or other agreements or commitments of any nature whatsoever (firm or conditional) obligating any Loan Party or any Owned DST to issue, deliver or sell, or cause to be issued, delivered or sold, any additional Equity Interests of such Loan Party or Owned DST, or obligating such Loan Party or Owned DST to grant, extend or enter into any such agreement or commitment. All Equity Interests in each Loan Party and Owned DST, have been offered and sold in compliance in all material respects with all applicable federal and state securities laws and all other applicable Law. None of the Equity Interests in any Loan Party or Owned DST are subject to any Lien except those in favor of Collateral Agent. Brian Nelson Controls <u>Original</u> Sponsor; <u>Original</u> Sponsor Controls <u>Original</u> Parent; <u>Original</u> Parent Controls <u>BorrowerEquityCo</u>; and <u>BorrowerEquityCo</u> owns all of the issued and outstanding Equity Interests in each Depositor. <u>not owned by EquityCo II. Tanya Muro and Blake Wettengel Control New Sponsor; New Sponsor Controls New Parent; New Parent Controls EquityCo II; and EquityCo II owns all of the issued and outstanding Equity Interests in each Depositor not owned by EquityCo.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Original</u> Parent has the unrestricted right to vote the Equity Interests in <u>Borrower. BorrowerEquityCo. New Parent has the unrestricted right to vote the Equity Interests in EquityCo II. EquityCo</u> has the unrestricted right to vote the Equity Interests of each Depositor <u>not owned by EquityCo II. EquityCo II has the unrestricted right to vote the Equity Interests of each Depositor not owned by EquityCo</u>. Brian Nelson directly or indirectly owns all of the Equity Interests in <u>Original</u> Sponsor representing a direct or indirect Controlling interest in <u>Parent,</u> <u>Borrower and each other Loan Party Original Parent, EquityCo and each Depositor owned directly or indirectly by EquityCo for purposes of directing or causing the direction of the management and policies of each such Person. Tanya Muro and Blake Wettengel directly or indirectly own all of the Equity Interests in New Sponsor representing a direct or indirect Controlling interests in Parent, EquityCo II and each Depositor owned directly or indirectly by EquityCo II</u> for purposes of directing or causing the direction of the management and policies of each such Person. Brian Nelson has the unrestricted right to vote the Equity Interests of <u>Original</u> Sponsor. <u>Tanya Muro and Blake Wettengel have the unrestricted right to vote the Equity Interests of New Sponsor.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> Borrower<u>EquityCo</u> is the sole beneficial owner of the Pledged Equity Interests of each <u>EquityCo</u> Depositor and <u>hashave</u> good title to the Pledged Equity Interest of each <u>EquityCo</u> Depositor), and no Lien exists or will exist upon the Pledged Equity Interests of the <u>EquityCo</u> Depositors at any time (and no right or option to acquire the same exists in favor of any other Person). Parent<u>EquityCo II</u> is the sole beneficial owner of the Pledged Equity Interests of <u>Borrower and haseach EquityCo II Depositor and have</u> good title to the Pledged Equity <u>Interests of</u> <u>BorrowerInterest of each EquityCo II Depositor)</u>, and no Lien exists or will exist upon the Pledged Equity Interests of <u>Borrowerthe EquityCo II Depositors</u> at any time (and no right or option to acquire the same exists in favor of any other Person). <u>Original Parent is the sole beneficial owner of the Pledged Equity Interests of EquityCo and has good title to the Pledged Equity Interests of EquityCo, and no Lien exists or will exist upon the Pledged Equity Interests of EquityCo at any time (and no right or option to acquire the same exists in favor of any other Person). New Parent is the</u> <u>sole_ beneficial owner of the Pledged Equity Interests of EquityCo II and has good title to the Pledged Equity Interests of EquityCo II, and no Lien exists or will exist upon the Pledged Equity Interests of EquityCo II at any time (and no right or option to acquire the same exists in favor of any other Person).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> On the closing of the acquisition of each Core Asset subject to an Approved Core Asset Investment, 100% of the issued and outstanding DST Interests of the applicable Owned DSTs shall be owned by a Depositor and no Person shall at any time own DST Interests in, or have the right to purchase or acquire any DST Interests in an Owned DST except pursuant to syndication by an Owned DST of DST Interests, the net proceeds of which will be exclusively used to redeem DST Interests held by the applicable Depositor. All DST Interests of the Owned DSTs have been, and will be, offered and sold in compliance with all federal and state securities laws and all other applicable Law. None of the DST Interests in Owned DSTs which are owned by the applicable Depositor are subject to any Lien except Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the exercise of its rights and remedies under the<u>any</u> Borrower Pledge Agreement, the Collateral Agent for the benefit of the Secured Parties will succeed to all of the rights, titles and interest of <u>the applicable</u> Borrower in the applicable Depositor and the DST Interests in the applicable Owned DST owned by such Depositor without the consent of any other Person other than each applicable Senior Mortgage Lender and will, in the case of each Depositor, without the consent of any other Person other than each applicable Senior Mortgage Lender, be admitted as a member in such Depositor. Upon the exercise of its rights and remedies under theany Parent Pledge Agreement, the Collateral Agent for the benefit of the Secured Parties will succeed to all of the rights, titles and interest of <u>the applicable</u> Parent in <u>the applicable</u> Borrower without the consent of any other Person other than_ each applicable Senior Mortgage Lender and will, without the consent of any other Person other than each applicable Senior Mortgage Lender, be admitted as the sole member in the <u>applicable</u> Borrower.

Section 7.24 <u>No Agreements to Merge</u>. To <u>each</u> Borrower's Knowledge, Borrower<u>the</u> <u>Borrowers</u>, the Depositors, the Owned DSTs (or any Owned DST's wholly owned Subsidiary) and <u>Parentthe Parents</u> have no legal obligation, absolute or contingent, to any Person to effect any merger, consolidation or other reorganization or to enter into any agreement with respect thereto.

Section 7.25 <u>Labor Matters</u>. To <u>each</u> Borrower's Knowledge, there are no disputes presently subject to grievance procedure, arbitration or litigation under any of the collective bargaining agreements, employment contracts or employee welfare or incentive plans to which any Loan Party or Owned DST (or its wholly owned Subsidiary) is a party. No Loan Party is a party to or bound by any collective bargaining agreement or other contract with a labor union or labor organization and there are no strikes, lockouts, work stoppages or slowdowns, or, to <u>each</u> Borrower's Knowledge, jurisdictional disputes or organizing activities occurring or threatened.

Section 7.26 <u>Brokerage Commissions</u>. No Person is entitled to receive any broker's commissions in connection the transactions contemplated by this Agreement (other than any commissions which may become payable in connection with the acquisition or financing of any Owned Core Asset or the syndication or redemption by an Owned DST of DST Interests).

Section 7.27 <u>Agreements with Affiliates</u>. The Depositors, <u>BorrowerBorrowers</u> and Owned DSTs (or any Owned DST's wholly owned Subsidiary) are not a party to any Contractual Obligations with any of their Affiliates or any of their Related Parties (other than any Asset Management Agreements or Property Management Agreements), except to the extent such Contractual Obligations are disclosed in a Submission Package and/or Final Investment Memo and approved by Administrative Agent as permitted under <u>Section 9.6Section 9.6</u> or are otherwise disclosed to and approved by Administrative Agent pursuant to <u>Section 9.6</u>.<u> </u>

Section 7.28 <u>Foreign Assets Control, Etc.</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party and each Owned DST (and its wholly owned Subsidiary) is not (A) controlled or controlled by, a Designated Person; (B) in receipt of funds or other property from a Designated Person; or (C) in breach of or the subject of any action or investigation under any Anti-Terrorism Law. Each Loan Party and each Owned DST (and its wholly owned Subsidiary) has not engaged and will not engage in any dealings or transactions, and is not and will not be otherwise associated, with any Designated Person. <u>TheEach</u> Borrower is in compliance, in all respects, with the Patriot Act. Each Loan Party and each Owned DST has taken reasonable measures to ensure compliance with the Anti-Terrorism Laws including the requirement that (1) no Person who owns any direct or indirect interest in any Loan Party is a Designated Person and (2) funds invested directly or indirectly in any Borrower are derived from legal sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No portion of the Loan Proceeds or other credit made hereunder has been or will be used, directly or indirectly for, and no fee, commission, rebate or other value has been or will be paid to, or for the benefit of, any governmental official, political party, official of a political party or any other Person acting in an official capacity in violation of any applicable law, including the U.S. Foreign Corrupt Practices Act of 1977, as amended.

Section 7.29 <u>Representations and Warranties Upon Delivery of Financial Statements, Documents, and Other Information</u>. Each delivery by <u>any</u> Borrower to Administrative Agent, Collateral Agent or any Lender of any schedules (including the schedules attached to this Agreement), or financial statements, shall be a representation and warranty that such schedules, financial statements and other reports are true, correct and complete (in accordance with GAAP if applicable) in all material respects as of the date thereof, that there are no omissions therefrom that would result in such financial statements and other reports being incomplete, incorrect or misleading as of the date thereof, and that such financial statements accurately present the financial condition and results of operations of the Loan Parties and the Owned DSTs as at the dates thereof and for the periods covered thereby.

<u>Section 7.30 Benefits. Each of the recitals set forth in the First Amendment is true and correct, and each Borrower Party is expected to benefit, directly or indirectly, from the Obligations and each Advance and Disbursement made hereunder.</u>

**ARTICLE 8**

**AFFIRMATIVE COVENANTS**

So long as any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, <u>BorrowerBorrowers</u> shall, and shall cause, if applicable, each Depositor and Owned DST (and any wholly owned Subsidiary of an Owned DST):

Section 8.1 <u>Financial Statements and Other Reports</u>. Provide the following financial information and statements in form acceptable to the Administrative Agent, and such additional information as requested by a Lender or the Administrative Agent from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as available, but not later than ninety (90) days after the end of each Fiscal Year commencing with the Fiscal Year ending December 31, 2021, provide to the Administrative Agent the audited consolidated balance sheet of the Borrower<u>Borrowers</u> and the other Loan Parties as at the end of, and the related consolidated statements of income, retained earnings and cash flows for, such Fiscal Year, and the corresponding figures as at the end of, and for, the preceding Fiscal Year, accompanied by a report and opinion of an Independent Accountant, which report and opinion shall be prepared in accordance with generally accepted auditing standards relating to reporting and which report shall contain no qualified or adverse opinion or disclaimer of opinion, together with a certificate signed by an Responsible Officer of the <u>BorrowerBorrowers</u>, to the effect that such financial statements fairly present the consolidated financial position of the <u>BorrowerBorrowers</u>, as at the dates indicated and the results of its operations for the periods indicated in conformity with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as available, and in any event within forty five (45) days after the end of each Fiscal Quarter commencing with the Fiscal Quarter in which the first Advance is made pursuant hereto, the consolidated unaudited balance sheet of the Borrower<u>Borrowers</u> as of the close of such Fiscal Quarter and related consolidated statements of income, retained earnings and cash flow for such Fiscal Quarter and that portion of the Fiscal Year ending as of the close of such Fiscal Quarter, including comparisons of (i) the current period to the corresponding period in the prior year and to the <u>Approved</u> Budget for the current Fiscal Year, and (ii) the year-to-date to the corresponding period in the prior year and to the Approved Budget for the current Fiscal Year, in each case certified by a Responsible Officer of the Borrower <u>Representative</u> as fairly presenting the consolidated financial position, results of operations and cash flow of the <u>BorrowerBorrowers</u> as at the dates indicated and for the periods indicated in accordance with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within the earlier of (i) one Business Day prior to the applicable Payment Date and (ii) four (4) Business Days of the end of each calendar month, commencing with the calendar month in which the first Advance is made pursuant hereto, (i) a report of all Permitted DST Interests Redemptions from the previous month, (ii) a summary of the current cash balances in each Account, (iii) all reports provided by the property manager of each Core Asset Investment in accordance with the applicable property management agreement, (iv) a report of the Required Equity Contributions contributed by <u>any</u> Parent to <u>the</u>a Borrower as of the last day of such previous calendar month, (v) the calculations of the amounts set forth in Sections 10.4(c) and 10.4(d), as applicable and (vi) such additional information as may be requested by Administrative Agent or otherwise agreed to by the parties hereto and (v<u>vii</u>) evidence that the Loan Parties and each Owned DST (and wholly owned Subsidiary) are in compliance with the covenants regarding insurance as set forth in <u>Section 8.8Section 8.8</u>. For the avoidance of doubt, the monthly reports required to be delivered pursuant to this <u>Section 8.1(c)Section 8.1(c)</u>, shall be delivered for all twelve calendar months, including for months in which annual reposts and quarterly reports are delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Concurrently with delivery of the financial statements and other information required under clauses (a), (b) and (c) above, a Compliance Certificate duly executed by a Responsible Officer of the Borrower <u>Representative</u> that, among other things, (i) certifies that no Default or Event of Default is continuing as of the date of delivery of such Compliance Certificate or, if a Default or Event of Default is continuing, states the nature thereof and the action that the <u>Borrower proposesBorrowers propose</u> to take with respect thereto, (ii) certifies that all filings required under the Security Documents have been made and listing each such filing that has been made since the date of the last certificate delivered in accordance with this <u>Section 8.1(d)Section</u> <u>8.1(d)</u> and (iii) certifies that the Loan Parties have delivered all documents they are required to deliver pursuant to any Loan Document on or prior to the date of delivery of such Compliance Certificate, or have attached such documents to such Compliance Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Borrower<u>Borrowers</u> shall cause each Owned DST until it is no longer an Owned DST to deliver to Administrative Agent, to the extent not otherwise provided to the Administrative Agent pursuant to the terms of this Agreement, (i) concurrently with the delivery to such Owned DST's (or its wholly owned Subsidiary's) Senior Mortgage Lender, copies of all financial statements, budgets, and other reports delivered by such Owned DST to its Senior Mortgage Lender under the Senior Mortgage Loan Documents and (ii) within two (2) Business Days after the same are sent, notices sent to any Loan Party or Owned DST (or wholly owned Subsidiary) by the Senior Mortgage Lender or any representative or agent thereof pursuant to the Senior Mortgage Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower<u>Borrowers</u> will provide Administrative Agent with read only access to <u>each</u> Borrower's and each other Loan Party's and any Owned DST's (and its wholly owned Subsidiary's) bank accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower<u>Borrowers</u> shall not make any material change in its accounting policies or financial reporting practices without the prior written consent of Administrative Agent.

Section 8.2 <u>Approved Budget</u>(ah) . Attached hereto as <u>Schedule 8.2,</u> is an Approved Budget for the Borrower<u>Borrowers</u> for the period ending December 31, <u>20212022</u> reflecting budgeted Operating Expenses for the Loan Parties for each calendar month during such period (as updated pursuant to this <u>Section 8.2Section 8.2</u>. or otherwise periodically revised by the <u>BorrowerBorrowers</u> and delivered to and approved by the Administrative Agent, the "<u>Approved</u> <u>Budget</u>"). No later than November 30 of each Fiscal Year, <u>BorrowerBorrowers</u> shall deliver to Administrative Agent an updated Approved Budget for the following Fiscal Year which shall be subject to the approval of the Administrative Agent. In the event the Approved Budget is not approved by Administrative Agent prior to the end of a Fiscal Year, then the Approved Budget for the prior Fiscal Year will remain in effect.

Section 8.3 <u>Furnishing Information and Inspection of Owned Core Assets</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The <u>BorrowerBorrowers</u> will furnish or cause to be furnished to the Administrative Agent, from time to time, such information with respect to any Owned Core Asset and the Collateral as the Administrative Agent may request, including such property management reports from any property manager in such formats as Administrative Agent may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The <u>BorrowerBorrowers</u> will, during regular business hours and with prior written notice, permit the Administrative Agent, its respective agents or representatives and/or certified public accountants or other auditors acceptable to the Administrative Agent, to: (i) examine and make copies of and abstracts from all books and records relating to any Loan Parties, Owned DSTs and Owned Core Assets and the Collateral, (ii) visit the offices and properties of the Loan Parties, Owned DSTs and Owned Core Assets for the purpose of examining such books and records or make same available through digital means, (iii) discuss matters relating to any Loan Parties, Owned DSTs and Owned Core Assets and the Collateral or the <u>Borrower'sBorrowers'</u> performance hereunder or under the other Loan Documents to which it is a party with any of the officers, directors, employees or independent public accountants of the Loan Parties or Owned DSTs having knowledge of such matters and (iv) conduct a review of its books and records with respect to the Loan Parties, Owned DSTs and Owned Core Assets (each inspection and audit described in clauses (i) though (iv) above, an "<u>Inspection</u>"). The Borrower<u>Borrowers</u> shall reimburse the Administrative Agent for its out-of-pocket costs and expenses incurred in connection with one such Inspection per twelve-month period and the Administrative Agent will bear its own costs and expenses for any additional Inspections during such twelve-month period; provided that the <u>BorrowerBorrowers</u> shall also reimburse the Administrative Agent for its out-of-pocket costs and expenses incurred in connection with any additional Inspections that the Administrative Agent deems desirable to conduct while any Event of Default or Commitment Termination Event has occurred and is continuing. In connection with any such Inspection, to the extent no applicable confidentiality agreement is already in place with respect to such Person, each Person conducting such Inspection (including any third party certified public accounting firms or auditing firms) shall have agreed in writing to maintain the confidentiality of the <u>Borrower's and itsBorrowers' and their</u> Affiliates' confidential non-public information on terms reasonably acceptable to the parties thereto (it being understood that terms substantially comparable to the terms of confidentiality agreements previously agreed to by the <u>Borrower or itsBorrowers or their</u> Affiliates with the Administrative Agent and its Affiliates shall be reasonably acceptable).

Section 8.4 <u>Notices</u>. Promptly upon obtaining knowledge thereof, notify Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default, Event of Default or Commitment Termination Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any matter that has resulted or would reasonably be expected to result in a Material Adverse Effect, including, to the extent applicable, (i) breach or non-performance of, or any default under, a Contractual Obligation of any Loan Party or any Owned DST (or any wholly owned Subsidiary) (including failure to pay any amount due in respect of any Permitted Indebtedness prior to delinquency), in each case, without giving effect to any applicable notice and/or cure period; (ii) any dispute, litigation, investigation, proceeding or suspension between Loan Party or any Owned DST (or its wholly owned Subsidiary) and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any Owned DST (or its wholly owned Subsidiary) including pursuant to any applicable Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of a default or event of default under any Material Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the occurrence of a default or an event of default under any Indebtedness of any Loan Party or any Owned DST (or its wholly owned Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Restricted Payment.

Each notice pursuant to this <u>Section 8.4Section 8.4</u> shall be accompanied by a statement of a Responsible Officer of <u>the</u> Borrower <u>Representative</u> setting forth details of the occurrence referred to therein and stating what action <u>Borrower hasBorrowers have</u> taken and proposes to take with respect thereto. Each notice pursuant to <u>Section 8.4(a)Section 8.4(a)</u> shall describe with particularity any and all provisions of this Agreement and any other Loan Document that has been breached.

Section 8.5 <u>Payment of Obligations</u>. <u>Each</u> Borrower shall (and shall cause each Depositor and each Owned DST (or its wholly owned Subsidiary) to) pay and discharge, prior to delinquency, all its obligations and liabilities unless such liabilities are being properly contested in good faith by Depositor or the applicable Owned DST (or its wholly owned Subsidiary), as applicable, including (a) all Tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by Borrower<u>Borrowers</u>, the Depositors or the Owned DSTs (or an Owned DST's wholly owned Subsidiary); (b) all lawful claims which, if unpaid, would by law become a Lien (other than a Permitted Lien) upon <u>theany</u> Borrower's, any Depositor's or any Owned DST's (or its wholly owned Subsidiary's) property; and (c) all Indebtedness, as and when due and payable (subject to any applicable extensions of time), but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness.

Section 8.6 <u>Preservation of Existence, Etc.</u>. <u>(a)</u> Preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its organization (provided, that, a Depositor may liquidate, wind up its affairs and dissolve following such time as the Depositor no longer owns any DST Interests, whereupon such Depositor shall no longer constitute a "Depositor" for purposes of the Loan Documents); <u>(b)</u> take all action to maintain all rights, privileges, permits, licenses and franchises necessary in the normal conduct of its business; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks necessary for the use and operation of any of the Owned Core Assets and the operation of the Versity DST Business.

Section 8.7 <u>Maintenance of Properties</u>. Subject to and consistent with its ordinary course of operations and any applicable Senior Mortgage Loan Documents, leases and Permitted Exceptions, preserve and maintain (and shall cause each applicable Owned DST (or its wholly owned Subsidiary) to preserve and maintain) the Owned Core Asset in good order, repair and condition (reasonable wear and tear excepted), and shall (and shall cause each applicable Owned DST (or its wholly owned Subsidiary) to) (a) subject to the availability of insurance proceeds pursuant to the applicable Senior Mortgage Loan Documents, leases and/or Permitted Exceptions promptly restore damage from casualty as near as reasonably possible to the condition existing immediately prior to such damage, (b) subject to <u>Borrower'sBorrowers'</u> and the applicable Owned DST's (or its wholly owned Subsidiary's) exhaustion of any rights to appeal any such requirements or measures, promptly undertake any remedial measures required by any Governmental Authority in order to comply with Environmental Laws, and (c) not knowingly permit or commit physical waste on any Owned Core Asset or knowingly permit any material impairment or deterioration of any Owned Core Asset.

Section 8.8 <u>Maintenance of Insurance</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Maintain (or shall cause each applicable Owned DST (or its wholly owned Subsidiary) to maintain) with financially sound and reputable insurers having an A.M. Best rating of A- or better and not Affiliates of any Borrower insurance with respect to such Owned DST's (or its wholly owned Subsidiary's) Owned Core Asset and business against such casualties and contingencies, including fire, lightning and other perils, as shall be in accordance with the general practices of businesses engaged in similar activities in similar geographic areas and <u>Borrower'sBorrowers'</u> past practices and consistent with <u>Borrower'sBorrowers'</u> or the Owned DST's practices on the Closing Date, and in amounts, containing such terms, in such forms and for such periods as may be reasonable and prudent in accordance with sound business practices. <u>BorrowerBorrowers</u> shall (and shall cause each Owned DST (or its wholly owned Subsidiary) to) at all times comply with and conform to all provisions of each such insurance policy and to all requirements of the insurers thereunder applicable to Borrower<u>Borrowers</u>, the Owned DSTs (or its wholly owned Subsidiary), the Owned Core Assets or to the use, occupation, possession, operation, maintenance or repair of all or any portion of the Owned Core Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Maintain (or shall cause each applicable Owned DST (or its wholly owned Subsidiary) to maintain) with financially sound and reputable insurers having an A.M. Best rating of A- or better and not Affiliates of <u>any</u> Borrower protecting <u>BorrowerBorrowers</u> and the Owned DSTs (and any Owned DST's wholly owned Subsidiary), against loss from liability imposed by law or assumed in any agreement, document, or instrument and arising from bodily injury, death or property damage, as shall be in accordance with the general practices of businesses engaged in similar activities in similar geographic areas and <u>Borrower'sBorrowers'</u> past practices and consistent with <u>Borrower'sBorrowers'</u> or the Owned DST's practices on the Closing Date, and in amounts, containing such terms, in such forms and for such periods as may be reasonable and prudent in accordance with sound business practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such other policies of insurance (i) as Administrative Agent may request in writing to the extent available on commercially reasonable terms and generally required by lenders with respect to properties similar to the applicable Owned Core Asset(s) or (ii) as may be required under the Senior Mortgage Loan Documents with respect to an Owned DST (or its wholly owned Subsidiary) or Owned Core Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All policies for required insurance will be in form and substance satisfactory to Administrative Agent. All property policies evidencing required insurance will name Collateral Agent, on behalf of the Secured Parties, as additional insured. All liability policies evidencing required insurance will name the Collateral Agent, on behalf of the Secured Parties, as additional insured. The policies will provide for at least thirty (30) days prior written notice of the cancellation or modification thereof to be given to Collateral Agent. Certificates of insurance evidencing that such insurance is in full force and effect, will be delivered to Administrative Agent, together with proof of the payment of the premiums thereof. Prior to the expiration of each such policy, <u>BorrowerBorrowers</u> shall furnish Administrative Agent evidence that such policy has been renewed or replaced in the form of the original or a certified copy of the renewal or replacement policy or, if acceptable to Administrative Agent, a certificate reciting that there is in full force and effect, with a term covering at least the next succeeding calendar year, insurance of the types and in the amounts required in this <u>Section 8.8Section 8.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Borrower<u>Borrowers</u> will not (and will not permit any Loan Party or any Owned DST (or its wholly owned Subsidiary) to) settle any claim under any casualty insurance policies, if such claim involves any loss in excess of $500,000, without the prior written approval of Administrative Agent, and the Borrower<u>Borrowers</u> shall use commercially reasonable efforts to cause each such policy that is renewed or entered into after the Closing Date to contain a provision to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary set forth in this <u>Section 8.8Section</u> <u>8.8</u>, so long as each Owned DST (or its wholly owned Subsidiary) is maintaining such insurance as may be required by the applicable Senior Mortgage Loan Documents, the requirements of this <u>Section 8.8Section 8.8</u> shall be deemed satisfied with respect to the applicable Owned Core Asset.

Section 8.9 <u>Compliance</u>. Comply, and cause (and cause each Owned DST (or its wholly owned Subsidiary) to comply) and cause the Owned Core Assets (including the location, construction, occupancy, development, management, operation, sale, marketing and use thereof) to comply in all material respects, with all applicable Permitted Exceptions, zoning ordinances (other than legal non-conformances), restrictive covenants, Laws and governmental requirements affecting each Owned Core Asset, including all Environmental Laws, applicable to it or to the Owned Core Assets.

Section 8.10 <u>Books and Records</u>. Maintain (and cause each Depositor and Owned DST (or its wholly owned Subsidiary) to maintain) proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of <u>BorrowerBorrowers</u>.

Section 8.11 <u>Intangible, Recording and Stamp Tax</u>. Promptly pay (or cause each Owned DST (or its wholly owned Subsidiary) to pay) all intangible Taxes or documentary stamp Taxes assessed against the Loan Parties, any Owned DSTs (and its wholly owned Subsidiary), Administrative Agent, Collateral Agent or any of Lenders as a result of this Agreement or any document related hereto, if any.

Section 8.12 <u>Further Assurances</u>. At any time and from time to time, upon fifteen (15) days' prior request, execute, acknowledge and deliver (and shall cause each Loan Party and each Owned DST (and its wholly owned Subsidiary) to execute, acknowledge and deliver) such further documents, agreements and instruments and take such further action as may be requested by Administrative Agent, in each case further and more perfectly to effect the purposes of this Agreement and the other Loan Documents, including, from time to time to better assure, preserve, protect and perfect the interest of Collateral Agent in the Collateral and the rights and remedies of the Secured Parties under the Loan Documents. Without limiting the foregoing, to the extent that Collateral Agent determines from time to time that additional pledge agreements, financing statements, recognition agreements and other documents are required in order to perfect all Liens and encumbrances in favor of Collateral Agent, Borrower<u>Borrowers</u> shall execute and deliver such documents, instruments and other agreements as Collateral Agent may request.

Section 8.13 <u>Special Covenants Relating to Collateral</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower<u>Borrowers</u> shall defend the Collateral, the title and interest therein represented and warranted in the Security Documents and the legality, validity, binding nature and enforceability of each Lien and encumbrance contained in the Security Documents and the first priority of the Security Documents against all matters, including: (i) any attachment, levy, or other seizure by legal process or otherwise of any or all Collateral; (ii) any Lien or encumbrance or claim thereof on any or all Collateral; (iii) any attempt to foreclose, conduct a trustee's sale, or otherwise realize upon any or all Collateral under any Lien or encumbrance, regardless of whether a Permitted Lien and regardless of whether junior or senior to the Security Documents; and (iv) any claim questioning the legality, validity, binding nature, enforceability or priority of the Security Documents. <u>BorrowerBorrowers</u> shall (or shall cause each Owned DST (or its wholly owned Subsidiary) to) defend title to the Owned Core Assets and every part thereof, subject only to Permitted Liens, against the claims of all Persons whomsoever, at Borrower's<u>Borrowers'</u> sole cost and expense. Borrower<u>Borrowers</u> shall notify Administrative Agent and promptly after obtaining knowledge in writing of any of the foregoing and will provide such information with respect thereto as Administrative Agent may from time to time request. ___ Borrower<u>Borrowers</u> shall reimburse Agent for any actual losses, out-of-pocket costs, damages (excluding special, consequential or punitive damages except to the extent awarded in favor of any third party against Agent) or expenses (including fees of outside counsel and court costs) incurred by Agent if an interest in Collateral or the Owned Core Asset, other than as permitted hereunder, is claimed by another Person except to the extent a title company or other third party is liable for the payment or reimbursement of such expenses and actually pays or reimburses Agent for such expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower<u>Borrowers</u> shall (and shall cause each Owned DST (or its wholly owned Subsidiary) to) keep and maintain in full force and effect all restrictive covenants, development agreements, easements and other similar agreements with Governmental Authorities and other Persons that are necessary for the use, entitlement, management, development, operation, marketing and sale of each Owned Core Asset. Borrower<u>Borrowers</u> shall not (and shall not permit any Owned DST (and its wholly owned Subsidiary) to) default in any such covenants, development agreements, easements and other agreements (subject to any applicable notice and/or cure periods) and will use commercially reasonably efforts to enforce its rights thereunder.

Section 8.14 <u>Performance under Contractual Obligations</u>. Borrower<u>Borrowers</u> shall timely observe and perform (and shall cause each Depositor and each Owned DST (and its wholly owned Subsidiary) to timely observe and perform) all of the covenants and agreements required to be performed and/or observed by Borrower<u>Borrowers</u>, the applicable Depositor and/or the applicable Owned DST (or its wholly owned Subsidiary) under any Contractual Obligations (including the Senior Mortgage Loan Documents), subject to any applicable notice and/or cure periods set forth therein.

Section 8.15 <u>Owned DSTs; Failure to Syndicate DST Interests</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as a Depositor shall own DST Interests in an Owned DST, the Borrower<u>Borrowers</u> and such Depositor shall take all action necessary to cause such Owned DST to distribute to Depositor and the other holders of DST Interests in such Owned DST, subject to the terms of any related Senior Mortgage Loan, (i) all cash held by such Owned DST and any Subsidiary thereof (after setting aside reasonable reserves for the payment of current expenses and liabilities) and (ii) all Gross Receipts received by such Owned DST or any Subsidiary thereof from the Disposition of all or any part of its interest in the applicable Owned Core Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Subject to the other provisions of this <u>Section 8.15(b)</u>, in the event that 100% of the DST Interests issued by an Owned DST to a Depositor are not fully redeemed by such Owned DST prior to the first anniversary of the applicable Core Asset Closing Date, the Borrower <u>Representative</u> shall submit to Administrative Agent for its approval (not to be unreasonably withheld), a marketing plan for the sale of the applicable Owned Core Asset, unredeemed DST Interests owned by a Depositor and/or the Equity Interests in such Depositor (individually and collectively, the "<u>Direct Sale Assets</u>", which marketing plan shall be designed to maximize the sale price of such Direct Sale Assets. Thereafter, if 100% of the DST Interests issued by an Owned DST to a Depositor are still not fully redeemed by such Owned DST prior to that date which is thirteen (13) months following the applicable Core Asset Closing Date, <u>BorrowerBorrowers</u> shall, and shall cause the Signatory Trustee/Manager of the applicable Owned DST, to begin marketing the applicable Direct Sale Assets in accordance with the approved marketing plan until the applicable Direct Sale Assets are sold. In the event the <u>BorrowerBorrowers</u> or any Signatory Trustee/Manager of the applicable Owned DST (A) fails to perform its obligations with respect to the marketing of the applicable Direct Sale Assets in accordance with this Section 8.15 or (B) fails to sell the applicable Direct Sale Assets in a manner that is approved by Administrative Agent within sixteen months following the applicable Core Asset Closing Date (the "<u>Outside Sale Date</u>"), then upon written notice to the Borrower <u>Representative</u>, Administrative Agent shall have the right (I) subject to the terms and conditions of the applicable Senior Mortgage Loan Documents, to direct the actions of the Signatory Trustee/Manager of the applicable Owned DST and (II) to direct the actions of the Depositor or Borrower<u>Borrowers</u> solely with respect to the marketing and sale of such Direct Sale Assets on terms and conditions (including purchase price) determined by the Administrative Agent (the "<u>Right to Direct the Sale</u>");<u> </u>provided that Administrative Agent, when giving direction to the Signatory Trustee/Manager, Depositor or <u>BorrowerBorrowers</u> shall in good faith consider any bona fide offer presented by <u>BorrowerBorrowers</u> from any of the Sponsor or Guarantor, or any of their Affiliates (other than any Loan Party or other Owned DST (or wholly owned subsidiary thereof)) or from an independent third party sourced by any of them to purchase the applicable Direct Sale Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the provisions of <u>Section 8.15(b)(i)</u>, the Administrative Agent shall not exercise its rights thereunder to the extent that it would cause an event of default under any Senior Mortgage under the applicable Senior Mortgage Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to the terms and conditions of the applicable Senior Mortgage Loan Documents, the Governing Documents of each Signatory <u>Manager/</u>Trustee<u>/Manager</u> shall contain appropriate provisions to allow for the exercise of Administrative Agent's rights under this <u>Section</u> <u>8.15Section 8.15</u> in accordance with the terms hereof, including an obligation on the part of the Signatory Trustee/Manager to provide any consent to the exercise of the Administrative Agents rights under this <u>Section 8.15Section 8.15</u> so long as such exercise would not constitute a breach of Section 9.03 (Disposition of the Trust Property to Investors) of the applicable DST Trust Agreement. Further, if, prior to the Outside Sale Date for any Owned Core Asset, the applicable Owned DST (or wholly owned Subsidiary, as applicable) shall have entered into a contract for the sale of such Owned Core Asset (which contract shall be subject to the approval of the Administrative Agent (which shall not be unreasonably withheld) the Outside Sale Date shall be extended as necessary in order to allow such Owned DST (or wholly owned Subsidiary) to consummate the sale of such Owned Core Asset in accordance with such contract (taking into account any extension rights in favor of the purchaser set forth in such contract or otherwise granted by the applicable Owned DST and approved by Administrative Agent (which shall not be unreasonably withheld)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding the provisions of <u>Section 8.15(b)(i)</u>, Depositor may at any time sell the DST Interests of a Delinquent Asset owned by a Depositor to a Guarantor or an Affiliate thereof (other than any Loan Party or other Owned DST (or wholly owned subsidiary thereof)), in a transaction in which (A) such buyer purchases all (but not less than all) of the DST Interests then owned by such Depositor, (B) the purchase price is payable solely in cash, fully paid on the date of such sale and the Gross Receipts from such sale are deposited into the Collection Account, and (C) the purchase price for each DST Interest is at least equal to the Redemption Price for such DST Interest (without regard to whether the DST Interests are redeemable at such time) (an "<u>Affiliate Purchase</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) At any time following the redemption of 100% of the DST Interests issued by an Owned DST to a Depositor and the deposit of the Gross Receipts derived therefrom into the Collection Account, so long as no Event of Default has occurred and is continuing, <u>BorrowerBorrowers</u> may request the Collateral Agent, at <u>Borrower'sBorrowers'</u> expense, (a) to release its Liens on such Depositor and (b) duly assign, transfer and deliver to the <u>applicable</u> Borrower, without recourse, representation or warranty of any kind whatsoever, the membership interests certificates of such Depositor evidencing a portion of the Collateral under the <u>applicable</u> Borrower Pledge Agreement as may be in its possession and has not theretofore been disposed of, applied or released.

Section 8.16 <u>Change of Control and Ownership of the Borrower and the Depositors</u>. At all times during the period the Obligations are outstanding, there shall not occur a Change of Control. On the closing of the acquisition of each Core Asset subject to an Approved Core Asset Investment, 100% of the issued and outstanding DST Interests of the applicable Owned DSTs shall be owned by a Depositor and no Person shall at any time own DST Interests in, or have the right to purchase or acquire any DST Interests in an Owned DST except pursuant to syndication by an Owned DST of DST Interests, the net proceeds of which will be exclusively used to redeem DST Interests held by the applicable Depositor.

Section 8.17 <u>Accounts</u>. At all times during the period the Obligations are outstanding, the Loan Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) maintain each of the Accounts at all times at the Deposit Bank, (ii) not establish any other depositary account other than the Collection <u>AccountAccounts</u> and the Sub-Accounts, (iii) enter into and maintain DACA Agreements for each of the Accounts, (iv) maintain each Account as an Eligible Account, in each case until all of the Obligations are paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deposit (i) all Gross Receipts into the <u>applicable</u> Collection Account, (ii) each Core Asset Equity Contribution into the <u>applicable</u> Core Asset Cost Account, (iii) each Interest Shortfall Equity Contribution into the <u>applicable</u> Collection Account, and (iv) each Operating Expense Equity Contribution into the <u>applicable</u> Operating Account.

Section 8.18 <u>Single Purpose Entity/Separateness</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Each</u> Borrower, on behalf of itself and each other Loan Party, hereby represents and warrants to, and covenants with, Agent that since the date of its formation and at all times on and after the date hereof and until such time as the Obligations shall be paid and performed in full, each Loan Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of <u>each</u> Borrower and <u>each</u> Parent (i) has been, is, and will be organized solely for the purpose of (A) owning the Equity Interests in the Borrower<u>Borrowers</u> or Depositors, as the case may be, (B) entering into the Loan Agreement and the other Loan Documents and the transactions contemplated hereby and thereby to which they are a party, and (C) engaging in any lawful act or activity and exercising any powers permitted to limited liability companies organized under the laws of the State of Delaware that are related or incidental to and necessary, convenient or advisable for the accomplishment of the above-mentioned purposes, and (ii) has not owned, does not own, and will not own any asset or property other than the Pledged Equity Interests and the other Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Depositors (i) has been, is, and will be organized solely for the purpose of (A) owning the Equity Interests in the applicable DST and (B) engaging in any lawful act or activity and exercising any powers permitted to trusts organized under the laws of the State of Delaware that are related or incidental to and necessary, convenient or advisable for the accomplishment of the above-mentioned purposes, and (ii) has not owned, does not own, and will not own any asset or property other than Equity Interests in the Owned DSTs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (X) in the case of <u>each</u> Borrower and <u>each</u> Parent, has not owned, does not own, and will not own any asset or property other than the Pledged Equity Interests and the other Collateral, and (Y) in the case of each Depositor, has not owned, does not own, and will not own any asset or property other than the Equity Interests in the DSTs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the fullest extent permitted by law, has not engaged in, sought, or consented to and will not engage in, seek or consent to any dissolution, winding up, termination, liquidation, consolidation or merger, in whole or in part, and, except as otherwise expressly permitted by this Agreement, has not engaged in, sought, or consented to and will not engage in, seek or consent to any asset sale, transfer of membership interests, or amendment of its certificate of formation or Governing Documents in a manner that amends, modifies, replaces, deletes or supplements the provisions hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has not failed and will not fail to correct any known misunderstanding regarding the separate identity of itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) has not and will not, without the unanimous consent of the members of the applicable Depositor, <u>applicable</u> Borrower, or <u>applicable</u> Parent, as applicable, and the consent of the Administrative Agent, commenced or commence any Bankruptcy Action or take or otherwise permit to occur any Bankruptcy Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) has maintained and will maintain its books, records, financial statements, accounting records, bank accounts and other entity documents in its own name and separate from any other Person; <u>provided</u>, <u>however</u>, that such entity's assets may have been included in a consolidated financial statement of its Affiliates; provided that, if applicable, (i) appropriate notations were made on such consolidated financial statements to indicate the separateness of such entity and such Affiliate and to indicate that such entity's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (ii) such assets were listed on such entity's own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) has maintained and will maintain its books, records, resolutions and agreements as official records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) has not commingled and will not commingle its funds or other assets with those of any other Person except as expressly contemplated by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has not listed (and is not aware of any listing) its assets on the financial statements of any other Person; <u>provided</u>, <u>however</u>, that a Loan Party's assets may have been included in a consolidated financial statement of such entity's Affiliates; provided that, if applicable, (i) appropriate notations were made on such consolidated financial statements to indicate the separateness of such Loan Party, as applicable, and such Affiliate and to indicate that such Loan Party's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (ii) such assets were listed on such Loan Party's, as applicable, own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has filed and will file its own Tax returns (to the extent required to file any Tax returns), has not filed and will not file a consolidated federal income Tax return with any other Person, and will continue to be a disregarded entity or a partnership for U.S. federal income Tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has been, is, and intends to remain solvent, and has paid and will pay its own debts and liabilities out of its own funds and assets (to the extent of such funds and assets, it being acknowledged by Administrative Agent that the foregoing shall in no event require any contribution of equity into any Borrower) as the same shall become due, and has given and will give prompt written notice to Administrative Agent of the insolvency or Bankruptcy Action with respect to any Loan Party, Guarantor or any Sponsor, or the death or Disability of any Key Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (i) has done or caused to be done, and will do or cause to be done, all things necessary to observe all limited liability company formalities and preserve its existence and good standing, (ii) has not terminated or failed to comply in any material respect with and will not terminate or fail to comply in any material respect with the provisions of its Governing Documents with respect to any of the matters set forth in this <u>Section 8.18Section 8.18</u> and (iii) without the prior written consent of Administrative Agent, has not and will not, amend, modify or otherwise change any of its Governing Documents with respect to any of the matters set forth in this <u>Section 8.18Section 8.18</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) does not have and will not voluntarily incur any Indebtedness other than the Permitted Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) other than the <u>Carve OutCarve-Out</u> Guaranty, has not assumed, guaranteed or become obligated for or held out its credit and will not assume, guarantee, become obligated for or hold out its credit, as being available to satisfy the debts or obligations of any other Person, or the decisions or actions respecting the daily business or affairs of any other Person (other than such decisions or actions made in connection with the management of such Person in accordance with the Governing Documents of such Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) has not acquired and will not acquire obligations or securities (other than the Collateral) of the Depositors, <u>Borrower, Parent Borrowers, Parents</u> or any other Person other than Permitted Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) has allocated and will allocate fairly and reasonably shared expenses, including without limitation, shared office space, and has maintained and utilized and will maintain and utilize separate stationery, invoices and checks bearing its own name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) has not pledged and will not pledge its assets for the benefit of any Person other than the Secured Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) has held and identified itself and will hold itself out to the public as a legal entity separate and distinct from any other Person, and has conducted and shall conduct business under its own name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) has not made and will not make loans to any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) has not identified and will not identify itself or any of its Affiliates as a division or part of the other; <u>provided</u>, <u>however</u>, that such entity's assets may have been included in a consolidated financial statement of its Affiliates; provided that, if applicable, (i) appropriate notations were made on such consolidated financial statements to indicate the separateness of such entity and such Affiliate and to indicate that such entity's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (ii) such assets were listed on such entity's own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) except as permitted under the Loan Documents, has not entered and will not enter into any contract or agreement with Borrower<u>any of the Borrowers</u>, the Depositors, <u>ParentParents</u>, the DSTs or any other Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) has maintained and, to the extent cash flow from the sale of the DST Interests is sufficient, will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations, and shall not make any distributions to any Loan Party, or any other Affiliate that would cause such Loan Party or any Owned DST to fail to maintain such adequate capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) has not permitted and will not permit any Affiliate independent access to its bank accounts except to the extent permitted or contemplated by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) has not and will not have any obligation to indemnify its officers, partners, directors or members unless such an obligation was and is fully subordinated to the Obligations and, to the fullest extent permitted by law, will not constitute a claim against such entity in the event that cash flow in excess of the amount required to pay the Obligations is insufficient to pay such indemnity obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) has caused and will use reasonable efforts to cause its representatives to act at all times with respect to such entity consistently and in furtherance of the foregoing and in the best interests of such entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) has and will hold all of its assets in its own name and has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Governing Documents of each of each Loan Party shall provide that, as long as any portion of the Obligations (other than Obligations which by their terms survive repayment) remains outstanding, except as expressly permitted pursuant to the terms of the Loan Documents, (i) such entity's last member may not resign, and (ii) no additional member shall be admitted to Borrower<u>any of the Borrowers</u>, the Depositors or <u>ParentParents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Governing Documents of each Loan Party shall each provide that, as long as any portion of the Obligations (other than Obligations which by their terms survive repayment) remains outstanding: (i) such Loan Party shall be dissolved, and their respective affairs shall be wound up, only upon the first to occur of the following: (A) the termination of the legal existence of the last remaining member of such entity or the occurrence of any other event which terminates the continued membership of the last remaining member of <u>the applicable</u> Borrower in <u>such</u> Borrower, the last remaining member of the applicable Depositor in such Depositor, or the last remaining member of <u>the applicable</u> Parent in <u>such</u> Parent, as applicable, unless the business of <u>the applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable, is continued in a manner permitted by their respective operating agreements or the Delaware Limited Liability Company Act (the "<u>Act</u>"), or (B) the entry of a decree of judicial dissolution under Section 18-802 of the Act; (ii) upon the occurrence of any event that causes the last remaining member of the <u>applicable</u> Borrower to cease to be a member of <u>such</u> Borrower, of the applicable Depositor to cease to be a member of such Depositor or of <u>the applicable</u> Parent to cease to be a member of <u>such</u> Parent (other than (A) upon an assignment of such member of all of its limited liability company interests in such entity and the admission of the transferee, if permitted pursuant to the Governing Documents of such entity and the Loan Documents, or (B) the resignation of such member and the admission of an additional member of <u>the applicable</u> Borrower, the applicable Depositor, or <u>the applicable</u> Parent, as applicable, if permitted pursuant to the Governing Documents of such entity and the Loan Documents), to the fullest extent permitted by law, the personal representative of such last remaining member shall be authorized to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of such member in such entity, agree in writing (1) to continue the existence of <u>the applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable, and (2) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of <u>the applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable, effective as of the occurrence of the event that terminated the continued membership of such member in the <u>applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable; (iii) the bankruptcy of any member of <u>the applicable</u> Borrower or the applicable Depositor or <u>the applicable</u> Parent shall not cause such member to cease to be a member of <u>the applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable, and upon the occurrence of such event, the business of such entity shall continue without dissolution; (iv) in the event of the dissolution of a Borrower, a Depositor or a Parent, then <u>such</u> Borrower, such Depositor or <u>such</u> Parent, as applicable, shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets and properties of <u>such</u> Borrower, such Depositor or <u>such</u> Parent, as applicable, in an orderly manner), and the assets and properties of <u>such</u> Borrower, such Depositor or <u>such</u> Parent, as applicable, shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Act; and (v) to the fullest extent permitted by applicable law, each member of <u>the applicable</u> Borrower, the applicable Depositor and <u>the applicable</u> Parent shall irrevocably waive any right or power that they might have to cause <u>such</u> Borrower, such Depositor or <u>such</u> Parent, as applicable, or any of their respective assets or properties to be partitioned, to cause the appointment of a receiver for all or any portion of the assets or properties of <u>the applicable</u> Borrower, the applicable Depositor, or <u>the applicable</u> Parent, as applicable, to compel any sale of all or any portion of the assets or properties of such entity pursuant to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of <u>the applicable</u> Borrower, the applicable Depositor or <u>the applicable</u> Parent, as applicable.

**ARTICLE 9**

**NEGATIVE COVENANTS**

So long as any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, <u>BorrowerBorrowers</u> shall not, and shall cause each other Loan Party and each Owned DSTs (and any wholly owned Subsidiary of an Owned DST), as applicable, to not, directly or indirectly:

Section 9.1 <u>Other Indebtedness</u>. Incur or permit to exist or remain outstanding any Indebtedness other than the following Indebtedness ("<u>Permitted Indebtedness</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indebtedness in favor of the Lenders or the Agent under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Senior Mortgage Loans and Indebtedness under any rate protection agreements entered into by the Owned DSTs in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Indebtedness in respect of performance, bid, surety, indemnity, appeal bonds, completion guarantees and other obligations of like nature and guarantees and/or obligations as an account party in respect of the face amount of letters of credit in respect thereof, in each case securing obligations not constituting Indebtedness for borrowed money (including worker's compensation claims, environmental remediation and other environmental matters and obligations in connection with insurance or similar requirements) provided in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within ten (10) Business Days of incurrence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capital Lease Obligations of the Owned DSTs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Indebtedness of the Owned DSTs under leases of equipment or personal property entered into in the ordinary course of business which do not constitute Capital Lease Obligations.

Section 9.2 <u>Other Liens.</u> Create or permit to exist any Lien on any of its assets (including any Owned Core Asset or Collateral), except for the following (the "<u>Permitted Liens</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Lenders, Collateral Agent or the Administrative Agent under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens on the applicable Core Asset and related equipment, fixtures and personal property in favor of a Senior Mortgage Lender of a Senior Mortgage Loan that constitutes Permitted Indebtedness hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens under Permitted Exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens or deposits of the Owned DSTs to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liens for Taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, provided that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) carriers', warehousemen's, mechanics', materialmen's, repairmen's or other similar Liens of the Owned DSTs arising by operation of law, which are incurred in the ordinary course of business and secure obligations that are not overdue by more than 45 days (or have been discharged of record by bonding or otherwise) unless the same are being contested in good faith by appropriate proceedings diligently conducted and the failure to make such payment pending such contest could not reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens incurred or deposits made in the ordinary course of business of the Owned DSTs in connection with workers' compensation, unemployment insurance and other social security legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens arising as a result of easements, survey exceptions, title defects, restrictions, encumbrances reservation of, or rights of others for, rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes or zoning or other restrictions as to the use of real property which, in the aggregate, do not materially interfere with the ordinary course of the operation of the Owned Core Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens arising by reason of a judgment, decree or court order, to the extent not otherwise resulting in an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in favor of DST investors pursuant to the terms of any DST Trust Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens in favor of a lessee under a lease agreement (including a Master Lease) between a DST (or its wholly owned Subsidiary) and a tenant for use of all or a portion of the premises constituting an Owned Core Asset and in favor of any sublessee of any such lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) extensions or renewals of any Liens referred to in clauses (a)(a) through (l) above, provided that the renewal or extension is limited to all or part of the assets or property securing the original Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens pursuant to agreements entered into in connection with the contemplated sale or syndication of such DST Interests permitted under this Agreement; or

Section 9.3 <u>Dispositions</u>. Make any Disposition, except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Permitted DST Interests Redemption, with respect to which either of the following conditions has been satisfied:

(i)(a) Such Permitted DST Interests Redemption shall have been conducted by a Broker Dealer, registered investment advisor or other intermediary and consummated in accordance with in the ordinary course of Borrower's Versity DST Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the Gross Receipts for such Permitted DST Interests Redemption shall be deposited in the Collection Account in accordance with <u>Section</u> <u>10.4(a)Section 10.4(a)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Permitted DST Interests Redemption shall have been

consummated pursuant to the conversion by the Fund of a Convertible Fund Loan if (i) at any time prior to the expiration of the Reinvestment Period for the applicable Owned DST, the accounts described in clauses (i) through (xi) of Section 10.4(c) are fully funded, and (ii) at any time after the expiration of the Reinvestment Period for the applicable Owned DST, the accounts described in clauses (i) through (vii) of Section 10.4(d) are fully funded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sales of inventory or obsolete, worn-out or surplus property no longer useful in the business whether now owned or hereafter acquired, in the ordinary course of business, and dispositions of furniture, fixtures and equipment no longer used or useful, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales without recourse of accounts receivable solely for the purpose of collection thereof in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any sale of any property by any Loan Party or Owned DST (or its wholly owned Subsidiary) to any other Loan Party or Owned DST (or its wholly owned Subsidiary) to the extent any resulting Investment constitutes a Permitted Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) dispositions or discounts without recourse of accounts receivable in connection with the compromise or collection thereof in the ordinary course of business (and not as part of any financing transaction); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) sales of Owned Core Assets in the ordinary course provided that the proceeds thereof are applied in accordance with the terms of the applicable Senior Mortgage Loan Documents and, to the extent any such proceeds constitute Gross Receipts, the terms hereof.

Section 9.4 <u>Investments</u>. Make any Investments except the following ("<u>Permitted</u> <u>Investments</u>"):

(a)(i) any Investment (A) in Borrower EquityCo by Original Parent, (B) in a Depositor by Borrower, or (C) in a DST by EquityCo II by New Parent, (C) in a EquityCo Depositor by EquityCo, (D) in a EquityCo II Depositor by EquityCo II, or (E) in a DST by the applicable Depositor solely to fund Core Asset Costs in connection with an Approved Core Asset Investment after deducting the amount of any Senior Mortgage Loan or (ii) with the prior written consent of the Administrative Agent, a loan or capital contribution to an Owned DST to fund expenditures by the applicable Owned DST necessary to prevent the occurrence of any default under the applicable Senior Mortgage Loan Documents to the extent available cash flow from the applicable Owned Core Asset is insufficient to pay such amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Investment in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) accounts and notes receivable if created or acquired in the ordinary course of the Versity DST Business and which are payable or dischargeable in accordance with customary trade terms; and

(d)any Investments in Approved Core Asset Investments.

Section 9.5 <u>Material Agreement; Fundamental Changes</u>. Except in the case of emergency or to the extent reasonably necessary to remedy any imminent and material threat to its interest in, or the value of, its property and assets (including, without limitation, to the extent necessary to prevent an event of default or foreclosure under any Senior Mortgage Loan), (a) enter into any Material Agreement without the consent of the Administrative Agent, such consent not to be unreasonably withheld or delayed with respect to any Material Agreement that has a potential outstanding liability of less than $500,000, (b) amend, modify or supplement any Material Agreement without the consent of the Administrative Agent, such consent not to be unreasonably withheld or delayed with respect to any Material Agreement that has a potential outstanding liability of less than $500,000 or (c) enter into any consolidation, merger, or other Change in Control.

Section 9.6 <u>Transactions with Affiliates</u>. Other than the Asset Management Agreements and Property Management Agreements, any Master Lease entered into by an Owned DST (or wholly owned Subsidiary of an Owned DST) and, to the extent that such conversion is expressly permitted under this Agreement, the conversion of a Convertible Fund Loan, enter into any agreement (or amend any agreement) to pay any fees, wages, salary, bonus, commission, contributions to benefit plans or any other compensation for goods or services or otherwise enter into any other agreement or arrangement, including any property management agreement and any agreement for the transfer of assets, with its Affiliates or to or for the benefit of any Person who is a director or officer of any Borrower or any Related Parties thereto, or any entity in which such officer or director has any direct or indirect ownership interest, or any of its Affiliates or who has, or any of whose Affiliates has, a beneficial interest in the capital stock or partnership interests of <u>any</u> Borrower or any of its Affiliates.

Section 9.7 <u>Permitted Payments</u>. Make any Restricted Payment except the following ("<u>Permitted Restricted Payments</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Distributions permitted pursuant to <u>Section 10.4</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Payments required to be made by an Owned DST (or Subsidiary) pursuant to the applicable DST Trust Agreement which was approved by Administrative Agent as part of its Final Approval, (ii) any distribution by an Owned DST to the applicable Depositor and (iii) any distribution by a Depositor to the applicable Borrower.

Section 9.8 <u>Margin Regulations</u>. Use the proceeds of the Loan in violation of the Margin Regulations, or for the purpose of purchasing or carrying any "margin stock" as defined in the Margin Regulations or reducing or retiring any Indebtedness which was originally incurred to purchase or carry "margin stock" or for any other purpose which might make this transaction a "purpose credit" within the meaning of the Margin Regulations.

Section 9.9 <u>No Other Negative Pledge</u>. Covenant or otherwise agree with any Person (other than the Lenders, Administrative Agent and Collateral Agent pursuant to this Agreement or any Loan Document), whether in connection with obtaining or modifying credit accommodations from such Person, or incurring other Indebtedness, or otherwise, to not keep its unencumbered assets free of any or all Liens.

Section 9.10 <u>No Change in Fiscal Year</u>. Change the Fiscal Year or Fiscal Quarter of any Loan Party without the prior consent of the Administrative Agent, except, in each case, as required by GAAP.

Section 9.11 <u>Stay, Extension and Usury Laws</u>. At any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of its obligations under this Agreement or the other Loan Documents and the Borrower Borrowers (to the extent that it may lawfully do so) hereby expressly waives waive all benefit or advantage of any such law, and covenants covenant that it they shall not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Lenders, but shall suffer and permit the execution of every such power as though no such law has been enacted.

Section 9.12 <u>No Subsidiaries; No Pledge of Equity Interests</u>. (a) Form any direct or indirect Subsidiary of any Borrower other than (i) the Depositors for which such Borrower has pledged all of its Equity Interests to the Collateral Agent for the benefit of the Secured Parties pursuant to the applicable Borrower Pledge Agreement, (ii) Owned DSTs and (iii) any wholly owned Subsidiary of any Owned DST, (b) form any direct or indirect Subsidiary of the Depositors other than the Owned DSTs and any wholly owned Subsidiary of any Owned DST and (c) other than in connection with the Loan, each Borrower, each Parent and each Depositor shall not permit or suffer to exist any Lien on or pledge of its respective Equity Interests or the DST Interests owned by the Depositors from time to time.

Section 9.13 <u>Litigation</u>. (i) Commence any litigation or (ii) settle any litigation or dispute for an amount in excess of $50,000 (net of amounts covered by insurance or indemnity) without the prior written consent of the Administrative Agent (which shall not be unreasonably withheld, conditioned or delayed) other than real estate tax appeals in the normal course of the Versity DST Business.

Section 9.14 <u>Use of Proceeds</u>. Use any Loan Proceeds for any purpose other than as set forth in<u>Section</u><u>2.6Section 2.6</u>.

Section 9.15 <u>Governing Documents</u>. Amend or modify any of its Governing Documents without Administrative Agent's consent.

Section 9.16 <u>Principal Place of Business</u>. Change their principal place of business and chief executive office or reorganize in a different jurisdiction without the prior written consent of Administrative Agent, not to be unreasonably withheld, conditioned or delayed.

Section 9.17 <u>Key Service Providers</u>. Appoint, retain or terminate any auditor, tax advisor, administrator or legal counsel or any other key service providers to the Loan Parties without Administrative Agent's consent.

Section 9.18 <u>Conduct of Business</u>. Engage in any business other than the Versity DST Business.

Section 9.19 <u>Core Asset Investments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Acquire any Core Asset except for Core Assets that are part of an Approved Core Asset Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Incur any Core Asset Cost other than on Approved Core Asset Investments.

Section 9.20 <u>Approved Budget</u>. (i) Except as specified in clause (iii) below, incur any Operating Expense not provided for in the Approved Budget, (ii) enter into any agreements for goods or services not contemplated by the Approved Budget other than agreements in connection with unanticipated expenses described in clause (iii) below, or (iii) approve or amend the Approved Budget or make any payments not in accordance with the Approved Budget which deviate by more than five percent (5%) from any line item specified in the Approved Budget except for payments unanticipated but necessary to conserve and protect any Owned Core Assets with respect to emergency repairs or tenant occupancy maintenance.

Section 9.21 <u>Operating Expenses</u>. Incur any Operating Expense or enter into any Contractual Obligation with respect to an Operating Expense unless there are amounts on deposit in the Operating Account sufficient to pay such Operating Expenses.

Section 9.22 <u>No Employees</u>. Engage any employee, consultant or independent contractor, it being acknowledged that the operations of the Loan Parties and the Owned DSTs (and wholly owned Subsidiary) shall be provided by the Sponsor, as Manager of the Loan Parties.

Section 9.23 <u>Senior Mortgage Loan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until such time that an Owned DST is no longer an Owned DST, Borrower agrees Borrowers agree as follows with respect to any Senior Mortgage Loan borrowed by such Owned DST (or its wholly owned Subsidiary):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Without Administrative Agent's prior written consent, Borrower Borrowers shall not cause the Signatory Trustee/Manager to amend (or permit to be amended) the terms of such Senior Mortgage Loan or the Senior Mortgage Loan Documents in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrower Borrowers shall provide Lender promptly (but in any event within two (2) Business Days after receipt or knowledge thereof by any Borrower or the Owned DST (or its wholly owned Subsidiary)) with copies of any and all notices received by such Borrower or the Owned DST (or its wholly owned Subsidiary) which allege that (i) the Owned DST (or its wholly owned Subsidiary) is in default of the Senior Mortgage Loan or (ii) any fact or circumstance exists which could reasonably lead to a default by such Owned DST (or its wholly owned Subsidiary) under the Senior Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) So long as any Loan or other Obligation hereunder shall remain unpaid or unsatisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Senior Mortgage Lender can place any Lien on the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Loan Party is permitted to guaranty repayment or performance of any of the obligations under a Senior Mortgage Loan, either explicitly or otherwise.

Section 9.24 <u>Division/Series</u>. Enter into (or agree to enter into) any Division/Series Transaction. For the avoidance of doubt, none of the provisions in this Agreement nor any other Loan Document, shall be deemed to permit any Division/Series Transaction.

**ARTICLE 10**

**CASH MANAGEMENT**

Section 10.1 <u>Establishment and Maintenance of the Accounts</u>. The Borrowers shall establish and maintain until all of the Obligations have been indefeasibly paid in full (i) a one special, segregated, irrevocable account in the name of each of the Borrowers, for and on behalf of the Secured Parties (as the securities entitlement holder), at the Deposit Bank, each named the Collection Account, which shall each be under the dominion and control of the Collateral Agent pursuant to an executed DACA Agreement, subject to the terms and conditions of the Security Documents and to the terms hereof and (ii) the following sub-accounts of each of the Collection Account Accounts (each, a "Sub-Account" and, collectively, the "Sub-Accounts"), which shall each be linked to the applicable Collection Account, (iiiii) shall each be a "securities deposit account" pursuant to Article 89 of the UCC, and (iiiiv) shall each be an Eligible Account to which certain funds shall be allocated and from which disbursements shall be made pursuant to the terms of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Core Asset Cost Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operating Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reinvestment Account.

Notwithstanding the foregoing EqutiyCo may close such Accounts in its own name with the consent of the Administrative Agent provided (i) all DST Interests in any DST owned directly or indirectly by EquityCo have been syndicated or sold and (ii) there is no cash in such Accounts, subject to the terms and conditions of this Agreement.

Section 10.2 <u>Acknowledgement of Security Interests</u>. Pursuant to the Security Documents, in order to secure the payment and performance of the Obligations, the each Borrower has pledged to and created in favor of the Collateral Agent a security interest in and to, each of the Accounts and all cash, Cash Equivalents, instruments, investments, securities entitlements and other securities at any time on deposit in the Accounts, and all proceeds of any of the foregoing. The Accounts shall constitute collateral security Collateral for the payment and performance of Obligations hereunder and the other Loan Documents and shall at all times be subject to the control of the Collateral Agent and shall be held in the custody of the depository under the DACA Agreements in trust for the purposes of, and on the terms set forth in, such DACA Agreements.

Section 10.3 <u>The Loan Parties Rights</u>. The Loan Parties shall not have any rights or powers with respect to any amounts in the Accounts or any part thereof except (a) as provided in the DACA Agreements and (b) the right to have such amounts applied in accordance with the provisions hereof. For the avoidance of doubt, no disbursements from any Account may be made except in accordance with this Agreement.

Section 10.4 <u>The Collection Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party, at its own expense, shall cause all Gross Receipts and any other cash or Cash Equivalents or securities held by it (including any amounts distributed to the Depositors by the Owned DSTs (subject to the terms of the applicable Senior Mortgage Loan Documents and DST Trust Agreement), but not including amounts required by this Agreement to be deposited into the other Accounts, to be deposited (with instruments being duly endorsed for deposit) into the applicable Collection Account within one (1) Business Day of receipt. No Loan Party shall deposit Gross Receipts in any deposit or securities account other than the applicable Collection Account, and, to the extent expressly provided for herein, the other Accounts, all such cash, Cash Equivalents and securities while not held in the such Collection Account or the other Accounts shall be held in trust for the Collateral Agent and shall not be commingled with any other assets of the Loan Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to Borrower the Borrowers, Gross Receipts shall be accounted for on an Approved Core Asset Investment-by-Approved Core Asset Investment basis and distributed in the manner provided for in Section 10.4(c) and 10.4(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to each Approved Core Asset Investment, to the extent funds are available in the Collection Accounts, and subject to Article 11 and the right of the Collateral Agent to exercise exclusive control of the Accounts to the extent set forth in the DACA Agreements(s), the Borrowers shall, on each Payment Date on or prior to the expiration of the Reinvestment Period, transfer to the following accounts the amounts stated below in following times and order of priority, each as calculated by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>First</u>, to the Administrative Agent to pay all Administrative Agent Fees and Expenses on the Loan then due and owing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Second</u>, to the Administrative Agent to pay Cash Interest due and owing on the Advances made with respect to such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Third</u>, to the Administrative Agent to pay all PIK Interest previously added to the Principal Amount with respect to the Advances with respect to such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iv)</u> <u>Fourth</u>, so long as no Event of Default has occurred and is continuing, to the applicable Borrower for distribution to the its Parent to pay the Preferred Return on the Required Equity Contributions Earning Preferred Return with respect to such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v)</u> <u>Fifth</u>, to the Administrative Agent to pay any Draw Fee then due and owing with respect to such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vi)</u> <u>Sixth</u>, to the Administrative Agent, an amount equal to the aggregate Advances made by the Lenders with respect to such Approved Core Asset Investment (other than Delinquent Assets) until such time as all Advances made by the Lenders with respect to such Approved Core Asset Investments have been repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vii)</u> <u>Seventh</u>, if applicable and approved by the Administrative Agent, to the applicable DST Reserve Account until the balance of such DST Reserve Account is equal to the Trust Reserve Cap for such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii)</u> <u>Eighth</u>, to the Administrative Agent, an amount equal to the aggregate Advances made by the Lenders with respect to all Delinquent Assets until such time as all Advances made by the Lenders with respect to Delinquent Assets have been repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ix)</u> <u>Ninth</u>, so long as no Event of Default has occurred and is continuing, to the applicable Sponsor for payment of the Sponsor Fee payable with respect to such Approved Core Asset Investment and to the applicable Reinvestment Account, an amount allocated to the Sponsor Fee and the Reinvestment Account in the following proportions: for each $1.00 deposited into the Reinvestment Account there shall be an amount paid to the applicable Sponsor for the payment of the Sponsor Fee equal to the product of (A) $1.00 and (B) the Sponsor Fee Distribution Ratio; provided, however, the amount distributed to the (A)applicable Sponsor pursuant to this clause (ix) shall not exceed 33% of the lesser of (I) the Sponsor Fee payable with respect to the applicable Approved Core Asset Investment and (II) the Sponsor Fee Waterfall Limit with respect to the applicable Approved Core Asset Investment and (B) any amount to be transferred to the applicable Reinvestment Account that would result in the balance of the Reinvestment Accounts (in the aggregate) exceeding the Reinvestment Account Cap, shall, to the extent of such excess, be distributed as provided for in Step Twelfth (clause (xii) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(x)</u> <u>Tenth</u>, to the applicable Reinvestment Account until the balance of the Reinvestment Accounts (in the aggregate) is equal to the Reinvestment Account Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(xi)</u> <u>![](versity_ex6img1317.jpg)Eleventh</u>, so long as no Event of Default has occurred and is continuing, to the applicable Sponsor any unpaid Sponsor Fee with respect to such Approved Core Asset Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) <u>Twelfth</u>, so long as no Event of Default has occurred and is continuing, to the applicable Borrower of such Approved Core Asset Investment (for distribution to the applicable Parent), all remaining amounts.

For purposes of clarification, amounts applied in step Sixth above shall be applied and allocated to Advances made to fund Core Asset Investments for which deposits into the applicable Collection Account from the sale of DST Interests have been made during the prior month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent funds are available in the Collection Accounts, and subject to Article 11 and the right of the Collateral Agent to exercise exclusive control of the Accounts to the extent set forth in the DACA Agreements(s), the Borrowers shall on each Payment Date following the expiration of the Reinvestment Period, transfer to the following accounts the amounts stated below in the following order of priority, each as calculated by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> <u>First</u>, to the Administrative Agent to pay all Administrative Agent Fees and Expenses on the Loan then due and owing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii)</u> <u>Second</u>, to the Administrative Agent to pay Cash Interest due and owing on the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iii)</u> <u>Third</u>, to the Administrative Agent to pay all PIK Interest previously added to the Principal Amount on the Loan and not yet paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iv)</u> <u>Fourth</u>, to the Administrative Agent to pay any unpaid Draw Fee then due and owing with respect to such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v)</u> <u>Fifth</u>, to the Administrative Agent, an amount equal to the aggregate Advances made by the Lenders with respect to such Approved Core Asset Investment until such time as all Advances made by the Lenders with respect to such Approved Core Asset Investments have been repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vi)</u> <u>Sixth,</u> if applicable and approved by the Administrative Agent, and only with respect to amounts attributable to collections from a single Approved Core Asset Investment, to the applicable DST Reserve Account for such Approved Core Asset Investment until the balance of the applicable DST Reserve Account for such Approved Core Asset Investment is equal to the Trust Reserve Cap for such Approved Core Asset Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vii)</u> <u>Seventh</u>, to the Administrative Agent until such time as the Principal Balance Amount has been reduced to zero and all other accrued and outstanding Obligations have been paid in full; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii)</u> <u>Eighth</u>, all remaining amounts to the Borrower for distribution to the <u>applicable</u> Parent.

Section 10.5 <u>Core Asset Cost Account</u>. Subject to <u>Article 11</u> and the right of the Collateral Agent to exercise exclusive control of the Accounts to the extent set forth in the DACA Agreements, Borrowers shall, (i) on each Core Asset Closing Date on or prior to the expiration of the Reinvestment Period, disburse funds from the Core Asset Cost Accounts (or cause the applicable escrow agent to disburse funds) to the applicable Owned DST (or wholly owned Subsidiary) in an amount equal to the Core Asset Costs of the Approved Core Asset (less the amount of the related Senior Mortgage Loan) purchased on such date as provided for in <u>Section 2.4</u> and (ii) at the time of the expiration of the Reinvestment Period, transfer any remaining amounts in the Core Asset Cost Account Accounts to the applicable Collection Account to be applied as provided in <u>Section 10.4(d)</u>.

Section 10.6 <u>Reinvestment Account</u>. To the extent funds are available in the Reinvestment Accounts, and subject to Article 11 and the right of the Collateral Agent to exercise exclusive control of the Accounts to the extent set forth in the DACA Agreements, Borrowers shall, (i) on each Core Asset Closing Date on or prior to the expiration of the Reinvestment Period, disburse funds from the Reinvestment Accounts to the applicable Owned DST (or wholly owned Subsidiary) in an amount equal to the Required Equity Contribution for the Approved Core Asset to be purchased on such date as provided for in Section 2.3(b) and (ii) at the time of the expiration of the Reinvestment Period, transfer any remaining amounts in the Reinvestment Account Accounts to the applicable Collection Account.

Section 10.7 <u>Operating Account</u>. To the extent funds are available in the Operating Accounts, and subject to Article 11 and the right of the Administrative Agent to exercise exclusive control of the Accounts to the extent set forth in the DACA Agreements, Borrowers shall have access to the Operating Accounts to pay Operating Expenses of the Borrowers and the Depositors to the extent such Operating Expenses are provided for in the Approved Budget.

Section 10.8 <u>DST Reserve Account</u>. Each Owned DST shall at all times maintain a DST Reserve Account. To the extent funds are available in its DST Reserve Account, the Owned DST shall utilize the DST Reserve Account solely to pay for expenses for which funds have been established in the DST Reserve Account.

**ARTICLE 11**

**EVENTS OF DEFAULT AND REMEDIES**

Section 11.1 <u>Event of Default</u>. An Event of Default shall exist upon the occurrence of any of the following specified events (each, an "<u>Event of Default</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Borrower shall fail to pay (i) any Principal Amount of any Loan when the same becomes due, (ii) any interest (including PIK interest), fees or other amounts payable under the terms of this Agreement or any of the other Loan Documents when the same becomes due; or (iii) Guarantor fails to pay when due any amount payable under the Carve-Out Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Borrower fails to perform or observe any covenant or agreement contained in any of Section 8.4, Section 8.6(a), Section 8.8, Section 8.13, Section 8.16, Section 8.17, Section 8.18, Article 9 or Article 10,(ii) Section 8.4, Section 8.6(a), Section 8.8, Section 8.13, Section 8.16, Section 8.17, Section 8.18, Article 9 or Article 10, (ii) any Guarantor fails to perform or observe any covenant or agreement contained in the Carve-Out Guaranty (other than the failure to pay an amount due thereunder) and such failure continues beyond the expiration of any applicable notice and/or cure periods set forth therein or (iviii) any Borrower Party fails to perform or observe any covenant or agreement contained in the Exclusivity and ROFO Agreement and such failure continues beyond the expiration of any applicable notice and/or cure periods set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> Any Borrower fails to perform or observe any covenant or agreement contained in Section 8.1 and such failure continues for five (5) Business Days after any Borrower's receipt from Administrative Agent of written notice of such failure, provided that if any Borrower fails to perform or observe any covenant or agreement contained in Section 8.1 on more than three occurrences, any occurrence thereafter shall constitute an immediate Event of Default hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> Any Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a), (b) or (c) above) contained in any Loan Document on its part to be performed or observed and such failure continues for thirty (30) days after the earlier of the date a Responsible Officer of any Borrower has actual knowledge of such failure or written notice thereof to any Borrower from Administrative Agent or any Lender; provided, however, that if Borrower has Borrowers have commenced and isare diligently pursuing to cure such failure within the thirty (30) day cure period, then such cure period may be extended an additional thirty (30) days. Notwithstanding anything to the contrary set forth herein, with respect to any such failure by an Owned DST which also constitutes a default under the Senior Mortgage Loan Documents, in no event shall the cure period provided hereunder be shorter than the cure period afforded by the Senior Mortgage Loan Documents, taking into account all extensions granted pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> Any representation, warranty, certification or written statement of fact made or deemed made by or on behalf of the any Borrower or any other Loan Borrower Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect in any material respect when made or deemed made, provided that, so long as such material misrepresentation was not intentional, it shall not constitute an Event of Default hereunder unless the applicable Loan Borrower Party fails to cause such representation or warranty to be correct in all material respects within thirty (30) days after written notice from Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> (i) Any Borrower Party or any Owned DST (or its wholly owned Subsidiary) institutes or consents to the institution of any proceeding, or makes any filing, under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, interim receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or (ii) a proceeding shall be commenced or a petition filed, without the application or consent of such Loan Party or any Owned DST (or its wholly owned Subsidiary), as applicable, seeking or requesting the appointment of any receiver, interim receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator or similar officer is appointed and the appointment continues undischarged, undismissed or unstayed for sixty (60) calendar days or an order or decree approving or ordering any of the foregoing shall be entered; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u> (i) Any Loan Party or any Owned DST (or its wholly owned Subsidiary) becomes unable or admits in writing its inability or fails generally to pay its debts as they become due in the ordinary course of business (other than admissions in writing in connection with any workout discussions or negotiations with a Senior Mortgage Lender), or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded or insured within ninety (90) days after its issuance or levy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(g)</u> There is entered against any Loan Party or any Owned DST (or its wholly owned Subsidiary) (i) one or more final judgments for the payment of money in an aggregate amount exceeding two hundred fifty thousand dollars ($250,000) (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more material non-monetary judgments and, in either case, such judgment is not, within sixty (60) days after the entry thereof, satisfied, vacated, discharged or execution thereof stayed or bonded pending appeal, or such final judgment is not satisfied, vacated, discharged or bonded prior to the expiration of any such stay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(h)</u> Any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Borrower Party or Owned DST (or wholly owned Subsidiary) contests in any manner the validity or enforceability of any provision of any Loan Document; or (iii) any Borrower Party or Owned DST (or wholly owned Subsidiary) denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(j)</u> With respect to any Borrower Party any Owned DST (or its wholly owned Subsidiary), or any Signatory Trustee/Manager, an action or inaction by it, or by any Person authorized to act on behalf of it, (i) constituting embezzlement or fraud, (ii) constituting intentional misconduct materially and adversely impacting any Loan Party or Owned DST (or wholly owned Subsidiary), (iii) resulting in indictment or arrest for a felony or misdemeanor in connection with a Borrower Party's or Owned DST's (or its wholly owned Subsidiary), or any Signatory Trustee/Manager's, business involving fraud, theft, dishonesty or depravity or (iv) resulting in the conviction of a felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(k)</u> Guarantor shall repudiate or purport to revoke the Carve-Out Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(l)</u> Any Borrower Party or Owned DST (or wholly owned Subsidiary) shall become a Designated Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(m)</u> The occurrence of any Disposition or Transfer in violation of the terms of this Agreement (other than de minimis breaches of the restrictions on Transfers which are promptly cured).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(n)</u> There occurs any Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(o)</u> Fraud or intentional misrepresentation by any Borrower Party any Owned DST (or its wholly owned Subsidiary), or any Signatory Trustee/Manager in connection with the Loan or any Core Asset Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(p)</u> Any Borrower Party any Owned DST (or its wholly owned Subsidiary), or any Signatory Trustee/Manager fails to comply with a Law applicable to its Versity DST Business and such violation has or may reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(q)</u> Any event of default (after giving effect to any applicable notice and/or cure periods) under any Senior Mortgage Loan to the extent an Owned DST (or its wholly owned Subsidiary) is the borrower under such Senior Mortgage Loan or any other event or condition if the effect of such event or condition is to accelerate or permit the applicable Senior Mortgage Lender to accelerate the maturity of such Senior Mortgage Loan (collectively, a "<u>Senior Mortgage Loan Event of Default</u>").

Section 11.2 <u>Remedies Upon Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of an Event of Default, at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the request of the Required Lenders, shall, by written notice to the Borrower Representative, take any one or more of the following actions, at the same or different times: (i) terminate the Maximum Commitments, and thereupon the Maximum Commitments shall terminate immediately, (ii) terminate the Reinvestment Period, (iii) require that the applicable Loan Party remove the managers of any Borrower and each Depositor and appoint a replacement manager approved by the Administrative Agent pursuant to the terms of the applicable Governing Documents, (iv) [omitted], (v) terminate the Borrower's right to make disbursements from the Collection Accounts and the Subaccounts, (vi) exercise any all remedies available to the Agent and the Lenders under the Security Documents and/or (vii) declare the Note and the Loan then outstanding to be due and payable in whole (or in part, in which case any portion of the Principal Amount not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the Principal Amount so declared to be due and payable, together with accrued interest thereon and all charges, fees, expenses, indemnities and other Obligations owing or payable hereunder or under any other Loan Document, shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower; provided, however, that in case of an Event of Default described in Section 11.1(f), the Maximum Commitments and the Reinvestment Period shall automatically terminate and the Note and the Principal Amount, together with accrued interest thereon and all charges, fees, expenses, indemnities and other Obligations owing or payable hereunder or under any other Loan Document shall automatically become due and payable, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights and remedies available at law and equity, including the Uniform Commercial Code, by suit in equity by action at law, judicial or nonjudicial foreclosure, or otherwise.

Section 11.3 <u>Commitment Termination Rights</u>. Administrative Agent may (1) terminate the Reinvestment Period upon five (5) Business Days' prior written notice to the Borrower Representative, (2) prohibit the Loan Parties from acquiring new Core Assets, (3) require that the Parents and the Sponsor remove the Managers as manager of the Loan Parties and appoint a manager approved by the Administrative Agent and/or (4) require that the Loan Parties be liquidated and wound down (which liquidation and winding down shall be in the ordinary course of the Core Versity DST Business) upon the occurrence and continuance of any Commitment Termination Event.

Section 11.4 <u>Application of Funds</u>(ac). After the occurrence and during the continuance of an Event of Default, any amounts received on account of the Obligations shall be applied by Administrative Agent.

Section 11.5 <u>Protective Advances/Cure Rights</u>. If Borrowers fail to do so, at any time prior to payment in full of the Obligations under the Loan, Administrative Agent, on behalf of the Lenders, without waiving or releasing any of the Obligations, upon prior notice to Borrowers, may (but shall not be required to) make any payments as Administrative Agent may deem necessary to protect and/or maintain the Collateral and the Owned Core Assets.

In addition, if Borrowers fail to do so, if at any time an Event of Default occurs and is continuing or a Loan Party otherwise fails to perform or comply with any of the terms, covenants, and conditions to be performed and/or complied with, any other Indebtedness (including a Senior Mortgage Loan to the extent an Owned DST (or its wholly owned Subsidiary) is the borrower under such Senior Mortgage Loan), then the Administrative Agent, on behalf of the Lenders, without waiving or releasing any of the Obligations, may (but shall not be required to):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) perform make advances to Borrowers and/or directly make any payments as Administrative Agent may deem necessary to cure or remedy such event or failure, including, without limitation, to cure or prevent a Default or Event of Default or an exercise of any rights or remedies or options against Borrowers, Lenders and/or any Owned Core Asset(s) (and if such advances are so made to Borrowers, then Borrowers shall apply such funds advanced, so as to do so); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) perform any other acts on their part to be performed for such purposes.

The making by Administrative Agent of any such advances, payments or performances will not, however, be deemed to cure any Default or Event of Default under the Loan Documents arising from the predicated Events of Default. All sums so advanced or paid and all costs and expenses incurred by Administrative Agent in connection with the performance of any such act shall be subject to the same terms and shall be deemed to be part of the Loan (including that such advances shall bear interest at the Applicable Rate or, if an Event of Default shall have occurred and be continuing and the Administrative Agent has so elected, the Default Rate, and be due on the Maturity Date, will be added to the Principal Amounts of the Loan and the Note and if repaid prior to the Maturity Date will be secured by the Security Documents). All such payments and advances so actually made shall conclusively be deemed to be protective advances which are required and mandatory to preserve and protect Collateral Agent's security for the performance of the Obligations under the Loan Documents, and shall be secured by the Security Documents to the same extent and with the same priority as the other principal, interest and other amounts payable under the Loan Documents.

**ARTICLE 12**

**ADMINISTRATIVE AGENT AND COLLATERAL AGENT**

Section 12.1 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders hereby irrevocably appoints KHCA Funding LLC to act on its behalf as Administrative Agent hereunder and under the other Loan Documents and authorize Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoint KHCA Funding LLC to act on its behalf as Collateral Agent hereunder and under the other Loan Documents and authorize Collateral Agent to take such actions on its behalf and to exercise such powers as are delegated to Collateral Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of this Article are solely for the benefit of Administrative Agent, Collateral Agent and the Lenders, and neither Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

Section 12.2 <u>Rights as a Lender</u>. The Person serving as Agent hereunder, to the extent a Lender, shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not Agent and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with Borrower or any Subsidiary or other Affiliate thereof as if such Person were not Agent hereunder and without any duty to account therefor to the Lenders.

Section 12.3 <u>Exculpatory Provisions</u>. Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that Agent is required to exercise as directed in writing by the Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose Agent to liability or that is contrary to any Loan Document or applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Borrower or any of its their Affiliates that is communicated to or obtained by the Person serving as Agent or any of its Affiliates in any capacity. Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Lenders (or such other number or percentage of the Lenders as shall be necessary, or Agent shall believe in good faith to be necessary, under the circumstances as provided in Section 13.1 and Section 11.2) or (ii) in the absence of its own gross negligence or willful misconduct. Agent shall not be deemed to have knowledge of any Default unless and until notice describing such Default is given to Agent by a Borrower or a Lender. Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article 6 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to Agent.

Section 12.4 <u>Reliance by Agent</u>. Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any writing sent through electronic mail) sent by a Loan Party believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. In determining compliance with any condition hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a Lender, Agent may presume that such condition is satisfactory to such Lender unless Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. Agent may consult with legal counsel (who may be counsel for Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

Section 12.5 <u>Delegation of Duties</u>. Agent may perform any and all of their duties and exercise their rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by Agent. Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Agent.

Section 12.6 <u>Resignation or Removal of the Administrative Agent or Collateral Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower Representative to be effective not earlier than thirty (30) days from the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Collateral Agent may at any time give notice of its resignation to the Lenders and the Borrower Representative to be effective not earlier than thirty (30) days from the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Required Lenders may, upon 10 Business Days' notice to Agent, remove either of the Administrative Agent or Collateral Agent. Upon receipt of such notice, Agent shall cease all further activities and duties in the capacity in for which it was removed and provide such assistance as the Required Lenders may request to effect an orderly transition to a new Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon receipt of any notice of resignation by the Administrative Agent or Collateral Agent or the removal of either of them by the Required Lenders, or if there exists a vacancy in any such capacity for whatever reason, the Required Lenders shall have the right to appoint a successor, which successor shall be any Affiliate of Administrative Agent. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring or removed Agent gives notice of its resignation, then such retiring or removed Agent may, on behalf of the Secured Parties, appoint a successor Agent meeting the qualifications set forth above; provided that if Agent shall notify the Borrower Representative and the Lenders that no qualifying Person has accepted such appointment, then such resignation or removal shall nonetheless become effective in accordance with such notice, and (1) the retiring or removed Agent, as applicable, shall be discharged from its duties and obligations hereunder and under the other Loan Documents, and (2) all payments, communications and determinations provided to be made by, to or through Agent shall instead be made by or to each Lender, until such time as the Required Lenders appoint a successor Agent as provided for above in this section. Upon the acceptance of a successor's appointment as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) or removed Agent and the retiring or removed Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this section). After the retiring or removed Agent's resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 13.4 shall continue in effect for the benefit of such retiring or removed Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Agent was acting as Administrative Agent or Collateral Agent, as applicable.

Section 12.7 <u>Non-Reliance on Agent and Other Lenders</u>. Each Lender acknowledges that it has, independently and without reliance upon Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

Section 12.8 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Administrative Agent shall have made any demand on any Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loan, and all other obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Administrative Agent (including any claim for the compensation, expenses, disbursements and advances of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative Agent under Section 4.6 and Section 13.4) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent shall consent to the making of such payments directly to the Lenders to pay to Administrative Agent any amount due for the compensation, expenses, disbursements and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under Section 4.6 and Section 13.4. Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

**ARTICLE 13**

**MISCELLANEOUS**

Section 13.1 <u>Amendments, Actions Under this Agreement, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the with respect to each Borrower by such Borrower and the Required Lenders or by the such Borrower and the Administrative Agent or Collateral Agent (as applicable) with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Maximum Commitment of any Lender without the written consent of such Lender, (ii) reduce by way of forgiveness the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender directly affected thereby (except the waiver of the obligation to pay Default Rate of interest (both prior to its accrual and retroactively) shall not constitute a reduction in the rate of interest or fees for purposes of this clause (ii)), (iii) postpone the scheduled date of payment of the principal amount of any Loan (other than any reduction of the amount of, or any extension of the payment date for, the mandatory prepayments required under Section 4.3 in each case which shall only require the approval of the Required Lenders), or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Maximum Commitment, without the written consent of each Lender directly affected thereby, (iv) change any of the provisions of this Section, the definition of "Required Lenders," or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender, (v) except as permitted by the terms of a Loan Document, release the Borrower from its obligations under the Security Agreement without the written consent of each Lender, or (vi) except as provided in clause (b) of this Section or in any Security Document, release all or substantially all of the Collateral, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or Collateral Agent without the prior written consent of the Administrative Agent or Collateral Agent, as applicable. Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification. Notwithstanding anything herein to the contrary, Administrative Agent shall have the right, without the consent of the Required Lenders, to waive any conditions precedent to the making of any Advance and/or to accept the cure of any Default or Event of Default, in each case, in its reasonable discretion.

(b)The Lenders hereby irrevocably authorize the Collateral Agent, at its option, to release any Liens granted to the Collateral Agent by the Loan Parties on any Collateral (i) upon the occurrence of the Maturity Date, (ii) constituting property being sold or disposed of if the Borrower certifies Borrowers certify to the Administrative Agent that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further inquiry) or (iii) as required to effect any sale or other disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article 11. Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, in connection with any proposed amendment, waiver or consent requiring the consent of "each Lender" or "each Lender directly affected thereby," the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a "<u>Non-Consenting Lender</u>"), then the Borrower or the Administrative Agent may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other Person which is reasonably satisfactory to the Borrower and the Agent shall agree, as of such date, to purchase for cash the Loan and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such date, and (ii) the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Section 5.1; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary herein the Agent may, with the consent of the Borrower only, amend, modify or supplement this Agreement or any of the other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.

Section 13.2 <u>Notices; Effectiveness; Electronic Communication</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u> <u>Notices Generally</u>. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be either (i) in writing (including fax) and delivered by nationally recognized courier service, fax or otherwise or (ii) by electronic mail, (A) as to any Borrower<u>,</u> the Borrower Representative, each Lender, the Administrative Agent and the Collateral Agent, at its address specified on its signature page hereto (or, in the case of a Lender that becomes party to this Agreement by assignment, at its address or fax number specified in the Assignment and Assumption pursuant to which it became a Lender hereunder) and (B) any other Person, at such other Person's address or fax number as shall be designated by such Person in a written notice to the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> <u>Change of Address, Etc</u>. Each of Borrower, the Borrower Representative, Collateral Agent and Administrative Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrower Representative, Collateral Agent and Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Reliance by Administrative Agent, Collateral Agent and Lenders</u>. Administrative Agent, Collateral Agent and the Lenders shall be entitled to rely and act upon any notices purportedly given by or on behalf of Borrowers or the Borrower Representative even if such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein.Borrowers and Borrower Representative shall indemnify Collateral Agent, Administrative Agent and each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf ofBorrowers or Borrower Representative.

Section 13.3 <u>No Waiver; Cumulative Remedies</u>. No failure by any Lender, Collateral Agent or Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges of Lenders, Collateral Agent and Administrative Agent herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Section 13.4 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Costs and Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Sponsor shall pay at the Closing (i) all out-of-pocket expenses incurred by Administrative Agent and Collateral Agent (including the fees, charges and disbursements of counsel for Administrative Agent and Collateral Agent), in connection with the preparation, negotiation, due diligence, execution, and delivery of this Agreement and the other Loan Documents; and (ii) all out-of-pocket expenses incurred by the Borrower Parties (including the fees, charges and disbursements of counsel for the Borrower Parties), in connection with the preparation, negotiation, due diligence, execution, and delivery of this Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as otherwise set forth in the Loan Documents, Borrower shall pay (X) all out-of-pocket expenses incurred by Administrative Agent and Collateral Agent (including the fees, charges and disbursements of counsel for Administrative Agent and Collateral Agent), in connection with the administration of this Agreement and the other Loan Documents, (X) all out-of-pocket expenses incurred by Administrative Agent, (including the fees, charges and disbursements of counsel for Administrative Agent), in connection with the review and due diligence in connection with proposed Core Asset Investments (including any related Senior Mortgage Loan Documents), (Y) all out-of-pocket expenses incurred by Administrative Agent and Collateral Agent (including the fees, charges and disbursements of counsel for Administrative Agent and Collateral Agent), in connection with any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (Z) all out-of-pocket expenses incurred by Administrative Agent, Collateral Agent or any Lender (including the fees, charges and disbursements of counsel for Administrative Agent), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section 13.4 Section 13.4, or (B) in connection with the Loan hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Loan but excluding any expenses incurred by Administrative Agent, Collateral Agent or any Lender in connection with any sale, transfer or participation of its interest in the Loan. All obligations of Borrowers to make payments under the Loan Documents shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Borrower. Borrower shall Borrowers</u>. Borrowers hereby jointly and severally indemnify and defend Administrative Agent and Collateral Agent (and any sub-agent thereof), each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all actual losses, claims, damages (excluding special, punitive or consequential damages except to the extent awarded in favor of any third party against any Indemnitee), broker's commissions (including all actual expenses and attorney's fees incurred by Administrative Agent, Collateral Agent or any Lender is connection with the defense of any action or proceeding brought to collect any such broker's commissions), liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by <u>any</u> Borrower or any other Loan Party (collectively, "<u>Claims</u>") arising out of, in connection with,____ or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties to the Loan Documents of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any Core Asset, or any Environmental Liability related in any way to a Borrower or any other Loan Party, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by a Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative or contributory negligence of any Indemnitee or its agents; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of any Indemnitee or its agents, (y) result from a claim brought by a Borrower or any other Loan Party against an Indemnitee for breach in bad faith of any Indemnitee's obligations hereunder or under any other Loan Document, if<u>such</u> Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) asserted by an assignee or participant arising out of any actual sale, transfer or participation by any Lender of its interest in the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Reimbursement by Lenders</u>. To the extent that Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section 13.4 to be paid by it to Administrative Agent, Collateral Agent (or any sub-agent thereof), or any Related Party of any of the foregoing, each Lender severally agrees to pay to Administrative Agent (or any such sub-agent), or such Related Party, as the case may be, such Lender's Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against Administrative Agent, Collateral Agent (or any such sub-agent) in its capacity as such, or against any Related Party of any of the foregoing acting for Administrative Agent, Collateral Agent (or any such sub-agent) in connection with such capacity. The obligations of the Lenders hereunder to make payments pursuant to this Section 13.4(c) are several and not joint. The failure of any Lender to make any payment under this Section 13.4(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to make its payment under this Section 13.4(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by applicable law, Borrower shall not assert, and hereby waives <u>waive</u>, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby, unless such distribution is determined by a court of competent jurisdiction to be gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> <u>Payments</u>. All amounts due under this Section 13.4 shall be payable not later than five (5) Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u> <u>Survival</u>. The agreements in this Section 13.4 shall survive the resignation of Administrative Agent or Collateral Agent, the replacement of any Lender, the termination of the Loan and the repayment, satisfaction or discharge of all the other obligations.

Section 13.5 <u>Payments Set Aside</u>. To the extent that any payment by or on behalf of any Borrower is made to Administrative Agent, Collateral Agent or any Lender, or Administrative Agent, Collateral Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by Administrative Agent, Collateral Agent, or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by Administrative Agent or Collateral Agent. The obligations of the Lenders under clause (b) of the preceding sentence shall survive the payment in full of the obligations and the termination of this Agreement.

Section 13.6 <u>Successors And Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder without the consent of Borrower not to be unreasonably withheld, conditioned or delayed, except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section 13.6, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> <u>Assignments by Lenders</u>. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of the Loan at the time owing to it); provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loan and commitments assigned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the parties to each assignment shall execute and deliver to Administrative Agent an Assignment and Assumption; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Administrative Agent or one or more of its Affiliates shall serve as administrative agent hereunder.

Subject to acceptance and recording thereof by Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 13.4 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, Borrower Borrowers (at itstheir expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Register</u>. Administrative Agent, acting solely for this purpose as an agent of Borrower, shall maintain at Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders and Principal Amounts (and stated interest) of the Loan owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive, and Borrower, Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower Representative at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request for consent for a material or substantive change to the Loan Documents is pending, any Lender wishing to consult with other Lenders in connection therewith may request and receive from Administrative Agent a copy of the Register. For the avoidance of doubt, the Register shall, at all times, be maintained in accordance with Section 5f.103-1(c) of the United States Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, Borrower or Administrative Agent, sell participations to any Eligible Participant (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of the Loan owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) Borrower, Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses (i) through (vi) of Section 1.1(a) that affects such Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 13.7 as though it were a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledge or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u> <u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 13.7 <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, after obtaining the prior written consent of Administrative Agent (but without the prior notice to or consent of Borrower, any such notice and consent being expressly waived by Borrower to the extent permitted by applicable Law), to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender to or for the credit or the account of Borrower or any other Loan Party (but specifically excluding any amounts in which any Senior Mortgage Lender or DST Investor has any rights under the terms of the applicable Senior Mortgage Loan Documents or DST Trust Agreement and any reserves which are required to be maintained pursuant to the terms of any Senior Mortgage Loan Documents or DST Trust Agreement) against any and all of the obligations of Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender under this Section 13.7 are in addition to other rights and remedies (including other rights of setoff) that such Lender may have. Each Lender agrees to notify Borrower and Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

Section 13.8 <u>Interest Rate Limitation</u>. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "<u>Maximum</u> <u>Rate</u>"). If Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the Principal Amounts of the Loan or, if it exceeds such unpaid Principal Amounts, refunded to Borrower. In determining whether the interest contracted for, charged, or received by Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

Section 13.9 <u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by Administrative Agent and when Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. Delivery of any executed counterpart of this Agreement by facsimile or transmitted electronically in either a Tagged Image Format File ("<u>TIFF</u>") or Portable Document Format ("<u>PDF</u>") shall be equally effective as delivery of a manually executed counterpart of this Agreement. Any party delivering an executed counterpart by facsimile TIFF, or PDF shall also deliver a manually executed counterpart of this Agreement, but failure to do so shall not affect the validity, enforceability or binding effect of this Agreement.

Section 13.10 <u>Survival of Representations and Warranties</u>. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by Administrative Agent and each Lender, regardless of any investigation made by Administrative Agent or any Lender or on their behalf and notwithstanding that Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Advance, and shall continue in full force and effect as long as any Loan or any other obligation hereunder shall remain unpaid or unsatisfied.

Section 13.11 <u>Severability</u>. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 13.12 <u>Governing Law; Jurisdiction; Etc.</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND THE LOAN MADE BY LENDERS AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES IRREVOCABLY AND UNCONDITIONALLY AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, EACH AND ALL OF THIS AGREEMENT, THE NOTE, THE OTHER LOAN DOCUMENTS, AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE, AND/OR THE LOAN AND THIS AGREEMENT, THE NOTE AND THE LOAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST AGENT, LENDERS OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT AGENT'S OR ANY LENDER'S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT:

**Neil O'Halloran, Esq.**

**O'Halloran Ryan PLLC**

**275 Madison Avenue, 36th floor**

**New York, New York 10016**

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW_ YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO ADMINISTRATIVE AGENT OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY LENDER WITH RESPECT TO THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, SHALL BE BROUGHT EXCLUSIVELY IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LENDER ACCEPTS, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY AGREES TO BE BOUND BY ANY FINAL JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OTHER LOAN DOCUMENT FROM WHICH NO APPEAL HAS BEEN TAKEN OR IS AVAILABLE. EACH LENDER IRREVOCABLY AGREES THAT ALL SERVICE OF PROCESS IN ANY SUCH PROCEEDINGS IN ANY SUCH COURT MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO IT AT ITS ADDRESS SET FORTH ON ITS SIGNATURE PAGE HERETO OR AT SUCH OTHER ADDRESS OF WHICH THE BORROWER SHALL HAVE BEEN NOTIFIED

PURSUANT THERETO, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY EACH LENDER TO BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

Section 13.13 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY VOLUNTARILY, KNOWINGLY, UNCONDITIONALLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 13.13 Section 13.13.

Section 13.14 <u>Relationship of Parties</u>. The relationship between the Borrower, on the one hand, and the Lenders and Administrative Agent and Collateral Agent, on the other, is, and at all times shall remain, solely that of borrower and lenders. Neither the Lenders nor Administrative Agent or Collateral Agent shall under any circumstances be construed to be partners or joint venturers of the Borrower or any of its their Affiliates or direct or indirect owners; nor shall the Lenders nor Administrative Agent and Collateral Agent under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with the Borrower or any of its their Affiliates or direct or indirect owners, or to owe any fiduciary duty to the Borrower or any of its their Affiliates or direct or indirect owners. The Lenders, Administrative Agent and Collateral Agent do not undertake or assume any responsibility or duty to the Borrower or any of its their Affiliates or direct or indirect owners to select, review, inspect, supervise, pass judgment upon or otherwise inform the Borrower or any of its their Affiliates or direct or indirect owners of any matter in connection with its or its property, any security held by Collateral Agent or the operations of the Borrower Borrowers or any of its their Affiliates or direct or indirect owners. The Borrower Borrowers and each of itstheir Affiliates or direct or indirect owners shall rely entirely on their own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Lender, Administrative Agent or Collateral Agent in connection with such matters is solely for the protection of the Lenders, Administrative Agent and Collateral Agent and neither the Borrower nor any of its their Affiliates or direct or indirect owners is entitled to rely thereon.

Section 13.15 <u>USA Patriot Act Notice</u>. Each Lender that is subject to the Patriot Act and each of Administrative Agent and Collateral Agent (for itself and not on behalf of any Lender) hereby notifies Borrower Borrowers that pursuant to the requirements of the Patriot Act it is required to obtain, verify and record, and Borrower hereby agrees to provide, information that identifies Borrower identify Borrowers, which information includes the name and address of Borrower and other information that will allow such Lender, Administrative Agent or Collateral Agent, as applicable, to identify Borrower Borrowers, and otherwise enable compliance, in accordance with the Patriot Act.

Section 13.16 <u>Time Of The Essence</u>. Time is of the essence of the Loan Documents.

Section 13.17 <u>Telephone and Electronic Authorization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Agent and the Lenders may honor telephone, telefax or email instructions for repayments, by any one of the individuals authorized to sign Loan agreements on behalf of the Borrowers, the Borrower, Representative or any other individual designated by any one of such authorized signers. A list of authorized signers shall be named in Schedule 13.17. This Schedule may be modified from time-to-time by the Borrower Representative; provided that at all times the individuals named as Chairperson, President, Chief Executive Officer, Secretary and Treasurer of the Borrowers or the Borrower Representative shall be deemed to be authorized signers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower Borrowers will indemnify and hold each Agent and each Lender harmless from all liability, loss, and costs in connection with any act resulting from telephone, telefax or email instructions such party believes are made by any individual authorized by the Borrower in <u>Section 13.17(a)</u> (or deemed authorized in accordance with <u>Schedule</u> <u>13.17</u>) to give such instructions other than losses caused by either Agent's or a Lender's gross negligence or willful misconduct. This paragraph will survive this Agreement's termination, and will benefit the Agent, each Lender and their respective officers, employees, and agents.

Section 13.18 <u>Waiver of Fiduciary Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as expressly set forth herein and in the other Loan Documents, whenever in the Loan Documents an Agent or a Lender is permitted or required to make a decision, in its capacity as an agent, a lender or a secured party or otherwise, (including a decision that is in such Agent's or Lender's "discretion" or under a grant of similar authority or latitude), such Agent or Lender shall be entitled to consider only such interests and factors as such Agent or Lender desires, including its own interests in its capacity as agent or lender and secured party under the Loan Documents, and shall have no duty or obligation to give any consideration to any interest of, or factors affecting, the Borrower, the Depositors, the DSTs, the Sponsor, or any of their respective Affiliates, notwithstanding that an Affiliate of such Agent or Lender, as applicable, may have other business dealings with any of the Borrower Borrowers, the Depositors, the DSTs, the Sponsor, or any of their respective Affiliates. Without limiting the generality of the foregoing, the fact that an Affiliate of Agent or a Lender may have other business dealings with any of the Borrower, the Depositors, the DSTs, the Parent, the Sponsor, or any of their respective Affiliates, shall not be in any way affect, impede, increase or diminish or otherwise modify such Agent or Lender's rights under any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Agent, each Lender and each Borrower Party acknowledges and agrees that no fiduciary relationship exists between Agent, the Lenders and the Borrower Parties and none of the Loan Documents nor any other agreement between or among the Agent, the Lenders, any Affiliate of the Agent or Lenders and/or any of the Borrower Parties or any Affiliate of any Borrower Party imposes any fiduciary duty on the Agent or Lender. Further, each of the Borrower Parties, on behalf of itself and each of its Affiliates, hereby waives any and all fiduciary duties that, absent such waiver, may be implied by applicable Law, and in doing so, acknowledges and agrees that the duties and obligation of the Agent and the Lenders to the Borrower Parties are only as expressly set forth in the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent nor any Lender shall be imputed with any knowledge regarding the Core Assets, any of the Borrower, the Depositors, the DSTs, the Sponsor, or any of their respective Affiliates as a result of any Affiliate of such Agent or Lender having other business dealings with any of the Borrower, the Depositors, the Sponsor, or their respective Affiliates.

Section 13.19 <u>Repayment in Full After Termination or Expiration of Reinvestment Period</u>. On the Termination Date, notwithstanding that the Scheduled Maturity Date may not have occurred, the Loan Documents shall terminate and the Loan Parties shall be released from all obligations and liabilities thereunder other than any liabilities which, by their express terms, survive the repayment in full of the Loan. Notwithstanding the foregoing, to the extent any Borrower makes a payment or payments to Administrative Agent, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations and liabilities hereunder or under the other Loan Documents or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Administrative Agent. The immediately foregoing sentence shall survive any termination of the Loan Documents pursuant to this Section 13.19.

Section 13.20 <u>Joint and Several</u>. If more than one Person has executed this Agreement as "<u>Borrower</u>," or "Borrowers", the representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several. Each entity that constitutes Borrower acknowledges and agrees that it shall be jointly and severally liable for the Loan and all other Obligations arising under this Agreement and/or any of the other Loan Documents.

**ARTICLE 14**

**SENIOR MORTGAGE LOANS**

Section 14.1 <u>Senior Mortgage Loan Defaults</u>. Without limiting the generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of its obligations hereunder, to the extent an Owned DST (or its wholly owned Subsidiary) is the borrower under a Senior Mortgage Loan, if there shall occur any event of default under the applicable Senior Mortgage Loan Documents (continuing beyond the expiration of any applicable notice and/or cure periods), Borrower hereby expressly agrees that Administrative Agent shall have the immediate right, without prior notice to Borrower (but with notice to be given promptly thereafter), but shall be under no obligation: (i) to pay all or any part of such Senior Mortgage Loan and any other sums that are then due and payable to the applicable Senior Mortgage Lender, and to perform any act or take any action on behalf of Borrower and/or any Owned DST (or its wholly owned Subsidiary) as may be appropriate, to cause all of the terms, covenants and conditions of the Senior Mortgage Loan Documents on the part of Owned DST (or its wholly owned Subsidiary) to be performed or observed thereunder to be promptly performed or observed; and (ii) to pay any other amounts and take any other action as Administrative Agent shall deem advisable to protect or preserve the rights and interests of Agent and the Lenders in the Loan and/or the Collateral. All sums so paid and the costs and expenses incurred by Lender in exercising rights under this Section 14.1 (including attorneys' fees) (i) shall constitute additional advances of the Loan to Borrower (ii) shall increase the outstanding Principal Amount of the Loan, (iii) shall bear interest at the Default Rate for the period from the date that such costs or expenses were incurred to the date of payment to Administrative Agent, (iv) shall constitute a portion of the Obligations, and (v) shall be secured by the Collateral.

Section 14.2 <u>Indemnification</u>. Borrower hereby indemnifies Borrowers hereby jointly and severally indemnify Agent and Lenders from and against all liabilities, obligations, losses, damages (excluding special, punitive and consequential damages except to the extent awarded in favor of any third party against Agent or Lenders), penalties, assessments, actions, or causes of action, judgments, suits, claims, demands, costs, expenses (including attorneys' and other professional fees, whether or not suit is brought, and settlement costs) and disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against Agent or Lenders as a result of the foregoing actions except to the extent arising from the gross negligence or willful misconduct of Agent, Lenders or any of their respective agents, employees or contractors. Agent and Lenders shall have no obligation to any DST, any Borrower or any other Loan Party, or any other party to make any such payment or performance. Borrower shall not impede, interfere with, hinder or delay, and shall not permit any Owned DST (or its wholly owned Subsidiary) to impede, interfere with, hinder or delay, any effort or action on the part of Administrative Agent to cure any event of default under a Senior Mortgage Loan, or to otherwise protect or preserve Agent's or Lenders' interests in the Loan and the Collateral following an event of default under a Senior Mortgage Loan to the extent an Owned DST (or its wholly owned Subsidiary) is the borrower under such Senior Mortgage Loan.

Section 14.3 <u>Release</u>. As a material inducement to the Lenders' making the Loan, Borrower hereby absolutely and unconditionally releases and waives all claims against Lenders or Agent arising out of Agent's exercise of its rights and remedies provided in this Article 14 except to the extent arising from the gross negligence or willful misconduct of Agent, any Lender or their respective agents, contractors or employees. In the event that Agent or Lenders make any payment in respect of a Senior Mortgage Loan as permitted herein, Agent and/or Lenders shall be subrogated to all of the rights of the applicable Senior Mortgage Lender under the Senior Mortgage Loan Documents against the Core Asset, and the Owned DST (and its wholly owned Subsidiary) and any Loan Party, in addition to all other rights it may have under the Loan Documents.

Section 14.4 <u>Turnover</u>. If Agent is required pursuant to the terms of any intercreditor agreement entered into with a Senior Mortgage Lender to pay over to such Senior Mortgage Lender any payment or distribution of assets (including proceeds of Collateral and amounts realized upon any disposition of all or any portion thereof), whether in cash, property or securities, that is or has been applied to the outstanding Principal Amount of the Loan, then Borrower shall jointly and severally indemnify and Lenders for any amounts so paid, and any amount so paid shall continue to be owing pursuant to the Loan Documents as part of the outstanding Principal Amount of the Loan, notwithstanding the prior receipt of such payment by Agent or Lenders, as if it had never been so paid or received.

Section 14.5 <u>Senior Mortgage Loan Estoppel</u>. Borrower Borrowers shall (or shall cause any Owned DST (or its wholly owned Subsidiary) to), from time to time after request by Administrative Agent, use reasonable efforts to obtain from a Senior Mortgage Lender (to the extent an Owned DST (or its wholly owned Subsidiary) is the Borrower under the applicable Senior Mortgage Loan) such certificates of estoppel with respect to compliance by the applicable Owned DST (or its wholly owned Subsidiary) with the terms of the Senior Mortgage Loan Documents as may be requested by Administrative Agent, subject to any limitations set forth in the applicable Senior Mortgage Loan Documents. In the event or to the extent that a Senior Mortgage Lender is not legally obligated to deliver such certificates of estoppel and is unwilling to deliver the same, or is legally obligated to deliver such certificates of estoppel but breaches such obligation, then Borrower shall not be in breach of this provision so long as the Borrower Representative furnishes to Administrative Agent an estoppel executed by Borrower expressly representing to Administrative Agent the information requested by Administrative Agent regarding compliance by the Owned DST (or its wholly owned Subsidiary) with the terms of the Senior Mortgage Loan Documents. Borrower hereby agrees to Borrowers hereby agree to jointly and severally indemnify, defend and hold Agent and Lenders harmless from and against all liabilities, obligations, losses, damages, penalties, assessments, actions, or causes of action, judgments, suits, claims, demands, costs, expenses (including attorneys' and other professional fees, whether or not suit is brought and settlement costs) and disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against Agent or Lenders based in whole or in part upon any fact, event, condition, or circumstances relating to a Senior Mortgage Loan which was misrepresented in, or which warrants disclosure and was omitted from such estoppel executed by Borrower.

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered as of the date first set forth above.

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| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **VERSITY EQUITYCO, LLC**, a Delaware limited liability company  | **VERSITY EQUITYCO, LLC**, a Delaware limited liability company  |
| By: |  |
| Name: |  |
| Title: | Authorized Representative |
| Address for Notices: | Address for Notices: |
| With a copy to: | With a copy to: |

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[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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| | |
|:---|:---|
| **<u>ADMINISTRATIVE AGENT</u>:**<br>**KHCA FUNDING LLC** | **<u>ADMINISTRATIVE AGENT</u>:**<br>**KHCA FUNDING LLC** |
| By: |  |
|  | Name: Joshua P. Eaton |
|  | Title: President |
| Address for Notices:<br>Crayhill Capital Management LP<br> 34 East 51st Street, 15th Floor<br> New York, NY 10022<br> Attention: Joshua P. Eaton<br> Email: jeaton@crayhill.com<br>With a copy to:<br>Akin Gump Strauss Hauer & Feld LLP<br> 2001 K Street, N.W.<br> Washington, DC 20006-1037<br> Attention Blayne A. Grady<br> Fax: (202) 887-4288<br> Email: bgrady@akingump.com | Address for Notices:<br>Crayhill Capital Management LP<br> 34 East 51st Street, 15th Floor<br> New York, NY 10022<br> Attention: Joshua P. Eaton<br> Email: jeaton@crayhill.com<br>With a copy to:<br>Akin Gump Strauss Hauer & Feld LLP<br> 2001 K Street, N.W.<br> Washington, DC 20006-1037<br> Attention Blayne A. Grady<br> Fax: (202) 887-4288<br> Email: bgrady@akingump.com |

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[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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| | |
|:---|:---|
| **<u>COLLATERAL AGENT</u>:KHCA FUNDING LLC** | **<u>COLLATERAL AGENT</u>:KHCA FUNDING LLC** |
| By: |  |
|  | Name: Joshua P. Eaton |
|  | Title: President |
| Address for Notices:<br>Crayhill Capital Management LP<br> 34 East 51st Street, 15th Floor<br> New York, NY 10022<br> Attention: Joshua P. Eaton<br> Email: jeaton@crayhill.com<br>With a copy to:<br>Akin Gump Strauss Hauer & Feld LLP<br> 2001 K Street, N.W.<br> Washington, DC 20006-1037<br> Attention Blayne A. Grady<br> Fax: (202) 887-4288<br> Email: bgrady@akingump.com | Address for Notices:<br>Crayhill Capital Management LP<br> 34 East 51st Street, 15th Floor<br> New York, NY 10022<br> Attention: Joshua P. Eaton<br> Email: jeaton@crayhill.com<br>With a copy to:<br>Akin Gump Strauss Hauer & Feld LLP<br> 2001 K Street, N.W.<br> Washington, DC 20006-1037<br> Attention Blayne A. Grady<br> Fax: (202) 887-4288<br> Email: bgrady@akingump.com |

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[SIGNATURES CONTINUED ON FOLLOWING PAGE]

**Exhibit A-1**

[see attached]

**<u>EXHIBIT A</u>**

FORM OF

PROMISSORY NOTE

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| | |
|:---|:---|
| Up to $[_________ ] | as of [_________ ], 20[___] |

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FOR VALUE RECEIVED, [•] LLC (the "<u>Obligor</u>"), DOES HEREBY PROMISE TO PAY to the order of [•] or its registered assigns (the "<u>Lender</u>") at the office of KHCA Funding LLC, in its capacity as administrative agent (together with its successors and assigns, "<u>Administrative</u><u>Agent</u>"), at Crayhill Capital Management LP, 34 East 51st Street, 15th Floor, New York, NY 10022, in lawful money of the United States of America in immediately available funds, the principal amount of up to [__________ ] DOLLARS ($[ <u>]</u>), or the aggregate unpaid principal amount of the Loan (as defined in the Loan Agreement referred to below) made by the Lender to the Obligor pursuant to the Loan Agreement, whichever is less, on such date or dates as are required by the Loan Agreement, and to pay interest (including, without limitation, PIK Interest calculated in accordance with the Loan Agreement) on the unpaid principal amount from time to time outstanding hereunder accrued at the applicable interest rate and calculated in the manner specified in the Loan Agreement, at such times as are set forth in the Loan Agreement.

Except as otherwise specifically provided in the Loan Agreement or the other Loan Documents, the Obligor and any and all sureties, guarantors and endorsers of this Note and all other parties now or hereafter liable hereon severally waive grace, demand, presentment for payment, protest, notice of any kind (including, but not limited to, notice of dishonor, notice of protest, notice of intention to accelerate or notice of acceleration) and diligence in collecting and bringing suit against any party hereto and agree to the extent permitted by applicable law (i) to all extensions and partial payments, with or without notice, before or after maturity, (ii) to any substitution, exchange or release of any security now or hereafter given for this Note, (iii) to the release of any party primarily or secondarily liable hereon, and (iv) that it will not be necessary for any holder of this Note, in order to enforce payment of this Note, to first institute or exhaust such holder's remedies against the Obligor or any other party liable hereon or against any security for this Note. The non-exercise by the holder of any of its rights hereunder in any particular instance shall not constitute a waiver thereof in that or any subsequent instance.

The Lender may, but is not obligated to, set forth on the last page hereof such information as is designated on the last page hereof; provided, however, that any error in or omission of such information shall not impair the Lender's rights hereunder.

If this Note is executed by more than one person or entity as Obligor, the obligations of each such person or entity shall be joint and several. No person or entity shall be a mere accommodation maker, but each shall be primarily and directly liable hereunder.

This Note is the Note referred to in that certain Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022 (as the same may be further amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time, the "<u>Loan Agreement</u>"; capitalized terms used but not defined herein shall have the meanings given to them in the Loan Agreement) among the Obligor, as a Borrower, the other Borrowers party thereto, the Lenders referred to therein, the Administrative Agent and [•], in its capacity as collateral agent, and is entitled to the benefits of, and is secured by the security interests granted in, the Loan Agreement and the other Loan Documents, which Loan Agreement and other Loan Documents, among other things, contain provisions for mandatory prepayment and for acceleration of the maturity hereof upon the occurrence of certain events, all as provided in the Loan Agreement. This Note is made pursuant and subject to the terms and conditions of the Loan Agreement.

**THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

[*Signature Page Follows*]

IN WITNESS WHEREOF, the undersigned has duly executed this Note as of the date first above written.

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| |
|:---|
| **_______________I1,**<br> a Delaware limited liability company |
| By: |
| Name: |
| Title: |

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Signature Page to Promissory Note

[LAST PAGE OF NOTE]

<u>Payments</u>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Date | Amount of Loan  | Principal | Interest | Unpaid Principal Balance of Note | Name of Person Making Notation |

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**Exhibit B-1**

[see attached]

**<u>EXHIBIT B</u>**

FORM OF

ASSIGNMENT AND ASSUMPTION AGREEMENT

**THIS ASSIGNMENT AND ASSUMPTION AGREEMENT**(this"<u>Agreement</u>*"*), dated as of [______________ ], 20___, by and between [__________ ], a [________ ] (the "<u>Assignor</u>") and [_______ ], a [________ ] (the "<u>Assignee</u>").

Reference is made to that certain Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022 (as further amended, restated, amended and restated replaced, supplemented or otherwise modified from time to time, the "<u>Loan Agreement</u>"), by and among Versity EquityCo, LLC, a Delaware limited liability company ("<u>EquityCo</u>"), Versity EquityCo II, LLC, a Delaware limited liability company (together with EquityCo and their successors and assigns, the "<u>Borrowers</u>"), KHCA Funding LLC, in its capacity as administrative agent (together with its successors and assigns, the "<u>Administrative Agent</u>") and collateral agent (together with its successors and assigns, the "<u>Collateral Agent</u>"), in each case, for itself and any additional or subsequent lenders which may become a party thereto from time to time (collectively the "<u>Lenders</u>"), and the Lenders. Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Loan Agreement.

The Assignor and the Assignee hereby agree as follows:

1. As of the Assignment Effective Date (as defined below), the Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, all of the Assignor's rights and obligations under the Loan Agreement to the extent related to the amounts and percentages specified in *Section 1of Schedule I* hereto.

2. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all actions necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby, (b) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto or the attachment, perfection or priority of any Lien granted by the Borrowers to the Collateral Agent in the Collateral, and (c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrowers or the performance or observance by the Borrowers of any of their obligations under the Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto.

3. The Assignee (a) agrees that it will, independently and without reliance upon the Administrative Agent, the Collateral Agent, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Agreement, (b) appoints and authorizes each of the Administrative Agent and Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Loan Agreement and the other Loan Documents as are delegated to each such agent by the terms thereof, together with such powers as are reasonably incidental thereto, (c) agrees that it will perform in accordance with their terms all of the obligations that, by the terms of the Loan Agreement, are required to be performed by it as a Lender, (d) represents and warrants that it has full power and authority, and has taken all actions necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby, (e) confirms it has received such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement, (f) sets forth beneath its name on the signature pages hereof its address for notices and (g) if applicable, attaches two properly completed Forms W-8BEN, W-8ECI or successor or form prescribed by the Internal Revenue Service of the United States, certifying that such Assignee is entitled to receive all payments under the Loan Agreement payable to it without deduction or withholding of any United States federal income taxes, a U.S. Tax Compliance Certificate, and such other tax forms that may be required under the Loan Agreement.

4. Following the execution of this Agreement by the Assignor and the Assignee, it will be delivered to the Administrative Agent for acceptance and recording by the Administrative Agent. The effective date of this Agreement shall be the effective date specified in *Section 2* of *Schedule I* hereto (the " <u>Assignment Effective Date</u> ").

5. As of the Assignment Effective Date, (a) the Assignee shall be a party to the Loan Agreement and have all of the rights and obligations under the Loan Agreement of a Lender and (b) the Assignor shall relinquish all of its rights and be released from its obligations under the Loan Documents in its capacity as a Lender in respect of its interest assigned hereby to Assignee, to the extent arising or accruing from and after the date hereof (but shall continue to be entitled to the benefits of Section 13.4 of the Loan Agreement with respect to facts and circumstances occurring prior to the Assignment Effective Date).

6. From and after the Assignment Effective Date, the Administrative Agent shall make all payments under the Loan Documents in respect of the interest assigned hereby to the Assignee.

7. This Agreement shall be governed by, and be construed and interpreted in accordance with, the law of the State of New York.

8. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of this Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| |
|:---|
| [__________________________<br> ], *as Assignor* |
| By: |
| Name: |
| Title: |

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| |
|:---|
| [__________________________ ],<br> as Assignee |
| By: |
| Name: |
| Title: |
| Address for notices: |
| [______________________ ] |
| Tel: [_______________ ] |
| Fax: [_______________ ] |
| Email: [_____________ ] |
| With a copy to: |
| [______________________ ] |
| Tel: [_______________ ] |
| Fax: [_______________ ] |
| Email: [_____________ ] |

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| |
|:---|
| ACCEPTED AND AGREED<br> this [__] day of [______ ], 20[___]: |
| KHCA Funding LLC,<br> *as Administrative Agent* |
| By: |
| Name: |
| Title: |

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**SCHEDULEI**

**SECTION1.**

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| | |
|:---|:---|
| Outstanding principal amount of Loans assigned to Assignee: | $[___] |
| Percentage of aggregate outstanding principal amount of Loans assigned to Assignee: | [___]% |

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**SECTION 2.**

<u>Assignment Effective Date:</u><br>

[_____________ ], 20[__]

**Exhibit D-1** 

[see attached]

[FORM OF] COMPLIANCE CERTIFICATE

[_________ ], 20[___]

Reference is hereby made to Section 8.1(d) of that certain Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022 (as so amended and as the same may be further amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time, the "***Loan Agreement***"), by and among Versity EquityCo, LLC, a Delaware limited liability company, as borrower ("***EquityCo***"), Versity EquityCo II, LLC, a Delaware limited liability company, as borrower ("***EquityCo II***" and together with EquityCo, the "***Borrowers***"), KHCA Funding LLC, in its capacity as administrative agent (together with its successors and assigns, "***Administrative Agent***"), KHCA Funding LLC, in its capacity as collateral agent (together with its successors and assigns, "***Collateral Agent***"), and the lenders from time to time party thereto (collectively, ***L***"***enders***", together with Administrative Agent and Collateral Agent, individually and/or collectively as the context may require, "***Secured Party***"). Capitalized terms used, but not otherwise defined herein, shall have the meanings set forth in the Loan Agreement.

The undersigned, [?], being a duly authorized Responsible Officer of the Borrowers, does hereby certify as of the date hereof to Secured Party as follows:

(i) no Default or Event of Default is continuing as of the date hereof;1

(ii) all filings required under the Security documents have been made and listing each such filing that has been made since the date of the last certificate delivered in accordance with Section 8.1(d); and

(iii) [[the Loan Parties have delivered all documents they are required to deliver to Secured Party on or prior to the date hereof pursuant to any Loan Document] OR [true, correct and complete copies of all documents required to be delivered on or prior to the date hereof by the Loan Parties to Secured Party pursuant to any Loan Document are attached hereto as Exhibit A]].

[*Signature Page Follows*]

____________________

<sup>1</sup> If a Default or Event of Default is continuing, <u>Schedule I</u> shall set forth the nature of each Default or Event of Default and the action that is proposed to be taken to cure such Default or Event of Default.

IN WITNESS WHEREOF, the undersigned has executed this certificate, on behalf of the Borrowers, effective as of the date first written above.

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| | |
|:---|:---|
| **VERSITY EQUITYCO, LLC**, a Delaware limited liability company | **VERSITY EQUITYCO, LLC**, a Delaware limited liability company |
| By: | Versity Investments, LLC, a Delaware limited liability company,<br> its Manager |

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By: <br> Name: <br> Title:

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| | |
|:---|:---|
|  | **VERSITY EQUITYCO II, LLC**, a Delaware limited liability company |
| By: | Versity Invest, LLC, a Delaware limited liability company,<br> its Manager |
|  | By: |
|  | Name: |
|  | Title: |

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Signature Page to Compliance Certificate

EXHIBIT A

REQUIRED DOCUMENTS

**Exhibit E-1** 

[see attached]

**[FORM OF DEPOSITOR] LIMITED LIABILITY COMPANY AGREEMENT**

**OF [ ], LLC, a Delaware limited liability company**

This Limited Liability Company Agreement (together with the schedules and exhibits attached hereto, and as amended, restated or supplemented or otherwise modified from time to time, this "<u>Agreement</u>") of [_________ ], a Delaware limited liability company (the "<u>Company</u>"), is made and entered into as of [month] [day ], [year] by [Versity EquityCo, LLC][Versity EquityCo II, LLC], a Delaware limited liability company, as the sole Member of the Company and [Versity Investments, LLC][Versity Invest, LLC], a Delaware limited liability company, as the initial Manager. Capitalized terms used and not otherwise defined herein have the meanings set forth on <u>Schedule A</u> hereto.

The Member, by execution of this Agreement, hereby acknowledges the formation of the Company as a limited liability company pursuant to and in accordance with the Delaware Limited Liability Company Act (6 <u>Del. C.</u> § 18-101 et <u>seq</u>.), and any successor statute, as amended from time to time (the "<u>Act</u>"), and this Agreement. The parties hereto hereby agree as follows:

Section 1. <u>Name</u>. The name of the limited liability company formed hereby is [_________ ].

Section 2. <u>Principal Business Office</u>. The principal business office of the Company shall be located at 20 Enterprise, Suite 400, Aliso Viejo, CA 92656 or such other location as may hereafter be determined by the Manager.

Section 3. <u>Registered Office</u>. The address of the registered office of the Company in the State of Delaware is 1201 N. Orange St., Suite 7044, Wilmington, Delaware 19801.

Section 4. <u>Registered Agent</u>. The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware is Sorensen Entity Services LLC, 1201 N. Orange St., Suite 7044, Wilmington, Delaware 19801.

Section 5. <u>Member</u>. The mailing address of the Member is 20 Enterprise, Suite 400, Aliso Viejo, CA 92656. The Member was admitted as a member of the Company upon its execution of a counterpart signature page to this Agreement. The Member may act by written consent.

Section 6. <u>Certificate of Formation</u>. [___________], as an "authorized person" within the meaning of the Act, executed, delivered and filed a Certificate of Formation and filed it with the Delaware Secretary of State as required by the Act, and upon such filing, [his/her] powers as an "authorized person" ceased, and the Manager of the Company thereupon became the designated "authorized person" and shall continue as the designated "authorized person" within the meaning of the Act. The Manager may execute and file any amendments to the Certificate of Formation from time to time in a form prescribed by the Act. The Manager also shall cause to be made, on behalf of the Company, such additional filings and recordings as the Manager shall deem necessary or advisable.

Section 7. <u>Purpose</u>. Notwithstanding anything to the contrary contained in this Agreement or in any other document governing the formation, management or operation of the Company, the sole purpose of the Company shall be (A) owning the Equity Interests in the Applicable DST and (B) engaging in any lawful act or activity and exercising any powers permitted to limited liability companies organized under the laws of the State of Delaware that are related or incidental to and necessary, convenient or advisable for the accomplishment of the above-mentioned purposes.

Section 8. <u>Powers</u>. The Company, and the Manager on behalf of the Company, (i) shall have and exercise all powers necessary, convenient or incidental to accomplish its purposes as set forth in <u>Section 7</u> above, and (ii) shall have and exercise all the powers and rights conferred upon limited liability companies formed pursuant to the Act.

Section 9. <u>Management</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Manager</u>. The business and affairs of the Company shall be managed by or under the direction of a manager, which is hereby designated as a "manager" of the Company within the meaning of Section 18-101(12) of the Act (the "<u>Manager</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appointment of Manager</u>. [Versity Investments, LLC,][Versity Invest, LLC,] a Delaware limited liability company, is hereby appointed as the initial Manager of the Company. Subject to the remainder of this Section 9, the term of the Manager shall continue until its resignation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Powers</u>. Except as otherwise set forth herein, the Manager shall have the power to do any and all acts necessary, convenient or incidental to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise. Subject to <u>Section 7</u> above, the Manager has the authority to execute documents on behalf of, and to bind, the Company, including, but not limited to the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Action by Written Consent</u>. The Manager shall have the right and authority to act by written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Compensation of the Manager; Expenses</u>. The Manager shall not be entitled pursuant to this Agreement to any compensation for serving in such capacity or reimbursement for its direct expenses, if any, incurred in connection with serving as the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Manager as Agent</u>. To the extent of its powers set forth in this Agreement, the Manager is an agent of the Company for the purpose of the Company's business, and the actions of the Manager taken in accordance with such powers set forth in this Agreement shall bind the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Voluntary Resignation</u>. The Manager may not voluntarily resign as the manager of the Company, without the prior written consent of (A) the Member and (B) until the Obligations have been indefeasibly paid in full, the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(h)</u> <u>Removal of Manager; EOD</u>. Until the Obligations have been indefeasibly paid in full, the Administrative Agent may remove the Manager as the manager of the Company by delivering written notice to the Company, the Manager and the Member at any time permitted under <u>Section 11.2(a)(iii)</u> of the Loan Agreement; provided, that (A) the Manager shall be automatically removed as a manager of the Company immediately upon the Manager's receipt of such notice and no further action shall be required to effectuate such removal from its position as manager of the Company, (B) the Administrative Agent may require the Member to appoint a replacement manager of the Company as may be designated by the Administrative Agent and (C) Administrative Agent shall serve as the replacement manager of the Company until the appointment of the replacement manager of the Company in accordance with clause (B) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i) Removal of Manager; Pledge Transfer</u>. Concurrently with the consummation of a Pledge Transfer, (A) the Manager shall be automatically removed as a manager of the Company and no further action shall be required to effectuate such removal from its position as manager of the Company, (B) the Administrative Agent may require the Company to appoint a replacement manager of the Company as may be designated by the Administrative Agent and (C) Administrative Agent shall serve as the replacement manager of the Company until the appointment of the replacement manager of the Company in accordance with clause (B) above.

Section 10. <u>Limited Liability</u>. Except as otherwise expressly provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be the debts, obligations and liabilities solely of the Company, and neither the Member nor the Manager shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member or Manager of the Company.

Section 11. <u>Capital Contributions</u>. The Member has contributed to the Company the capital contribution listed on <u>Schedule B</u> attached hereto.

Section 12. <u>Additional Contributions</u>. The Member is not required to make any additional capital contributions to the Company; however, the Member may make additional capital contributions to the Company at any time. To the extent that the Member makes an additional capital contribution to the Company, the Manager shall revise <u>Schedule B</u> of this Agreement. The Member shall not have any duty or obligation to any creditor of the Company to make any contribution to the Company or to issue any call for capital pursuant to this Agreement.

Section 13. <u>Allocation of Profits and Losses</u>. The Company's profits and losses shall be allocated to the Member.

Section 14. <u>Distributions</u>. Distributions of capital shall be made to the Member at the times and in the aggregate amounts determined by the Manager. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution of capital to the Member on account of its interest in the Company if such distribution would violate Section 18-607 of the Act or any other applicable law or the Loan Documents.

Section 15. <u>Books and Records; Accounts</u>. The Manager shall keep or cause to be kept complete and accurate books of account and records with respect to the Company's business. The books of the Company shall at all times be maintained by the Manager. The Member and its duly authorized representatives shall have the right to examine the Company books, records and documents at any time and shall have access to all bank accounts of the Company at all times. The Company's books of account shall be kept using the method of accounting determined by the Manager. The Company's independent auditor, if any, shall be an independent accounting firm selected by the Manager.

Section 16. <u>Reports</u>. The Manager shall, after the end of each fiscal year, use reasonable efforts to cause the Company's independent accountants, if any, to prepare and transmit to the Member as promptly as possible any such tax information as may be reasonably necessary to enable the Member to prepare its federal, state and local income tax returns relating to such fiscal year.

Section 17. [<u>Reserved]</u>.

Section 18. <u>Exculpation and Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Member, the Manager, nor any employee or agent of the Company nor any employee, representative, agent, member, manager or Affiliate of the Member or the Manager (collectively, the "<u>Covered Persons</u>") shall, to the fullest extent permitted by law, be liable to the Company or any other Person that is a party to or is otherwise bound by this Agreement, for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's fraud, gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any and all claims for indemnification for any loss, damage or claim incurred by any Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement shall only be made pursuant to Member Operating Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of such Covered Person's fraud, gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The foregoing provisions of this <u>Section 18</u> shall survive any termination of this Agreement.

Section 19. <u>Assignments</u>. No limited liability company interest in the Company may be transferred or assigned, in whole or in part, without the prior written consent of (a) the Member and (b) until the Obligations have been indefeasibly paid in full, the Administrative Agent; provided, that, no consent or approval of the Company, the Member, the Manager, the Administrative Agent or any other Person shall be required to consummate a Pledge Transfer or any transfer or assignment by any successor Member thereafter. Subject to <u>Section 21</u> of this Agreement, if the Member transfers all of its limited liability company interest in the Company pursuant to this <u>Section 19</u>, the transferee shall be admitted to the Company as a member of the Company upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective upon such transfer and the Member shall cease to be a member of the Company. Any successor to a Member by merger or consolidation in compliance with the Loan Documents shall, without further act, be the Member hereunder, and such merger or consolidation shall not constitute an assignment for purposes of this Agreement and the Company shall continue without dissolution.

Section 20. <u>Resignation</u>. Except in connection with a Pledge Transfer, the Member may not resign as a member of the Company. If the Member is permitted to resign pursuant to this <u>Section 20</u>, a new member shall be admitted to the Company, subject to <u>Section 21</u> of this Agreement, upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective upon such resignation and the resigning Member shall cease to be a member of the Company.

Section 21. <u>Admission of Additional Members</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) One or more additional members of the Company may be admitted to the Company with the written consent of the Member; provided, that, notwithstanding the foregoing, until the Obligations have been indefeasibly paid in full, no additional Member may be admitted to the Company without the prior written consent of the Administrative Agent; provided, further, that no consent or approval of the Company, the Member, the Manager, the Administrative Agent or any other Person shall be required to admit the recipient of the Equity Collateral as a result of a Pledge Transfer or any transfer or assignment by any successor Member thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision in the Act or any other provision contained herein to the contrary, (i) the initial Member shall be permitted to pledge and, upon a Pledge Transfer, to transfer or assign to the Administrative Agent or its designee the Equity Collateral pursuant to the terms of Borrower Pledge Agreement; and (ii) concurrently with the consummation of a Pledge Transfer, (A) the initial Member shall automatically cease to be a member of the Company, (B) the recipient of the Equity Collateral as a result of such Pledge Transfer shall automatically be admitted as a successor member of the Company with all of the rights and obligations of a member of the Company hereunder, and (C) no further action shall be required on the part of the Company, the initial Member or any other Person to effectuate the foregoing clauses (A) and (B). From and after the automatic admission of the successor member of the Company in accordance with this <u>Section 21(b)</u>, the successor member may (x) exercise all the rights and powers of a member of the Company pursuant to this Agreement, including the right to vote or give approvals, consents, ratifications or waivers; and (y) to the extent not so registered, cause the Company to register the transfer or assignment of the limited liability company interest of the Company in the Company's books maintained for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company acknowledges that the pledge of the Equity Collateral pursuant to the Borrower Pledge Agreement shall be a pledge not only of profits and losses of the Company, but also a pledge of all rights and obligations of the initial Member, in its capacity as a member of the Company, including the right to vote, manage or give approvals, consents, ratifications or waivers. The Collateral Agent shall be entitled to take any action and exercise any right to vote or give approvals, consents, ratifications or waivers in respect of the Equity Collateral in its capacity as attorney-in-fact as set forth therein or pursuant to any power of attorney or proxy granted thereunder during any applicable period as provided in the Borrower Pledge Agreement (the "<u>Voting Period</u>") and any such rights as exercised by the Collateral Agent shall be valid and effective hereunder. During the Voting Period, the initial Member, in its capacity as a member of the Company, shall not be entitled to take any action or exercise any right to vote or give approvals, consents, ratifications or waivers in respect of the Equity Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Until the Obligations have been indefeasibly paid in full, none of the Company, Member or the Manager shall issue or permit the issuance of any additional limited liability company interests of the Company (other than the initial issuance of limited liability company interests of the Company to the initial Member prior to the date of this Agreement) without the prior written consent of the Administrative Agent.

Section 22. <u>Dissolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 34(c)</u>, the Company shall dissolve upon any act or event causing the dissolution of the Company under the Act, unless, if permitted by the Act, the Company is continued in accordance with the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Agreement, any action initiated by or brought against the Member or any additional member under any Creditors Rights Laws shall not cause the Member or additional member, respectively, to cease to be a member of the Company and upon the occurrence of such an event, the Company shall continue without dissolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Agreement, the Member, and any additional member, waives any right it might have to agree in writing to dissolve the Company upon the occurrence of any action initiated by or brought against the Member, or additional member under any Creditors Rights Laws, or the occurrence of an event that causes the Member, or additional member, to cease to be a member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets of the Company in an orderly manner), and the assets of the Company shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Act.

() The Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company, shall have been distributed to the Member in the manner provided for in this Agreement, and (ii) the Certificate of Formation shall have been canceled in the manner required by the Act.

Section 23. <u>Waiver of Partition; Nature of Interest</u>. To the fullest extent permitted by law, each of the Member and any additional member admitted to the Company hereby irrevocably waives any right or power that such Person might have to cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of the Company. The Member shall not have any interest in any specific assets of the Company and the Member shall not have the status of a creditor with respect to any distribution pursuant to <u>Section 14</u> hereof. The interest of the Member in the Company is personal property.

Section 24. <u>Tax Status</u>. It is intended that the Company shall be a disregarded entity for federal, state and local income tax purposes.

Section 25. <u>Benefits of Agreement; No Third-Party Rights</u>. Subject to the next sentence, none of the provisions of this Agreement shall be for the benefit of or enforceable by any creditor of the Company or by any creditor of the Member or any other member admitted to the Company, and nothing in this Agreement shall be deemed to create any right in any Person not a party hereto, and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third Person. Notwithstanding the foregoing, Administrative Agent and the Collateral Agent are intended third-party beneficiaries of each of the provisions of this Agreement as to which they have or are given rights and such provisions are enforceable by the Administrative Agent and the Collateral Agent.

Section 26. <u>Severability of Provisions</u>. Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

Section 27. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof.

Section 28. <u>Binding Agreement</u>. The parties hereto agree that this Agreement constitutes the legal, valid and binding agreement of the parties hereto.

Section 29. <u>Governing Law</u>. This Agreement shall be governed by and construed under the laws of the State of Delaware (without regard to conflict of laws principles), all rights and remedies being governed by said laws.

Section 30. <u>Amendments</u>. This Agreement may be modified, altered, supplemented or amended pursuant to a written agreement executed and delivered by the Member and the Company; <u>provided</u>, that until the Obligations have been indefeasibly paid in full, this Agreement may not be amended, altered, changed or repealed (in whole or in part) without the prior written consent of the Administrative Agent.

Section 31. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement and all of which together shall constitute one and the same instrument.

Section 32. <u>Notices</u>. Any notices required to be delivered hereunder shall be in writing and personally delivered or sent by generally recognized overnight courier service, and shall be deemed to have been duly given upon receipt (a) in the case of the Company, to the Company at its address in <u>Section 2</u> of this Agreement, (b) in the case of the Member, to the Member at its address as listed on <u>Schedule B</u> attached hereto, and (c) in the case of either of the foregoing, at such other address as may be designated by written notice to the other party in accordance with the terms of this <u>Section 32</u>.

Section 33. <u>Certificates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each limited liability company interest of the Company shall constitute a "security" within the meaning of, and governed by, (i) Article 8 of the UCC (including Section 8-102(a)(15) thereof), and (ii) the corresponding provisions of the UCC of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions of Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995. Notwithstanding any provision of this Agreement to the contrary, to the extent that any provision of this Agreement is inconsistent with any non-waivable provision of Article 8 of the UCC, such provision of Article 8 of the UCC shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each limited liability company interest of the Company shall be represented by a certificate in substantially the form of <u>Exhibit A</u> attached hereto (a "LLC Certificate") and, accordingly, each limited liability company interest of the Company shall be deemed to be a "certificated security" within the meaning of the UCC. Each LLC Certificate shall be executed by the Manager or any other authorized person on behalf of the Company. Each LLC Certificate shall bear the following legend: "This certificate evidences ☐% of the limited liability company interests in [NAME OF COMPANY] and shall be a security for purposes of Article 8 of the Uniform Commercial Code of the States of Delaware and New York" (with the applicable percentage of limited liability company interests of the Company appropriately inserted). The foregoing legend shall not be amended, and no such purported amendment to the foregoing legend shall be effective until all outstanding LLC Certificates have been surrendered for cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without any further act, vote or approval of the Member, the Manager or any other Person, the Company shall issue a new LLC Certificate in place of any LLC Certificate previously issued if the owner of limited liability company interests of the Company represented by such LLC Certificate, as reflected on the books and records of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) makes proof by affidavit, in form and substance satisfactory to the Company, that such previously issued LLC Certificate has been lost, stolen, misplaced or destroyed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) requests the issuance of a new LLC Certificate before the Company has notice that such previously issued LLC Certificate has been acquired by a purchaser for value in good faith and without notice of an adverse claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if requested by the Company, delivers to the Company a bond, in form and substance satisfactory to the Company, with such surety or sureties as the Company may direct, to indemnify the Company against any claim that may be made on account of the alleged loss, theft, misplacement or destruction of the previously issued LLC Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) satisfies any other reasonable requirements imposed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the Member's transfer in accordance with the provisions of this Agreement of any or all limited liability company interests of the Company represented by a LLC Certificate, the transferee of such limited liability company interests shall deliver such LLC Certificate to the Company for cancellation, and the Company shall thereupon issue a new LLC Certificate to such transferee for the percentage of limited liability company interests in the Company being transferred and, if applicable, cause to be issued to the Member a new LLC Certificate for that percentage of limited liability company interests in the Company that were represented by the canceled LLC Certificate and that are not being transferred. For the avoidance of doubt, delivery of the certificate for cancellation and issuance of a new certificate shall not be a condition for the effectiveness of any Pledge Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall maintain books for the purpose of registering the transfer of limited liability company interests of the Company. Except in connection with any Pledge Transfer, the transfer of any portion of the limited liability company interests of the Company represented by an LLC Certificate shall be effective upon registration of the transfer in the Company's books.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event of any conflict or inconsistency between the terms, provisions and conditions of this <u>Section 33</u> and any other terms, provisions and conditions of this Agreement, the terms, provisions and conditions contained in this <u>Section 33</u> shall control and govern.

Section 34. <u>Single Purpose / Separateness</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until such time as the Obligations shall be paid and performed in full, the Company shall perform and adhere to the covenants and agreements set forth in <u>Exhibit B</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As long as any portion of the Obligations (other than Obligations which by their terms survive repayment) remains outstanding, except as expressly permitted pursuant to the terms of the Loan Documents, (i) the Company's last Member may not resign, and (ii) no additional member shall be admitted to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As long as any portion of the Obligations (other than Obligations which by their terms survive repayment) remains outstanding: (i) the Company shall be dissolved, and its affairs shall be wound up, only upon the first to occur of the following: (A) the termination of the legal existence of the last remaining member of the Company or the occurrence of any other event which terminates the continued membership of the last remaining member of the Company in the Company, unless the business of the Company is continued in a manner permitted by this Agreement or the Act, or (B) the entry of a decree of judicial dissolution under Section 18-802 of the Act; (ii) upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company (other than (A) upon an assignment by the member of the Company of all of its limited liability company interests in the Company and the admission of the transferee, if permitted pursuant to this Agreement and the Loan Documents, or (B) the resignation of the member of the Company and the admission of an additional member of the Company, if permitted pursuant to this Agreement and the Loan Documents), to the fullest extent permitted by law, the personal representative of such last remaining member shall be authorized to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of such member in the Company agree in writing (1) to continue the existence of the Company and (2) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of the Company, effective as of the occurrence of the event that terminated the continued membership of the member of the Company in the Company; (iii) the bankruptcy of any member of the Company shall not cause such member to cease to be a member of the Company, and upon the occurrence of such event, the business of the Company shall continue without dissolution; (iv) in the event of the dissolution of the Company, then the Company shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets and properties of the Company in an orderly manner), and the assets and properties of the Company shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Act; and (v) to the fullest extent permitted by applicable law, the Member hereby irrevocably waives any right or power that it might have to cause the Company or any of its assets or properties to be partitioned, to cause the appointment of a receiver for all or any portion of the assets or properties of the Company, to compel any sale of all or any portion of the assets or properties of the Company pursuant to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of the Company.

*[remainder of page intentionally left blank]*

*[signatures on following page]*

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Operating Agreement as of the date first set forth above.

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| | |
|:---|:---|
| <u>COMPANY</u>: <br> [_______________ ], | <u>COMPANY</u>: <br> [_______________ ], |
| a Delaware limited liability company | a Delaware limited liability company |
| Versity Investments, LLC, <br> a Delaware limited liability company,<br> its manager | Versity Investments, LLC, <br> a Delaware limited liability company,<br> its manager |
| By: |  |
| Name: |  |
| Its:  | Authorized Signatory |

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| | |
|:---|:---|
| <u>MEMBER</u>: | <u>MEMBER</u>: |
| [VERSITY EQUITYCO, LLC, a Delaware limited liability company, | [VERSITY EQUITYCO, LLC, a Delaware limited liability company, |
| Versity Investments, LLC,<br> a Delaware limited liability company,<br> its manager | Versity Investments, LLC,<br> a Delaware limited liability company,<br> its manager |
| By: |  |
| Name: |  |
| Its:  | Authorized Signatory] |
| [VERSITY EQUITYCO II, LLC, a<br> Delaware limited liability company, | [VERSITY EQUITYCO II, LLC, a<br> Delaware limited liability company, |

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| | | |
|:---|:---|:---|
| By: | Versity Invest, LLC, <br> a Delaware limited liability company,<br> its manager | Versity Invest, LLC, <br> a Delaware limited liability company,<br> its manager |
|  | By:  |  |
|  | Name: |  |
|  | Its: | Authorized Signatory] |

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| | |
|:---|:---|
| <u>INITIAL MANAGER</u>:<u> </u> | <u>INITIAL MANAGER</u>:<u> </u> |
| [VERSITY INVESTMENTS, LLC, a Delaware limited liability company, | [VERSITY INVESTMENTS, LLC, a Delaware limited liability company, |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory] |
|  | [VERSITY INVEST, LLC,<br> a Delaware limited liability company, |
| By:  |  |
| Name: |  |
| Its:  | Authorized Signatory] |

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<u>SCHEDULE A</u>

A. <u>Definitions</u>.

Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Loan Agreement. When used in this Agreement, the following terms not otherwise defined herein have the following meanings:

"<u>Administrative Agent</u>" means Knights Hill Ireland II DAC, as administrative agent under the Loan Agreement, together with its successors and assigns.

"<u>Affiliate</u>" means, with respect to any Person, any other Person directly or indirectly Controlling or Controlled by or under direct or indirect common Control with such Person or any Person who has a direct familial relationship, by blood, marriage or otherwise with the Company or any Affiliate of the Company.

"<u>Applicable DST</u>" means [________ ], a Delaware statutory trust.

"<u>Applicable DST Trust Agreement</u>" means the trust agreement for the Applicable DST

dated as of [_______ ] wherein the Company is the Depositor.

"<u>Basic Documents</u>" means this Agreement, the Applicable DST Trust Agreement, the Master Lease and all documents and certificates contemplated thereby or delivered in connection therewith.

"<u>Borrower Pledge Agreement</u>" means that certain Pledge Agreement, dated as of [_____ ],

by the initial Member, in favor of Collateral Agent for the benefit of the Secured Parties, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Certificate of Formation</u>" means the Certificate of Formation of the Company filed with

the Secretary of State of the State of Delaware on [__________].

"<u>Collateral Agent</u>" means Knights Hill Ireland II DAC, as collateral agent under the Loan Agreement, together with its successors and assigns.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities or general partnership or managing member interests, by contract or otherwise. "Controlling" and "Controlled" shall have correlative meanings. Without limiting the generality of the foregoing, a Person shall be deemed to Control any other Person in which it owns, directly or indirectly, ten percent (10%) or more of the ownership interests.

"<u>Creditors Rights Laws</u>" shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts or debtors.

"<u>Equity Collateral</u>" has the meaning assigned to "Collateral" in the Borrower Pledge Agreement.

"<u>Equity Interest</u>" has the same meaning as used in the Loan Agreement.

"<u>Governmental Authority</u>" shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental unit (foreign, federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

"<u>Lender(s)</u>" means, collectively, the lenders from time to time party to the Loan Agreement, and their successors and assigns with respect to the Loan.

"<u>Loan Agreement</u>" means that certain Senior Secured Term Loan Agreement, dated as of

[_______ ], 2021, by and among the initial Member, as borrower, [Versity EquityCo, LLC][Versity EquityCo II, LLC], a Delaware limited liability, as borrower, the Lenders, the Administrative Agent and the Collateral Agent, as the same may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time.

"<u>Loan Documents</u>" has the meaning set forth in the Loan Agreement.

"<u>Member</u>" shall initially mean [Versity EquityCo, LLC][Versity EquityCo II, LLC], a Delaware limited liability company and includes any person admitted as an additional member of the Company or a substitute member of the Company pursuant to the provisions of this Agreement, each in its capacity as a member of the Company

"<u>Member Operating Agreement</u>" means that certain [Amended and Restated] Limited

Liability Company Agreement of the initial Member, dated as of [________ ].

"<u>Master Lease</u>" means the Master Lease for the Property by and between the Applicable DST, as landlord, and an Affiliate of the Company, as tenant, dated as of the date of the closing of the acquisition of the Property by Applicable DST.

"<u>Obligations</u>" has the same meaning as used in the Loan Agreement.

"<u>Person</u>" shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, organization, whether or not a legal entity, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing.

"<u>Pledge Transfer</u>" means the taking of possession or control of the Equity Collateral or any portion thereof (other than the physical possession of any certificates evidencing the Equity Collateral) pursuant to the exercise of Collateral Agent's rights and remedies under the Borrower Pledge Agreement, any proceeding or foreclosure or the taking of a bill of sale or assignment in lieu of any proceeding or foreclosure, or other negotiated settlement in lieu of any such proceeding or foreclosure.

"<u>Property</u>" shall mean the real estate, together with all buildings, structures, fixtures and improvements located thereon, as further described in Exhibit A of the Applicable DST Trust Agreement.

"<u>Secured Parties</u>" means, collectively, the Administrative Agent, the Collateral Agent and the Lenders.

"UCC" means the Uniform Commercial Code as in effect from time to time in the State of

Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Rules of Construction</u>. Definitions in this Agreement apply equally to both the

singular and plural forms of the defined terms. The words "include" and "including" shall be deemed to be followed by the phrase "without limitation." The terms "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Section, paragraph or subdivision. The Section titles appear as a matter of convenience only and shall not affect the interpretation of this Agreement. All Section, paragraph, clause, exhibit or Schedule references not attributed to a particular document shall be references to such parts of this Agreement.

<u>SCHEDULE B</u> 

<u>Member</u>

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| | | |
|:---|:---|:---|
| **Name** | **Capital Contribution** | **Membership Interest** |
| [Versity EquityCo, LLC][Versity EquityCo II, LLC, a Delaware limited liability company 20 Enterprise, Suite 400, Aliso Viejo, CA 92656] | $100.00 | 100% |

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EXHIBIT A

Form of Certificate

THIS CERTIFICATE EVIDENCES [__]% OF THE LIMITED LIABILITY COMPANY INTEREST IN [____________________ ] AND SHALL BE A SECURITY FOR PURPOSES OF ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE OF THE STATES OF DELAWARE AND NEW YORK. THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE. THE HOLDER OF THIS CERTIFICATE, BY ITS ACCEPTANCE HEREOF, REPRESENTS THAT IT IS ACQUIRING THIS SECURITY FOR INVESTMENT AND NOT WITH A VIEW TO ANY SALE OR DISTRIBUTION HEREOF. ANY TRANSFER OF THIS CERTIFICATE OR ANY LIMITED LIABILITY COMPANY INTEREST REPRESENTED HEREBY IS RESTRICTED UNDER THE TERMS OF THE AGREEMENT (AS DEFINED BELOW) AND ANY PURPORTED TRANSFER NOT IN COMPLIANCE WITH THE TERMS OF THE AGREEMENT WILL BE VOID AB INITIO.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificate Number [__] | [__]% of the Limited Liability Company Interests |

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[______________________ ], a Delaware limited liability company (the "<u>Company</u>"), hereby certifies that [___________ ] (together with any assignee of this Certificate, the "<u>Holder</u>") is the registered owner of [__]% of the limited liability company interest in the Company (the "<u>Interests</u>"). The rights, powers, preferences, privileges, restrictions (including transfer restrictions) and limitations of the Interests are set forth in, and this Certificate and the Interests represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Limited Liability Company Agreement of the Company, dated as of [__], 2022 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Agreement</u>"). The transfer of this Certificate and the Interests represented hereby is restricted as described in the Agreement. By acceptance of this Certificate, and as a condition to being entitled to any rights and/or benefits with respect to the Interests evidenced hereby, the Holder is deemed to have agreed to comply with and be bound by all of the terms and conditions of the Agreement. The Company will furnish a copy of the Agreement to the Holder without charge upon written request to the Company at its principal place of business. The Company maintains books for the purpose of registering the transfer of Interests. Transfer of any or all of the Interests evidenced by this Certificate is subject to certain restrictions in the Agreement and can be effected only after compliance with all of those restrictions.

Each limited liability company interest in the Company shall constitute a "<u>security</u>" within the meaning of, and governed by, (i) Article 8 of the Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect from time to time in the State of Delaware, and (ii) the corresponding provisions of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioner on Uniform State Laws and approved by the American Bar Association on February 14, 1995. This Certificate and the Interests evidenced hereby shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflict of laws.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by the Manager of the Company as of the date set forth below.

Dated: [_______ ], 20<u>[</u> ]

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| | |
|:---|:---|
| [VERSITY INVESTMENTS, LLC,] [VERSITY<br> INVEST, LLC]<br> Delaware limited liability company,<br> Manager of the Company | [VERSITY INVESTMENTS, LLC,] [VERSITY<br> INVEST, LLC]<br> Delaware limited liability company,<br> Manager of the Company |
| By: |  |
| Name:  |  |
| Its: | Authorized Signatory |

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EXHIBIT B

Single Purpose Entity/Separateness

In order to preserve and ensure the Company's separate and distinct limited liability company identity, in addition to the other provisions set forth in the Agreement, the Company shall at all times on and after the date hereof conduct its affairs in accordance with the following provisions (initially capitalized terms used in this Exhibit B and not otherwise defined in this Agreement, shall have the meanings ascribed in the Loan Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company (I) has been, is, and will be organized solely for the purpose of (A) owning the Equity Interests in the Applicable DST and (B) engaging in any lawful act or activity and exercising any powers permitted to limited liability companies organized under the laws of the State of Delaware that are related or incidental to and necessary, convenient or advisable for the accomplishment of the above-mentioned purposes, and (II) has not owned, does not own, and will not own any asset or property other than Equity Interests in the Applicable DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company, has not owned, does not own, and will not own any asset or property other than the Equity Interests in the Applicable DSTs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the fullest extent permitted by law, the Company has not engaged in, sought, or consented to and will not engage in, seek or consent to any dissolution, winding up, termination, liquidation, consolidation or merger, in whole or in part, and, except as otherwise expressly permitted by this Agreement, has not engaged in, sought, or consented to and will not engage in, seek or consent to any asset sale, transfer of membership interests, or amendment of its certificate of formation or Governing Documents in a manner that amends, modifies, replaces, deletes or supplements the provisions hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company has not failed and will not fail to correct any known misunderstanding regarding the separate identity of itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company has not and will not, without the unanimous consent of its members and the consent of the Administrative Agent, commenced or commence any Bankruptcy Action or take or otherwise permit to occur any Bankruptcy Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Company has maintained and will maintain its books, records, financial statements, accounting records, bank accounts and other entity documents in its own name and separate from any other Person; <u>provided</u>, <u>however</u>, that such entity's assets may have been included in a consolidated financial statement of its Affiliates; provided that, if applicable, (i) appropriate notations were made on such consolidated financial statements to indicate the separateness of such entity and such Affiliate and to indicate that such entity's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (ii) such assets were listed on such entity's own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Company has maintained and will maintain its books, records, resolutions and agreements as official records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Company has not commingled and will not commingle its funds or other assets with those of any other Person except as expressly contemplated by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Company has not listed (and is not aware of any listing) its assets on the financial statements of any other Person; <u>provided</u>, <u>however</u>, that the Company's assets may have been included in a consolidated financial statement of the Company's Affiliates; provided that, if applicable, (I) appropriate notations were made on such consolidated financial statements to indicate the separateness of the Company and such Affiliate and to indicate that the Company's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (II) such assets were listed on the Company's own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the Company has filed and will file its own Tax returns (to the extent required to file any Tax returns), has not filed and will not file a consolidated federal income Tax return with any other Person, and will continue to be a disregarded entity or a partnership for U.S. federal income Tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the Company has been, is, and intends to remain solvent, and has paid and will pay its own debts and liabilities out of its own funds and assets (to the extent of such funds and assets, it being acknowledged by Administrative Agent that the foregoing shall in no event require any contribution of equity into a Borrower) as the same shall become due, and has given and will give prompt written notice to Administrative Agent of the insolvency or Bankruptcy Action with respect to any Loan Party, any Guarantor or any Sponsor, or the death or Disability of any Key Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the Company (I) has done or caused to be done, and will do or cause to be done, all things necessary to observe all limited liability company formalities and preserve its existence and good standing, (II) has not terminated or failed to comply in any material respect with and will not terminate or fail to comply in any material respect with the provisions of its Governing Documents with respect to any of the matters set forth in in <u>Section 34</u> and (III) without the prior written consent of Administrative Agent, has not and will not, amend, modify or otherwise change any of its Governing Documents with respect to any of the matters set forth in <u>Section 34</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the Company does not have and will not voluntarily incur any Indebtedness other than the Permitted Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) the Company has not assumed, guaranteed or become obligated for or held out its credit and will not assume, guarantee, become obligated for or hold out its credit, as being available to satisfy the debts or obligations of any other Person, or the decisions or actions respecting the daily business or affairs of any other Person (other than such decisions or actions made in connection with the management of such Person in accordance with the Governing Documents of such Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) the Company has not acquired and will not acquire obligations or securities (other than the Collateral) of the Loan Parties or any other Person other than Permitted Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) [RESERVED];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) the Company has not pledged and will not pledge its assets for the benefit of any Person other than the Secured Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) the Company has held and identified itself and will hold itself out to the public as a legal entity separate and distinct from any other Person, and has conducted and shall conduct business under its own name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) the Company has not made and will not make loans to any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) the Company has not identified and will not identify itself or any of

its Affiliates as a division or part of the other; <u>provided</u>, <u>however</u>, that such entity's assets may have been included in a consolidated financial statement of its Affiliates; provided that, if applicable, (i) appropriate notations were made on such consolidated financial statements to indicate the separateness of such entity and such Affiliate and to indicate that such entity's assets and credit were not available to satisfy the debts and other obligations of such Affiliates or any other Person, and (ii) such assets were listed on such entity's own separate balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) except as permitted under the Loan Documents, the Company has not entered and will not enter into any contract or agreement with any Borrower, the Depositors, Parents, the DSTs or any other Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) the Company has maintained and, to the extent cash flow from the sale of the DST Interests is sufficient, will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations, and shall not make any distributions to any Loan Party or other Affiliate thereof that would cause such Loan Party or any DST to fail to maintain such adequate capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) the Company has not permitted and will not permit any Affiliate independent access to its bank accounts except to the extent permitted or contemplated by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) the Company has not and will not have any obligation to indemnify its officers, partners, directors or members unless such an obligation was and is fully subordinated to the Obligations and, to the fullest extent permitted by law, will not constitute a claim against such entity in the event that cash flow in excess of the amount required to pay the Obligations is insufficient to pay such indemnity obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) the Company has caused and will use reasonable efforts to cause its representatives to act at all times with respect to such entity consistently and in furtherance of the foregoing and in the best interests of such entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) the Company has and will hold all of its assets in its own name and has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person.

**Exhibit H-1** 

[see attached]

**EXHIBIT H**

**[FORM OF]** LENDER JOINDER AGREEMENT

This Lender Joinder Agreement ("<u>Agreement</u>") is being entered into as of [_______ ], 20[__], by and among [____________ ], a [_______ ] (the "<u>New Lender</u>") and KHCA Funding LLC, in its capacity as administrative agent (in such capacity, the "<u>Administrative Agent</u>") under the Credit Agreement (defined below).

<u>RECITALS</u> 

This Agreement is being entered into in reference to the following facts:

A.Versity EquityCo, LLC, a Delaware limited liability company, as borrower, Versity EquityCo II, LLC, a Delaware limited liability company, as borrower, the Administrative Agent and the other agents and lenders party thereto have entered into a Senior Secured Term Loan Agreement, dated as of May 27, 2021, as amended by that certain First Amendment, dated as of April 12, 2022 (as so amended and as may be further amended, restated, supplemented or otherwise modified, renewed or replaced from time to time as of the date hereof, being hereafter referred to as the "<u>Credit Agreement</u>"). Capitalized terms that are used but not defined herein shall have the meaning ascribed thereto in the Credit Agreement.

B.The New Lender and the Administrative Agent desire and intend by this Agreement, to add the New Lender as a Lender, all in accordance with the Credit Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows.

<u>ARTICLE 1 - AGREEMENTS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Incremental Commitment</u>.

(a)New Lender agrees, as of the Effective Date (as defined below), to provide a commitment to make its ratable portion of the Loan in the amount of $[_________________ ] (the <u>"New</u>Commitment") pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The effective date for this Agreement (the "<u>Effective Date</u>") shall be the date on which this Agreement, executed by the Administrative Agent and the New Lender, shall have been delivered to and accepted by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Effective Date Consequences</u>. On the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be accepted and recorded in the Register by the Administrative Agent;

(b)The Maximum Commitments, calculated after giving effect to this Agreement and all other similar agreements which become effective on the Effective Date, if any, will be $[_________ ]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The New Lender's (i) commitment will be $[_____________ ], and (ii) Applicable Percentage will be [___________ ]%, in each case, calculated after giving effect to this Agreement and all other similar agreements which become effective on the Effective Date, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Commitment</u>. From and after the Effective Date, the New Commitment shall be deemed a commitment from the New Lender to make its ratable portion of the Loan, and the New Lender shall be deemed a party to the Credit Agreement and shall have all of the rights and obligations of a Lender and Indemnified Party under the Credit Agreement and under the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>New Lender Confirmation</u>. By executing this Agreement, the New Lender hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) confirms that it has received a copy of the Credit Agreement, together with copies of such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) appoints and authorizes the Administrative Agent to take such action as Administrative Agent on its behalf and to exercise such powers under the Credit Agreement as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) confirms that it is an Eligible Assignee, as such term is defined in the Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) agrees that it will perform in accordance with all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Representations and Warranties</u>. Each of the parties hereby represents and warrants that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the execution, delivery and performance of this Agreement by such party has been duly authorized by all requisite organizational action and (b) as of the Effective Date this Agreement shall constitute, a legal, valid and binding obligation with respect thereto, enforceable against such party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principals of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>New Lender Address</u>. The address of the New Lender for purposes of <u>Section 13.2</u> of the Credit Agreement is as follows: [________ ], attention [____________ ], facsimile number[________ ], and email address: [____________ ].

<u>ARTICLE 2 – GENERAL TERMS</u>

EXHIBIT H TO CREDIT AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Successors and Assigns</u>. This Agreement shall become effective on the Effective Date and thereafter shall be binding upon and inure to the benefit of such parties, their respective successors and permitted assigns, subject to the terms of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Governing Law, Jurisdiction, and Venue Jury Trial</u>. <u>Sections 13.3, 13.12</u>, and <u>13.13</u> of the Credit Agreement are hereby incorporated by reference as though fully set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Amendments</u>. This Agreement may only be changed, modified or varied by written instrument signed by an authorized officer of each party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement, and any modifications, amendments or supplements hereto may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to constitute an original, but all of which when taken together shall constitute one and the same instrument. Executed copies of the signature pages of this Agreement transmitted electronically in Portable Document Format ("<u>PDF</u>") shall be treated as originals, fully binding and with full legal force and effect, and the parties waive any rights they may have to object to such treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any party delivering an executed counterpart of this Agreement by PDF also shall deliver a manually executed counterpart of this Agreement but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability and binding effect of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Final, Integrated Agreement</u>. This Agreement and any agreement referred to herein integrate all terms and conditions mentioned herein or incidental hereto and supersede all oral negotiations and prior writings with respect to the subject matter hereof. The terms hereof may not be contradicted by any evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties hereto.

[*Signature Page Follows*]

EXHIBIT H TO CREDIT AGREEMENT

IN WITNESS WHEREOF, each of the parties hereto has executed and delivered this Agreement by and through its duly authorized officer as of the date and year first-above written.

"NEW LENDER"

[__]

By: <br> Name: <br> Title:

---

| | |
|:---|:---|
| "ADMINISTRATIVE AGENT" KHCA FUNDING LLC | "ADMINISTRATIVE AGENT" KHCA FUNDING LLC |
| By: | Crayhill Principal Strategies Partners LLC, its Manager |
| By |  |
| Name: | Joshua P. Eaton |
| Title:  | President |

---

Signature Page to Lender Joinder Agreement

**Schedule 8.2** 

[see attached]

**Versity EquityCo II, LLC** 

2022 Budget

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **4/30/2022** | **5/31/2022** | **6/30/2022** | **7/31/2022** | **8/31/2022** | **9/30/2022** | **10/31/2022** | **11/30/2022** | **12/31/2022** | **Total** |
| **Revenue** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** |  |
| Bank Fees |  | (1000) | (1000) | (1000) | (1000) | (1000) | (1000) | (1000) | (1000) | (8000) |
| Audit Expense |  |  |  |  |  |  |  |  | (50000) | (50000) |
| 2022 Tax Return |  |  |  |  |  |  |  |  | (5000) | (5000) |
| Filing/Formation Fees | (25000) |  |  |  |  |  |  |  |  |  |
| Other Expenses | - | - | - | - | - | - | - | - | - | - |
| **Total Expenses** | **(25000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(56000)** | **(63000)** |
| **Net Loss** | **(25000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(1000)** | **(56000)** | **(63000)** |

---

**Exhibit I**

[see attached]

***Execution Version***

**SECURITY AGREEMENT**

This SECURITY AGREEMENT, dated as of May 27, 2021 (as may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this "***Agreement***"), is made by and between Versity EquityCo, LLC, a Delaware limited liability company (the "***Grantor***"), and KHCA Funding LLC, in its capacity as collateral agent (together with its successors and assigns, "***Collateral Agent***"), for the benefit of itself, the lenders from time to time party to the Loan Agreement (as defined below) (collectively, "***Lenders***"), and KHCA Funding LLC, in its capacity as administrative agent (together with its successors and assigns, "***Administrative Agent***"; and, together with Collateral Agent and Lenders, collectively or individually as the context may require, "***Secured Party***").

WHEREAS, the Grantor, Lenders, Collateral Agent and Administrative Agent have entered into that certain Senior Secured Term Loan Agreement, dated as of <u>the date hereof (as may be</u> <u>amended, restated, amended and restated, replaced, supplemented or otherwise modified from time</u> <u>to time, the</u> "<u>May 27, 2021 (the "***Existing***</u> ***Loan Agreement***"), pursuant to which, under the terms and conditions set forth therein, Len<u>ders h</u>ave agreed to extend the Maximum Commitment and to make the Loan for the uses provided for therein;

<u>WHEREAS, the Existing Loan Agreement has been amended by that certain First Amendment, dated as of April 12, 2022 (as so amended and as may be further</u> <u>amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time, the</u> <u>"***Loan Agreement***"), pursuant to which Versity EquityCo II, LLC, a Delaware limited liability company</u> <u>("***EquityCo II***") joined the Existing Loan Agreement as a Borrower,</u>

WHEREAS, this Agreement is given by the Grantor in favor of Secured Party to secure (i) the principal of and premium, if any, and interest at the rate specified in the Loan Agreement (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loan, and (ii) the performance and discharge of the Obligations ((i) and (ii) collectively, the "***Secured Obligations***");

WHEREAS, in order to induce Secured Party to enter into the Loan Agreement and the other Loan Documents and to extend the Maximum Commitment and make the Loan to the Grantor, the Grantor has agreed to secure the payment and performance of all of the Secured Obligations in favor of Secured Party; and

WHEREAS, it is a condition precedent to the obligations of Lenders to extend the Maximum Commitment and make the Loan under the Loan Agreement that the Grantor execute and deliver this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Defined terms used in this Agreement shall have the meanings assigned to them herein; <u>provided</u>, that capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Loan Agreement, and capitalized terms used herein and not defined herein or in the Loan Agreement shall have the meanings assigned to such terms in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For all purposes of this Agreement, except as otherwise expressly provided, the rules of interpretation set forth in the Loan Agreement are hereby incorporated by reference, *mutatis mutandis*, as if fully set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***UCC***" or "***Uniform Commercial Code***" shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; <u>provided</u>, that if by reason of mandatory provisions of law, perfection, or the effect of perfection, priority or non-perfection, of a security interest in any of the Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, "Uniform Commercial Code" means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection, priority, or effect of perfection or non-perfection or availability of such remedy, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all proceeds (as defined in Section 9-102(64) of the UCC) including cash proceeds (as defined in Section 9-102(9) of the UCC) and products of each of the foregoing, all books and records relating to the foregoing, all supporting obligations related thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Grantor from time to time with respect to any of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all "accounts", "deposit accounts", "general intangibles", "instruments", "securities" and "investment property" (in each case as defined in the UCC) constituting or relating to the foregoing.

2. <u>Grant of Security Interest</u>. The Grantor hereby pledges, assigns and grants to Collateral Agent, for the benefit of Secured Party, and hereby creates a continuing first priority lien and security interest in favor of Collateral Agent, for the benefit of Secured Party, in and to all of its right, title and interest in and to the Collateral, wherever located, whether now existing or hereafter from time to time arising or acquired.

3. <u>Secured Obligations</u>. The Collateral secures the due and prompt payment and performance of the Secured Obligations.

4. <u>Perfection of Security Interest and Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantor shall, from time to time, as may be requested by Collateral Agent with respect to all Collateral, take all actions immediately after request therefor to perfect the security interest of Collateral Agent in the Collateral, including with respect to all Collateral for which security interests therein may be perfected by control pursuant to Section 9-314(a) of the UCC, take all actions immediately after request therefor so that control of such Collateral within the meaning of Sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, as applicable, is obtained and at all times held by Collateral Agent. All of the foregoing shall be at the sole cost and expense of the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Concurrently with the execution and delivery of this Agreement, the Grantor shall deliver to Collateral Agent a DACA Agreement, executed by Grantor and the financial institution maintaining such Account, with respect to each Account and, all cash, funds, checks, notes and instruments from time to time on deposit in any such accounts included in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Grantor hereby irrevocably authorizes Collateral Agent at any time and from time to time to file in any relevant jurisdiction any financing statement and amendment thereto that contain the information required by Article 9 of the UCC of the jurisdiction for the filing of any financing statements or amendments relating to the Collateral, including any financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Grantor hereunder, without the signature of the Grantor where permitted by law, including the filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect. The Grantor agrees to provide all information required by Collateral Agent pursuant to this <u>Section 4(c)</u> to Collateral Agent immediately following request therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Grantor hereby further authorizes Collateral Agent to file with the United States Patent and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country) this Agreement and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Grantor hereunder, without the signature of the Grantor where permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Grantor shall at any time hold or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable documents or warehouse receipts relating to the Collateral, the Grantor shall endorse, assign and deliver the same to Collateral Agent immediately following receipt thereof, accompanied by such instruments of transfer or assignment duly executed in blank as Collateral Agent may from time to time specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Grantor shall at any time hold or acquire a commercial tort claim, the Grantor shall notify Collateral Agent immediately following Grantor's knowledge thereof in a writing signed by the Grantor of the particulars thereof and grant to Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any Collateral is at any time in the possession of a bailee, the Grantor shall notify Collateral Agent immediately following Grantor's knowledge thereof and, at Collateral Agent's request and option, shall use reasonable best efforts to obtain an acknowledgment from the bailee, in form and substance satisfactory to Collateral Agent, that the bailee holds such Collateral for the benefit of Collateral Agent and the bailee agrees to comply, without further consent of the Grantor, at any time with instructions of Collateral Agent as to such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary or desirable, or that Collateral Agent may request, in order to perfect or protect any security interest granted hereby or to enable Collateral Agent to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

5. <u>Representations and Warranties</u>. The Grantor represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The information set forth in any Perfection Certificate delivered in connection herewith, in the form attached as <u>Exhibit A</u> hereto (each, a "***Perfection Certificate***"), is true, correct and complete in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Collateral consisting of securities have been duly authorized and validly issued, and are fully paid and non-assessable and subject to no options to purchase or similar rights. The Grantor holds no commercial tort claims. None of the Collateral constitutes, or is the proceeds of, "farm products" as defined in Section 9-102(a)(34) of the UCC. None of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral. The Grantor has at all times operated its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The pledge of the Collateral pursuant to this Agreement and filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect, creates a valid and perfected first priority security interest in the Collateral, securing the payment and performance when due of the Secured Obligations.

(f)The Grantor has full power, authority and legal right to execute and deliver the Loan Agreement and this Agreement, to pledge the Collateral and to perform fully and completely all of its other obligations thereunder and hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each of this Agreement and the Loan Agreement has been duly authorized, executed and delivered by the Grantor and constitutes a legal, valid and binding obligation of the Grantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and subject to equitable principles (regardless of whether enforcement is sought in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No authorization, approval, or other action by, and no notice to or filing (other than UCC financing statements) with, any governmental authority, regulatory body or any other entity is required for the borrowing of the Loan and the pledge by the Grantor of the Collateral pursuant to this Agreement or for the execution and delivery of the Loan Agreement and this Agreement by the Grantor or the performance by the Grantor of its obligations thereunder and hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The execution and delivery of the Loan Agreement and this Agreement by the Grantor, and the performance by the Grantor of its obligations thereunder and hereunder, will not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree of any court, arbitrator or governmental authority, domestic or foreign, applicable to the Grantor or any of its property, or the organizational or governing documents of the Grantor or any agreement or instrument to which the Grantor is a party or by which it or its property is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Grantor has taken all action required on its part for control (as defined in Sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, as applicable) to have been obtained by Collateral Agent over all Collateral with respect to which such control may be obtained pursuant to the UCC. Except as permitted under the Loan Agreement, no Person other than Collateral Agent has control or possession of all or any part of the Collateral.

6. <u>Covenants</u>. The Grantor covenants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantor will not, without providing at least thirty (30) days' prior written notice to Collateral Agent, change its legal name, identity, type of organization, jurisdiction of organization, corporate structure, location of its chief executive office or its principal place of business or its organizational identification number. The Grantor will, prior to any change described in the preceding sentence, take all actions requested by Collateral Agent to maintain the perfection and priority of Collateral Agent's security interest in the Collateral.

(b)The Collateral, to the extent not delivered to or controlled by Collateral Agent pursuant to <u>Section 4</u>, will be kept at those locations listed on Section II(D) of the Perfection Certificate delivered as of the most recent date, and the Grantor will not remove the Collateral from such locations without providing at least thirty (30) days' prior written notice to Collateral Agent. The Grantor will, prior to any change described in the preceding sentence, take all actions required by Collateral Agent to maintain the perfection and priority of Secured Party's security interest in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For so long as this Agreement shall remain in effect, the Grantor shall, at its own cost and expense, defend title to the Collateral and the first priority lien and security interest of Collateral Agent therein against the claim of any person claiming against or through the Grantor, maintain and preserve such perfected first priority security interest and not take any action that would impair the perfection thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Grantor will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict, or grant, create, permit or suffer to exist any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance or other restriction or limitation of any nature whatsoever on, any of the Collateral or any interest therein except as expressly provided for herein or in the Loan Agreement or with the prior written consent of the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Grantor will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon. The Grantor will permit Collateral Agent, or its designee, to inspect the Collateral, at any reasonable time, upon reasonable prior written notice, wherever located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Grantor will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in connection with the use or operation of the Collateral or incurred in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Grantor will continue to operate its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) On the Closing Date and within 45 days after the end of each calendar quarter, the Grantor shall execute and deliver to the Collateral Agent a true, correct and complete Perfection Certificate, in form attached hereto as <u>Exhibit A</u>.

7. <u>Collateral Agent Appointed Attorney-in-Fact</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantor hereby appoints Collateral Agent as the Grantor's attorney-in-fact, with full authority in the place and stead of the Grantor and in the name of the Grantor or otherwise, from time to time in Collateral Agent's discretion to take any action and to execute any instrument which Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement (but Collateral Agent shall not be obligated to and shall have no liability to the Grantor or any third party for failure to do so or take action). Such appointment, being coupled with an interest, shall be irrevocable. The Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the foregoing or any other rights or powers granted by this Agreement to Collateral Agent, upon the occurrence and during the continuance of an Event of Default, Collateral Agent is hereby appointed the attorney-in-fact of Grantor, which appointment as attorney-in-fact is irrevocable and coupled with an interest, for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instruments which Collateral Agent may deem necessary or advisable during the continuance of an Event of Default to accomplish the purposes hereof, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with <u>clause (i)</u> above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to file any claims or take any action or institute any proceedings that Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Collateral Agent, with respect to any of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to execute, in connection with the sale provided for in Section 10 hereof, any endorsement, assignments, or other instruments of conveyance or transfer with respect to the Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to vote and give consents, ratifications and waivers with respect to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If so requested by Collateral Agent, Grantor shall ratify and confirm any such sale or transfer by executing and delivering to Collateral Agent at Grantor's expense all proper deeds, bills of sale, instruments of assignment, conveyance or transfer and releases as may be designated in any such request. Following the repayment and performance of the Secured Obligations, Collateral Agent shall execute such documentation as is reasonable and customary to evidence the termination of the power to act as attorney-in-fact for Grantor.

8. <u>Collateral Agent May Perform</u>. If the Grantor fails to perform any obligation contained in this Agreement, Collateral Agent may itself perform, or cause performance of, such obligation, and the expenses of Collateral Agent incurred in connection therewith shall be payable by the Grantor; <u>provided</u>, that Collateral Agent shall not be required to perform or discharge any obligation of the Grantor.

9. <u>Reasonable Care</u>. Collateral Agent shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which Collateral Agent accords its own property, it being understood that Collateral Agent shall not have any responsibility for (a) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not Collateral Agent has or is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Agreement, nor the exercise by Collateral Agent of any of the rights and remedies hereunder, shall relieve the Grantor from the performance of any obligation on the Grantor's part to be performed or observed in respect of any of the Collateral.

10. <u>Remedies Upon Event of Default</u>. If any Event of Default shall have occurred and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Collateral Agent may, without notice to or demand upon the Grantor, assert all rights and remedies of a secured party under the UCC or other applicable law, including the right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain, liquidate or dispose of all or any portion of the Collateral. If notice prior to disposition of the Collateral or any portion thereof is necessary under applicable law, written notice mailed to <u>Grantor Borrower Representative</u> at its notice address as provided in <u>Section 17</u> hereof at least ten (10) days prior to the date of such disposition shall constitute reasonable notice, but notice given in any other reasonable manner shall be sufficient. So long as the sale of the Collateral is made in a commercially reasonable manner, Collateral Agent may sell such Collateral on such terms and to such purchaser(s) as Collateral Agent in its sole and absolute discretion may choose, without assuming any credit risk and without any obligation to advertise or give notice of any kind other than that necessary under applicable law. Without precluding any other methods of sale, the sale of the Collateral or any portion thereof shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of creditors disposing of similar property. At any sale of the Collateral, if permitted by applicable law, Secured Party may be the purchaser, licensee, assignee or recipient of the Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations held by it as a credit on account of the purchase price of the Collateral or any part thereof payable at such sale. To the extent permitted by applicable law, the Grantor waives all claims, damages and demands it may acquire against Secured Party arising out of the exercise by it of any rights hereunder. The Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security for the Secured Obligations or otherwise. At any such sale, unless prohibited by applicable law, Secured Party or any custodian may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption. Neither Secured Party nor any custodian shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take any action whatsoever with regard thereto. Collateral Agent shall not be obligated to clean-up or otherwise prepare the Collateral for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any cash held by Collateral Agent as Collateral and all cash proceeds received by Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in whole or in part by Collateral Agent to the payment of expenses incurred by Collateral Agent in connection with the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Secured Party hereunder, including attorneys' fees, and the balance of such proceeds shall be applied or set off against all or any part of the Secured Obligations in such order as Collateral Agent shall elect. Any surplus of such cash or cash proceeds held by Secured Party and remaining after payment in full of all the Secured Obligations shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus. The Grantor shall remain liable for any deficiency if such cash and the cash proceeds of any sale or other realization of the Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by Secured Party to collect such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Collateral Agent shall determine to exercise its rights to sell all or any of the Collateral pursuant to this <u>Section 10</u>, the Grantor agrees that, upon request of Collateral Agent, the Grantor will, at its own expense, do or cause to be done all such acts and things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance with applicable law.

11. <u>Security Interest Absolute</u>. The Grantor hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. To the extent permitted by applicable law, all rights of Secured Party and liens and security interests hereunder, and all Secured Obligations of the Grantor hereunder, shall be absolute and unconditional irrespective of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any illegality or lack of validity or enforceability of any Secured Obligations or any related agreement or instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations, or any rescission, waiver, amendment or other modification of this Agreement and the Loan Agreement or any other agreement, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or any taking, release, impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or part of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted by, the Grantor against Secured Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any other circumstance (including any statute of limitations) or manner of administering the Loan or any existence of or reliance on any representation by Secured Party that might vary the risk of the Grantor or otherwise operate as a defense available to, or a legal or equitable discharge of, the Grantor or any other grantor, guarantor or surety.

12. <u>Conflicts</u>. In the event of any conflict between any provision in this Agreement and any provision in the Borrower Pledge Agreement, such provision of the Borrower Pledge Agreement shall control.

13. <u>Continuing Security Interest; Further Actions</u>. This Agreement shall create a continuing first priority lien and security interest in the Collateral and shall (a) subject to <u>Section 14</u>, remain in full force and effect until payment and performance in full of the Secured Obligations (other than unasserted contingent obligations), (b) be binding upon the Grantor, its successors and assigns, and (c) inure to the benefit of Secured Party and their successors, transferees and assigns; <u>provided</u>, that the Grantor may not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of Collateral Agent. Without limiting the generality of the foregoing clause (c), any assignee of Secured Party's interest in any agreement or document which includes all or any of the Secured Obligations shall become vested with all the applicable benefits granted to Secured Party herein.

14. <u>Termination; Release</u>. On the date on which all the Secured Obligations have been paid and performed in full (other than unasserted contingent obligations), Collateral Agent will, at the request and sole expense of the Grantor, (a) duly assign, transfer and deliver to or at the direction of the Grantor (without recourse and without any representation or warranty) such of the Collateral as may then remain in the possession of Collateral Agent, together with any monies at the time held by Collateral Agent hereunder, and (b) execute and deliver to the Grantor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement.

15. <u>Amendments, Etc</u>. Unless expressly stated otherwise in the Loan Agreement or herein, no amendment or waiver of any provision of this Agreement, and no consent to any departure by the Grantor therefrom, shall be effective without the prior written consent of Collateral Agent and the Grantor. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

16. <u>No Waiver; Cumulative Remedies</u>. No failure by Collateral Agent or any other Secured Party to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges of Secured Party herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

17. <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices and other communications provided for hereunder shall, unless otherwise stated herein, be either (i) in writing and delivered by nationally recognized courier service or otherwise or (ii) by electronic mail, at the addresses of the parties hereto as set forth below:

If to Collateral Agent: c/o Crayhill Capital Management LP

34 East 51st Street, 15th Floor

New York, NY 10022

Attention: Joshua P. Eaton

<u>Email: jeaton@crayhill.com</u>

With a copy to:Akin Gump Strauss Hauer & Feld LLP

2001 K Street N.W.

Washington, DC 20006-1037

Attention: Blayne A. Grady

Fax: (202) 887-4288

<u>Email: bgrady@akingump.com</u>

If to Grantor: c/o <u>Versity InvestmentsBorrower</u> <u>Representative</u>

20 Enterprise, 4<sup>th</sup> Floor

Aliso Viejo, California 92565

Attention: Legal Department

With a copy to:Mosley LLP

620 Newport Center Drive, 11<sup>th</sup> Floor

Newport Beach, CA 92660

Attention: Paul Mosley

<u>Email: pmosley@mosleyllp.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Grantor and Collateral Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Administrative Agent, Collateral Agent and the Lenders shall be entitled to rely and act upon any notices purportedly given by or on behalf of Grantor, even if such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein. Grantor shall <u>jointly and severally with EquityCo II</u> indemnify Collateral Agent, Administrative Agent and each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of Grantor.

18. <u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties hereto relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by Collateral Agent and when Collateral Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. Delivery of any executed counterpart of this Agreement by facsimile or transmitted electronically in either a Tagged Image Format File ("***TIFF***") or Portable Document Format ("***PDF***") shall be equally effective as delivery of a manually executed counterpart of this Agreement. Any party hereto delivering an executed counterpart by facsimile TIFF, or PDF shall also deliver a manually executed counterpart of this Agreement, but failure to do so shall not affect the validity,

enforceability or binding effect of this Agreement.

19. <u>Reliance by Secured Party</u>. Secured Party is relying and is entitled to rely upon each and all of the provisions of this Agreement; and accordingly, if any provision or provisions of this Agreement should be held to be invalid or ineffective, then all other provisions hereof shall continue in full force and effect notwithstanding.

20. <u>GOVERNING LAW</u>.

(a)THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND THE LOAN MADE BY LENDERS AND ACCEPTED BY GRANTOR IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT TO THE LOAN AGREEMENT WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES HERETO AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, EACH AND ALL OF THIS AGREEMENT, THE LOAN AGREEMENT, THE NOTE, THE OTHER LOAN DOCUMENTS, AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER STATE) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, GRANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE, AND/OR THE LOAN AND THIS AGREEMENT, THE NOTE AND THE LOAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

(b)ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST SECURED PARTY OR GRANTOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT SECURED PARTY'S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND GRANTOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. GRANTOR DOES HEREBY DESIGNATE AND APPOINT:

**Neil O'Halloran, Esq.**

**O'Halloran Ryan PLLC**

**275 Madison Avenue, 36<sup>th</sup> Floor**

**New York, New York 10016**

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO GRANTOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON GRANTOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. GRANTOR (I) SHALL GIVE PROMPT WRITTEN NOTICE TO ADMINISTRATIVE AGENT OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

21. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY VOLUNTARILY, KNOWINGLY, UNCONDITIONALLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <u>SECTION 21</u>.

22. <u>Headings</u>. Section headings are for convenience of reference only and shall in no way affect the interpretation of this Agreement.

23. <u>Successors and Assigns</u>. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. This Agreement, and all covenants, promises and agreements herein, shall be binding upon and shall inure to the benefit of Grantor and Secured Party, and their respective successors and assigns, except that Grantor may not assign any of its rights or obligations under this Agreement without the prior written consent of Collateral Agent.

[*Signature Page Follows*]

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

---

| | |
|:---|:---|
| **GRANTOR:** | **GRANTOR:** |
| **VERSITY EQUITYCO, LLC**, <br> a Delaware limited liability company | **VERSITY EQUITYCO, LLC**, <br> a Delaware limited liability company |
| Versity Investments, LLC,<br> a Delaware limited liability company,<br> its Manager | Versity Investments, LLC,<br> a Delaware limited liability company,<br> its Manager |
| By:  |  |
| Name: |  |
| Title: | Authorized Signatory |

---

[*Signatures Continue on Following Page*]

Signature Page to Security Agreement

---

| | | |
|:---|:---|:---|
| **COLLATERAL AGENT:**<br>**KHCA FUNDING LLC,** | **COLLATERAL AGENT:**<br>**KHCA FUNDING LLC,** | **COLLATERAL AGENT:**<br>**KHCA FUNDING LLC,** |
| By: | Crayhill Principal Strategies Partners LLC,<br> its Manager | Crayhill Principal Strategies Partners LLC,<br> its Manager |
|  | By: |  |
|  | Name: | Joshua P. Eaton |
|  | Title: | President |

---

Signature Page to Security Agreement

**EXHIBIT A**

**PERFECTION CERTIFICATE**

**[_________], 20[__]**

Reference is hereby made to that certain SECURITY AGREEMENT, dated as of May 27, 2021 (as may be amended, restated, amended and restated, replaced, supplemented or otherwise modified from time to time in accordance with the provisions hereof, the "***Agreement***"), made by and between Versity EquityCo, LLC a Delaware limited liability company (the "***Grantor***"), and KHCA Funding LLC, in its capacity as collateral agent (together with its successors and assigns, "***Collateral Agent***"), for the benefit of itself, the lenders from time to time party to the Loan Agreement (as defined below<u>in</u> <u>the Agreement</u>) (collectively, "***Lenders***"), and KHCA Funding LLC, in its capacity as administrative ________ agent (together with its successors and assigns, "***Administrative Agent***"; and, together with Collateral Agent and Lenders, collectively or individually as the context may require, "***Secured Party***"). This Perfection Certificate is delivered pursuant to Section 6(h) of the Agreement.

The undersigned hereby certifies to Secured Party as follows:

**I. CURRENT INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. <u>Legal Name, Organization, Jurisdiction of Organization and Organizational Identification Numbers</u>**. The full and exact legal name (as it appears on the certificate of formation of the Grantor as amended to date), the type of organization, the jurisdiction of organization (or formation, as applicable), and the organizational identification number (not tax identification number) of the Grantor is as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Name of the Grantor** | **Type of Organization**<br>**(e.g., corporation,**<br>**limited liability company,**<br>**limited partnership)** | <br>**Jurisdiction of**<br>**Organization/**<br>**Formation** | <br>**Organizational**<br>**Identification**<br>**Number** |
| Versity EquityCo, LLC | Limited liability company | Delaware |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. <u>Chief Executive Offices and Mailing Addresses</u>**. The chief executive office address and the preferred mailing address (if different than chief executive office or residence) of the Grantor is as follows:

Address of Chief Executive Mailing Address (if different than <br> Office CEO) <br> [ ● ] [ ● ]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. <u>Special Debtors</u>.** Except as specifically identified below, the Grantor is not: (i) a transmitting utility (as defined in Section 9-102(a)(80)), (ii) primarily engaged in farming operations (as defined in Section 9-102(a)(35)), (iii) a trust, (iv) a foreign air carrier within the meaning of the Federal Aviation Act of 1958, as amended or (v) a branch or agency of a bank which bank is not organized under the law of the United States or any state thereof.

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. <u>Changes in Names, Jurisdiction of Organization or Corporate Structure</u>**.<u> </u>

Except as set forth below, the Grantor has not changed its name, jurisdiction of organization or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form, change in jurisdiction of organization or otherwise) within the past five (5) years:

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. <u>Acquisitions of Equity Interests or Assets</u>**.<u> </u>

Except as set forth below, the Grantor has not acquired the equity interests of another entity or substantially all of the assets of another entity within the past five (5) years:

Acquired Entity Date of Acquisition Description of Acquisition <br> [ ● ] [ ● ] [ ● ]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. <u>Corporate Ownership and Organizational Structure</u>**.<u> </u>

Attached as <u>Schedule I</u> hereto is a true and correct chart showing the ownership relationship of the Grantor and all of its direct or indirect affiliates.

**II. INFORMATION REGARDING CERTAIN COLLATERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. <u>Investment Related Property</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Equity Interests</u>**. Set forth below is a list of all equity interests owned by the Grantor together with the type of organization which issued such equity interests (e.g., corporation, limited liability company, partnership or trust):

---

| | | | |
|:---|:---|:---|:---|
| <br> Issuer | <br> Type of | % of | Certificate No. (if |
| <br> Issuer | <br> Type of | Interest | uncertificated, |
| <br> Issuer | Organization | Pledged | please indicate so) |
| [ ● ] | [ ● ] | [ ● ] | [ ● ] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Securities Accounts</u>**. Set forth below is a list of all securities accounts in which the Grantor customarily maintains securities or other assets having an aggregate value in excess of $10,000:

---

| | | |
|:---|:---|:---|
| <br> Name of Account  | <br> Account Number | Name & Address of Financial |
| <br> Name of Account  | <br> Account Number | Institutions |
| [ ● ] | [ ● ] | [ ● ] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.</u> <u>Deposit Accounts</u>**. Set forth below is a list of all bank accounts (checking, savings, money market or the like) in which the Grantor customarily maintains in excess of $10,000:

 Financial Institutions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.</u> <u>Debt Securities & Instruments</u>.**Set forth below is a list of all debt securities and instruments owed to the Grantor in the principal amount of greater than $10,000:

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. <u>Intellectual Property</u>**. Set forth below or attached hereto as an exhibit is a true and complete list of (i) substantially all United States, state and foreign registrations of and applications for copyrights, patents, and trademarks owned by the Grantor, including, without limitation, all such registrations and applications which are material to the business of the Grantor,

(ii)all intellectual property material to the business of the Grantor not listed pursuant (i) above, and

(iii)all intellectual property licenses material to the business of the Grantor to which the Grantor is a party or by which the Grantor is bound:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>1.</u> <u>Copyrights, Copyright Applications and Copyright Licenses</u>**

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.</u> <u>Patents, Patent Applications and Patent Licenses</u>**

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.</u> <u>Trademarks, Trademark Applications and Trademark Licenses</u>**

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.</u> <u>Domain Names</u>**

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>5.</u> <u>Intellectual Property Licenses</u>[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. <u>Tangible Personal Property in Possession of Warehousemen, Bailees and Other Third Parties</u>**. Except as set forth below, no persons (including, without limitation, warehousemen and bailees) other than the Grantor have possession of any material amount (fair market value of $10,000 or more) of tangible personal property of the Grantor:

**[None.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>D.</u> <u>Real Estate Related UCC Collateral Fixtures</u>**. Set forth below are all the locations where the Grantor or any Subsidiary (as defined in the Loan Agreement) owns or leases any real property:

Project Name/City/State County Owned or <br> Leased <br> [ ● ] [ ● ] [ ● ]

[*Signature Page Follows*]

IN WITNESS WHEREOF, the undersigned has executed this Perfection Certificate as of the date first above written.

**GRANTOR:**

**VERSITY EQUITYCO, LLC** 

a Delaware limited liability company

---

| | |
|:---|:---|
| By: | Versity Investments, LLC, its Manager, |
|  | By: |
|  | Name:  |
|  | Title:  |

---

Signature Page to Perfection Certificate

**<u>SCHEDULE I</u>**

STRUCTURE CHART

(See attached)

## Ex1A-11

**EXHIBIT (11)**

![](versity_ex11img6.jpg)

Consent of Independent Registered Public Accounting Firm

We consent to the inclusion in this Offering Statement on Form 1-A of our report dated February 13, 2023, relating to the consolidated financial statements of Versity Invest, LLC as of June 30, 2022, and for the period from March 17, 2022 (date of formation) to June 30, 2022. We also consent to the reference to us under the heading "Independent Auditors" in such Offering Statement.

![](versity_ex11img7.jpg)

Santa Ana, California

March 7, 2023

---

| | |
|:---|:---|
| 1551 N Tustin Ave., Suite <br> 1000 Santa Ana, CA 92705 | ![](versity_ex11img9.jpg) |

---

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Versity Invest, LLC

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2022

**CIK:** 0001968611

**I.R.S. Employer Identification Number:** 88-1425276

**Primary Standard Industrial Classification Code:** 6500

**Total number of full-time employees:** 60

**Total number of part-time employees:** 4

**Address of Principal Executive Offices:** 20 Enterpise, Suite 400, Aliso Viejo, CA 92656

**Company Phone:** 949-540-9164

**Person to contact:** Robert Kaplan

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount        |
|:---|:---|
| Cash and Cash Equivalents                | $13151829.00  |
| Investment Securities                    | $0.00         |
| Accounts and Notes Receivable            | $10456.00     |
| Property, Plant and Equipment (PP&E)     | $269203808.00 |
| Total Assets                             | $294047488.00 |
| Accounts Payable and Accrued Liabilities | $3889443.00   |
| Long-Term Debt                           | $0.00         |
| Total Liabilities                        | $227836928.00 |
| Total Stockholders' Equity               | $66210564.00  |
| Total Liabilities and Equity             | $294047488.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $14828571.00 |
| Costs and Expenses Applicable to Revenues | $4996616.00  |
| Depreciation and Amortization             | $1644208.00  |
| Net Income                                | $5090790.00  |
| Earnings Per Share - Basic                | 0.00         |
| Earnings Per Share - Diluted              | 0.00         |

**Auditor Information**

| Metric          | Amount               |
|:---|:---|
| Name of Auditor | Ronald Blue & Co CPA |

### Outstanding Securities

| Class         |   Outstanding | CUSIP   | Publicly Traded   |
|:---|---:|:---|:---|
| Class A Units |             0 |  |  |
|  |             0 |  |  |
|  |             0 |  |  |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Debt

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 75000        |
| Number of securities outstanding                                | 0            |
| Price per security                                              | $1000.00     |
| Issuer's aggregate offering price                               | $75000000.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $75000000.00 |

**Anticipated Fees**

| Service Provider   | Name                            | Fees      |
|:---|:---|:---|
| Auditor            | Ronald Blue & Co CPA            | $10000.00 |
| Legal              | Whiteford, Taylor & Preston LLP | $75000.00 |
| Promoters          |  | $0.00     |

**Estimated Net Proceeds to the Issuer:** $69000000.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories