Document:

Professional Business Management Agreement, dated 10-01-98 - Visionary Retail

 EXHIBIT 10.34 
  
 PROFESSIONAL BUSINESS MANAGEMENT AGREEMENT 
  
 This Professional Business Management Agreement is made and entered into effective as of October 1, 1998, by and between
Visionary MSO, Inc., a Delaware corporation (“Professional Business Manager”), and Dr. Mark Lynn & Associates, PLLC, a Kentucky professional limited liability company (the “Practice”). 
  
 R E C I T A L S

  
 A. The Practice is a professional limited liability
company duly organized and validly existing under the laws of the Commonwealth of Kentucky which is engaged in the provision of Professional Eye Care Services (as defined below) and Optical Services (as defined below) to the general public in the
states of Kentucky, Indiana, Tennessee and Missouri (including the states that the Practice may in the future conduct such services, the “Practice Areas” and each state a “Practice Area”) through individual Professionals (as
defined below) each of whom is licensed to practice optometry and/or ophthalmology in the Practice Areas in which he or she provides services for the Practice and who are employed or otherwise retained by the Practice. 
  
 B. Professional Business Manager is a business corporation duly organized and
validly existing under the laws of the State of Delaware. 
  
 C.
The Practice desires to devote substantially all of its energies, expertise and time to the delivery of Professional Eye Care Services to patients. 
  
 D. The Practice desires to engage Professional Business Manager to provide facilities, equipment and such management, administrative and business services
as are necessary and appropriate for the day-to-day administration of the non-optometric aspects of the Practice’s professional eye care practice, and Professional Business Manager desires to provide such, upon the terms and conditions
hereinafter set forth, for the purpose of enhancing the cost-efficiency and quality of services rendered by the Practice to its patients. 
  
 NOW, THEREFORE, for and in consideration of the mutual agreements, terms, covenants and conditions contained herein and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 For the purposes of this
Professional Business Management Agreement, the following terms shall have the following meanings ascribed thereto, unless otherwise clearly required by the context in which such term is used: 
  
 1.1 Account. The term “Account” shall mean the bank account
described in Sections 3.9 and 3.10 of the Retail Business Management Agreement (as defined below). 

 1.2 Adjusted Gross Revenue. The term “Adjusted Gross Revenue” shall mean all revenues
for Optical Services, Professional Eye Care Services, or otherwise, generated by or on behalf of the Practice and/or its Professionals, or other personnel during the term of this Professional Business Management Agreement, calculated on an accrual
basis under GAAP, including all technical fees from ancillary services, all proceeds from key person life and disability insurance policies purchased by Retail Business Manager, in agreement with the Practice, in accordance with Section 3.15, all
amounts paid by third parties for contractual liabilities, including, but not limited to, payments under non-shareholder Professionals’ non-competition agreements and compensation payments under any service agreement between the Practice and
another entity, and all consultant, teaching and expert witness fees minus any allowances for bad debts, uncollectible accounts, Medicare, Medicaid and other payor contractual adjustments, discounts, workers’ compensation adjustments,
reasonable professional courtesies, and other reductions in collectible revenue that result from activities that do not result in collectible charges. 
  
 1.3 Budget. The term “Budget” shall mean an operating budget and capital expenditure budget for each fiscal year as prepared in
accordance with Section 3.11(a). 
  
 1.4 Capitation
Revenues. The term “Capitation Revenues” shall mean all collections from managed care organizations or third-party payors where such payment is made periodically on a per member basis for the partial or total needs of a subscribing
patient, less amounts that are payable to other providers of health care items and services to capitation patients. Capitation Revenues shall include any co-payments and incentive bonuses received as a result of a capitation plan. 
  
 1.5 Clinical Duties. The term “Clinical Duties “ shall mean
those duties of Non-Professional Personnel (as defined below) which entail directly or indirectly assisting a Professional (as defined below) in the scheduling, examination or care of patients in the course of providing Professional Eye Care
Services, regardless of whether the performance of such duties requires licensure under applicable state law. 
  
 1.6 Confidential Information. The term “Confidential Information” shall mean any information of Professional Business Manager or the
Practice, as appropriate (whether written or oral), including all business management or economic studies, patient lists, proprietary forms, proprietary business or management methods, marketing data, fee schedules, or trade secrets of the
Professional Business Manager or of the Practice, as applicable, whether or not such Confidential Information is disclosed or otherwise made available to one Party by the other Party pursuant to this Professional Business Management Agreement.
Confidential Information shall also include the terms and provisions of this Professional Business Management Agreement and any transaction or document executed by the Parties pursuant to this Professional Business Management Agreement. Confidential
Information does not include any information that the receiving party can establish (a) is or becomes generally available to and known by the public or optometric community (other than as a result of an unpermitted disclosure directly or indirectly
by the receiving party or its affiliates, advisors, or Representatives); (b) is or becomes available to the receiving party on a nonconfidential basis from a source other than the furnishing party or its affiliates, advisors or Representatives,
provided that such source is not and was not bound by a confidentiality agreement with or other obligation of secrecy to the furnishing party of which the receiving party has knowledge; or (c) has already been or is hereafter independently acquired
or developed by the receiving party without violating any confidentiality agreement with or other obligation of secrecy to the furnishing party. 
  
 1.7 Dispensary. The term “Dispensary” shall have the meaning set forth in the Retail Business Management Agreement. 
  

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 1.8 Dispensary Expense. The term “Dispensary Expense” shall have the meaning set forth
in the Retail Business Management Agreement. 
  
 1.9 Executive
Office Administrator. The term “Executive Office Administrator” shall mean the employee of Professional Business Manager having executive authority and responsibility for the general and active management of the Professional Business
Manager. 
  
 1.10 GAAP. The term “GAAP” shall
mean generally accepted United States accounting principles. 
  
 1.11 Interest Expense. The term “Interest Expense shall mean the accrued interest on the debt, if any, incurred by the Practice with respect to the financing of the purchase of Doctor’s Assets pursuant to that certain
Master Asset Purchase Agreement, dated August 22, 1998 by and among Eye Care Centers of America, Inc., a Texas corporation, the Practice, the Companies (as defined therein) and the Owners (as defined therein), and the interest on any refinancing
thereof. 
  
 1.12 Management Fee. The term “Management
Fee” shall mean the Professional Business Manager’s compensation established as described in Article V hereof. 
  
 1.13 Management Services. The term “Management Services” shall mean the business, administrative, and management services to be provided
for the Practice and the Office, including, without limitation, the provision of equipment, inventory and supplies, support services, personnel (excluding Professionals) management, administration, financial record keeping, and reporting, and other
business office services, all as reasonably contemplated by this Professional Business Management Agreement and which are necessary for the conduct of the Practice’s business. 
  
 1.14 Non-Professional Personnel. The term “Non-Professional Personnel” shall mean those individuals
employed primarily at the Practice who are not Optometrists or Ophthalmologists. 
  
 1.15 Office. The term “Office” shall mean all facilities and locations used by the Practice, all business operations related to the Practice’s optometric and/or therapeutic optometric practice,
and all related business operations of the Practice which are to be administered by Professional Business Manager under the Professional Business Management Agreement, but excluding all facilities and locations, or portions thereof, used by the
Practice and all business operations of the Practice related to the Dispensary. 
  
 1.16 Office Expense. The term “Office Expense” shall mean all operating and non-operating expenses incurred by the Professional Business Manager in the provision of Management Services to the Office
and shall include all operating and non-operating expenses incurred by the Practice relating to the items set forth in this Section. The Professional Business Manager shall be reimbursed by the Practice for any reasonable Office Expense incurred by
the Professional Business Manager in the provision of services to the Practice, upon request by the Professional Business Manager. Office Expense shall not include any Professional Business Manager Expense, Practice Expense or Shareholder Expense or
any state, local or federal income or franchise tax. Without limitation, Office Expense shall include the following expenses: 
  
 (a) the salaries, benefits, payroll taxes, and other direct costs of all employees of Professional Business Manager primarily working at the Office and
the salaries, benefits, payroll taxes, and other direct costs of the Non-Professional Personnel of the Practice primarily working at the Office, but not the salaries, benefits, payroll taxes or other direct costs of the Professionals; 
  

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 (b) the direct cost of any employee or consultant that provides services at or in connection with the
Office for improved Office performance, such as management, billing and collections, business office consultation, and accounting and legal services, but only when such services are coordinated by Professional Business Manager and/or included in the
Budget; provided, however, that Retail Business Manager shall obtain the consent of the Practice before any consultant may be hired whose charge for services would result in unbudgeted Office Expenses charged to the Practice of $5,000.00 or more in
any calendar year, which consent shall not be unreasonably withheld; 
  
 (c) reasonable recruitment costs and out-of-pocket expenses of Professional Business Manager or the Practice associated with the recruitment of additional Professionals, other employees of the Practice and Professional Business
Manager’s employees primarily located at the Office; 
  
 (d)
personal property and intangible property taxes assessed against Professional Business Manager’s assets used in connection with the operation of the Office; 
  
 (e) comprehensive general and professional liability insurance covering the Office, employees of the Practice in connection
with the operation of the Office and employees of Professional Business Manager in connection with the operation of the Office; 
  
 (f) the expense of using, leasing, purchasing or otherwise procuring and maintaining the Office and maintaining Office related equipment; 
  
 (g) the cost of capital (whether as actual interest on indebtedness incurred
on behalf of the Practice or reasonable imputed interest on capital advanced by Professional Business Manager which shall be equal to the average cost of borrowing by Professional Business Manager as reflected on its most recent published financial
statements, or in the absence of either of the foregoing, eight percent (8%)) to finance or refinance obligations of the Practice incurred in connection with the Office, or to finance new ventures of the Practice in connection with the Office; in
any such case only as such cost of capital is set forth in the Budget or otherwise approved in advance by the Practice Advisory Council; 
  
 (h) the reasonable travel expenses associated with attending meetings, conferences, or seminars to benefit the Practice so long as such expenses are
related to individuals located at the Office and the Practice’s pro rata share for individuals who are consultants of or employed by Professional Business Manager who provide material services to the Office; 
  
 (i) the cost of Office supplies, inventory and utilities; 
  
 (j) billing and collection costs and expenses; 
  
 (k) the Practice’s pro-rata share of reasonable corporate overhead
charges or other reasonable expenses (including computer and data processing costs) which are incurred by Professional Business Manager in connection with corporate headquarters expenses which relate to the provision of benefits or services by
Professional Business Manager to the Office and are reflected in the Budget including without limitation direct or indirect costs of the Executive Office Administrator and other Professional Business Manager personnel; 
  

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 (l) all other expenses which are set forth in the Budget and which directly or indirectly benefit the
Practice incurred by Professional Business Manager in carrying out its obligations under this Professional Business Management Agreement; 
  
 (m) reasonable costs and expenses (to the extent not covered by insurance) of lawsuits or claims against the Professional Business Manager or its
personnel, or the Practice, its Professional(s), or other personnel related to their performance of duties at the Office or their interest in assets used in connection with the Office, provided that if any of the Professional Business Manager or its
personnel, or the Practice, its Professional(s), or other personnel do not prevail in the lawsuit or claim or settle the matter with a material payment by the party (the party at “fault”), such costs and expenses shall be deemed a
Professional Business Manager Expense in the event of Professional Business Manager’s fault or the fault of its personnel and a Practice Expense in the event of fault by the Practice, its Professional(s), or other personnel whereupon the
Practice and such Professional(s) or other personnel shall be jointly responsible for the immediate reimbursement of the sums advanced by Professional Business Manager; provided further that Professional Business Manager shall not advance such costs
and expenses from the Account if the Practice Advisory Council concludes that (i) it is unlikely that the Account will be reimbursed if the party involved will not prevail in the lawsuit or claim, or (ii) a reasonable third person would believe that
obtaining a reimbursement of the advanced sums will be difficult to achieve; and the Parties acknowledge that nothing in this Section shall create any liability on the part of a Professional who would otherwise be shielded from personal liability by
the corporate or limited liability structure of the Practice; 
  
 (n) key person life and disability insurance premiums related to policies which the Parties agree to acquire on the life of the Practice’s Shareholders or Professionals, whereupon any proceeds shall be paid to the Account as Adjusted
Gross Revenues, unless the Parties agree to a specific split of the proceeds. Should only the Practice choose to obtain key person life insurance, the Practice shall pay all premiums as a Practice Expense and shall receive all proceeds. Further, if
only the Professional Business Manager chooses to obtain such insurance, Professional Business Manager shall pay all premiums as a Professional Business Manager Expense and shall receive all proceeds. The Practice shall cause its Shareholders and
Professionals to submit to a medical examination necessary to obtain such insurance. 
  
 In the event that any of the individuals described in Section 1.16(b) devote a substantial amount of time to serving one or more optometric practices other than the Practice, which is not prohibited hereunder, or the
above described Office is utilized to a substantial degree by one or more optometric practices other than the Practice, the Office Expenses shall be allocated between the Practice and such other optometric practices to reflect each practice’s
pro-rata share of any expenses or costs relating to such individuals or Office (including the recruitment costs of such individuals and the comprehensive and general liability insurance expenses with respect to such individuals). Expenses
contemplated in this paragraph which potentially and primarily relate to Sections 1.16 (b), (c), (d), (e), (f), (g), (h), (k), and (l) shall be in the Budget or approved by the Practice Advisory Council, and where reasonably determinable, are
intended to be reasonable and customary based upon similar relationships generally existing between national practice management companies and practices they manage. The Practice’s pro-rata portion of expenses related to individuals who are
consultants of or employed by Professional Business Manager and who provide services benefiting more than one practice shall be based upon the actual time expended by the individuals in performing such services as compared to the time spent by such
individuals with other practices managed by the Professional Business Manager, or, if not reasonably calculable, as determined by Professional Business Manager, based upon the estimated proportionate revenue size of the Practice as compared to the

  

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aggregate revenue size as estimated in all of the Budgets of all other practices managed by the Professional Business Manager which are benefiting from such
individual’s services. Likewise, other benefits provided by the Professional Business Manager to several Practices shall be split pro-rata based upon the use or benefit derived by each Practice, but if not calculable, shall be based upon the
estimated proportionate revenue size as set forth in the preceding sentence. Notwithstanding anything to the contrary herein, unless an expense is expressly designated as a Professional Business Manager Expense, a Practice Expense or a Shareholder
Expense in this Professional Business Management Agreement or any exhibit thereto, all expenses incurred by Professional Business Manager in providing services pursuant to this Professional Business Management Agreement shall be considered an Office
Expense. Any and all expenses which are incurred by Retail Business Manager, Professional Business Manager, or the Practice shall be allocated to the appropriate expense category or categories in accordance with the terms and conditions of the
Retail Business Management Agreement and the Professional Business Management Agreement. 
  
 1.17 Optical Services. The term “Optical Services” shall mean the filling of optical prescriptions, dispensing of optical goods, the fitting of eyewear, all activities related to any of the foregoing,
and the direction, supervision, and control of those who perform these tasks. 
  
 1.18. Optometrist. The term “Optometrist” shall mean each individually licensed Optometrist, if any, who is employed or otherwise retained by or associated with the Practice, each of whom shall meet
at all times the qualifications described in Section 4.3 and Section 4.4. 
  
 1.19 Ophthalmologist. The term “Ophthalmologist” shall mean each individually licensed Ophthalmologist, if any, who is employed or otherwise retained by or associated with the Practice, each of whom
shall meet at all times the qualifications described in Section 4.3 and Section 4.4. 
  
 1.20 Parties. The term “Parties” shall mean the Practice and Professional Business Manager. 
  
 1.21 Practice. The term “Practice” shall have the meaning set forth in the Recitals. 
  
 1.22 Practice Advisory Council. The term “Practice Advisory
Council” shall have the meaning set forth in Section 2.6 of this Agreement. 
  
 1.23 Practice Areas. The term “ Practice Areas” shall have the meaning set forth in the Recitals. 
  
 1.24 Practice Expenses. The term “Practice Expenses” shall mean (a) all reasonable non-shareholder Professionals’ salaries,
benefits, payroll taxes and other direct costs related to their services to the Practice (including reasonable and customary professional dues, subscriptions, continuing education and technical training expenses, and severance payments); (b) the
cost of optometric supplies (including, but not limited to, drugs, pharmaceuticals, products, substances, items or optometric devices); (c) reasonable and customary professional liability insurance expenses of Professionals; (d) travel costs for
continuing education, technical training and necessary business travel for non-shareholder Professionals; (e) to the extent not covered by insurance and subject to the advance provisions contained herein, the defense costs and expenses of any
litigation or claims brought against the Practice or its Professionals or other personnel by any third party in which the Practice or its Professionals or other personnel do not prevail or the matter settles with a material payment and the Practice
or its Professionals or other personnel are at fault, and any liability judgment or material settlement assessed against the Practice or its Professionals or other personnel; (f) certain equipment expenses described in Sections 3.2(c) and 3.2(d) of
this Professional Business 

  

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Management Agreement and 3.2(c) and 3.2(d) of the Retail Business Management Agreement; (g) interest on any funds advanced to the Practice by Professional
Business Manager to the extent that Professional Business Manager is a net lender in accordance with the terms of this Professional Business Management Agreement; (h) interest on any funds advanced to the practice by Retail Business Manager to the
extent that Retail Business Manager is a net lender in accordance with the terms of the Retail Management Agreement; (i) any income taxes or franchise taxes of the Practice; and (j) consulting, accounting, or legal fees which relate solely to the
Practice. Notwithstanding the foregoing, the term Practice Expenses shall specifically exclude (i) business travel requested by Professional Business Manager, which shall be an Office Expense, (ii) business travel requested by Retail Business
Manager, which shall be a Dispensary Expense, (iii) any and all compensation or expenses attributable to Shareholders, which shall be Shareholder Expenses (except reasonable and customary expenses for malpractice insurance which shall be a Practice
Expense), (iv) ”tail” insurance coverage for Shareholders, which shall be a Shareholder Expense, and (v) such other items agreed to in advance in writing by the Parties hereto. During this Professional Business Management Agreement, for so
long as a current Shareholder of the Practice is an employee of, contractor to, or Shareholder of the Practice, such Shareholder shall be deemed to be a Shareholder for the purposes of this definition. Such expenses are to be approved annually in
the Budget. 
  
 1.25 Professional. The term
“Professional” shall mean any Optometrist or Ophthalmologist. 
  
 1.26 Professional Business Management Agreement. The term “Professional Business Management Agreement” shall mean this instrument as originally executed and delivered, or, if amended or supplemented, as so amended or
supplemented. 
  
 1.27 Professional Business Manager. The
term “Professional Business Manager” shall have the meaning set forth in the Recitals hereto. 
  
 1.28 Professional Business Manager Expense. The term “Professional Business Manager Expense” shall mean an expense or cost incurred by
the Professional Business Manager, for which the Professional Business Manager is financially liable and is not entitled to reimbursement from the Practice. Professional Business Manager Expense shall specifically include (a) any income or franchise
taxes of the Professional Business Manager; (b) the expense of providing, leasing, purchasing or otherwise procuring and maintaining the Office equipment, including depreciation in the case of furniture and equipment; and (c) any other expenses or
costs that are not reasonable and customary reimbursements based upon a practice management company’s usual arrangement with a practice. 
  
 1.29 Professional Eye Care Services. The term “Professional Eye Care Services” shall mean professional health care items and services,
including, but not limited to, the practice of optometry, and all related professional health care services provided by the Practice through Optometrists, Ophthalmologists, and other professional health care providers that are retained by or
professionally affiliated with the Practice. The term shall exclude any and all business whatsoever in connection with any optical businesses owned or operated, or to be owned or operated in the future, in whole or in part, by the Practice or any of
its Professionals during the terms of this Professional Business Management Agreement, except as otherwise required by applicable state law. 
  
 1.30 Professional Practice Account. The term “Professional Practice Account” shall mean the bank account described in Section 3.10.

  

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 1.31 Representatives. The term “Representatives” shall mean a Party’s officers,
directors, managers, employees, or other agents. 
  
 1.32
Retail Business Management Agreement. The term “Retail Business Management Agreement” shall mean the instrument made and entered into as of even date by and between Visionary Retail Management, Inc. (“Retail Business
Manager”) whereby Retail Business Manager shall provide certain facilities, equipment, and management, administrative, and business services to the Practice in connection with its provision of Optical Services. 
  
 1.33 Retail Business Manager. The term “Retail Business
Manager” shall have the meaning set forth in the Retail Business Management Agreement. 
  
 1.34 Shareholder. The term “Shareholder” shall mean any current or future shareholder of the Practice. 
  
 1.35 Shareholder Expense. The term “Shareholder Expense” shall be limited to the following expenses: (a) Shareholders’ salaries,
benefits, payroll taxes, and other direct costs (including professional dues, subscriptions, continuing education expenses, severance payments, entertainment, and travel costs for continuing education or other business travel but excluding business
travel requested by Professional Business Manager, which shall be an Office Expense, and travel requested by Retail Business Manager which shall be a Dispensary Expense and excluding any other expense of a Shareholder approved as an Office Expense
or Dispensary Expense in advance by the Parties); (b) ”tail” coverage malpractice insurance expenses for the Shareholders and any malpractice insurance expenses of any Professional which are in excess of those which are customary and
reasonable; and (c) consulting, accounting, or legal fees which relate solely to the Shareholders. The Practice shall reimburse the Professional Business Manager for any Shareholder Expense incurred by the Professional Business Manager. Unless
expressly designated as a Management Fee, a Professional Business Manager Expense, a Retail Business Manager Expense, an Office Expense, a Dispensary Expense or a Practice Expense in this Professional Business Management Agreement or in any exhibit
hereto or in the Retail Business Management Agreement or in any exhibit thereto or in any written agreement of the Parties, any expense incurred by the Practice shall be considered a Shareholder Expense. Notwithstanding the above, the Practice may
require certain Professionals to pay certain expenses incurred for them specifically. Nothing in this Section shall create personal liability on the part of the Practice’s Shareholders. 
  
 1.36 Term. The term “Term” shall mean the initial and any
renewal periods of duration of this Professional Business Management Agreement as described in Section 6.1. 
  
 ARTICLE II 
  
 APPOINTMENT OF PROFESSIONAL BUSINESS MANAGER 
  
 2.1 Appointment. The Practice hereby appoints Professional Business Manager as its sole and exclusive agent for the management and administration of the business functions and business affairs of the Office, and Professional Business
Manager hereby accepts such appointment, subject at all times to the provisions of this Professional Business Management Agreement. 
  
 2.2 Authority. Consistent with the provisions of this Professional Business Management Agreement, Professional Business Manager shall have the
responsibility and commensurate authority to 

  

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provide Management Services for the Practice. The Practice shall give Professional Business Manager thirty (30) days’ prior notice of the
Practice’s intent to execute any agreement creating a binding legal obligation on the Practice. The Parties acknowledge and agree that the Practice, through its Professionals, shall be responsible for and shall have complete authority,
responsibility, supervision, and control over the provision of all Professional Eye Care Services and other professional health care services performed for patients, and that all diagnoses, treatments, procedures, and other professional health care
services shall be provided and performed exclusively by or under the supervision of Professionals as such Professionals, in their sole discretion, deem appropriate. Professional Business Manager shall have and exercise absolutely no control,
influence, authority or supervision over the provision of Professional Eye Care Services. 
  
 2.3 Patient Referrals. Professional Business Manager and the Practice agree that the benefits to the Practice and to Professional Business Manager hereunder do not require, are not payment for, and are not in
any way contingent upon the referral, admission, or any other arrangement for the provision of any item or service offered by Professional Business Manager to patients of the Practice in any facility, laboratory, center, or health care operation
controlled, managed, or operated by Professional Business Manager or upon the referral, admission, or any other arrangement for the provision of any item or service offered by the Practice. 
  
 2.4 Internal Decisions of the Practice. Matters involving the
Practice’s allocation of professional income among its Shareholders and the Professional employees of the Practice, tax planning, and pension and investment planning shall remain the responsibility of the Practice and the Shareholders of the
Practice. The Professional Business Manager may not and shall not directly or indirectly control or attempt to control, dictate or influence, directly or indirectly, the professional judgment, including, but not limited to, the level or type of care
or services rendered, the manner of practice, or the practice of the Practice or any Professional employed by the Practice. 
  
 2.5 Practice of Optometry. The Parties acknowledge that Professional Business Manager is not authorized or qualified to engage in any activity that
may be construed or deemed to constitute the practice of optometry. To the extent any act or service herein required to be performed by Professional Business Manager should be construed by a court of competent jurisdiction or by the Board of
Optometry to constitute the practice of optometry, the requirement to perform that act or service by Professional Business Manager shall be deemed waived and unenforceable. Although Professional Retail Business Manager shall provide Non-Professional
Personnel to the Practice and Professional Retail Business Manager and Retail Business Manager shall manage the administrative aspects of their employment, all Non-Professional Personnel shall be subject to the direction, supervision, and control of
the Practice and its Professionals in the performance of any and all Clinical Duties and in the performance of Clinical Duties shall not be subject to any direction or control by, or liability to, Professional Business Manager and Retail Business
Manager. Professional Business Manager may not and shall not control or attempt to control, directly or indirectly, the professional judgment, the manner of practice, or the practice of the Practice or any Professional employed by the Practice. In
this regard, Professional Business Manager shall not attempt to dictate, influence, or control the scope, level, or type of Professional Eye Care Services provided to patients of the Office, the frequency of patient contacts at the Office, the
discipline of any Professionals who are Practice employees, the fees charged for Professional Eye Care Services provided to patients of the Office (except to the extent necessary to establish the Budget or negotiate managed care contracts), or any
other matter that impinges on the professional judgment of the Practice or any Professional employed by the Practice. 
  
 2.6 Formation and Operation of the Practice Advisory Council. The Parties hereby establish a Practice Advisory Council which shall be responsible
for advising Professional Business Manager and the 

  

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Practice with respect to developing the Office and implementing management and administrative policies for the overall operation of the Office and for
providing dispute resolution on certain matters. The Practice Advisory Counsel shall consist of six (6) members. Professional Business Manager shall designate, in its sole discretion, two (2) members of the Practice Advisory council or may have one
(1) member with two (2) votes. The Practice shall designate, in its sole discretion, two (2) members of the Practice Advisory Council or may have one (1) member with two (2) votes. Retail Business Manager shall designate, in its sole discretion, two
(2) members of the Practice Advisory Council or may have one member with two (2) votes. The Practice Advisory Council members selected by the Practice shall be full-time Professional employees of the Practice. Each Party’s representatives to
the Practice Advisory Council shall have the authority to make decisions on behalf of the respective Party. Except as may otherwise be provided, the act of a majority of the members of the Practice Advisory Council shall be the act of the Practice
Advisory Council, provided that (i) the affirmative vote of the Practice member(s) shall be required on all votes of the Practice Advisory Council; (ii) the affirmative vote of the Professional Business Manager shall be required on all matters
relating to the Office; and (iii) the affirmative vote of the Retail Business Manager shall be required on all matters relating to Optical Services or the Dispensary. The decisions, resolutions, actions, or recommendations of the Practice Advisory
Council shall be implemented by Professional Business Manager, Retail Business Manager or the Practice, as appropriate. 
  
 2.7 Duties and Responsibilities of the Practice Advisory Council. The Practice Advisory Council shall review, evaluate, make recommendations, and
where specifically authorized herein and permitted by law, make decisions with respect to the following matters: 
  
 (a) Facility Improvements and Expansion. Any renovation and expansion plans and capital equipment expenditures with respect to the Practice’s
facilities shall be reviewed by the Practice Advisory Council which shall make recommendations to the Practice with respect to proposed changes therein. Such renovation and expansion plans and capital equipment expenditures shall be based upon
economic feasibility, optometry support, productivity and then current market conditions. 
  
 (b) Marketing and Public Relations. The Practice Advisory Council shall review and make recommendations to the Practice with respect to all marketing and public relations services and programs promoting the
Practice’s Professional Eye Care Services, Optical Services and ancillary services. 
  
 (c) Patient Fees; Collection Policies. The Practice Advisory Council shall review and make recommendations to the Practice concerning the fee schedule and collection policies for all Professional Eye Care
Services, Optical Services and ancillary services rendered by the Practice. 
  
 (d) Ancillary Services. The Practice Advisory Council must approve any new non-professional ancillary services to be rendered by the Practice including Optical Services, and the pricing, continuation of, access
to, and quality of such services. 
  
 (e) Provider and Payor
Relationships. The Practice Advisory Council shall review and make recommendations to the Practice regarding the establishment or maintenance of relationships between the Practice and institutional health care providers and third-party payors,
and the Practice shall review and approve all agreements with institutional health care providers and third-party payors. The Practice Advisory Council shall also make recommendations to the Practice concerning discounted fee schedules, including
capitated fee arrangements of which the Practice shall be a party, and the Practice shall review and approve all such capitated fee arrangements. 
  

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 (f) Strategic Planning. The Practice Advisory Council may make recommendations to the Practice
concerning development of long-term strategic planning objectives for the Practice. 
  
 (g) Capital Expenditures. The Practice Advisory Council shall make recommendations to the Practice concerning the priority of major capital expenditures, and shall review and approve any commitment to make any
capital expenditures, relating to the Office or the Dispensary, involving amounts in excess of $15,000 individually, or $50,000 in the aggregate, in any one fiscal year, which amounts may be increased from time-to-time by agreement of the Parties.

  
 (h) Fee Dispute Resolution. At the request of
Professional Business Manager or the Practice, the Practice Advisory Council shall make recommendations to Professional Business Manager with respect to any dispute concerning a set off or reduction in Management Fees. 
  
 (i) Grievances Referrals. The Practice Advisory Council shall consider
and make recommendations to Professional Business Manager and the Practice regarding grievances pertaining to matters not specifically addressed in this Professional Business Management Agreement as referred to it by Professional Business Manager or
the Practice’s Board of Directors. 
  
 (j) Termination of
Professional Business Manager’s Personnel. The Practice Advisory Council shall review and approve any decision by the Professional Business Manager to terminate any of Professional Business Manager’s personnel primarily located at the
Office who occupy office manager or high level positions. 
  
 (k)
Approval of New Offices or Dispensary. The Practice Advisory Council shall approve any move of any current Office or Dispensary location or the expansion to an additional Practice location. Additionally, the Practice Advisory Council shall
approve the establishment of any optical business of the Practice and the move or expansion of any such business. 
  
 Except in those specific instances set forth above in which the Practice Advisory Council has been granted the authority to make decisions binding upon the Professional
Business Manager and the Practice, it is acknowledged and agreed that recommendations of the Practice Advisory Council are intended for the advice and guidance of Professional Business Manager and the Practice and that the Practice Advisory Council
does not have the power to bind Professional Business Manager or the Practice. Where discretion with respect to any matter is vested in Professional Business Manager or the Practice under the terms of this Agreement, Professional Business Manager or
the Practice, as the case may be, shall have ultimate responsibility for the exercise of such discretion, notwithstanding any recommendations of the Practice Advisory Council. Professional Business Manager and the Practice shall, however, take such
recommendations of the Practice Advisory Council into account in good faith in the exercise of such discretion. 
  
 2.8 Professional Health Care Decisions. Notwithstanding anything herein to the contrary, all decisions required by applicable law to be made solely
by health care professionals will be made solely by the appropriate Professionals. The Practice shall have ultimate and exclusive authority concerning issues related to: 
  
 (a) Types, levels, and scope of Professional Eye Care Services to be provided (provided, however, that the Practice Advisory
Council shall have the authority set forth in Section 2.7(d) with respect to non-professional ancillary services); 
  

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 (b) Recruitment of Professionals to the Practice, including the specific qualifications and specialties
of recruited Professionals; 
  
 (c) Any optometric related
functions; 
  
 (d) Fee schedules; 
  
 (e) Frequency and/or volume of patient encounters; 
  
 (f) The discipline of any Professionals or Non-Professional Personnel who are
employed by, retained by, or otherwise affiliated with the Practice with respect to the performance of Professional Eye Care Services or Clinical Duties, as applicable; and 
  
 (g) Any other decisions required by applicable law to be made solely by Professionals and not by non-Professionals.

  
 2.9 Meetings of the Practice Advisory Council. The
Practice Advisory Council shall meet on a regular basis as mutually agreed by the Parties. A special meeting of the Practice Advisory Council may be called by Professional Business Manager, Retail Business Manager or the Practice upon two (2)
weeks’ notice, except in the event of an emergency, in which case a special meeting may be called by Professional Business Manager, Retail Business Manager or the Practice upon three (3) business days’ notice. Meetings may be held
telephonically or by any other means agreeable to the Parties. 
  
 ARTICLE III 
  
 OBLIGATIONS AND RESPONSIBILITIES OF
BUSINESS MANAGER 
  
 3.1 Management Services.
Professional Business Manager shall provide all Management Services as are necessary and appropriate for the day-to-day administration of the business aspects of the Office’s operations, pursuant to the terms of this Professional Business
Management Agreement. Professional Business Manager shall operate in a reasonable and customary manner with due consideration to the Practice’s past business practices and shall operate in accordance with all applicable laws, rules and
regulations which are necessary and material to the Professional Business Manager’s performance of the Management Services. Professional Business Manager will provide in good faith and with due diligence its services consistent with management
services generally provided in operations of an optometric practice similar in size, type and operations in the Practice Areas. All reasonable costs and expenses related to Professional Business Manager’s duties contained in this Article III
shall be Office Expenses unless limited or excluded as an Office Expense pursuant to the terms of this Professional Business Management Agreement. Professional Business Manager hereby consents and agrees to provide all Management Services to all
Office facilities and locations; provided, however, that during the Term of this Professional Business Management Agreement and except for its obligations pursuant to this Professional Business Management Agreement, the Practice shall not establish,
operate, or provide Professional Eye Care Services at any new Office facility or location without the consent and approval of the Practice Advisory Council; and provided further that during the Term of this Agreement the Practice shall not engage
any individual or entity other than Professional Business Manager to provide Management Services to the Practice without the consent and approval of the Practice Advisory Council. 
  

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 3.2 Office, Facilities and Equipment. 
  
 (a) Professional Business Manager shall procure for or on behalf of the
Practice one or more Offices that are deemed by the Parties to be reasonable, necessary and appropriate, and the expense associated therewith shall be an Office Expense. Professional Business Manager shall consult with the Practice regarding the
condition, use and needs of Office facilities, offices and improvements. The Practice shall pay when due all rents and expenses of the Office, including without limitation expenses for leasehold or facility improvements. Such rents and expenses
shall be Office Expenses. 
  
 (b) To the extent required to
provide Office space to the Practice, Professional Business Manager shall negotiate and administer all leases of and agreements for Office facilities or locations on behalf of the Practice, provided, however, that Professional Business Manager shall
consult with the Practice on all professional or clinical matters relating thereto and that the Practice shall consent to any lease negotiated by Professional Business Manager, which consent shall not be unreasonably withheld. 
  
 (c) Professional Business Manager shall provide all non-health care
equipment, fixtures, office supplies, furniture and furnishings as are reasonable and approved in the Budget for the operation of the Office and the provision of Professional Eye Care Services. If the Practice wishes to choose additional equipment,
which the Professional Business Manager determines not to acquire or lease, the Practice may acquire or lease such equipment, and the expense related thereto shall be deemed a Practice Expense. 
  
 (d) Professional Business Manager shall provide, finance, or cause to be
provided or financed health care related equipment as reasonably required by the Practice. The Practice shall have final authority in all health care equipment selections; provided, however, that if the Practice chooses to acquire health care
equipment which is not in the Budget and which Professional Business Manager reasonably chooses not to acquire, expenses related thereto shall be treated as a Practice Expense and such equipment shall be owned by the Practice; provided further that
following such acquisition or lease by the Practice, if the Practice Advisory Council determines after a period of six months of use such equipment is reasonably certain to result in material profit to Professional Business Manager (taking into
account the cost or expense and anticipated revenues associated with such equipment), then Professional Business Manager shall acquire such equipment from the Practice by either (at Professional Business Manager’s option), paying cash or by
assuming the liability associated with such equipment, or if such equipment is then being leased by the Practice, by assuming such lease. In the event of such an acquisition by Professional Business Manager, it shall reimburse the Practice for
previous expenses applied thereto. Except for equipment which Professional Business Manager elects not to acquire or lease which are acquired or leased by the Practice pursuant to Section 3.2(c) or (d), all health care and non-health care equipment,
other than Professional-owned automobiles, acquired for the use of the Practice shall be owned by Professional Business Manager and the depreciation and related capital charge shall be Professional Business Manager Expense. Professional Business
Manager may make recommendations to the Practice on the relationship between its health care equipment decisions and the overall administrative and financial operations of the Practice. 
  
 (e) Professional Business Manager shall be responsible for the repair and maintenance of the Office, consistent with the
Practice’s responsibilities under the terms of any lease or other use arrangement, and for the prompt repair, maintenance, and replacement of all equipment other than such repairs, maintenance and replacement necessitated by the gross
negligence or willful misconduct of the Practice, its Professionals or other personnel employed by the Practice, the repair or replacement of which 

  

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shall be a Practice Expense and not an Office Expense. Replacement equipment shall be acquired where Professional Business Manager in good faith determines,
in consultation with the Practice, that such replacement is necessary or where the Budget has made allowances for such replacement. 
  
 3.3 Health Care Supplies. Professional Business Manager shall order, procure, purchase and provide on behalf of and as agent for the Practice all
reasonable health care supplies unless otherwise prohibited by federal and/or state law. Furthermore, Professional Business Manager shall ensure that the Office is at all times adequately stocked with the health care supplies that are necessary and
appropriate for the operation of the Office and required for the provision of Professional Eye Care Services. The ultimate oversight, supervision and ownership for all health care supplies is and shall remain the sole responsibility of the Practice
and all costs and expenses relating to such supplies shall be an Office Expense. As used in this provision, the term “health care supplies” shall mean all drugs, pharmaceuticals, products, substances, items or devices whose purchase,
possession, maintenance, administration, prescription or security requires the authorization or order of a licensed health care provider or requires a permit, registration, certification or other governmental authorization held by a licensed health
care provider as specified under any federal and/or state law. 
  
 3.4 Support Services. Professional Business Manager shall provide or arrange for all printing, stationery, forms, postage, duplication or photocopying services, and other support services as are reasonably necessary and appropriate
for the operation of the Office and the provision of Professional Eye Care Services therein. 
  
 3.5 Quality Assurance, Risk Management, and Utilization Review. Professional Business Manager shall assist the Practice in the Practice’s establishment and implementation of procedures to ensure the
consistency, quality, appropriateness, and necessity of Professional Eye Care Services provided by the Practice and shall provide administrative support for the Practice’s overall quality assurance, risk management, and utilization review
programs. Professional Business Manager shall perform these tasks in a manner to ensure the confidentiality and non-discoverability of these program actions to the fullest extent allowable under state and federal law. 
  
 3.6 Licenses and Permits. Professional Business Manager shall, on
behalf of and in the name of the Practice, coordinate all development and planning processes, and apply for and use reasonable efforts to obtain and maintain all federal, state and local licenses and regulatory permits required for or in connection
with the operation of the Office and the equipment (existing and future) located at the Office, other than those relating to the practice of optometry or the administration of drugs by Professionals retained by or associated with the Practice. The
expenses and costs associated with obtaining and maintaining permits with respect to the Office shall be deemed Office Expenses. 
  
 3.7 Personnel. 
  
 (a) Selection and Retention of Professional Business Manager’s Personnel. Except as specifically provided in Section 4.3 of this Professional
Business Management Agreement, Professional Business Manager shall, in consultation with the Practice, employ or otherwise retain and shall be responsible for selecting, hiring, training, supervising, and terminating, all management, administrative,
technical, clerical, secretarial, bookkeeping, accounting, payroll, billing and collection and other personnel (excluding Professionals) as Professional Business Manager deems reasonably necessary and appropriate for the operation of the Office and
for Professional Business Manager’s performance of its duties and obligations under this Professional Business Management Agreement. Consistent with reasonably prudent 

  

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personnel management policies, Professional Business Manager shall seek and consider the advice, input, and requests of the Practice in regard to personnel
matters. Professional Business Manager shall have sole responsibility for determining the salaries and providing fringe benefits, and for withholding, as required by law, any sums for income tax, unemployment insurance, social security, or any other
withholding required by applicable law or governmental requirement. Professional Business Manager reserves the right to change the number, composition or employment terms of such personnel in the future at Professional Business Manager’s
discretion; provided, however, that the termination of any of Professional Business Manager’s personnel who occupy office manager or high level positions, and are primarily located at the Office must receive the approval of the Practice
Advisory Council. Professional Business Manager and the Practice recognize and acknowledge that Professional Business Manager and personnel retained by Professional Business Manager may from time-to-time perform services for persons other than the
Practice. This Professional Business Management Agreement shall not be construed to prevent or prohibit Professional Business Manager from performing such services for others or restrict Professional Business Manager from using its personnel to
provide services to others. Professional Business Manager hereby disclaims any liability relating to the effect of its employees on the qualification of the Practice’s retirement plans under the Internal Revenue Code, and all liabilities for
such classification shall be solely the responsibility of the Practice. 
  
 (b) Termination of Professional Business Manager’s Personnel. If the Practice is dissatisfied with the services of any employee of Professional Business Manager or any personnel under Professional Business Manager’s
direction, supervision, and control, the Practice shall consult with Professional Business Manager. Professional Business Manager shall in good faith determine whether the performance of that employee could be brought to acceptable levels through
counsel and assistance, or whether such employee should be relocated or terminated. All of Professional Business Manager’s determinations regarding Professional Business Manager’s personnel shall be governed by the overriding principle and
goal of providing high quality optometric and/or therapeutic optometric support services. Employee assignments shall be made to assure consistent and continued rendering of high quality optometric and/or therapeutic optometric support services. The
Professional Business Manager shall maintain established working relationships wherever possible, and Professional Business Manager shall make every effort consistent with sound business practices to honor the specific requests of the Practice with
regard to the assignment of employees. Notwithstanding that which is contained in this Section 3.7(b), the Practice shall have the right and obligation to determine the direction, supervision, and control of any personnel while said personnel are
involved in the performance of Clinical Duties, including prohibiting said personnel from being involved in the performance of Clinical Duties and, where applicable state law so dictates, in the provision of Optical Services. 
  
 3.8 Contract Negotiations. Professional Business Manager shall
evaluate, assist in negotiations and administer on behalf of the Practice contracts that do not relate to the provision of Professional Eye Care Services as set forth in this Professional Business Management Agreement and/or as approved in the
Budget. To the extent permitted by law, Professional Business Manager shall evaluate, assist in negotiations, administer and execute on the Practice’s behalf, all contractual arrangements with third parties as are reasonably necessary and
appropriate for the Practice’s provision of Professional Eye Care Services, including, without limitation, negotiated price agreements with third-party payors, alternative delivery systems, or other purchasers of group health care services. The
Professional Business Manager shall review and make recommendations to the Practice regarding the establishment or maintenance of relationships between the Practice and institutional health care providers and third-party payors, and the Practice
shall review and approve all agreements with institutional health care providers and third-party payors. The Professional Business Manager shall also make recommendations to the Practice concerning discounted fee 

  

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schedules, including capitated fee arrangements of which the Practice shall be a party, and the Practice shall review and approve all such capitated fee
arrangements. The Practice shall have the final authority with regard to the entry into all such contractual arrangements relating to the provision of Professional Eye Care Services. 
  
 3.9 Billing and Collection As an agent on behalf of and for the account of the Practice, Professional Business
Manager shall establish and maintain credit and billing and collection services, policies and procedures, and shall use reasonable efforts to timely bill and collect all fees for all billable Professional Eye Care Services provided by the Practice,
the Professionals or other personnel employed or otherwise retained by the Practice, provided that Professional Business Manager shall perform these billing and collection services only to the extent that said services are not provided to, or
arranged for, the Practice by Retail Business Manager. In connection with the billing and collection services to be provided hereunder, and throughout the Term (and thereafter as provided in Section 6.3), the Practice hereby grants to Professional
Business Manager an exclusive special power of attorney and appoints Professional Business Manager as the Practice’s exclusive true and lawful agent and attorney-in-fact (which shall be deemed revoked in the event of termination for cause by
the Practice), and Professional Business Manager hereby accepts such special power of attorney and appointment, for the following purposes: 
  
 (a) To bill the Practice’s patients, in the Practice’s name using the Practice’s tax identification number and on the Practice’s
behalf, for all billable Professional Eye Care Services provided by the Practice to patients; 
  
 (b) To bill, in the Practice’s name using the Practice’s tax identification number and on the Practice’s behalf, all claims for reimbursement or indemnification from health maintenance organizations,
self-insured employers, insurance companies, Medicare, Medicaid, and all other third-party payors or fiscal intermediaries for all covered billable Professional Eye Care Services provided by the Practice to patients; 
  
 (c) To collect and receive, in the Practice’s name and on the
Practice’s behalf, all accounts receivable generated by such billings and claims for reimbursement, to administer such accounts including, but not limited to, extending the time of payment of any such accounts; suing, assigning or selling at a
discount such accounts to collection agencies; or taking other measures to require the payment of any such accounts; provided, however, that the Practice shall review and approve (which approval shall not be unreasonably withheld) any decision by
Professional Business Manager to undertake extraordinary collection measures, such as filing lawsuits, discharging or releasing obligors, or assigning or selling accounts at a discount to collection agencies. Professional Business Manager shall act
in a professional manner and in compliance with all federal and state fair debt collection practices laws in rendering billing and collection services; 
  
 (d) To deposit all amounts collected on behalf of the Practice into the Professional Practice Account which shall be and at all times remain in the
Practice’s name. The Practice covenants to transfer and deliver to the Professional Practice Account all funds received by the Practice from patients or third-party payors for billable Professional Eye Care Services and Optical Services. Upon
receipt by Professional Business Manager of any funds from patients or third-party payors or from the Practice pursuant hereto for billable Professional Eye Care Services and Optical Services, Professional Business Manager shall immediately deposit
the same into the Account. Professional Business Manager shall administer, be responsible for, and be obligated to pay for all Office Expenses; provided, however, that Professional Business Manager shall only be liable for Office Expenses to the
extent of funds in the 

  

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Professional Practice Account. Professional Business Manager shall disburse funds from the Professional Practice Account to creditors and other persons on
behalf of the Practice, maintaining records of such receipt and disbursement of funds; 
  
 (e) To take possession of, endorse in the name of the Practice, and deposit into the Professional Practice Account any notes, checks, money orders, insurance payments, and any other instruments received in payment of
accounts receivable of the Practice; and 
  
 (f) To sign checks on
behalf of the Practice, and to make withdrawals from the Professional Practice Account for payments specified in this Professional Business Management Agreement. Upon request of Retail Business Manager, the Practice shall execute and deliver to the
financial institution wherein the Professional Practice Account is maintained, such additional documents or instruments as may be necessary to evidence or effect the special power of attorney granted to Professional Business Manager by the Practice
pursuant to this Section 3.9. The special power of attorney granted herein shall be coupled with an interest and shall be irrevocable except with Professional Business Manager’s written consent. The irrevocable power of attorney shall expire
when this Professional Business Management Agreement has been terminated, all accounts receivable payable to Professional Business Manager pursuant to this Professional Business Management Agreement have been collected, and all Management Fees due
to Professional Business Manager have been paid. If Professional Business Manager assigns this Professional Business Management Agreement in accordance with its terms, the Practice shall execute a power of attorney in favor of the assignee in a form
acceptable to Professional Business Manager. 
  
 3.10
Maintenance of Professional Practice Account. 
  
 (a)
Power of Attorney. Professional Business Manager shall have access to the Professional Practice Account solely for the purposes stated herein. In connection herewith and throughout the term of this Professional Business Management Agreement,
the Practice hereby grants to Professional Business Manager an exclusive special power of attorney for the purposes stated herein and appoints Professional Business Manager as the Practice’s exclusive, true, and lawful agent and
attorney-in-fact, and Professional Business Manager hereby accepts such special power of attorney and appointment, to deposit into the Professional Practice Account all funds, fees, and revenues received from Retail Business Manager pursuant to its
obligations under the Retail Business Management Agreement and/or collection by Professional Business Manager for Professional Eye Care Services rendered to patients of the Office, and for all other professional and Office services and to make
withdrawals from the Professional Practice Account for payments specified in this Professional Business Management Agreement and as requested from time-to-time by the Practice. Notwithstanding the exclusive special power of attorney granted to
Professional Business Manager hereunder, the Practice may, upon reasonable advance notice to Professional Business Manager, draw checks on the Account; provided, however, that the Practice shall neither draw checks on the Professional Practice
Account nor request Professional Business Manager to do so if the balance remaining in the Professional Practice Account after such withdrawal would be insufficient to enable Professional Business Manager to pay on behalf of the Practice any Office
Expense attributable to the operations of the Office or to the provision of Professional Eye Care Services and/or any other obligations of the Practice. Limits on authority to sign checks and purchase orders shall be mutually agreed upon by
Professional Business Manager and the Practice. 
  
 (b)
Payments from the Professional Practice Account. From the funds collected and deposited by the Professional Business Manager in the Professional Practice Account, the Professional Business Manager shall pay in the following order of priority
and in accordance with applicable requirements under law or contract: 
  
 (i) any refunds owed to patients by the Practice; 
  

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 (ii) all Office Expenses; 
  
 (iii) Practice Expenses; 
  
 (iv) any unpaid or past due compensation owed to the Professional Business Manager pursuant to Section 5.1 hereof; 
  
 (v) the following Shareholder Expenses: (A) Shareholder’s salary not to
exceed One Hundred Ninety Thousand And No/100 Dollars ($190,000.00) on an annualized basis; (B) the amount of the Bonus with respect to such period as set forth in the President’s Employment Agreement not to exceed Twenty Thousand And No/100
Dollars ($20,000) on an annualized basis; (C) payroll taxes related to Shareholder’s salary and Bonus; and (D) other Shareholder Expenses not to exceed Five Thousand And No/100 Dollars ($5,000); 
  
 (vi) the current Base Management Fee compensation owed to the Professional
Business Manager pursuant to Section 5.1 hereof; and 
  
 (vii)
all remaining Shareholder Expenses and Interest Expense. 
  
 (c)
Additional Documents. Upon request of Professional Business Manager, the Practice shall execute and deliver to the financial institution wherein the Professional Practice Account is maintained, such additional documents or instruments as may
be necessary to evidence or effect the special power of attorney granted to Professional Business Manager by the Practice pursuant to this Section 3.9. The special power of attorney granted herein shall be coupled with an interest and shall be
irrevocable except with Professional Business Manager’s written consent. The irrevocable power of attorney shall expire when this Professional Business Management Agreement has been terminated, all accounts receivable payable to Retail Business
Manager pursuant to this Retail Business Management Agreement have been collected, and all Management Fees due to Retail Business Manager have been paid. If Professional Business Manager assigns this Professional Business Management Agreement in
accordance with its terms, the Practice shall execute a power of attorney in favor of the assignee in a form acceptable to Professional Business Manager. Professional Business Manager shall not make any withdrawal from the Professional
Practice’s unless expressly authorized in this Professional Business Management Agreement. 
  
 (d) Payroll Account. A Practice payroll account in the name of the Practice shall be established on behalf of the Practice for payroll to
non-shareholder Professionals of the Practice. Funds for this account shall be received as Practice Expenses. The Practice, as employer of said non-shareholder Professionals, and Professional Business Manager, as agent and attorney of the Practice
shall each have signing capacity to access the account for payroll. 
  
 3.11 Fiscal Matters. 
  
 (a) Annual
Budget. The initial Annual Budget shall be agreed upon by the parties before the execution of this Professional Business Management Agreement. Thereafter, annually and at 

  

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least thirty (30) days prior to the commencement of each fiscal year of the Practice, the Professional Business Manager, in consultation with the Practice,
shall prepare and deliver to the Practice a proposed Budget, setting forth an estimate of the Practice’s revenues and expenses for the upcoming fiscal year. The Practice shall review the proposed Budget and either approve the proposed Budget or
request any changes within twenty-one (21) days after receiving the proposed Budget. Disputes concerning the Budget shall, at the request of either party hereto, be submitted to the Practice Advisory Council. In the event the Parties are unable to
agree on a Budget by the beginning of the fiscal year, until an agreement is reached, the Budget for the prior year shall be deemed to be adopted as the Budget for the current year, with each line item in the Budget (with the exception of the
Management Fee which shall be established pursuant to the terms of this Professional Business Management Agreement) increased or decreased by one of the following, whichever is most appropriate relative to the particular item of income or expense,
(i) the percentage by which the Adjusted Gross Revenue in the current year, excluding any damages paid by any Professional to the Practice under any Restrictive covenant or otherwise, has increased or decreased compared to the corresponding period
of the prior year; (ii) the increase or decrease from the prior year in the Consumer Price Index - Health/Medical Services for the relevant region; and (iii) the proportionate increase or decrease in mutually agreed upon personnel costs as measured
by the increase or decrease in full-time-equivalent personnel. The Practice Advisory Council may revise or modify the Budget from time to time during the applicable fiscal year to reflect changing circumstances affecting the Practice. Additionally,
notwithstanding the above, no change in an adopted Budget shall be contrary to the terms and spirit of this Professional Business Management Agreement nor shall it have any effect on the Management Fee expressly agreed to herein, unless approved in
advance in writing by the Parties hereto. 
  
 (b) Obligations
of Professional Business Manager. Professional Business Manager shall use commercially reasonable efforts to manage and administer the operations of the Office as herein provided so that the actual revenues, costs and expenses of the operation
and maintenance of the Office during any applicable period of the Practice’s fiscal year shall be consistent with the Budget. 
  
 (c) Accounting and Financial Records. Professional Business Manager shall establish and administer accounting procedures, controls, and systems for
the development, preparation, and safekeeping of administrative or financial records and books of account relating to the business and financial affairs of the Office and the provision of Professional Eye Care Services, all of which shall be
prepared and maintained in accordance with GAAP. The Practice shall have the right to inspect such records and books of account at its expense at any time, upon reasonable notice to Professional Business Manager. Professional Business Manager shall
prepare and deliver to the Practice (i) within sixty (60) days of the end of each of the first three (3) fiscal quarters in each fiscal year, and (ii) within ninety (90) days of the end of each fiscal year, a balance sheet and a profit and loss
statement reflecting the financial status of the Practice in regard to the provision of Professional Eye Care Services as of the end of such period, all of which shall be prepared in accordance with GAAP consistently applied. In addition,
Professional Business Manager shall prepare or assist in the preparation of any other financial statements or records as the Practice may reasonably request. 
  
 (d) Sales and Use Taxes. Professional Business Manager and the Practice acknowledge and agree that to the extent that any of the services to be
provided by Professional Business Manager hereunder may be subject to any state sales and use taxes, Professional Business Manager may have a legal obligation to collect such taxes from the Practice and to remit the same to the appropriate tax
collection authorities. The Practice agrees to have applicable state sales and use taxes attributable to the services to be provided by Professional Business Manager hereunder treated as an Office Expense. 
  

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 3.12 Reports and Records. 
  
 (a) Health Care Records. All files and records relating to the operation of the Office, including without limitation,
accounting, billing and collection, and patient records shall at all times be and remain the property of the Practice and shall remain under its possession, custody, and control. Subject to the foregoing and to the extent permitted by applicable
law, Professional Business Manager shall, in consultation with the Practice, establish, monitor, and maintain procedures and policies for the timely, appropriate, and efficient preparation, filing, retrieval, and secure storage of such records.
Patient records shall be located at Office facilities so that they are readily accessible for patient care. Patient records shall not be removed from Office premises without the express written consent of the Practice, except as specified herein.
Patient records for patients not seen within the last three years may be stored in a commercial storage facility or other location Professional Business Manager shall designate, provided that Professional Business Manager shall notify the Practice
of the location of said records. All such health care records shall be retained and maintained by the Practice and the Professional Business Manager as agent for the Practice in accordance with all applicable state and federal laws relating to the
confidentiality and retention thereof. In this regard, Professional Business Manager shall use its best efforts to preserve the confidentiality of patient records and shall use information contained in such records only as the agent for the Practice
and for the limited purposes necessary to perform the services set forth herein. 
  
 (b) Other Reports and Records. Professional Business Manager shall timely create, prepare, and file such additional reports and records as are reasonably necessary and appropriate for the Practice’s
provision of Professional Eye Care Services, and shall be prepared to analyze and interpret such reports and records upon the request of the Practice. 
  
 3.13 Recruitment of the Practice’s Professionals. Upon the Practice’s request, Professional Business Manager shall coordinate, supervise
or perform all administrative services reasonably necessary and appropriate to recruit potential Professionals to become employees of the Practice. It will be and remain the sole and complete responsibility of the Practice to interview, select,
contract with, supervise, control and terminate all Professionals performing Professional Eye Care Services or other professional services. 
  
 3.14 Confidential and Proprietary Information.  
  
 (a) Professional Business Manager agrees that it shall not disclose any Confidential Information of the Practice to other persons without the
Practice’s express written authorization, that such Confidential Information shall not be used in any way detrimental to the Practice, and that Professional Business Manager will keep such Confidential Information confidential and will ensure
that its affiliates and advisors who have access to such Confidential Information comply with these nondisclosure obligations; provided, however, that Professional Business Manager may disclose Confidential Information to those of its
Representatives who need to know Confidential Information for the purposes of this Professional Business Management Agreement, it being understood and agreed by Professional Business Manager that such Representatives will be informed of the
confidential nature of the Confidential Information, will agree to be bound by this Section, and will be directed by Professional Business Manager not to disclose to any other person any Confidential Information. 
  
 (b) Notwithstanding clause (a) above, Professional Business Manager may
share, subject to the restrictions of this Section, with other professional corporations, limited liability companies, associations, ophthalmology and optometry practices, or health care delivery entities the practice statistics 

  

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of the Practice, including utilization review data, quality assurance data, cost data, outcomes data, or other practice data. The Practice statistics and
confidential information may be disclosed within the Practice, to managed care providers or other third party payors for the purpose of obtaining or maintaining third party payor contracts or reimbursements, or to financial analysts and
underwriters; provided that any disclosure outside the Practice for any purpose not related to managed care contracting shall not identify any Professional by name without the Practice’s consent and will not disclose or divulge patient
identifying information. 
  
 3.15 Professional Business
Manager’s Insurance. Throughout the Term, Professional Business Manager shall, as an Office Expense, obtain and maintain with commercial carriers, through self-insurance or some combination thereof, appropriate workers’ compensation
coverage for Professional Business Manager’s employed personnel provided pursuant to this Professional Business Management Agreement, and professional, casualty and comprehensive general liability insurance covering Professional Business
Manager, Professional Business Manager’s personnel, and all of Professional Business Manager’s equipment in such amounts, on such basis and upon such terms and conditions as Professional Business Manager deems appropriate but which
insurance is consistent with the insurance which is maintained by the Practice pursuant to Section 4.5 of this Professional Business Management Agreement. Professional Business Manager shall cause the Practice to be named as an additional insured on
Professional Business Manager’s professional, casualty and comprehensive general liability policy. Upon the request of the Practice, Professional Business Manager shall provide the Practice with a certificate evidencing such insurance coverage.
Professional Business Manager, in agreement with the Practice, may also carry, as an Office expense, key person life and disability insurance on any Shareholder or Professional employee of the Practice in amounts determined reasonable and sufficient
by the Professional Business Manager. Professional Business Manager shall be the owner and beneficiary of any such insurance, although the Parties hereby agree that the proceeds of any such insurance shall be paid to the Account as Adjusted Gross
Revenues unless the Parties agree to a specific split of the proceeds. Should only the Practice choose to obtain key person life and disability insurance, the Practice shall pay all premiums as a Practice Expense and shall receive all proceeds.
Further, if only the Professional Business Manager chooses to obtain such insurance, Professional Business Manager shall pay all premiums as a Professional Business Manager Expense and shall receive the proceeds. The Practice shall cause its
Professionals to submit to a medical examination necessary to obtain such insurance. 
  
 3.16 No Warranty or Representations. The Practice acknowledges that Professional Business Manager has not made and will not make any express or implied warranties or representations that the Management Services
provided by Professional Business Manager will result in any particular amount or level of income to the Practice. Specifically, Professional Business Manager has not represented that its Management Services will result in higher revenues, lower
expenses, greater profits, or growth in the number of patients treated by the Practice’s Professionals. 
  
 3.17 Marketing and Public Relations. Professional Business Manager acknowledges that the Practice desires a public relations program to enhance its
optometric and/or therapeutic optometric practice and to extend the Office’s ability to provide Professional Eye Care Services to patients. Subject to the Practice’s approval, Professional Business Manager shall design and implement an
appropriate public relations program on behalf of the Practice, with appropriate emphasis on public awareness of the availability of Professional Eye Care Services at the Office. The public relations program shall be conducted in compliance with
applicable laws and regulations governing advertising by the ophthalmological and optometric professions. 
  

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 3.18 Acquisition of Services and Supplies. In obtaining services, supplies and personnel for or on
behalf of the Practice pursuant to this Professional Business Management Agreement, Professional Business Manager shall be authorized to obtain such services, supplies and personnel from an affiliate of Professional Business Manager provided that
the Office Expenses which are incurred by or on behalf of the Professional Business Manager shall be consistent with the expenses of optical dispensaries similar in size, type, and operations in the Practice Areas. 
  
 3.19 Coordination of Obligations and Responsibilities. Professional
Business Manager shall, in good faith, coordinate all of its obligations and responsibilities under this Professional Business Management Agreement with Retail Business Manager’s performance of its obligations and responsibilities under the
Retail Business Management Agreement. Any dispute, conflict or disagreement between Professional Business Manager and Retail Business Manager regarding their respective obligations and responsibilities shall be referred to the Practice Advisory
Council for resolution. 
  
 ARTICLE IV 
  
 OBLIGATIONS AND RESPONSIBILITIES OF THE PRACTICE. 
  
 4.1 Professional Services. The Practice shall diligently conduct the
business of an optometric and/or therapeutic optometric practice, including utilizing its capacities to the greatest extent practicable to provide Professional Eye Care Services to patients of the Office. The Practice shall retain that number of
Professional as are reasonably necessary and appropriate in the sole discretion of the Practice for the provision of Professional Eye Care Services and shall determine their assignment and scheduled hours of practice at Office locations. The
Practice shall provide Professional Eye Care Services to the Office’s patients in compliance at all times with ethical, laws and regulations applying to the optometric and/or therapeutic optometric professions. The Practice shall ensure that
each Professional associated with or employed by the Practice to provide optometric and/or therapeutic optometric care to the Office’s patients is licensed in each Practice Area in which he or she provides such services. The Practice shall
establish and implement a program to monitor the quality of Professional Eye Care Services provided at the Office (the “Continuous Quality Improvement Program”). The Continuous Quality Improvement Program shall be designed to promote and
maintain quality care consistent with accepted practices prevailing from time to time in the area where each Office facility is situated 
  
 4.2 Optometric and Therapeutic Optometric Practice. The Practice shall use and occupy the Office for the provision of Professional Eye Care
Services and shall comply with all applicable local rules, ordinances and all standards of optometric and/or therapeutic optometric care. It is expressly acknowledged by the parties that the optometric and/or therapeutic optometric practice or
practices conducted at the Office shall be conducted solely by Professionals employed by or under contract with the Practice, and no other Professional shall be permitted to use or occupy the Office without the prior written consent of Professional
Business Manager. 
  
 4.3 Employment of Professionals.
Subject to Section 3.13 hereof, the Practice shall be responsible for the hiring, compensation, supervision, evaluation, and termination of all Professionals. At the request of the Practice, Professional Business Manager shall be available to
consult with the Practice respecting such matters. The Practice shall be responsible for the payment of such Professionals’ salaries and wages, payroll taxes, benefits, and all other taxes and charges now or hereafter applicable to them. The
Practice shall employ and contract only with licensed Professionals who meet applicable credentialing guidelines established by the Practice. The Practice shall not in any 

  

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fiscal year contract in the aggregate with Professionals for an amount (including the cost of associated benefits, payroll expense, and professional
liability coverage) which is greater than the amount provided for such purpose in the Budget for such fiscal year. The Practice represents, warrants and covenants that, if requested by the Professional Business Manager, on or before ninety (90) days
from the date of such request, it will use its best efforts to obtain, shall in the future obtain, and shall enforce formal written employment agreements from each of its present full-time (an average of thirty (30) or more hours per week)
Professionals, except for the President of the Practice, and those employed in the future in substantially the form attached hereto as Exhibit 4.3A (“Employment Agreement”) containing a restrictive covenant (the “Restrictive
Covenant”). It is agreed that the Professional Business Manager has not requested any such employment agreements and Restrictive Covenants as of the execution of this Agreement. The Practice further represents, warrants and covenants that the
President of the Practice has entered into an employment agreement substantially the form attached hereto as Exhibit 4.3B, (the “Presidents Employment Agreement”) which agreement is currently and shall remain in force and effect during the
term of this Agreement unless terminated in accordance therewith. 
  
 4.4 Professional Standards. As a continuing condition of Professional Business Manager’s obligations hereunder each Professional and any other Professional personnel retained by the Practice to provide Professional Eye Care
Services must (i) have and maintain a valid and unrestricted license to practice optometry or ophthalmology in the Practice Areas in which such Professional provides services, (ii) comply with, be controlled and governed by, and provide Professional
Eye Care Services in accordance with applicable federal, state and municipal laws, rules, regulations, ordinances and orders, and the ethics and standard of care of the optometric community wherein the principal Office of the Practice is located,
and (iii) provide on a continual basis, quality care to its patients. 
  
 4.5 Practice’s Insurance. The Practice shall, as a Practice Expense, obtain and maintain with commercial carriers chosen by the Practice appropriate workers’ compensation coverage for the Practice’s employed personnel,
if any, and professional and comprehensive general liability insurance covering the Practice and each of the Professionals involved in the provision of Professional Eye Care Services. The comprehensive general liability coverage with respect to each
of the Professionals shall be in the minimum amount of One Million Dollars ($1,000,000) and professional liability coverage shall be in the minimum amount of One Million Dollars ($1,000,000) for each occurrence and One Million Dollars ($1,000,000)
annual aggregate. The insurance policy or policies shall provide for at least thirty (30) days’ advance written notice to the Practice from the insurer as to any alteration of coverage, cancellation, or proposed cancellation for any cause. Upon
the termination of this Professional Business Management Agreement for any reason, the Practice shall continue to carry professional liability insurance in the amounts specified herein for the shorter period of (i) the period set forth in each
Practice Area’s statute of repose (or if no statute of repose exists, each Practice Area’s statute of limitations) for bringing professional malpractice claims based upon injuries which are not immediately discoverable plus any applicable
tolling periods, or (ii) ten (10) years after termination; or if the Practice dissolves or ceases to practice optometry, the Practice shall obtain and maintain as a Practice Expense “tail” professional liability coverage, in the amounts
specified in this Section for the shorter period of (i) the period set forth in each Practice Area’s statute of repose (or if no statute of repose exists, each Practice Area’s statute of limitations) for bringing professional malpractice
claims based upon injuries which are not immediately discoverable plus any applicable tolling periods, or (ii) ten (10) years. The Practice shall be responsible for paying all premiums for Shareholder “tail” insurance coverage and such
coverage shall be a Practice Expense; provided, however, that the Practice may cause its Professionals to be responsible for paying the premiums for such “tail” insurance coverage. 
  

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 4.6 Confidential and Proprietary Information. The Practice agrees that it shall not disclose any
Confidential Information of the Professional Business Manager to other persons without Professional Business Manager’s express written authorization, such Confidential Information shall not be used in any way detrimental to Professional
Business Manager, and the Practice will keep such Confidential Information confidential and will ensure that its affiliates and advisors who have access to such Confidential Information comply with these nondisclosure obligations; provided, however,
that the Practice may disclose Confidential Information to those of its Representatives who need to know Confidential Information for the purposes of this Professional Business Management Agreement, it being understood and agreed by the Practice
that such Representatives will be informed of the confidential nature of the Confidential Information, will agree to be bound by this Section, and will be directed by the Practice not to disclose to any other person any Confidential Information.

  
 4.7 Non-Competition. The Practice hereby recognizes,
acknowledges, and avers that Professional Business Manager will incur substantial costs in providing the equipment, support services, personnel, management, administration, and other items and services that are the subject matter of this
Professional Business Management Agreement and that in the process of providing services under this Professional Business Management Agreement, the Practice will be privy to financial and Confidential Information, to which the Practice would not
otherwise be exposed. The Parties also recognize that the services to be provided by Professional Business Manager will be feasible only if the Practice operates an active practice to which the Professionals associated with the Practice devote their
full time and attention. The Practice agrees, acknowledges, and avers that the non-competition covenants described hereunder are necessary for the protection of Professional Business Manager, and that Professional Business Manager would not have
entered into this Professional Business Management Agreement without the following covenants. 
  
 (a) Except as specifically agreed to by Professional Business Manager in writing, the Practice covenants and agrees that during the Term of this Professional Business Management Agreement and for a period of one (1)
year from the date this Professional Business Management Agreement is terminated other than if terminated by the Practice for cause, or expires, the Practice shall not directly or indirectly own (excluding ownership of less than one percent (1%) of
the equity of any publicly traded entity and excluding ownership of the common stock of Professional Business Manager), manage, operate, control, contract with, lend funds to, lend its name to, maintain any interest whatsoever in, or be employed by,
any enterprise (i) having to do with the provision, distribution, promotion, or advertising of any type of management or administrative services or products to third parties in competition with Professional Business Manager, within a 10 mile radius
of any Office; and/or (ii) offering any type of service(s) or product(s) to third parties substantially similar to those offered by Professional Business Manager to the Practice in competition with Professional Business Manager within a 10 mile
radius of any Office. Notwithstanding the above restriction, nothing herein shall prohibit (i) the Practice or any of its Shareholders from providing management and administrative services to this or their own optometry practice after the
termination of this Professional Business Management Agreement; (ii) the Practice or its Shareholders from contracting with a third-party manager to provide administrative or management services for its or their professional eye care practices after
termination of this Professional Business Management Agreement; (iii) any of the Practice’s Shareholders from providing management and administrative services to their own optometry practices after the termination of their employment
relationship with the Practice; and (iv) such Shareholders from contracting with a third-party manager to provide administrative or management services for their professional eye care practices after the termination of their employment relationship
with the Practice. 
  

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 (b) Restrictive Covenants by Optometrists. Under the Restrictive Covenant, to the extent then
required by the Professional Business Manager, the non-Shareholder Professionals shall agree not to practice optometry and/or therapeutic optometry or provide Optical Services within a certain radius, as set forth in Exhibit 4.7A, of any Office
location at which such non-Shareholder Professionals performed services on a regular basis for sixteen (16) or more hours per week or one thousand (1,000) hours during the last twelve (12) months of such Professionals’ employment with the
Practice. The Restrictive Covenant shall be effective for a period of one (1) year following termination of employment with the Practice and may be subject to a liquidated damages provision as authorized hereafter. 
  
 (c) Liquidated Damages. The Practice represents, warrants, and
covenants that the Restrictive Covenant described above, if then required by the Professional Business Manager, will contain a liquidated damages provision, consistent with the laws of the Commonwealth of Kentucky, mandating the payment of
$25,000.00 in liquidated damages. Any liquidated damage amount collected by the Practice through enforcement of the Restrictive Covenant shall be delivered immediately to Professional Business Manager for deposit in the Account and included in the
Adjusted Gross Revenue. The Practice hereby stipulates and agrees that Professional Business Manager will suffer severe harm if the Practice fails or refuses to obtain and enforce the Restrictive Covenant, including the aforesaid liquidated damages
provision. The Practice further stipulates and agrees that the parties may be unable to quantify such severe harm, and, accordingly, the Practice shall pay to Professional Business Manager the amount of $25,000.00, as agreed upon stipulated damages
in the event of such failure or refusal to obtain and enforce the Restrictive Covenant. Any liquidated damage amount collected from the Practice as a result of its failure or refusal to enforce the Restrictive Covenant, shall be immediately paid to
Professional Business Manager, and shall not be included in the Adjusted Gross Revenue for the Practice. 
  
 (d) The Practice understands and acknowledges that Professional Business Manager shall suffer severe harm in the event that the foregoing non-competition
covenants in Section 4.7 are violated, and accordingly, if the Practice breaches any obligation of Section 4.7, in addition to any other remedies available under this Professional Business Management Agreement, at law or in equity, Professional
Business Manager shall be entitled to enforce this Professional Business Management Agreement by injunctive relief and by specific performance of the Professional Business Management Agreement, such relief to be without the necessity of posting a
bond, cash or otherwise. Additionally, nothing in this Section 4.7(d) shall limit Professional Business Manager’s right to recover any other damages to which it is entitled as a result of the Practice’s breach. The time period for which
the non-competition covenant is effective shall be extended day for day for the time period the Practice is in violation of the non-competition covenant. If any provision of the covenants is held by a court of competent jurisdiction to be
unenforceable due to an excessive time period, geographic area, or restricted activity, the covenant shall be reformed to comply with such time period, geographic area, or restricted activity that would be held enforceable. Following termination of
this Professional Business Management Agreement pursuant to Section 6.2(b) hereof, the Practice shall not amend, alter or otherwise change any term or provision of the Restrictive Covenants or liquidated damages provisions of the Employment
Agreements or the President’s Employment Agreement with the Professionals. Following termination of this Agreement pursuant to Section 6.2(a) hereof, the Practice and the Professionals shall be relieved of the restrictions imposed by this
Section 4.7. 
  
 4.8 Name, Trademark. The Practice
represents and warrants that on and after sixty (60) days from the effective day of this Professional Business Management Agreement, the Practice shall conduct its professional practice under the name of, and only under the names of Dr. Bizer’s
VisionWorld, Dr. Bizer’s 

  

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Vision World, Doctor’s ValuVision and The Eye Surgery Center and that such names are duly registered, qualified, or licensed under the laws of the
Practice Areas in which they are being used, and that, to the Practice’s knowledge, the Practice is the sole and absolute owner of such names in the Practice Areas. The Practice covenants and promises that, without the prior written consent of
the Professional Business Manager, the Practice will not: 
  
 (a)
take any action that is reasonably likely to result in the loss of registration, qualification or licensure of the name; 
  
 (b) fail to take any reasonably necessary action that will maintain the registration, qualification, or licensure current; 
  
 (c) license, sell, give, or otherwise transfer the name or the right to use
the name to any optometry practice, Optometrist, professional corporation, professional limited liability company, office or any other entity; or 
  
 (d) cease conducting the professional practice of the Practice under the name. 
  
 4.9 Billing Information and Assignments; Establishment of Fees. The Practice shall promptly provide the Professional
Business Manager with all billing and other information reasonably requested by the Professional Business Manager to enable it to bill and collect the Office’s fees and other charges and reimbursement claims pursuant to Section 3.9, and the
Practice shall use its best efforts to procure consents to assignments and other approvals and documents necessary to enable the Professional Business Manager to obtain payment or reimbursement from third parties for such fees, other charges and
claims. 
  
 4.10 Provider Agreements. The Practice shall
have ultimate authority with regard to all contractual arrangements with third parties for the Practice’s provision of Professional Eye Care Services, and the Practice may at its sole discretion reject or otherwise refuse to enter into any such
contractual arrangement. 
  
 4.11 Tax Matters. The Practice
shall prepare or arrange for the preparation by an accountant selected by the Practice of all appropriate corporate tax returns and reports required of the Practice including such returns and reports required with respect to the Professional
Practice Account. All costs and expenses relating to the preparation of such returns and reports shall be deemed a Practice Expense. 
  
 4.12 Shareholders’ Undertaking to Enforce Certain Provisions of Agreement. The Practice shall cause to be executed by all Shareholders of the
Practice an undertaking in the form of Exhibit 4.12 by such Shareholders to ensure that the covenants not to compete described in Section 4.7 of this Professional Business Management Agreement are enforced by the Practice against any individuals
violating such covenants. 
  
 4.13 Limitations on Actions of
the Practice. The Practice shall not take any of the following actions without the express prior written consent of Professional Business Manager: 
  
 (a) Any action leading to or intended to result in the merger, combination or consolidation of the Practice or Office with, or acquisition of the
Practice, the Office, or their businesses by, any other entity; 
  

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 (b) Mortgage or encumber any of the Practice’s real, personal or mixed property as security for any
indebtedness which is not contemplated by the Budget; 
  
 (c) Pay
any dividend or make any other distribution, whether in cash or in kind, to Shareholders of the Practice, if any compensation owed by the Practice to Professional Business Manager hereunder has not been paid in full, and if any and all monetary
obligations of the Practice to Professional Business Manager have not been fully paid in accordance with the terms of any and all documents governing such obligations; provided, however, that the foregoing shall not prevent payment of
Shareholder’s Salary, Bonus, payroll taxes thereon, and certain Shareholder Expenses as set forth in Section 3.10(b); 
  
 (d) Dissolve or liquidate the Practice, or take any action with a view to or likely to have the result of the dissolution or liquidation of the Practice;
or 
  
 (e) Authorize the provision of professional services such
that the income derived therefrom is not owned by the Practice; provided that no such consent is necessary for (i) professional services performed by Professionals during said Professionals’ vacation time, or (ii) professional services
performed in connection with duties and responsibilities as a member of the Reserves or National Guard. 
  
 4.14 Leases of Office. The Practice shall maintain and fulfill all of its obligations under leases of Office facilities or locations. 

 
 ARTICLE V 
  
 BUSINESS MANAGER’S COMPENSATION. 
  
 5.1 Base Management Fee. The Practice and Professional Business Manager agree to the compensation set forth herein as
being paid to Professional Business Manager in consideration of a substantial commitment made by Professional Business Manager hereunder and that such fees are fair and reasonable. Each month Professional Business Manager shall be paid that
percentage set forth in Exhibit 5.1 of Adjusted Gross Revenue. 
  
 5.2 Reasonable Value. Payment of the Management Fee is not intended to be and shall not be interpreted or applied as permitting Professional Business Manager to share in the Practice’s fees for Professional Eye Care Services or
any other services, but is acknowledged as the Parties’ negotiated agreement as to the reasonable fair market value of Professional Business Manager’s commitment to pay all Office Expenses and the fair market value of the equipment,
contract analysis and support, other support services, purchasing, personnel, management, administration, strategic management and other items and services furnished by Professional Business Manager pursuant to the Professional Business Management
Agreement, considering the nature and volume of the services required and the risks assumed by Professional Business Manager. The Practice and Professional Business Manager recognize and acknowledge that Professional Business Manager will incur
substantial costs and business risks in undertaking to pay all Office Expenses and in providing the support services, personnel, marketing, management, administration, and other items and services that are the subject matter of this Professional
Business Management Agreement. It is the intent of the Parties that the Management Fee reasonably compensate Professional Business Manager for the value to the Practice of Professional Business Manager’s administrative expertise, given the
considerable business risk to Professional Business Manager in providing the Management Services that are the subject of this Professional Business Management Agreement. 
  

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 5.3 Payment of Management Fee. To facilitate the payment of the Management Fee as provided in
Section 5.1 hereof, the Practice hereby expressly authorizes Professional Business Manager to make withdrawals of the Management Fee from the Professional Practice Account as such fee becomes due and payable during the Term in accordance with
Section 3.10(a) and after termination as provided in Section 6.3. Professional Business Manager shall deliver to the Practice an invoice for the Management Fee accompanied by a reasonably detailed statement of the information upon which the
Management Fee calculation is based. 
  
 5.4 Disputes Regarding
Fees. 
  
 (a) It is the Parties’ intent that any
disputes regarding performance standards of the Professional Business Manager be resolved to the extent possible by good faith negotiation. To that end, the Parties agree that if the Practice in good faith believes that Professional Business Manager
has failed to perform its obligations, and that as a result of such failure, the Practice is entitled to a set-off or reduction in its Management Fees, the Practice shall give Professional Business Manager notice of the perceived failure and request
in the notice a set-off or reduction in Management Fees. Professional Business Manager and the Practice shall then negotiate the dispute in good faith, and if an agreement is reached, the Parties shall implement the resolution without further
action. At the request of Professional Business Manager or the Practice, the Practice Advisory Council shall make recommendations to Professional Business Manager with respect to any dispute concerning a set off or reduction in Management Fees.

  
 (b) If the Parties cannot reach a resolution within a
reasonable time, the Parties shall submit the dispute to mediation to be conducted in accordance with the American Arbitration Association’s Commercial Mediation Rules. 
  
 (c) If the mediation process fails to resolve the dispute, the dispute shall be submitted by either Party to binding
arbitration under Section 8.7. 
  
 ARTICLE VI 
  
 TERM AND TERMINATION 
  
 6.1 Initial and Renewal Term. The Term of this Professional Business
Management Agreement will be for an initial period of forty (40) years after the effective date, and shall be automatically renewed for successive five (5) year periods thereafter, provided that neither Professional Business Manager nor the Practice
shall have given notice of termination of this Professional Business Management Agreement at least one hundred twenty (120) days before the end of the initial term or any renewal term, or unless otherwise terminated as provided in Section 6.2 of
this Professional Business Management Agreement. 
  
 6.2
Termination. 
  
 (a) Termination by the Practice.
The Practice may immediately terminate this Professional Business Management Agreement at its discretion, upon written notice pursuant to Section 8.3, as follows: 
  
 (i) If Professional Business Manager becomes insolvent by reason of its inability to pay its debts as they mature; is
adjudicated bankrupt or insolvent; files a petition in bankruptcy, 

  

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reorganization or similar proceeding under the bankruptcy laws of the United States or shall have such a petition filed against it which is not discharged
within thirty (30) days; has a receiver or other custodian, permanent or temporary, appointed for its business, assets or property; makes a general assignment for the benefit of creditors; has its bank accounts, property or accounts attached; has
execution levied against its business or property; or voluntarily dissolves or liquidates or has a petition filed for corporate dissolution and such petition is not dismissed with thirty (30) days; 
  
 (ii) If the Professional Business Manager fails to comply with any material
provision of this Professional Business Management Agreement and does not correct such failure within ninety (90) days after written notice of such failure to comply is delivered by the Practice specifying the nature of the breach in reasonable
detail; or 
  
 (iii) Professional Business Manager commits any
act of fraud, misappropriation or embezzlement, or any other felony and as a result the Professional Business Manager is unable to substantially perform under the terms of this Professional Business Management Agreement. 
  
 (b) Termination by Professional Business Manager Professional Business
Manager may immediately terminate this Professional Business Management Agreement at its discretion, upon written notice pursuant to Section 8.3, as follows: 
  

(i) The revocation, suspension, cancellation or restriction of any Shareholders’ license to practice optometry in any of the Practice Areas if,
in the reasonable discretion of the Professional Business Manager, the Practice will not be financially viable after such revocation, suspension, cancellation, or restriction. 
  
 (ii) If the Practice becomes insolvent by reason of its inability to pay its debts as they mature; is adjudicated bankrupt
or insolvent; files a petition in bankruptcy, reorganization or similar proceeding under the bankruptcy laws of the United States or shall have such a petition filed against it which is not discharged within thirty (30) days; has a receiver or other
custodian, permanent or temporary, appointed for its business, assets or property; makes a general assignment for the benefit of creditors; has its bank accounts, property or accounts attached; has execution levied against its business or property;
or voluntarily dissolves or liquidates or has a petition filed for corporate dissolution and such petition is not dismissed with thirty (30) days; 
  
 (iii) If the Practice fails to comply with any material provision of this Professional Business Management Agreement, or any other agreement with
Professional Business Manager, and does not correct such failure within ninety (90) days after written notice of such failure to comply is delivered by Professional Business Manager specifying the nature of the breach in reasonable detail;

  
 (iv) If the Practice or any of the Practice Professionals
commit any act of fraud, misappropriation or embezzlement, or any other felony and as a result the Practice as an entire entity is unable to substantially perform under the terms of this Professional Business Management Agreement; or 
  
 (v) If any of the material representations of the Practice are false or
incorrect when made or hereafter become materially false or incorrect or any warranty of the Practice is materially breached. 
  

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 (c) Termination by Agreement. In the event the Practice and Professional Business Manager shall
mutually agree in writing, this Professional Business Management Agreement may be terminated on the date specified in such written agreement. 
  
 (d) Legislative, Regulatory or Administrative Change. In the event there shall be a change in the Medicare or Medicaid statutes, federal statutes,
state statutes, case law, administrative interpretations, regulations or general instructions, the adoption of new federal or state legislation, a change in any third-party reimbursement system, or any finding, ruling, or decree of any regulatory
body concerning this Professional Business Management Agreement, any of which are reasonably likely to materially and adversely affect the manner in which either Party may perform or be compensated for its services under this Professional Business
Management Agreement or which shall make this Professional Business Management Agreement or any related agreements unlawful or unenforceable, or which would be reasonably likely to subject either Party to this Professional Business Management
Agreement, or any member, shareholder, officer, director, employee, agent or affiliated organization to any civil or criminal penalties or administrative sanctions, the Parties shall immediately use their best efforts to enter into a new service
arrangement or basis for compensation for the services furnished pursuant to this Professional Business Management Agreement that complies with the law, regulation, policy, finding, ruling, or decree, or which minimizes the possibility of such
penalties, sanctions or unenforceability, and that approximates as closely as possible the economic position of the Parties prior to the change. If the Parties are unable to reach a new agreement within sixty (60) days, this Professional Business
Management Agreement shall be terminated upon ninety (90) days written notice by either party to the other. 
  
 6.3 Effects of Termination. 
  
 (a) Obligation After Termination. Upon termination of this Professional Business Management Agreement, as hereinabove provided, neither Party shall
have any further obligations hereunder except for 
  
 (i)
obligations accruing prior to the date of termination, including, without limitation, payment of the Management Fee relating to services provided prior to the termination of this Professional Business Management Agreement; 
  
 (ii) obligations, promises, or covenants set forth herein that are expressly
made to extend beyond the Term, including, without limitation, insurance, indemnities and non-competition provisions, which provisions shall survive the expiration or termination of this Professional Business Management Agreement; 
  
 (iii) the obligation of the Practice described in Section 6.4; and

  
 (iv) the obligation of the Practice to repay amounts advanced
by Professional Business Manager to the Practice. 
  
 (b)
Receipt of Collections After Termination. In effectuating the provisions of this Section 6.3, the Practice specifically acknowledges and agrees that if this Professional Business Management Agreement terminates pursuant to Sections 6.1,
6.2(b) or 6.2 (d), Professional Business Manager shall continue for a period not to exceed ninety (90) days to exclusively collect and receive on behalf of the Practice all cash collections from accounts receivable in existence at the time this
Professional Business Management Agreement is terminated, it being understood that 
  

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 (i) such cash collections will represent compensation to Professional Business Manager to the extent of
all outstanding obligations to Professional Business Manager by the Practice pursuant to this Agreement for Management Services already rendered; 
  
 (ii) Professional Business Manager shall not be entitled to collect accounts receivable after the termination date if this Agreement is terminated
pursuant to Section 6.2(a); 
  
 (iii) the Professional Business
Manager shall deduct from such cash collections any other amounts owed to Professional Business Manager under this Professional Business Management Agreement, including, without limitation, ten percent (10%) of such cash collections as its
Management Fee during any period after the termination of this Professional Business Management Agreement while such collections are taking place and any reasonable costs incurred by Professional Business Manager in carrying out the post termination
procedures and transactions contemplated herein; and 
  
 (iv)
Professional Business Manager shall remit remaining amounts from such collection activities, if any, to the Practice. 
  
 (c) Surrender of Books After Termination. Upon the expiration or termination of this Professional Business Management Agreement for any reason or
cause whatsoever, Professional Business Manager shall surrender to the Practice all books and records pertaining to the Office. 
  
 6.4 Purchase Obligation. Upon expiration of this Professional Business Management Agreement in accordance with Section 6.1 or termination of this
Professional Business Management Agreement by Professional Business Manager, as set forth in Sections 6.2(b) or 6.2(d) above, the Practice shall upon Professional Business Manager’s demand: 
  
 (a) Purchase from Professional Business Manager at book value all of the
assets, tangible and intangible, including without limitation equipment, furniture, goodwill, intellectual property, inventory, and supplies, used in, or related to, the operations of the Office and all replacements and additions thereto made by
Professional Business Manager pursuant to the performance of its obligations under this Professional Business Management Agreement, set forth on the books of Professional Business Manager as adjusted through the last day of the month most recently
ended prior to the date of such termination in accordance with GAAP to reflect operations of the Office, depreciation, amortization, and other adjustments of assets shown on the books of Professional Business Manager; 
  
 (b) Assume all contracts and leases and the Practice’s pro rata share of
all debts and payables that are obligations of Professional Business Manager and that relate principally to the performance of Professional Business Manager’s obligations under this Professional Business Management Agreement; provided, however,
that the Practice shall only be obligated to assume such contacts and leases if a reasonable third person would conclude that the Practice will be able to enjoy the benefits of the contracts and leases following such assumption; and 
  
 (c) Cause to be executed by Shareholders of the Practice such security
agreements reasonably required by Professional Business Manager in connection with the purchase described in this Section 6.4. All current Shareholders of the Practice shall on or before the effective date of this Professional Business Management
Agreement, and all individuals who become Shareholders of the Practice after the effective date of commencement of this Professional Business Management Agreement shall upon becoming a Shareholder of the Practice, execute and deliver to Professional
Business Manager an undertaking to comply with this Section 6.4 which shall be in the form of Exhibit 6.4. 
  

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 6.5 Closing of Purchase. When the Practice purchases the assets pursuant to Section 6.4, the
Practice shall pay cash or deliver a note payable in equal monthly installments over five (5) years at an interest rate not to exceed “prime” plus one (1%) percent (“prime” being the commercial lending rate of NationsBank, N.A.
), per annum, for the purchased assets. The amount of the purchase price shall be reduced by the amount of debt and liabilities of Professional Business Manager, if any, assumed by the Practice, by any payment the Professional Business Manager has
failed to make under this Professional Business Management Agreement, and by any unpaid portion of any promissory notes payable by Professional Business Manager to any Shareholder of the Practice. The Practice and all Shareholders of the Practice
shall execute such documents as may be required to assume the liabilities set forth in Section 6.4(b) and to remove Professional Business Manager from any liability with respect to such purchased assets. The closing date for the purchase shall be
determined by the Parties, but shall in no event occur later than the expiration date of this Professional Business Management Agreement if this Agreement expires in accordance with Section 6.1, or sixty (60) days from the date of the notice of
termination for cause. The termination of this Professional Business Management Agreement shall become effective upon the closing of the sale of the assets if the assets are purchased, and all Parties shall be released from any restrictive covenants
provided for in Section 4.7 on the closing date. From and after any termination, each Party shall provide the other Party with reasonable access to the books and records then owned by it to permit such requesting Party to satisfy reporting and
contractual obligations that may be required of it. 
  
 6.6
Limitation of Liability. IN NO EVENT SHALL PROFESSIONAL BUSINESS MANAGER BE LIABLE TO THE PRACTICE FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOST PROFITS, ARISING OUT OF OR RELATED TO THIS PROFESSIONAL BUSINESS MANAGEMENT
AGREEMENT OR THE PERFORMANCE OR BREACH THEREOF, EVEN IF PROFESSIONAL BUSINESS MANAGER HAS BEEN ADVISED OF THE POSSIBILITY THEREOF; PROVIDED, HOWEVER, THAT THE FOREGOING SHALL NOT PREVENT RECOVERY OF ACTUAL DAMAGES ARISING OUT OF OR RELATED TO THIS
PROFESSIONAL BUSINESS MANAGEMENT AGREEMENT. 
  
 ARTICLE VIII

  
 INDEMNIFICATION; THIRD PARTY CLAIMS 
  
 7.1 Indemnification by the Practice. The Practice shall indemnify and
hold harmless Professional Business Manager and Professional Business Manager’s shareholders, directors, officers, agents and employees, from and against all claims, demands, liabilities, losses, damages, costs and expenses, including
reasonable attorneys’ fees, resulting in any manner, directly or indirectly, from the negligent or intentional acts or omissions of the Practice or its members, Shareholders, directors, officers, employees, agents or independent contractors,
including but not limited to any such claims, demands, liabilities, losses, damages, costs and expenses which accrued or arose prior to the date of execution of this Professional Business Management Agreement. 
  
 7.2 Indemnification by Professional Business Manager. Professional
Business Manager shall indemnify and hold harmless the Practice, and the Practice’s members, Shareholders, directors, officers, agents and employees, from and against any and all claims, demands, liabilities, losses, damages, costs and
expenses, including reasonable attorneys’ fees, resulting in any manner, directly or indirectly, from the negligent or intentional acts or omissions of Professional Business Manager or its shareholders, directors, officers, employees, agents or
independent contractors. 
  

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 7.3 Notice of Claim for Indemnification. No claims for indemnification under this Professional
Business Management Agreement relating to claims solely between the Parties shall be valid unless notice of such claim is delivered to the Practice (in the case of a claim by Professional Business Manager) or Professional Business Manager (in the
case of a claim by the Practice) within one (1) year after the Party making such claim first obtained knowledge of the facts upon which such claim is based. Any such notice shall set forth in reasonable detail, to the extent known by the Party
giving such notice, the facts on which such claim is based and the resulting estimated amount of damages. 
  
 7.4 Matters Involving Third Parties. 
  
 (a) If the Practice or Professional Business Manager receives notice or acquires knowledge of any matter which may give rise to a claim by another person
and which may then result in a claim for indemnification under this Professional Business Management Agreement, then: (i) if such notice or knowledge is received or acquired by the Practice, the Practice shall promptly notify Professional Business
Manager; and (ii) if such notice or knowledge is received or acquired by Professional Business Manager, the Professional Business Manager shall promptly notify the Practice; except that no delay in giving such notice shall diminish any obligation
under this Professional Business Management Agreement to provide indemnification unless (and then solely to the extent) the Party from whom such indemnification is sought is prejudiced. 
  
 (b) Any Party from whom such indemnification (the “Indemnifying Party”) is sought shall have the right to defend
the Party seeking such indemnification (the “Indemnified Party”) against such claim by another person (the “Third Party Claim”) with counsel of the Indemnifying Party’s choice reasonably satisfactory to the Indemnified Party
so long as: (i) within fifteen (15) days after the Indemnified Party has given notice of the Third Party Claim to the Indemnifying Party, the Indemnifying Party notifies the Indemnified Party that the Indemnifying Party will indemnify the
Indemnified Party from and against all adverse consequences the Indemnified Party may suffer caused by, resulting from, arising out of or relating to such Third Party Claim; (ii) the Indemnifying Party provides the Indemnified Party with evidence
reasonably satisfactory to the Indemnified Party that the Indemnifying Party has the financial resources necessary to defend against the Third Party Claim and fulfill its indemnification obligations; (iii) the Third Party Claim seeks money damages;
(iv) settlement of, or an adverse judgment with respect to, the Third Party Claim (other than an optometric malpractice claim) is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential custom or practice adverse
to the continuing business interests of the Indemnified Party; and (v) the Indemnifying Party conducts the defense of the Third Party Claim actively and diligently. 
  
 (c) So long as the Indemnifying Party is conducting the defense of the Third Party Claim in accordance with Section 7.4(b):
(i) the Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim; (ii) the Indemnified Party shall not consent to the entry of any judgment or enter into any settlement
with respect to the Third Party Claim without the prior consent of the Indemnifying Party; and (iii) the Indemnifying Party shall not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the
prior consent of the Indemnified Party. 
  

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 (d) If any of the conditions specified in Section 7.4(b) is not satisfied, however, (i) the Indemnified
Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it may deem advisable (and the Indemnified Party need not consult with, or obtain any consent from,
any Indemnifying Party in connection therewith); (ii) the Indemnifying Party shall reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third Party Claim (including reasonable attorneys’ and
accountants’ fees and expenses); and (iii) the Indemnifying Party shall remain responsible for any adverse consequences the Indemnified Party may suffer caused by, resulting from, arising out of or relating to such Third Party Claim to the
fullest extent provided in this Professional Business Management Agreement. 
  
 7.5 Settlement. Except as permitted by Section 7.4, a Party shall not compromise or settle any claim for which the other Party is obligated to indemnify it without the written consent of such Party. 

 
 7.6 Cooperation. The Indemnified Party shall make available all
information and assistance that the Indemnifying Party may reasonably request in conjunction with assessing, defending and settling said claim. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 8.1 Administrative Services Only. Nothing in this Professional Business Management Agreement is intended or shall be construed to allow Professional Business Manager to exercise control, authority or direction
over the manner or method by which the Practice and its Professionals perform Professional Eye Care Services or other professional health care services. The rendition of all Professional Eye Care Services, including, but not limited to, the
prescription or administration of medicine and drugs, shall be the sole responsibility of the Practice and its Professionals, and Professional Business Manager shall not interfere in any manner or to any extent therewith. Nothing contained in this
Professional Business Management Agreement shall be construed to permit Professional Business Manager to engage in the practice of optometry, it being the sole intention of the Parties hereto that the services to be rendered to the Practice by
Professional Business Manager are solely for the purpose of providing non-optometric management and administrative services (including, where permitted by applicable state law, Optical Services) to the Practice so as to enable the Practice to devote
its full time and energies to the professional conduct of its professional eye care practice and provision of Professional Eye Care Services to its patients. 
  
 8.2 Status of Independent Contractor. The Practice and Professional Business Manager and their shareholders are not, and shall not be deemed to be
by virtue of this Professional Business Management Agreement, joint venturers, partners, employees or agents of each other (except as expressly provided in this Professional Business Management Agreement). Except as may be expressly provided herein,
neither Party shall have any authority to bind the other without the other’s express written consent; and then only to the extent of the authority conferred by such express written consent. Each Party is an independent contractor, and each
Party shall remain professionally and economically independent of the other. In the course of the business relationship contemplated in this Professional Business Management Agreement only the Practice and its Professionals shall practice optometry
and/or therapeutic optometry, and they shall do so as independent professionals with no employment relationship to Professional Business Manager. Professional Business Manager and the Practice agree that the Practice shall retain absolute authority
to direct the optometric, professional, and ethical aspects 

  

 - 34 - 

 
of its optometric and/or therapeutic optometric practice, any authority granted herein to Professional Business Manager concerning the business and
administrative aspects of such practice notwithstanding. Each party shall be solely responsible for and shall comply with all state and federal laws applicable to that party pertaining to employment taxes, income tax withholding, unemployment
compensation contributions, and other employment related matters. 
  
 8.3 Notices. Any notice, demand, or communication required, permitted, or desired to be given hereunder shall be deemed effectively given when in writing and personally delivered or mailed by prepaid certified or registered mail,
return receipt requested, addressed as follows: 
  

					
	 	 	The Practice:	  	 Dr. Mark Lynn & Associates, PLLC
 516 East Highway
131
 Clarksville, Indiana 47129
 Attention: Mark E. Lynn, O.D.,
President

			
	 	 	Professional Business Manager:	  	 Visionary MSO, Inc.
 11103 West Avenue
 San Antonio, Texas 78213
 Attention: Mark Alsteadt, Vice
President

			
	 	 	with a copy to:	  	 Cox & Smith Incorporated
 112 E. Pecan, Suite
1800
 San Antonio, Texas 78205
 Attention: James B. Smith,
Jr.

  
 or to such other address, or to the
attention of such other person or officer, as any party may by written notice designate. 
  
 8.4 Governing Law. This Professional Business Management Agreement shall in all respects be governed, interpreted and construed in accordance with the laws of the Commonwealth of Kentucky without giving effect
to principles of comity or conflicts of laws thereof. 
  
 8.5
Jurisdiction and Venue. Professional Business Manager and the Practice hereby consent to the personal jurisdiction and venue of the state and federal courts in the judicial circuit where the Practice has its principal corporate office, and do
hereby waive all questions of personal jurisdiction and venue, including, without limitation, the claim or defense that such courts constitute an inconvenient forum. 
  
 8.6 Assignment. Except as may be herein specifically provided to the contrary, this Professional Business Management
Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives, successors, and assigns; provided, however, that the Practice may not assign this Professional Business Management Agreement
without the prior written consent of Professional Business Manager, which consent may be withheld. Professional Business Manager may assign or transfer its rights and obligations under this Professional Business Management Agreement only in the
following situations: (a) pursuant to a merger of Professional Business Manager into another entity or the sale of substantially all of the assets of Professional Business Manager; (b) pursuant to the sale and/or assignment of all of this
Professional Business Management Agreement with the Practice’s consent, which shall not be unreasonably withheld; (c) pursuant to a transfer or assignment of this Professional Business Management Agreement to one of Professional Business
Manager’s subsidiaries; or (d) pursuant 

  

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to any transfer or assignment to or by any financial lender of the Professional Business Manager, and this Professional Business Management Agreement is
subordinate to the rights of such lender. After such assignment and transfer, the Practice agrees to look solely to such assignee or transferee for performance of this Professional Business Management Agreement. 
  
 8.7 Arbitration. Any and every dispute of any nature whatsoever that
may arise between the Parties, whether sounding in contract, statute, tort, fraud, misrepresentation, discrimination or any other legal theory, including, but not limited to, disputes relating to or involving the construction, performance or breach
of this Agreement or any other agreement between the Parties, whether entered into prior to, on, or subsequent to the date of this Agreement, or those arising under any federal, state or local law, regulation or ordinance, shall be determined by
binding arbitration in accordance with the then—current commercial arbitration rules of the American Arbitration Association, to the extent such rules do not conflict with the provisions of this paragraph. If the amount in controversy in the
arbitration exceeds Two Hundred Fifty Thousand Dollars ($250,000), exclusive of interest, attorneys’ fees and costs, the arbitration shall be conducted by a panel of three (3) neutral arbitrators. Otherwise, the arbitration shall be conducted
by a single neutral arbitrator. The Parties shall endeavor to select neutral arbitrators by mutual agreement. If such agreement cannot be reached within thirty (30) calendar days after a dispute has arisen which is to be decided by arbitration, any
Party or the Parties jointly shall request the American Arbitration Association to submit to each Party an identical panel of fifteen (15) persons. Alternate strikes shall be made to the panel, commencing with the Party bringing the claim, until the
names of three (3) persons remain, or one (1) person if the case is to be heard by a single arbitrator. The Parties may, however, by mutual agreement, request the American Arbitration Association to submit additional panels of possible arbitrators.
The person(s) thus remaining shall be the arbitrator(s) for such arbitration. If three (3) arbitrators are selected, the arbitrators shall elect a chairperson to preside at all meetings and hearings. The arbitrator(s), or a majority of them, shall
have the power to determine all matters incident to the conduct of the arbitration, including without limitation all procedural and evidentiary matters and the scheduling of any hearing. The award made by a majority of the arbitrators shall be final
and binding upon the Parties thereto and the subject matter thereof. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the award rendered by the arbitrator(s) may be entered by any
court having jurisdiction thereof. The arbitrators shall have no authority to award punitive or exemplary damages or any statutory multiple damages, and shall only have the authority to award compensatory damages, arbitration costs, attorney’s
fees, declaratory relief, and permanent injunctive relief, if applicable. Unless otherwise agreed by the parties, the arbitration shall be held in Louisville, Kentucky. This Section 8.7 shall not prevent either Party from seeking a temporary
restraining order or temporary or preliminary injunctive relief from a court of competent jurisdiction in order to protect its rights under this Agreement. In the event a Party seeks such injunctive relief pursuant to this Agreement, such action
shall not constitute a waiver of the provisions of this Section 8.7, which shall continue to govern any and every dispute between the Parties, including without limitation the right to damages, permanent injunctive relief and any other remedy, at
law or in equity. 
  
 8.8 Waiver of Jury Trial. EACH OF
THE PARTIES TO THIS AGREEMENT WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY DISPUTE OF ANY NATURE WHATSOEVER THAT MAY ARISE BETWEEN THEM, INCLUDING, BUT NOT LIMITED TO, THOSE DISPUTES RELATING TO, OR INVOLVING IN ANY WAY, THE CONSTRUCTION, PERFORMANCE OR
BREACH OF THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE PARTIES, THE PROVISIONS OF ANY FEDERAL, STATE OR LOCAL LAW, REGULATION OR ORDINANCE NOTWITHSTANDING. By execution of this Agreement, each of the parties hereto acknowledges and agrees
that it has had an opportunity to consult with legal counsel and that he/she it 

  

 - 36 - 

 
knowingly and voluntarily waives any right to a trial by jury of any dispute pertaining to or relating in any way to the transactions contemplated by this
Agreement, the provisions of any federal, state or local law, regulation or ordinance notwithstanding. 
  
 8.9 Waiver of Breach. The waiver by either Party of a breach or violation of any provision of this Professional Business Management Agreement shall
not operate as, or be construed to constitute, a waiver of any subsequent breach of the same or another provision hereof. 
  
 8.10 Enforcement. In the event either Party resorts to legal action to enforce or interpret any provision of this Professional Business Management
Agreement, the prevailing Party shall be entitled to recover the costs and expenses of such action so incurred, including, without limitation, reasonable attorneys’ fees. 
  
 8.11 Gender and Number. Whenever the context of this Professional Business Management Agreement requires, the gender
of all words herein shall include the masculine, feminine, and neuter, and the number of all words herein shall include the singular and plural. 
  
 8.12 Additional Assurances. Except as may be herein specifically provided to the contrary, the provisions of this Professional Business Management
Agreement shall be self-operative and shall not require further agreement by the Parties; provided, however, at the request of either Party, the other Party shall execute such additional instruments and take such additional acts as are reasonable
and as the requesting Party may deem necessary to effectuate this Professional Business Management Agreement. 
  
 8.13 Consents, Approvals, and Exercise of Discretion. Whenever this Professional Business Management Agreement requires any consent or approval to
be given by either Party, or either Party must or may exercise discretion, and except where specifically set forth to the contrary, the Parties agree that such consent or approval shall not be unreasonably withheld or delayed, and that such
discretion shall be reasonably exercised. 
  
 8.14 Force
Majeure. Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this Professional Business Management Agreement or other interruption of service deemed to result, directly or indirectly, from acts
of God, civil or military authority, acts of public enemy, war accidents, fires, explosions, earthquakes, floods, failure of transportation, strikes or other work interruptions by either Party’s employees, or any other similar cause beyond the
reasonable control of either Party unless such delay or failure in performance is expressly addressed elsewhere in this Professional Business Management Agreement. Notwithstanding the same, the Parties hereto agree to continue this Professional
Business Management Agreement to the best degree they can so long as reasonably possible and the Practice shall not be excused from its obligations under Sections 4.1, 6.4 and 6.5 pursuant to this Section 8.14. 
  
 8.15 Severability. The Parties hereto have negotiated and prepared the
terms of this Professional Business Management Agreement in good faith with the intent that each and every one of the terms, covenants and conditions herein be binding upon and inure to the benefit of the respective Parties. Accordingly, if any one
or more of the terms, provisions, promises, covenants or conditions of this Professional Business Management Agreement or the application thereof to any person or circumstance shall be adjudged or rendered to any extent invalid, unenforceable, void
or voidable for any reason whatsoever by a court of competent jurisdiction, an arbitration tribunal, a regulatory agency, or statute such provision shall be reformed, construed and enforced as if such unenforceable provision had not been 

  

 - 37 - 

 
contained herein, and each and all of the remaining terms, provisions, promises, covenants and conditions of this Professional Business Management Agreement
or their application to other persons or circumstances shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. To the extent this Professional Business Management Agreement is in violation of
applicable law, then the Parties agree to negotiate in good faith to amend the Professional Business Management Agreement, to the extent possible consistent with its purposes, to conform to law. 
  
 8.16 Press Releases and Public Announcements. Except as otherwise
required by law or by applicable rules of any securities exchange or association of securities dealers, neither the Practice nor the Professional Business Manager shall issue any press release, make any public announcement or otherwise disclose any
information for the purpose of publication by any print, broadcast or other public media, relating to the transactions contemplated by this Agreement, without the prior approval of the other Party. 
  
 8.17 Divisions and Headings. The division of this Professional
Business Management Agreement into articles, sections, and subsections and the use of captions and headings in connection therewith are solely for convenience and shall not affect in any way the meaning or interpretation of this Professional
Business Management Agreement. 
  
 8.18 Amendments and
Execution. This Professional Business Management Agreement and any amendments hereto shall be in writing and executed in multiple copies on behalf of the Practice by its President, and on behalf of Professional Business Manager by its President
or other authorized officer. Each multiple copy shall be deemed an original, but all multiple copies together shall constitute one and the same instrument. 
  
 8.19 Licenses, Permits and Certificates. Professional Business Manager and the Practice shall each obtain and maintain in effect, at all times
during the term of this Professional Business Management Agreement, all licenses, permits and certificates required by law which are applicable to the performance of their respective obligations pursuant to this Professional Business Management
Agreement. 
  
 8.20 No Third Party Beneficiaries. Except as
otherwise provided herein, this Professional Business Management Agreement shall not confer any rights or remedies upon any person other than Professional Business Manager and the Practice and their respective successors and permitted assigns.

  
 8.21 Compliance with Applicable Laws. Professional
Business Manager and the Practice shall comply with all applicable federal, state and local laws, regulations, rules and restrictions in the conduct of their obligations under this Professional Business Management Agreement. 
  
 8.22 Language Construction. The Practice and Professional Business
Manager acknowledge that each Party hereto and its counsel have reviewed and revised this Professional Business Management Agreement and agree that the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting Party shall not be employed in the interpretation of this Professional Business Management Agreement. 
  
 8.23 Entire Professional Business Management Agreement. With respect to the subject matter of this Professional Business Management Agreement, this
Professional Business Management Agreement supersedes all previous contracts and constitutes the entire agreement between the Parties. Neither Party shall be entitled to benefits other than those specified herein. No prior oral statements or
contemporaneous negotiations or understandings or prior written material not specifically incorporated herein shall be of any 

  

 - 38 - 

 
force and effect, and no changes in or additions to this Professional Business Management Agreement shall be recognized unless incorporated herein by
amendment as provided herein, such amendment(s) to become effective on the date stipulated in such amendment(s). The Parties specifically acknowledge that, in entering into and executing this Professional Business Management Agreement, the Parties
rely solely upon the representations and agreements contained in this Professional Business Management Agreement and no others. 
  
 8.24 Authority. Professional Business Manager and the Practice hereby warrant and represent to each other that they have the requisite corporate
authority to execute and deliver this Professional Business Management Agreement in their respective names. 
  
 (The remainder of this page is intentionally left blank.) 
  

 - 39 - 

 IN WITNESS WHEREOF, the Practice and Professional Business Manager have caused this Professional
Business Management Agreement to be executed by their duly authorized representatives, all as of the day and year first above written. 
  

			
	 DR. MARK LYNN & ASSOCIATES, PLLC

	 “The Practice”

		
	 By:
	 	 /s/ Mark E. Lynn

	 	 	 Mark E. Lynn, O.D., President

	
	 VISIONARY MSO, INC.

	 “Professional Business Manager”

		
	 By:
	 	 /s/ Douglas C. Shepard

	 	 	 Douglas C. Shepard, Vice President

	 	 	 Secretary and Treasurer

  

 - 40 - 

 EXHIBIT 4.3A 
  
 EMPLOYMENT AGREEMENT (PROFESSIONAL) 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT, made and entered into as of the
                     day of
                    , 199  , by and between
                    O.D. (“Employee”), and Dr. Mark Lynn & Associates, PLLC, a Kentucky professional limited liability company
(“Employer”). 
  
 WITNESSETH: 
  
 WHEREAS, Employee is duly licensed to practice optometry in the Commonwealth
of Kentucky and desires to accept employment to practice optometry as an employee of Employer; 
  
 WHEREAS, Employer is engaged in the practice of optometry and desires to employ Employee; and 
  
 WHEREAS, Employer has offered Employee employment in consideration for the compensation and the other benefits herein provided, and Employee is willing to
accept employment on such terms; 
  
 NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained and other good and valuable consideration, it is agreed as follows: 
  
 1. EMPLOYMENT. Employer hereby employs Employee, and Employee hereby accepts employment from Employer, upon the terms and conditions herein provided.

  
 2. QUALIFICATIONS. Employee shall maintain a valid and
unrestricted license to practice optometry in each jurisdiction in which Employee provides optometry services. In addition, Employee shall at all times during the term of this Agreement maintain at least those qualifications and credentials set
forth in Exhibit “A” attached hereto. 
  
 3. TERM. The
term of this Agreement shall begin on the date first above written and shall continue for a period ending on                      (the
“Initial Term”), unless sooner terminated as herein provided. At the end of the Initial Term or the Renewal Term (as herein defined), this Agreement, unless otherwise terminated, shall automatically renew for a period of one (1) year (the
“Renewal Term”) unless either party gives written notice of non-renewal of this Agreement to the other party sixty (60) days prior to the end of the current term. 
  
 4. COMPENSATION. For all services rendered by Employee under this Agreement (and in addition to other monetary or other
benefits specifically set forth herein), compensation shall be paid to Employee as set forth in Exhibit “B”. 
  
 5. DUTIES. Employee is employed to exclusively and actively practice optometry on behalf of Employer, and shall have those duties, and 

  

 1 

 
responsibilities set forth in Exhibit “A”. Employee shall devote Employee’s entire time and attention to the duties of Employer, and shall not
engage in the practice of optometry except as an employee of Employer, unless otherwise authorized in writing by the Board of Directors of Employer. Employer shall have the authority to determine the assignment of patients to Employee and Employee
must perform services for patients assigned to Employee. Employer shall have the authority to designate the days as well as the hours during the day Employee shall perform Employee’s duties, except as otherwise mutually agreed between Employee
and Employer. The authority to direct, control and supervise the duties, the responsibilities and the means, manner and time of performing such duties shall be exercised by Employer, provided, however, that Employer shall not impose duties or
constraints which would require Employee to infringe the ethics of Employee’s profession, or violate any federal, state or municipal laws, regulations or ordinances. Employee agrees to follow and abide by the ethics of Employee’s
profession, and all applicable federal, state and municipal laws, regulations and ordinances. 
  
 6. OPTOMETRIC RECORDS. Employee shall, in accordance with Employer’s policies, cause to be properly prepared and filed reports of all examinations, procedures and other professional services performed by
Employee. It being understood and agreed that all reports, records and supporting documents which relate to the care and treatment of optometric patients by Employee are maintained by Employer, and the ownership and right of control of all such
reports, records and supporting documents belong to Employer. Employee waives any and all rights in and claims to said records and hereby conveys and transfers to Employer all right, title and interest which Employee may have, if any, in the
reports, records and supporting documents which relate to the care and treatment of optometric patients by Employee. In addition, Employee shall promptly submit such additional records as Employer deems to be required by any third party payors.

  
 7. WORKING FACILITIES. Employer shall furnish Employee with
administrative support, supplies, equipment and such other facilities and services suitable to Employee’s position and adequate for the performance of Employee’s duties and responsibilities. 
  
 8. FEES. Employer shall have the exclusive authority to determine the amount
and nature of all fees and the procedure for establishing the fees to be charged patients of Employer. 
  
 9. OWNERSHIP OF FEES AND INCOME. All income generated by Employee for Employee’s professional services and all activities related thereto shall
belong to Employer, whether paid directly to Employer or to Employee. Employee may be required (and agrees upon request of Employer so to do) to render a true accounting of all transactions relating to Employee’s practice during the course of
Employee’s employment. 
  
 10. PROFESSIONAL LIABILITY
INSURANCE. Employer shall pay for and carry professional liability insurance, insuring Employer and Employee for professional errors, omissions, negligence, incompetence, and malfeasance in such amounts and pursuant to such terms as Employer, in its
sole discretion, deems acceptable. 
  

 2 

 11. BENEFITS AND PERGUISITES. During the term of this Agreement, Employee shall be entitled to
participate in those health, accident and other benefit plans or programs from time to time in effect for other similarly situated employees or classes of employees, and shall be entitled to the specific benefits and perquisites set forth in Exhibit
“B”. 
  
 12. TERMINATION. This Agreement shall terminate
and the employment relationship between Employee and Employer automatically and immediately shall be severed upon the death of Employee, in which event Employer shall pay to the estate of Employee the compensation which otherwise would be payable to
Employee up to the end of the month in which Employee’s death occurs. Additionally, at any time during the Initial Term or any Renewal Term of this Agreement, this Agreement may be terminated and the employment relationship between Employee and
Employer automatically and immediately severed upon written notice by Employer to Employee following the occurrence of any of the following: 
  
 (a) Upon the disability of Employee, such being Employee’s inability to perform one or more of the essential functions of Employee’s position as
required by this Agreement, due to an illness, injury or incapacity exceeding a period of ninety (90) days within a period of twelve consecutive months, provided such termination shall be in accordance with federal, state and local laws to the
extent applicable to the employment of Employee; 
  
 (b) The
suspension, revocation or cancellation of Employee’s right to practice optometry in any state, district or commonwealth; 
  
 (c) The imposition of any restrictions or limitations by any governmental authority having jurisdiction over Employee or Employer to such an extent that
Employee cannot engage in the professional practice for which he or she was employed; 
  
 (d) Upon a material breach by Employee of this Agreement, provided such breach is not cured within thirty (30) days after the Employer provides written notice of the breach to the Employee and within three (3) days
after such notice if such breach has been the subject of a written notice within two (2) years prior to notice of breach hereunder. “Material breach” shall include, but be not limited to, the following: 
  
 (i) Employee fails or refuses, in the determination of Employer, to
faithfully and diligently perform the usual customary duties of Employee’s employment or adhere to the provisions of this Agreement, including those duties, responsibilities and conditions of employment set forth in Exhibit “A”; or
(ii) Employee fails or refuses, in the determination of Employer, to comply with such policies, standards and regulations of Employer which from time to time may be reasonably established by Employer; 
  
 (e) Employee breaches any fiduciary duty owed to Employer, or engages in
unprofessional, unethical, immoral, illegal or fraudulent conduct, or is found guilty of unprofessional, illegal or unethical conduct by court, any board, 
  

 3 

 
institution, organization or professional society having any privilege or right to pass upon the conduct of Employee, or Employee’s conduct discredits
Employer or is detrimental to the reputation, character and standing of Employer; or 
  
 (f) Such other event as is specifically set forth in Exhibit “B” hereto. 
  
 13. EARLY TERMINATION. Employee recognizes that failure to complete the Initial Term or any Renewal Term and to provide appropriate notice to Employer
will cause substantial harm to Employer in terms of loss of business, damage to business reputation, ability to obtain licensed optometrists to replace Employee, inconvenience to other employees of Employer, and the costs associated with finding a
replacement. If Employee should terminate this Agreement and cease to perform hereunder (i) without providing to Employer the required non-renewal notice or (ii) prior to the end of the term of this Agreement, Employee shall pay to Employer the sum
of Three Thousand Dollars ($3,000), as reimbursement to Employer of the costs to Employer associated with said early termination. Employee and Employer agree that it is impossible to determine with any reasonable accuracy the amount of prospective
damages to Employer upon breach by Employee of the provisions of this paragraph. Employee and Employer agree that the payment set forth above is reasonable, and not a penalty, based upon the facts and circumstances of the parties at the time of
entering this Agreement, and with due regard to future expectations. 
  
 14. CONFIDENTIALITY AND COMPETITIVE ACTIVITIES. Employee specifically agrees to the covenants and provisions governing Confidentiality and Competitive Activities set forth in Exhibit “B”. 
  
 15. PATIENT CARE UPON TERMINATION. Upon any termination of this employment
relationship, Employer shall provide duly licensed optometrists to assume the care and treatment of all patients previously assigned to Employee. 
  
 16. RELATIONSHIP BETWEEN THE PARTIES. The parties recognize that the Board of Directors shall manage the business affairs of Employer and that the
relationship between the parties hereto shall be that of an employer and an employee. Employee shall be entitled to participate in any plans, arrangements or distribution of and by Employer pertaining to or in connection with any pension,
profit-sharing, or similar benefits and group life, health, accident and disability insurance or benefits, or similar fringe benefits for the employees of Employer, to the extent of and in accordance with the terms and provisions of any plan,
arrangement or distribution, which may be in effect from time to time during the term of this Agreement. Employee stipulates and agrees that any and all such fringe benefits may be changed, altered, amended, discontinued, decreased or increased in
the sole discretion of the Board of Directors of Employer. 
  
 17.
REMEDIES AND WAIVER OF BREACH. The waiver by any party hereto of any of the terms and conditions hereof or any breach of any provision of this Agreement shall not operate or be construed as a general waiver of any such terms and conditions or permit
a subsequent breach by any party. Additionally, in the event of any violation of paragraph 14 hereof by Employee, the parties hereby recognize and acknowledge that a remedy at law will be inadequate and 

  

 4 

 
Employer may suffer irreparable injury. Accordingly, Employee consents to injunctive relief upon the institution of proceedings therefor by Employer in order
to protect Employer’s rights under such paragraph 14. If any covenant referred to in paragraph 14 or any portion thereof is hereafter construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants
contained therein, which shall be given full effect, without regard to the invalid portions, and any court having jurisdiction shall have the power to reduce the duration and/or area of such covenant and, in its reduced form, such covenant shall
then be enforceable. No delay or omission by Employer in exercising any right or remedy hereunder, or at law or in equity, and no payment to Employee of amounts owing him or her subsequent to the breach of any provision hereof or after the
termination hereof, shall operate as a waiver of any rights or remedies which Employer may have hereunder and no single or partial exercise thereof shall preclude any other or further exercise thereof or of the exercise of any other right or remedy.
Nothing in this paragraph 17 shall constitute a waiver of any of Employer’s rights under paragraph 25 of this Agreement. 
  
 18. ASSIGNMENT. Employee agrees that this Agreement and the rights, interests and benefits hereunder shall not be assigned, transferred, pledged or
hypothecated in any way by Employee. This Agreement shall not be assignable by Employer except pursuant to a merger, to an affiliate of Employer or to a party which succeeds to the ownership of all or substantially all of the business and assets of
Employer. 
  
 19. NOTICES. Any notice given under this Agreement
shall be sufficient if in writing and mailed by either registered or certified U.S. mail, return receipt requested, postage prepaid, to Employer at its permanent address and to Employee at Employee’s residence address last known to Employer.
Any such notice shall be effective upon the earlier of actual receipt or five (5) days after mailing in accordance with the preceding sentence. 
  
 20. INVALID PROVISION. The invalidity or unenforceability of a particular provision of this Agreement shall not affect the other provisions hereof, and
this Agreement shall be construed in all aspects as if such unenforceable or invalid provisions were omitted. 
  
 21. CONSTRUCTION, VENUE AND BINDING EFFECT. THIS AGREEMENT HAS BEEN NEGOTIATED, EXECUTED AND DELIVERED IN THE COMMONWEALTH OF KENTUCKY, AND SHALL IN ALL
RESPECTS BE INTERPRETED, CONSTRUED, AND GOVERNED BY AND IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE COMMONWEALTH OF KENTUCKY. Subject to the arbitration provisions of this Agreement, and without waiving the same, the exclusive venue for
any dispute between the parties hereto arising under this Agreement shall be in the federal and state courts sitting in Commonwealth of Kentucky. The captions used herein as headings of the various paragraphs hereof are for convenience only and are
not to be used in determining or construing the intent or context of this Agreement. This Agreement shall inure to the benefit of and be binding upon the parties, their spouses, heirs, executors, personal representatives, and permitted assigns.

  

 5 

 22. BINDING ARBITRATION. Any and every dispute of any nature whatsoever that may arise between the
Parties, whether sounding in contract, statute, tort, fraud, misrepresentation, discrimination or any other legal theory, including, but not limited to, disputes relating to or involving the construction, performance or breach of this Agreement or
any other agreement between the Parties, whether entered into prior to, on, or subsequent to the date of this Agreement, or those arising under any federal, state or local law, regulation or ordinance, shall be determined by binding arbitration in
accordance with the then-current commercial arbitration rules of the American Arbitration Association, to the extent such rules do not conflict with the provisions of this paragraph. If the amount in controversy in the arbitration exceeds Two
Hundred Fifty Thousand Dollars ($250,000), exclusive of interest, attorneys’ fees and costs, the arbitration shall be conducted by a panel of three (3) neutral arbitrators. Otherwise, the arbitration shall be conducted by a single neutral
arbitrator. The Parties shall endeavor to select neutral arbitrators by mutual agreement. If such agreement cannot be reached within thirty (30) calendar days after a dispute has arisen which is to be decided by arbitration, any Party or the Parties
jointly shall request the American Arbitration Association to submit to each Party an identical panel of fifteen (15) persons. Alternate strikes shall be made to the panel, commencing with the Party bringing the claim, until the names of three (3)
persons remain, or one (1) person if the case is to be heard by a single arbitrator. The Parties may, however, by mutual agreement, request the American Arbitration Association to submit additional panels of possible arbitrators. The person(s) thus
remaining shall be the arbitrators for such arbitration. If three (3) arbitrators are selected, the arbitrators shall elect a chairperson to preside at all. meetings and hearings. The arbitrators, or a majority of them, shall have the power to
determine all matters incident to the conduct of the arbitration, including without limitation all procedural and evidentiary matters and the scheduling of any hearing. The award made by a majority of the arbitrators shall be final and binding upon
the Parties thereto and the subject matter. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1- 16, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction
thereof. The arbitrators shall have no authority to award punitive or exemplary damages or any statutory multiple damages, and shall only have the authority to award compensatory damages, arbitration costs, attorney’s fees declaratory relief,
and permanent injunctive relief, if applicable. Unless otherwise agreed by the parties, the arbitration shall be held in Louisville, Kentucky. This Paragraph 22 shall not prevent either Party from seeking a temporary restraining order or temporary
or preliminary injunctive relief from a court of competent jurisdiction in order to protect its rights under this Agreement. In the event a Party seeks such injunctive relief pursuant to this Agreement, such action shall not constitute a waiver of
the provisions of this Paragraph 22, which shall continue to govern any and every dispute between the Parties, including without limitation the right to damages, permanent injunctive relief and any other remedy, at law or in equity. 
  
 23. WAIVER OF JURY TRIAL. EACH OF THE PARTIES TO THIS AGREEMENT WAIVES ANY

  

 6 

 
RIGHT TO TRIAL BY JURY OF ANY DISPUTE OF ANY NATURE WHATSOEVER THAT MAY ARISE BETWEEN THEM, INCLUDING, BUT NOT LIMITED TO, THOSE DISPUTES RELATING TO OR
INVOLVING, IN ANY WAY THE CONSTRUCTION, PERFORMANCE OR BREACH OF THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE PARTIES, THE PROVISIONS OF ANY FEDERAL, STATE OR LOCAL LAW, REGULATION OR ORDINANCE NOTWITHSTANDING. By execution of this Agreement,
each of the parties hereto acknowledges and agrees that it has had an opportunity to consult with legal counsel and that he/she knowingly and voluntarily waives any right to a trial by jury of any dispute pertaining to or relating in any way to the
transactions contemplated by this Agreement, the provisions of any federal, state or local law, regulation or ordinance notwithstanding. 
  
 24. SURVIVING PROVISIONS. Notwithstanding the termination of this Agreement, whether upon the expiration of the term hereof or by earlier termination in
accordance with the terms hereof or otherwise, the provisions of, and the obligations, rights and remedies of the parties pursuant to, paragraphs 9, 14, 15, 17, 21, 22, 23 and 24 and those sections of Exhibit “B” which so provide, shall
survive the termination of this Agreement and remain in full force and effect. 
  
 25. REPAYMENT. For any sums due to Employer from Employee pursuant to the terms herein, this Agreement shall serve as a specific written authorization by Employee to Employer for it to withhold from his or her
compensation payments owed to Employer including deducting all outstanding amounts upon termination or non-renewal of this Agreement. 
  
 26. ENTIRE AGREEMENT. 
  
 (a) This Agreement (including all exhibits hereto) constitutes the entire agreement between the parties and contains all of the agreements
between the parties with respect to the subject matter hereof and supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to all subject matters hereof and all such prior agreements are hereby
terminated. The exhibits referred to herein and attached hereto are incorporated herein and made a part hereof with the same effect as if set forth at length herein. 
  
 (b) This Agreement may be amended or revoked at any time prior to the death, retirement or termination of
Employee by a written agreement (including amendment and replacement of any exhibit or addendum hereto) executed by Employee and a designated officer of Employer. No change of or modification to this Agreement shall be binding or valid unless the
same be in writing and signed by Employee and Employer. 
  
 (The
remainder of this page is intentionally left blank.) 
  

 7 

 IN WITNESS WHEREOF, the parties have executed this agreement the day and year first above written.

  

			
	 Dr. Mark Lynn & Associates, PLLC
 (“Employer”)

		
	By:	 	 
	 Mark E. Lynn, O.D., President

	
	__________________________________________ ________________________, O.D.
	
	 (“Employee”)

  
 EXHIBIT
“A” 
  
 (Attached to and incorporated into the foregoing
Employment Agreement) 
  
 QUALIFICATIONS AND RESPONSIBILITIES

  
 Employee is an optometrist who is qualified by training and experience to
perform the duties of an optometrist with the available facilities, equipment and supporting technology provided by Employer. Employee is also expected to perform a number of other administrative and business development duties which further the
goals of Employer. Many of these other items require additional time, effort, and dedication to long-term goals and objectives of Employer. 
  
 At all times during the term of this Agreement, Employee shall, as directed by Employer from time to time: 
  

	1.	Work a minimum of              (    ) hours each week. 

  

	2.	When scheduled, be available by telephonic access for purposes of optometric call coverage and consultation. 

  
 EXHIBIT “B” 
  
 (Attached to and incorporated into the foregoing Employment Agreement)

  
 COMPENSATION, BENEFITS, PERQUISITES 
 AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT 
  

	A.	COMPENSATION. For all services rendered by Employee under this Agreement (and in addition to other monetary or other benefits referred to in this Agreement), compensation shall be
paid by Employer to Employee as follows: 

  

 8 

	 	(1)	Employer shall pay Employee, during the Initial Term of this Agreement, a regular salary in the annualized amount of
                             Dollars
($            .00), payable in equal periodic installments in accordance with Employer’s payroll practices and policies in effect from time to time. The regular salary of
Employee shall be adjusted at the beginning of a renewal term by an amount equal to the sum total obtained by multiplying the then current regular annual salary by the CPI Adjustment Factor (defined below). As used herein, the term “CPI
Adjustment Factor” shall mean the amount derived by dividing the CPI (as herein defined) most recently published as of the first day of the calendar year of the beginning of the subsequent term by the CPI most recently published as of the first
day of the calendar year of the beginning of the current term. For purposes hereof “CPI” means the Consumer Price Index of Urban Consumers—For All Urban Consumers (all items 1982—1984 = 100), published by the United States
Department of Labor, Bureau of Labor Statistics (the “Bureau”). If the CPI should ever cease to be published by the Bureau during the term of this Agreement, the CPl Adjustment Factor shall be computed by using an economic index selected
by Employer, of generally recognized standing, that reflects the increase or decrease of the purchasing power of the dollar. 

  

	 	(2)	In addition to the regular salary, Employee may receive a bonus pursuant to a bonus program established by Employer. The amount and time of payment of such bonus and requirements to
obtain such bonus shall be as set forth on Attachment B-1. 

  

	B.	PAID TIME OFF. Each calendar year (which shall be defined as January I through December 31), Employee shall be entitled paid time off, during which time Employee’s compensation
shall continue to be paid in full, in the following amounts: 

  

			
	 YEARS OF FULL-TIME
 EMPLOYMENT

	 	 PAID TIME-OFF
 PER CALENDAR YEAR

	During the 1st calendar year	 	Equivalent of 1 day per full month worked
		
	In the 2nd calendar year	 	12 days if employed less than 6 months in 1st calendar year
		
	 	 	14 days if employed 6 months or more in the 1st calendar year
		
	In the 3rd calendar year and thereafter	 	17 days

  

 9 

 The scheduling of time off shall be subject to the prior approval of Employer. Paid time off is to include time absent
from work (i) for vacation, (ii) due to illness or injury or (iii) for the purpose of attending continuing education conferences and meetings. Once Employee has used all paid time off for a calendar year, any additional time taken off by Employee
during the same calendar year shall be without pay. Paid time-off not used in one Calendar Year may not be accrued and used in the subsequent Calendar Year. All unused paid time-off at the time of termination of employment shall be forfeited. If
Employee is currently employed by Employer a parent, subsidiary or affiliate of Employer at the time of the execution of this Agreement, when determining the number of years of employment for purposes of this section, Employee shall be given credit
for all years of employment during Employee’s current period of employment by Employer. 
  
 In addition to the above referenced paid time off, Employee shall be entitled to the following paid holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

  

	C.	DISABILITY. If Employee is unable to perform Employee’s duties by reason of illness, injury, or any other disability, Employee shall be entitled to receive compensation during
the period of such inability as follows: 

  

	 	(1)	If Employee is unable to perform Employee’s duties by reason of a disability, including illness, injury, or other incapacity (including pregnancy), then for the period of such
disability up to a period of forty-five (45) days, including the use of any and all accrued and unused paid time-off, Employee shall be entitled to receive Employee’s regular salary as specified in this Agreement but in no event shall Employee
be entitled to receive compensation under such circumstances for more than forty-five (45) continuous days, or any forty-five (45) days during a period of one (1) year, including the use of any and all accrued and unused paid time off, provided that
the compensation under this section C shall cease the date Employee is first eligible to receive payment of disability benefits under any disability insurance coverage provided by Employer. 

  

	 	(2)	While Employee is receiving compensation pursuant to this section C, Employee shall be eligible to participate in all employee benefits provided by Employer to the extent allowed
under each of the benefit programs. 

  

	 	(3)	All accrued and unused used paid time-off of Employee for the current calendar year shall first be used in connection with time-off for a disability and shall be deducted from
Employee’s forty-five (45) days of paid disability pursuant to this section C. 

  

	 	(4)	 If a controversy shall arise concerning the existence, cause, 

  

 10 

	 	 
duration, or extent of disability claimed by Employee, the matter shall be resolved by a qualified independent physician mutually acceptable to Employee and
Employer, who will make his determination in writing. If the parties can not agree as to a qualified independent physician, Employer shall appoint one physician and Employee shall appoint one physician, and the two physicians shall appoint a
qualified independent physician who shall make a determination in writing. The determination of disability pursuant to this section C shall be final and binding on the parties. 

  

	D.	INDEMNIFICATION. Employer agrees to, and shall hereby, hold harmless and fully indemnify Employee of and from any and all liability, damage, cost or expense whatsoever incurred,
relating to, or by reason of, acts and/or omissions of Employee in the course of employment pursuant to this Agreement, except to the extent that such liability, damage, cost, or expense is the result of the gross negligence or willful misconduct of
Employee. 

  

	E.	EDUCATION AND LICENSES. Following the completion of the first six (6) months of the Initial Term of this Agreement, Employer shall pay for or reimburse Employee for approved
expenses related to Employee’s continuing education and licenses, up to a maximum of $500.00 per calendar year if Employee is licensed to dispense or prescribe diagnostic pharmaceutical agents or to a maximum of $750.00 per calendar year if
Employee is licensed to dispense or prescribe therapeutic pharmaceutical agents and Employee uses said license in providing services pursuant to this Agreement. 

  

	F.	DISCLOSURE OF CONFIDENTIAL INFORMATION. 

  

	 	1.	DEFINITION. “Confidential Information” shall mean all patient lists, patient account information, patient examination records, and any other records and books relating in
any manner to the patients and business records of Employer (whether such records, books or lists are prepared by Employee or otherwise come into the possession or use of Employee). “Confidential Information” shall also mean any
accounting, sales, advertising, vision insurance plan information, marketing or management information, methods or techniques, any business plans such as refractive and photo-refractive surgery plans and information, any computer programs and
routines of Employer and any other information of any kind whatsoever, whether written or not, concerning, directly or indirectly, Employer, its plans, programs or operations, which information is not generally known in the industry or business in
which Employer is or may become engaged during Employee’s employment with Employer. 

  

	 	2.	 PROTECTION OF CONFIDENTIAL INFORMATION, ETC. Employee shall not, at any time either during or after employment with Employer, in any manner, directly or indirectly,
divulge, disclose, or communicate to any person, firm, corporation, association, or any other business entity, or use for personal benefit or for any other purpose than 

  

 11 

	 	 
the exclusive benefit of Employer, its subsidiaries, successors, or assigns, Confidential Information or any information whatsoever concerning matters
affecting or relating to the business of Employer which Employee knows or has reason to know would be valuable to competitors or potential competitors of Employer. Furthermore, but not by way of limitation to the foregoing, Employee shall not (i)
make known to any person or business entity the names or addresses of any of the patients of Employer or any other information pertaining to such patients or (ii) call on, or solicit, or attempt to call on, or solicit any of the patients of Employer
with whom Employee became acquainted or was assigned to examine during Employee’s employment with Employer; provided that this prohibition shall not apply to advertisements in newspapers of general circulation or telephone directories,
including the Yellow Pages. 

  

	 	3.	BOOKS AND RECORDS. Employee shall not, other than as necessary in the ordinary course of business, make copies of any books, documents, records or other written or printed,
photographic, encoded, taped, electrostatically or electromagnetically encoded date or information of whatever nature (hereinafter the “documents”) of Employer. Employee shall not, without the prior written approval of Employer, remove any
of the foregoing documents or copies thereof from the premises of the Company, and shall not, without the prior written approval of Employer, make available to third parties access to said Employer documents. Employee agrees that all records and
books relating in any manner whatsoever to the patients, whether prepared by Employee or otherwise in the possession of Employee shall be exclusive property of Employer. All such books and records shall be immediately returned to Employer by
Employee upon any termination of employment. 

  

	 	4.	PRESCRIPTIONS. Except as otherwise may be provided by law, lens prescriptions that may be written by Employee during the term of this agreement shall be and remain the exclusive
property of Employer and Employee shall not use the same in any manner for any purpose whatever upon termination of the employment relationship without the prior written consent of Employer. 

  

	G.	 COMPETITIVE ACTIVITIES. During the term of employment with Employer and for a period of one (1) year thereafter, Employee shall not, directly or indirectly (whether
for compensation or otherwise), alone or as officer, director, shareholder (excepting not more than 1% stockholdings for investment purposes in securities of publicly held and traded companies), partner, associate, employee, agent, principal,
trustee, co-venturer, consultant or owner, own, manage, operate, join, control, advise or otherwise participate with or become interested in or associated with any person, firm, partnership, corporation or other entity which intends to engage, or is
engaged, in the business of providing or rendering optometric services at, or within the Radius (as herein after defined) of any office or store of Employer in which Employee has provided services on a regular basis for sixteen (16) or more hours
per week or one thousand 

  

 12 

	 	 
(1,000) hours during the last twelve (12) months of this Agreement. The provisions of this section G shall survive the termination of this Agreement. For the
purposes of this Agreement, the “Radius” shall mean (i) five (5) miles of any office or store of Employer. Employee hereby stipulates and agrees that Employer will suffer severe harm if Employee violates the restrictive covenant set forth
in this Section G. Employee further stipulates and agrees that the parties may be unable to quantify the severe harm to Employer and, accordingly, Employee shall pay to Employer the amount of $25,000.00 in the event Employee violates this Section G.

  

	H.	SOLICITATION OF EMPLOYEES. Employee agrees that during the term of this Agreement, and for a period of one (1) year thereafter, without the written consent of Employer, Employee
will not directly or indirectly contact or solicit to employ, or employ, any of the then current or past employees of Employer, any subsidiary or affiliate of Employer or any employees of any company which is providing management services to
Employer or said company’s subsidiaries or affiliates, unless such person shall have ceased to be employed by Employer (or its subsidiary or affiliate or the company managing Employer or said company’s subsidiary or affiliate, as the case
may be) and such cessation of employment shall have occurred at least twelve (12) months prior thereto; provided this prohibition shall not apply to general advertisements in newspaper or other widely distributed publications, media, or mail,
whether electronic or otherwise. 

  
 ATTACHMENT
“B-1” 
  
 (Attached to and incorporated into the
foregoing Employment Agreement) 
  
 BONUS 
  
 Employee shall be entitled to participate in a performance based bonus plan
as established by Employer, which bonus plan may be amended, revised or terminated, in the discretion of Employer. 
  
 Dated:                     , 199  .

  

			
	 Dr. Mark Lynn & Associates, PLLC
 (“Employer”)

		
	By:	 	 
	 Title: 
	 	 
	
	___________________________________________ __________________________, O.D.
	 (“Employee”)

  

 13 

 EXHIBIT 4.3B 
  
 EMPLOYMENT AGREEMENT (PRESIDENT OF PRACTICE) 
  
 EMPLOYMENT AGREEMENT 
  

THIS EMPLOYMENT AGREEMENT (the “Agreement”) made and entered into as of the      day of October, 1998, by and
between Dr. Mark Lynn & Associates, PLLC, a Kentucky professional limited liability company (the “Company”), or its assigns, and Mark E. Lynn, O.D. (“Executive” or “Dr. Lynn”); 
  
 W I T N E S S E
T H: 
  
 WHEREAS, pursuant to that certain Master
Asset Purchase Agreement dated as of August 22, 1998 (the “Asset Purchase Agreement”), by and among Eye Care Centers of America, Inc. (“ECCA”), the Company (defined therein as the “Company”), the Companies (as defined
therein) and the Owners (as defined therein) whereby the Company purchased the goodwill, customer lists, patient records, and certain other assets of the Companies’ Business (as defined therein) (the “Acquisition”); and 
  
 WHEREAS, Employee is duly licensed (to the extent required by applicable law)
to practice optometry in the Commonwealth of Kentucky and the States of Tennessee, Indiana, and Missouri, and desires to accept employment to practice optometry and provide certain management services as an employee of Employer; 
  
 WHEREAS, in connection with the Acquisition and the other transactions
related thereto, Executive is required to enter into this Agreement concurrent with the consummation of the Acquisition; and 
  
 WHEREAS, Executive desires to serve in the employment of the Company on the terms and conditions set forth below; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows: 
  
 1.
Employment. The Company hereby employs Executive to serve as President of the Company, and Executive hereby accepts such employment, upon the terms and conditions set forth herein.  
  
 2. Term. The term of this Agreement shall commence on the date hereof
(the “Effective Date”) and shall terminate on December 31, 2003, subject to earlier termination and extension as hereinafter provided (the “Term”). Thereafter, this Agreement shall automatically renew for successive five-year
terms unless either party gives written notice of its election not to renew at least thirty (30) days prior to the end of the then current period. In the event of such extension, all of the terms and conditions of this Agreement shall remain in full
force and effect. 
  
 3. Duties, Qualifications and Optometric
Records. (a) During the Term, Executive shall serve as the President of the Company with such title, duties and responsibilities as established from time to time by the Board of Directors of the Company (the “Board”), or such person
who may be appointed by the Board to oversee the operations of the Company. Such duties and responsibilities shall include, but not be limited to, the management of the other optometrists employed by the Company and the operations of the Company in
Kentucky, Tennessee, Indiana, Missouri and such other states as the Company has operations. Executive agrees that he will devote substantially all of 

  

 
his professional time, attention and energies to the business of the Company, and to the performance of his duties hereunder. Executive shall devote his time
and attention to the duties of the Company, and shall not engage in the practice of optometry except as an employee of the Company. Executive will at all times report to the board of directors of the Company or such person who may be appointed by
the Board to oversee the operations of the Company and its direct and indirect subsidiaries and affiliates. Executive shall abide by all of the Company’s policies and procedures, as may be adopted from time to time by the Company. Executive
shall maintain a valid and unrestricted license to practice optometry in each state or other jurisdiction in which the Company provides optometry services. 
  
 (b) Executive shall, in accordance with the Company’s policies, cause to be properly prepared and filed reports of all examinations, procedures and
other professional services performed by himself and the other employees of the Company. The ownership and right of control of all reports, records and supporting documents prepared for and/or maintained by the Company belongs to the Company. In
addition, Executive shall promptly submit such additional records as the Company deems to be required by any third party payors. In the event that the Executive’s employment with the Company is terminated, to the extent that Executive has any
rights in such patient records, Executive agrees that such rights will be transferred to, and the records shall remain with, the Company, and Executive shall have no ongoing rights with respect thereto. 
  
 4. Compensation. 
  
 (a) Base Compensation. During the term of this Agreement, the Company
shall pay to Executive a salary at an annual rate of $190,000. 
  
 (b) Bonus Compensation. During the term of this Agreement, the Company shall pay to Executive a bonus (the “Bonus”) of not more than $20,000.00 per year based on the Company’s performance during such year. The Bonus
shall be calculated as set forth on Exhibit A hereto, as may be amended from time to time, subject to the consent of Visionary Retail Management, Inc. 
  
 (c) Reimbursement of Expenses. The Company shall reimburse Executive, in accordance with the Company’s policy in effect from time to time, for
all reasonable travel, entertainment and other business expenses incurred by Executive in the performance of his duties and responsibilities hereunder. 
  
 (d) Net Payments. The amount of any gross payments provided for in this Agreement shall be paid net of any applicable withholding required under
federal, state or local law. 
  
 5. Benefits. Executive
shall be entitled to receive the benefits made available or applicable from time to time to the employees of the Company (including, without limitation, life insurance and disability insurance); provided, however, that the receipt of such benefits
by Executive shall be subject to the Company’s eligibility and enrollment requirements pertaining to such benefit programs. Executive shall be eligible for four weeks paid vacation per year in accordance with the Company’s vacation policy.

  
 6. Confidentiality and Competitive Activities.

  
 (a) Confidentiality. Executive acknowledges that during
his employment with the Company, the Company has and will continue to disclose to him the confidential affairs and proprietary information of the Company and its subsidiaries and affiliates which is developed by and 

  

 2 

 
belongs to the Company and its subsidiaries and affiliates, including matters of a business nature such as information about costs, profits, markets, sales,
trade secrets, potential patents and other business ideas, customer lists, supplier and vendor lists, plans for future developments and/or acquisitions, and information of any other kind not known within the optical retail industry or the optometric
profession generally (collectively, “Confidential Matters”). Executive further acknowledges that the Company would not hire Executive or disclose these Confidential Matters to Executive without the promises made by Executive in this
Section 6. In light of the foregoing, Executive agrees: 
  
 (i) To keep secret all Confidential Matters of the Company and of any affiliates of the Company, and of any third party to whom the Company is bound by a confidentiality agreement, and not to disclose them to anyone
outside of the Company or its affiliates, or otherwise use them or use his knowledge of them for his own benefit or for the benefit of any third party, including, without limitation, use of the trade secrets, trade names or trademarks of the
Company, either during or after the Term, except with the Company’s prior written consent; and 
  
 (ii) To deliver promptly to the Company at the termination of the Term, or at any time the Company may request, all memoranda, notices,
records, reports and other documents (and all copies thereof) relating to the business of the Company or any of its subsidiaries or affiliates, including, but not limited to, Confidential Matters, which he may then possess or have under his control.

  
 Notwithstanding any of the foregoing, the term
“Confidential Matters” does not include information which (i) is or becomes generally available to the public other than as a result of any disclosure by Executive or (ii) Executive is compelled to disclose by judicial or administrative
process; provided, that in the case of any such requirement or purported requirement Executive shall provide written notice to the Company prior to producing such information, which notice shall be given at least ten (10) days prior to the producing
such information, if practicable, so that the Company may seek a protective order or other appropriate remedy. 
  
 (b) Competitive Activities. Executive expressly recognizes and acknowledges that the terms and condition of this Section 6(b) are reasonable as to
time, area and scope of restricted activity, necessary to protect the legitimate interests of the Company, and are not unduly burdensome to Executive. The parties contemplate and agree that the following restrictions in this Section 6(b) shall only
be applicable after the term hereof if the Option (as defined in the Right Agreement, of even date herewith (the “Option Agreement”), by and among Eye Care Holdings, Inc. and Executive) is exercised, and then the duration of the
non-competition provisions to be based upon the Exercise Price ( as defined in the Right Agreement) and the date of the exercise of the Option. During the term hereof, and for the period, if any, after the date hereof under the caption
“Duration of the Non-compete Covenant” set forth on Exhibit A attached to the Right Agreement following the effective date of a termination of Executive’s employment (for any reason whatsoever), Executive shall not, directly or
indirectly (whether for compensation or otherwise), alone or as officer, director, stockholder (excepting not more than 1% stockholdings for investment purposes in securities of publicly held and traded companies), partner, associate, employee,
agent, principal, creditor, guarantor, trustee, salesman, consultant, or in any other capacity, take any action in or participate with or become interested in or associated with any person, firm, partnership, corporation or other entity whatsoever
that that (i) is engaged in the business of the retail sale of optical goods or providing optometric or ophthalmological services which are managed by, or management services or provided by, a Person that is, or is affiliated with, a national,
regional or local optical retailer or (ii) is, or is affiliated with, a national, regional or local optical retailer and is engaged in the business, directly or indirectly, of managing or providing management services to a Person engaged in the
business of the 

  

 3 

 
retail sale of optical goods or providing optometric or ophthalmological services (“Competitive Activities”) in either case in which such Person is
engaged in such activity in any of the geographic areas consisting of each county or parish and each county or parish contiguous thereto, in which a store is located that is owned, operated or managed by the Company as of the date of termination of
his employment (such activities are hereinafter referred to as the “Competitive Activities” and the restricted areas are hereinafter referred to as the “Restricted Areas”). Notwithstanding the foregoing, Executive shall be
permitted to be employed by a national, regional or local optical retailer, provided that (i) Executive does not disclose the management structure between the Company and Visionary MSO, Inc., Visionary Retail Management, Inc. and Visionary
Properties, Inc. or disclose any other operating information relating thereto, or provide any advise or counsel with respect to structuring arrangements similar to such management structure, and (ii) Executive’s duties do not include or
otherwise involve supervising or directing management services provided by such employer to the practices of independent optometrists or opthalmologist. The foregoing exception to the prohibitions against Competitive Activities shall not release
Executive, or waive any rights of the Company with respect to, any of Executive’s other covenants, obligations or duties hereunder including without limitation, the provisions of Section 6(a), 6(c) and 6(d). For purposes hereof, a
“Person” shall mean any individual, firm, partnership, corporation, limited liability company or other entity. 
  
 (c) Antisolicitation. Executive agrees that for a period commencing on the date hereof and ending two (2) years after the termination date of his
employment, he will not influence or attempt to influence customers (including customers with respect to managed care plans), vendors or suppliers of the Company, ECCA, Visionary Retail Management, Inc., Visionary MSO, Inc. or any of their
respective present or future direct or indirect subsidiaries or affiliates, either directly or indirectly, to divert their business to any individual, partnership, firm, corporation or other entity then engaged in Competitive Activities;
provided, however, that this prohibition shall not apply to general advertisements in newspapers or other widely distributed publications, media, or mail, whether electronic or otherwise. 
  
 (d) Soliciting Employees. Executive agrees that for a period
commencing on the date hereof and ending two (2) years after the termination date of his employment, he will not directly or indirectly contact or solicit to employ, or employ, any of the then-current or past employees of the Company, ECCA,
Visionary Retail Management, Inc., Visionary MSO, Inc. or any of their respective direct or indirect subsidiaries or affiliates unless such person shall have ceased to be employed by such entity and such cessation of employment shall have occurred
at least twelve (12) months prior thereto; provided, however, general advertisements in newspapers or other widely distributed publications, media, or mail, whether electronic or otherwise shall not by itself be deemed as soliciting
employees. 
  
 7. Remedies for Breach. In addition
to the rights and remedies provided in Section 16, and without waiving the same, if Executive breaches, or threatens to breach, any of the provisions of Section 6, the Company shall have the following rights and remedies, in addition to any others,
each of which shall be independent of the other and severally enforceable: 
  
 (i) The right and remedy to have such provisions specifically enforced by any court having equity jurisdiction together with an accounting for any benefit or gain by Executive in connection with any such breach.
Executive specifically acknowledges and agrees that any breach or threatened breach of the provisions of Section 6 will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. Such
injunction shall be available without the posting of any bond or other security. 
  

 4 

 (ii) The right and remedy to require Executive to account for and pay over to the Company
all compensation, profits, monies, accruals, increments or other benefits (hereinafter collectively the “Benefits”) derived or received, directly or indirectly, by Executive as a result of any transactions constituting a breach of any of
the provisions of Section 6, Executive hereby agreeing to account for and pay over the Benefits to the Company. 
  
 (iii) The right to terminate Executive’s employment pursuant to Section 8(c). 
  
 (iv) Upon discovery by the Company of a breach or threatened
breach of Section 6, the right to immediately suspend payments to Executive under Section 8, pending a resolution of the dispute. 
  
 If any covenant contained in Section 6 or any portion thereof is hereafter construed to be invalid or unenforceable, the same shall not affect the
remainder of the covenant or covenants contained therein, which shall be given full effect, without regard to the invalid portions, and any court having jurisdiction shall reform the covenant to the extent necessary to cause the limitations
contained therein as to time, geographical area and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interest of the Company and shall enforce
the covenant as reformed. The parties hereto intend to and hereby confer jurisdiction to enforce the covenants contained in Section 6 upon the courts of any state or other jurisdiction in which any alleged breach of any such covenant occurs. If the
courts of one or more of such states or other jurisdictions shall hold such covenants not wholly enforceable by reason of the scope thereof or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect
the Company’s right to the relief provided above in the courts of any other states or jurisdictions as to breaches of such covenants in such other states or jurisdictions, the above covenants as they relate to each state or jurisdiction being,
for this purpose, severable into diverse and independent covenants. If any court determines that such covenants are unenforceable, the Company shall be relieved of all obligations under this Agreement and Executive shall not be entitled to any
payments which are suspended pursuant to Section 7(iv). 
  
 8.
Termination of Agreement. 
  
 (a) Death. This
Agreement shall automatically terminate upon the death of Executive. If Executive’s employment is terminated due to his death during the Term, Executive’s estate shall be entitled to receive the Base Salary set forth in Section 4 accrued
through the end of the month in which the death occurs; provided, however, Executive’s estate shall not be entitled to any Bonus payments or any other benefits (except as provided by law). 
  
 (b) Disability. If Executive is unable to perform his services by
reason of mental or physical Disability (as herein defined), the Company may terminate this Agreement at any time. Upon termination of Executive’s employment due to Disability, Executive shall be entitled to receive the Base Salary set forth in
Section 4 accrued through the date on which Executive is first eligible to receive payment of disability benefits under the employee benefit plans as then in effect, and if no such plan is in effect, through the month ending one hundred eighty (180)
days after onset of Disability and Executive shall not be entitled to any Bonus payments or any other benefits (except as provided by law). The term “Disability” shall mean an infirmity preventing Executive from performing his duties for a
period of more than three (3) consecutive months where no reasonable accommodation is available or where a reasonable accommodation would create an undue burden on 

  

 5 

 
the Company. Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in
writing by a qualified independent physician mutually acceptable to Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of the Agreement. 
  
 (c) Termination For Cause. The Company may terminate this Agreement at
any time for “Cause” in accordance with the procedures provided below. Termination of this Agreement for “Cause” shall mean termination upon (i) the breach of any material provision of this Agreement by Executive; (ii) conviction
of, or pleading nolo contendre by, Executive of an act punishable a felony or misdemeanor involving moral turpitude; (iii) willful and continued failure to substantially perform his duties hereunder after written notice and a 30 day right to cure
(other than as a result of total or partial incapacity due to physical or mental illness); (iv) Executive’s engaging in conduct that is materially injurious to the Company, monetarily or otherwise, including, without limitation, embezzlement,
fraud, theft, dishonesty, malfeasance, and gross neglect of duties; (v) violation of the Company’s ethics policy or any material violation or repeated violations by Executive of the other policies and procedures promulgated (with the approval
of the Executive) from time to time by the Company; (vi) current alcohol or drug abuse by Executive as confirmed by an independent physician mutually agreed upon by the parties (Executive hereby agreeing to undergo an examination by such physician);
(vii) suspension, revocation or cancellation of Employee’s right to practice optometry in any state; or (viii) Executive ceases to be a shareholder of the Company. In the event of termination of Executive’s employment for Cause as defined
herein, Executive shall be entitled to receive only the Base Salary set forth in Section 4 accrued through the date of termination and he shall not be entitled to any Bonus payments or other benefits (except as provided by law). 
  
 (d) Other Termination by the Company. The Company may terminate this
Agreement at any time without “Cause” by providing thirty (30) days prior written notice to Executive. If the Company terminates this Agreement at any time without Cause (i.e., other than pursuant to Section 8(b) or 8(c) above), or the
Company elects not to renew the Term as provided in Section 2 hereof, the Company shall be obligated to pay Executive, and Executive shall be entitled to receive only, the Base Salary set forth in Section 4 accrued through the date of termination
and he shall not be entitled to any Bonus payments or other benefits (except as provided by law). 
  
 (e) Termination by Executive. Executive may terminate this Agreement upon thirty (30) days prior written notice to the Company; provided, however,
Executive shall not be entitled to terminate this Agreement so long as he is a shareholder of the Company. Termination shall be effective at the expiration of the notice period. All obligations of the Company under this Agreement shall end on the
effective date of termination and the Company shall have no further obligations under this Agreement, including, but not limited to payment of Base Salary, Bonus or any similar compensation or benefits. Notwithstanding the notice provided by
Executive, the Company, in its sole discretion, may choose to accept Executive’s resignation immediately. In that event, the Company’s only obligation to Executive will be to pay the Base Salary Executive would have received during the
notice period. 
  
 9. Effect of Termination. Upon the
termination of this Agreement, whether by the expiration of the Term specified in Section 2 or pursuant to Section 8, the rights of Executive which shall have accrued prior to the date of such termination shall not be affected in any way. Except as

  

 6 

 
otherwise provided in Section 8, Executive shall not have any rights which have not previously accrued upon termination of this Agreement. 
  
 10. Fees. The Company shall have the exclusive authority to determine
the amount and nature of all fees and the procedure for establishing the fees to be charged patients of the Company, even though such patients might be treated solely by Executive in the course of Executive’s employment by the Company.

  
 11. Ownership of Fees and Income. All income generated
by Executive for Executive’s professional services and all activities related thereto shall belong to the Company, whether paid directly to the Company or to Executive. Executive may be required (and agrees upon request of the Company so to do)
to render a true accounting of all transactions relating to Executive’s practice during the course of his employment. 
  
 12. Communications. All notices and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when
(a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent
by a nationally recognized overnight delivery service (receipt requested), in each case to the respective addresses set forth below, or to such other addresses as either party may have furnished to the other in writing in accordance herewith, except
that notice of a change of address shall be effective only upon actual receipt; to the Company: Dr. Mark Lynn & Associates, PLLC, 516 East Highway 131, Clarksville, Indiana 47129, for the attention of the President; and to Executive: Mark E.
Lynn, O.D., 2427 Boulevard Napoleon, Louisville, Kentucky 40205. 
  
 13. Amendments or Additions. No amendments or additions to this Agreement shall be binding or effective unless in writing and signed by all parties hereto. 
  
 14. Binding Effect; Assignability. This Agreement shall be binding upon, and shall inure to the benefit of,
Executive; the obligations of Executive hereunder are personal and this Agreement may not be assigned by Executive. This Agreement is completely assignable by the Company without notice to or consent of Executive. This Agreement shall be binding
upon, and shall inure to the benefit of, the Company and shall also bind and inure to the benefit of any successor of the Company by merger or consolidation or any assignee of all or substantially all of its properties. 
  
 15. Headings; References. The headings used in this Agreement are
included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. References to a “Section” when used without further attribution shall refer to the particular sections of this
Agreement. 
  
 16. Binding Arbitration. Subject to the
rights of any party to seek injunctive relief pursuant to Section 7 above and without waiving the same, the parties agree that all disputes, controversies or claims that may arise among them (including their agents and employees), arising out of or
relating to this Agreement, or the breach, termination or invalidity thereof, shall be submitted to, and determined by, binding arbitration. Such arbitration shall be conducted before a single arbitrator pursuant to the Commercial Arbitration Rules
then in effect of the American Arbitration Association, except to the extent such rules are inconsistent with this Section 16. Except as otherwise provided in this Agreement, the arbitrator shall apply the laws of the Commonwealth of Kentucky
(without regard to conflict of law rules) in determining the substance of the dispute, controversy or claim and shall decide the same in accordance with applicable usages and terms of trade. The fees of the arbitration 

  

 7 

 
initially shall be paid one-half by the Company and one-half by Executive; provided, however, that the prevailing party in any such arbitration shall be
entitled to recover its reasonable attorneys’ fees, costs and expenses incurred in connection with the arbitration. Any award pursuant to such arbitration shall be final and binding upon the parties, and judgment on the award may be entered in
any federal or state court having jurisdiction. The obligations set forth in this Section 16 shall survive the termination of this Agreement. THE COMPANY AND EMPLOYEE EACH KNOWINGLY AND VOLUNTARILY GIVE UP ANY RIGHT TO A TRIAL BY JURY IN
CONNECTION WITH ANY DISPUTE, CLAIM OR CONTROVERSY WHICH MAY ARISE BETWEEN THEM. 
  
 17. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and such officer of the
Company as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party which are not expressly set forth in this Agreement. Except as otherwise provided in this Agreement, the validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth
of Kentucky without regard to its conflicts of law principles. 
  
 18. Surviving Provisions. The obligations of the Company under Section 8, of Executive under Sections 3(b), 6 and 7, and of both the Company and Executive under Section 16 shall survive the expiration of the Term of this Agreement.

  
 19. Entire Agreement. This Agreement shall constitute
the entire agreement between the parties superseding all prior agreements and all other negotiations, letters of intent, memoranda of understanding, and representations (if any) made by and among such parties, and may not be modified or amended, and
no waiver shall be effective, unless by written document signed by both parties hereto. Notwithstanding the foregoing, the parties agree that the provisions of Section 6 shall be in addition to, and shall not supersede, similar provisions contained
in the Master Asset Purchase Agreement. The Company and Executive have each had an opportunity to consult with counsel of their choice regarding the terms and conditions of this Agreement, and each understands the consequences of entering into and
complying with the terms and conditions of the Agreement. 
  
 20.
Pronouns. In this Agreement, the use of any gender shall be deemed to include all genders, and the use of the singular shall include the plural, wherever it appears appropriate from the context. 
  
 21. Enforcement Costs. If any legal action or other proceeding,
including arbitration, is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the prevailing party or parties shall be entitled to
recover reasonable attorneys’ fees, court costs and all expenses even if not taxable as court costs, incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled. 
  

 8 

 22. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 
  
 23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which,
taken together, shall constitute one and the same instrument. 
  
 [The remainder of this page has been intentionally left blank.] 
  

 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year first above
written. 
  

			
	THE COMPANY:
	
	 DR. MARK LYNN & ASSOCIATES, PLLC

		
	 By:
	 	 
	 	 	 Mark E. Lynn, O.D., President

	
	EXECUTIVE:
	
	 
	 Mark E. Lynn, O.D.

  

 10 

 EXHIBIT A 
  

BONUS CALCULATION 
  

 EXHIBIT 4.7A 
  
 COVENANT NOT TO COMPETE 
  

			
	 Radius From

	  	Miles

	Kentucky Offices	  	5
	Missouri Offices	  	5
	Indiana Offices	  	5
	Tennessee Offices	  	5
	All Other Offices	  	5

 EXHIBIT 5.1 
  
 BASE MANAGEMENT FEE 
  
 1.5% of Adjusted Gross Revenue 

 EXHIBIT 6.4 
  
 SHAREHOLDERS’ UNDERTAKING TO CARRY OUT 
 PRACTICE’S PURCHASE OBLIGATION 
  
 As an inducement to the Professional Business Manager to enter into this Professional Business Management Agreement with the Practice or as required in
the Professional Business Management Agreement, each of the undersigned person(s), having an ownership interest in the Practice, irrevocably and unconditionally covenants and agrees subject to the limitations contained in the Professional Business
Management Agreement to (i) cause the Practice to carry out the purchase obligation described in Section 6.4 of the Professional Business Management Agreement, (ii) personally execute and deliver the security agreements referred to in Section 6.4(c)
of such Professional Business Management Agreement, a copy of which has been delivered to the undersigned for his review, and (iii) execute the documents described in Section 6.5. The undersigned acknowledges that he or she has received adequate
consideration for the execution hereof. 
  
 IN WITNESS WHEREOF,
the undersigned(s) have executed this Shareholders’ Undertaking as of the day and year written opposite such shareholder’s name. 
  

			
	 Date: October 1, 1998
	    	 /s/ Mark E. Lynn

	 	    	 Mark E. Lynn, O.D.

 SHAREHOLDERS’ UNDERTAKING TO MAINTAIN PRACTICE’S 
 CORPORATE EXISTENCE AND ENFORCEMENT OF COVENANTS 
 NOT TO COMPETE 
  
 As an inducement to the Professional Business Manager to enter into this Professional Business Management Agreement with the Practice or as required in the Professional Business Management Agreement, each of the undersigned person(s),
having an ownership interest in the Practice, irrevocably and unconditionally covenants and agrees to maintain in good standing the corporate existence of the Practice under the laws of the states of Kentucky, Indiana, Tennessee and Missouri and to
cause the Practice to use its best efforts to enforce employment agreements (including the Restrictive Covenant described in Section 4.7), to the extent then required by Professional Business Manager, against any individuals violating such
employment agreements (and covenants not to compete). The undersigned persons further unconditionally covenant and agree to indemnify and hold harmless Professional Business Manager from and against any and all claims requirements, demands,
liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees, resulting in any manner from the failure of the Practice to remain in good standing under the laws of Kentucky, Indiana, Tennessee and Missouri or the
failure of the Practice to use its best efforts to enforce the aforesaid employment agreements and the Restrictive Covenants described in Section 4.7 of such Professional Business Management Agreement, a copy of which has been delivered to the
undersigned for his review, to the extent then required by Professional Business Manager. The undersigned acknowledges that he or she has received adequate consideration for the execution hereof. This undertaking may be assumed by a successor to
Shareholder or Shareholders, whereupon the undersigned shall be released to the extent of such assumption, provided that any such successor Shareholder executes a form similar to this. 
  
 IN WITNESS WHEREOF, the undersigned(s) have executed this Shareholders’ Undertaking as of the day and year written
opposite such shareholder’s name. 
  

			
	 Date: October 1, 1998
	    	 /s/ Mark E. Lynn

	 	    	 Mark E. Lynn, O.D.Exhibit 10.01

 Exhibit 10.01 
  

  
 $200,000,000 
  
 CREDIT AGREEMENT 
  
 dated as of 
  
 July 21, 2005 
  
 among 
  
 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. 
  
 The Lenders Party Hereto 
  
 and

  
 JPMORGAN CHASE BANK, N.A., 
 as Administrative Agent 
  

  
 J.P. MORGAN SECURITIES INC., 
 as Sole Lead Arranger and Sole Bookrunner 
  

  
 and 
  
 BANK OF AMERICA, N.A. 
 and 
 CALYON NEW YORK BRANCH, 
 as Syndication Agents 
  

  
 TABLE OF CONTENTS 

 

			
	 	  	Page

	 ARTICLE I Definitions
	  	1
		
	 SECTION 1.01. Defined Terms
	  	1
	 SECTION 1.02. Classification of Loans and Borrowings
	  	15
	 SECTION 1.03. Terms Generally
	  	15
	 SECTION 1.04. Accounting Terms; GAAP
	  	16
		
	 ARTICLE II The Credits
	  	16
		
	 SECTION 2.01. Commitments; Term-Out Option
	  	16
	 SECTION 2.02. Loans and Borrowings
	  	17
	 SECTION 2.03. Requests for Borrowings
	  	17
	 SECTION 2.04. Funding of Borrowings
	  	18
	 SECTION 2.05. Interest Elections
	  	18
	 SECTION 2.06. Termination, Reduction and Increase of Commitments
	  	19
	 SECTION 2.07. Repayment of Loans; Evidence of Debt
	  	21
	 SECTION 2.08. Prepayment of Loans
	  	22
	 SECTION 2.09. Fees
	  	22
	 SECTION 2.10. Interest
	  	22
	 SECTION 2.11. Alternate Rate of Interest
	  	23
	 SECTION 2.12. Increased Costs
	  	23
	 SECTION 2.13. Break Funding Payments
	  	24
	 SECTION 2.14. Taxes
	  	25
	 SECTION 2.15. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	  	26
	 SECTION 2.16. Mitigation Obligations; Replacement of Lenders
	  	27
		
	 ARTICLE III Representations and Warranties
	  	28
		
	 SECTION 3.01. Organization; Powers
	  	28
	 SECTION 3.02. Authorization; Enforceability
	  	28
	 SECTION 3.03. Governmental Approvals; No Conflicts
	  	28
	 SECTION 3.04. Financial Condition; No Material Adverse Change
	  	29
	 SECTION 3.05. Properties
	  	29
	 SECTION 3.06. Litigation and Environmental Matters
	  	29
	 SECTION 3.07. Compliance with Laws and Agreements
	  	30
	 SECTION 3.08. Investment and Holding Company Status
	  	30
	 SECTION 3.09. Taxes
	  	30
	 SECTION 3.10. ERISA
	  	30
	 SECTION 3.11. Disclosure
	  	30
	 SECTION 3.12. Subsidiaries
	  	31
	 SECTION 3.13. REIT Qualification
	  	31
	 SECTION 3.14. Regulatory Matters Pertaining to FRB & Co.
	  	31
		
	 ARTICLE IV Conditions
	  	31
		
	 SECTION 4.01. Effective Date
	  	31
	 SECTION 4.02. Each Credit Event
	  	33

  

 (i) 

			
	 ARTICLE V Affirmative Covenants
	  	33
		
	 SECTION 5.01. Financial Statements; Other Information
	  	33
	 SECTION 5.02. Notices of Material Events
	  	35
	 SECTION 5.03. Existence; Conduct of Business
	  	35
	 SECTION 5.04. Payment of Obligations
	  	35
	 SECTION 5.05. Maintenance of Properties; Insurance
	  	35
	 SECTION 5.06. Books and Records; Inspection Rights
	  	36
	 SECTION 5.07. Compliance with Laws
	  	36
	 SECTION 5.08. Use of Proceeds
	  	36
		
	 ARTICLE VI Negative Covenants
	  	36
		
	 SECTION 6.01. Indebtedness
	  	36
	 SECTION 6.02. Liens
	  	37
	 SECTION 6.03. Mergers, Consolidations, Sale of Assets, etc.
	  	38
	 SECTION 6.04. Restricted Payments
	  	38
	 SECTION 6.05. Transactions with Affiliates
	  	39
	 SECTION 6.06. Restrictive Agreements
	  	39
	 SECTION 6.07. Subordinated Indebtedness
	  	39
	 SECTION 6.08. Lines of Business
	  	39
	 SECTION 6.09. Change in Fiscal Periods
	  	40
	 SECTION 6.10. Tangible Net Worth
	  	40
	 SECTION 6.11. Liquidity
	  	40
	 SECTION 6.12. Leverage Ratio
	  	40
		
	 ARTICLE VII Events of Default
	  	40
		
	 ARTICLE VIII The Administrative Agent
	  	42
		
	 ARTICLE IX Miscellaneous
	  	44
		
	 SECTION 9.01. Notices
	  	44
	 SECTION 9.02. Waivers; Amendments
	  	45
	 SECTION 9.03. Expenses; Indemnity; Damage Waiver.
	  	46
	 SECTION 9.04. Successors and Assigns
	  	47
	 SECTION 9.05. Survival
	  	49
	 SECTION 9.06. Counterparts; Integration; Effectiveness
	  	49
	 SECTION 9.07. Severability
	  	50
	 SECTION 9.08. Right of Setoff
	  	50
	 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	  	50
	 SECTION 9.10. WAIVER OF JURY TRIAL
	  	51
	 SECTION 9.11. Headings
	  	51
	 SECTION 9.12. Confidentiality
	  	51
	 SECTION 9.13. USA PATRIOT Act
	  	52

  

 (ii) 

  
 SCHEDULES: 
  
 Schedule 2.01 — Commitments 
 Schedule 3.06 — Disclosed Matters 
 Schedule 3.12 — Subsidiaries

 Schedule 6.01 — Existing Indebtedness 
 Schedule 6.02
— Existing Liens 
 Schedule 6.06 — Existing Restrictions 
  

EXHIBITS: 
  
 Exhibit A — Form of Assignment and Assumption 
 Exhibit B — Form of
Opinion of Borrower’s Counsel 
 Exhibit B — Form of Opinion of Special New York Counsel to JPMorgan Chase Bank, N.A. 
  

 (iii) 

  
 CREDIT AGREEMENT dated as of
July 21, 2005 among FRIEDMAN, BILLINGS, RAMSEY GROUP, INC., the LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent. 
  
 The parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate. 
  
 “Administrative Agent” means JPMCB, in its capacity as administrative agent for the Lenders hereunder. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified 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. 
  
 “Aggregate Deficit Amount” means, in relation to the Repo Transactions of any Person, the sum of the
respective Deficit Amounts (if any) for each such Repo Transaction. 
  
 “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 0.50%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 
  
 “Applicable Margin” means: 
  
 (a) with respect to any ABR Loan, 
  
 (i) for any day prior to the Term-Out Option becoming
effective, zero (plus, for any day on which the aggregate outstanding principal amount of Loans shall exceed 50% of the Commitments, 0.25%) and 
  

 Credit Agreement 

 (ii) for any day from and after the Term-Out Option becoming effective, 0.50%; and

  
 (b) with respect to any Eurodollar Loan, 
  
 (i) for any day prior to the Term-Out Option becoming
effective, 1.00% (plus, for any day on which the aggregate outstanding principal amount of Loans shall exceed 50% of the Commitments, 0.25%) and 
  
 (ii) for any day from and after the Term-Out Option becoming effective, 1.50%. 
  
 “Applicable Percentage” means, with respect to any Lender,
the percentage of the total Commitments represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to
any assignments. 
  
 “Assets for Purposes of Assessing
Liquidity” means, at any time, the sum of the following assets of the Borrower (calculated on an unconsolidated basis) plus (to the extent provided in clause (h) of this definition or Section 6.01(d)(ii), as applicable), assets of any
Special Purpose Subsidiary and assets deemed to constitute assets of the Borrower at such time: 
  
 (a) all debt securities (including loans) and equity securities held in the merchant banking portfolio; 
  
 (b) all loans and advances to, and other investments in,
Subsidiaries, provided that only 50% of the aggregate principal amount of temporary (i.e., not exceeding 45 days) subordinated loans supporting underwritings by FBR & Co. shall be included in the calculation under this clause (b);

  
 (c) 4.5% of Eligible MBS; 
  
 (d) 10% of all asset-backed securities (other than
mortgage-backed securities) rated “A” (or equivalent) or better by Moody’s, S&P or Fitch, provided that if at any time securities of the types referred to in this clause (d) exceed 10% of the total assets of the Borrower at
such time, such excess shall be excluded from the calculation under this clause (d) and shall be included in the calculation under clause (g) below; 
  
 (e) 5% of warehouse advances that are secured by Eligible Sub-Prime Loans; 
  
 (f) 5% of Eligible Sub-Prime Loans; 
  
 (g) all other assets of the Borrower (other than cash, Cash Equivalents and assets of a type specified in
clauses (a) through (f) above), including long-term assets of the Borrower such as goodwill and other intangibles, plus all amounts in respect of assets of a type specified in such clauses that are required to be included under this clause
(g); and 
  

 Credit Agreement 
  
 - 2 - 

 (h) notwithstanding anything herein to the contrary, but without duplication of the
amount of any assets included under the foregoing clauses of this definition, all assets of any Special Purpose Subsidiary, and all assets deemed under Section 6.01(d)(ii) to constitute assets of the Borrower, in either case, of the types (and
subject to the percentage limitations thereof) specified in clauses (c), (d), (e), (f) and (g) above. 
  
 As used in this definition, mortgage-backed securities and other asset-backed securities shall be carried at fair value in accordance with GAAP, with resulting charges or credits, as applicable, to shareholders’
equity. 
  
 “Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the
Administrative Agent. 
  
 “Assuming Lender” is
defined in Section 2.06(c). 
  
 “Availability
Period” means the period from and including the Effective Date to but excluding the earlier of the Commitment Termination Date and the date of termination of the Commitments. 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America.

  
 “Borrower” means Friedman, Billings, Ramsey
Group, Inc., a Virginia corporation. 
  
 “Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect. 
  
 “Borrowing Request” means a request by the Borrower for a
Borrowing in accordance with Section 2.03. 
  
 “Broker-Dealer Subsidiary” means any Subsidiary which is registered as a broker-dealer with the SEC or operates a securities brokerage business outside the United Stated and is subject to regulation or licensing as such
under the applicable local law. 
  
 “Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 
  
 “Capital Lease Obligations” of any Person means 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 capital leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  

 Credit Agreement 
  
 - 3 - 

 “Cash Equivalents” means: 
  
 (a) direct obligations of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within 90 days from the date of issuance thereof;

  
 (b) investments in commercial paper maturing
within 90 days from the date of issuance thereof and having, at the date of acquisition thereof, the highest credit ratings obtainable from S&P and from Moody’s; 
  
 (c) investments in certificates of deposit, banker’s acceptances and time deposits maturing within 90
days from the date of issuance thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State
thereof and which has the highest credit ratings obtainable from S&P and from Moody’s; 
  
 (d) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in clause (c) above; and 
  
 (e) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, (ii) are
rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000. 
  
 “Change of Control” means: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on the date hereof) (other than by the Permitted Holders) of Equity Interests representing more than 25% of the aggregate ordinary voting power represented by
the issued and outstanding Equity Interests of the Borrower; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the board of directors of the
Borrower nor (ii) appointed by directors so nominated; or (c) the acquisition of direct or indirect Control of the Borrower by any Person or group (other than by the Permitted Holders). 
  
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b)
any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender (or, for purposes of Section 2.12(b), by any lending office of
such Lender or by such Lender’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 
  
 “Commitment” means, with respect to each Lender, the
commitment of such Lender to make Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Credit Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant to
Section 2.06 and (b) reduced or increased from time to 

  

 Credit Agreement 
  
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time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on Schedule
2.01, or in the Assignment and Assumption (or, in the case of any Assuming Lender, the agreement entered into by such Assuming Lender under Section 2.06(c)) pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of the Lenders’ Commitments is $200,000,000. 
  
 “Commitment Termination Date” means July 20, 2006. 
  
 “Control” 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 ability to exercise voting power,
by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  
 “Credit Exposure” means, with respect to any Lender at any time, the aggregate outstanding principal amount of such Lender’s Loans
at such time. 
  
 “Default” means any event or
condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
  
 “Deficit Amount” means, at any time in respect of a Repo Transaction of any Person, the excess (if any) of (i) the aggregate amount of
payment obligations for which such Person is then liable under such Repo Transaction minus (ii) the then aggregate value of the collateral then securing such payment obligations. 
  
 “Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in
Schedule 3.06. 
  
 “Disqualified Mortgage Loan”
means any mortgage loan that (a) (or any characteristic of which or of the origination of which) triggers the thresholds of Section 32 of Regulation Z of the Federal Reserve Board (12 C.F.R. § 226.32), (b) is a “high cost” or
“high risk” loan under any applicable state, county or municipal law or regulation, (c) is a “covered” or “threshold” loan under any applicable state, county or municipal law or regulation, but only to the extent that
such law or regulation expressly exposes assignees of mortgage loans to possible civil or criminal liability or damages, or would expose any Lender or the Administrative Agent (whether or not as an assignee) to regulatory action or enforcement
proceedings, penalties or other sanctions, or would materially impair the enforceability of such mortgage loan, or (d) (or any characteristic of which or of the origination of which) contains any term or condition, or involves any loan origination
practice, that has been defined as “predatory” under any such applicable federal, state, county or municipal law or regulation, or that has been expressly categorized as an “unfair” or “deceptive” term, condition or
practice in any such applicable federal, state, county or municipal law or regulation. 
  
 “DTC” means The Depository Trust Company. 
  
 “dollars” or “$” refers to lawful money of the United States of America. 
  
 “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section
9.02). 
  

 Credit Agreement 
  
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 “Effective Duration” means, with respect to any mortgage-backed security, an estimate,
expressed as a whole number or a fraction thereof, of the percentage change in the price of such mortgage-backed security for a 100 basis point change in the applicable rate for such mortgage-backed security, further adjusted by a prepayment model,
which estimates mortgage-backed security price changes as a function of prepayment rate movements. 
  
 “Eligible MBS” means mortgage-backed securities (including any current principal and interest receivable thereunder) (i) that are
guaranteed as to principal and interest by Freddie Mac, Fannie Mae or Ginnie Mae or are rated AAA by S&P, (ii) that are backed by a pool or pools of undivided interests in residential mortgages, (iii) that have been issued in a registered public
offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (it being understood that mortgage-backed securities issued in an offering pursuant to Rule 144A under said Act do not qualify), (iv) that have an
Effective Duration of not more than 4.0 and (v) the value of which is represented by the principal thereof and accrued and unpaid interest thereon; provided that if at any time the aggregate amount of Eligible MBS having an Effective Duration
of more than 3.0 exceeds 20% of the total value of Eligible MBS at such time, such excess shall be excluded from the calculation of the value of Eligible MBS at such time for purposes of clause (c) of the definition of “Assets for Purposes of
Assessing Liquidity” in this Section (and such excess shall be included in the calculation under clause (g) of such definition). 
  
 “Eligible Sub-Prime Loan” means a performing, sub-prime, whole mortgage loan that (a) is secured by a mortgage covering improved real
property containing a one-, two-, three- or four-family residence that is not a mobile home or manufactured housing, (b) is not eligible for purchase by Fannie Mae or Freddie Mac under any of their prime mortgage loan purchase programs, (c) conforms
to market underwriting standards and is eligible for inclusion in a pool backing asset-backed securities rated by Moody’s, S&P and Fitch in accordance with such ratings agencies’ respective published criteria therefore, (d) at purchase
is not evidenced by a promissory note dated older than 180 days, (e) has not been held by the Borrower for more than 180 days and (f) is not a Disqualified Mortgage Loan. 
  
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of
any Hazardous Material or to health and safety matters. 
  
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly
or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the 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 of the foregoing. 
  

 Credit Agreement 
  
 - 6 - 

 “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

  
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the IRC or, solely for purposes of Section 302 of
ERISA and Section 412 of the IRC, is treated as a single employer under Section 414 of the IRC. 
  
 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with
respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the IRC or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(d) of the IRC or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates
of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans
or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate. 
  
 “Event of Default” has
the meaning assigned to such term in Article VII. 
  
 “Examining Authority” means, with respect to any Person, the organization designated by the SEC as the Examining Authority for such Person as provided in paragraph (c)(12) of the Net Capital Rule. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time. 
  
 “Excluded Taxes”
means, with respect to the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America (or any political subdivision thereof, including, without limitation, any State of the United States of America and any political subdivision of such State), or by the jurisdiction under the laws of which such recipient
is organized (or any political subdivision 

  

 Credit Agreement 
  
 - 7 - 

 
thereof) or in which its principal office is located (or any political subdivision thereof) or, in the case of any Lender, in which its applicable lending
office is located, (b) any branch profits taxes imposed by the United States of America (or any political subdivision thereof, including, without limitation, any State of the United States of America and any political subdivision of such State), or
any similar tax imposed by any other jurisdiction in which the Borrower is located (or any political subdivision thereof) and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.16(b)),
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 designates a new lending office) or is attributable to such Foreign Lender’s failure to comply
with Section 2.14(e), 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 (or assignment), to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 2.14(a). 
  
 “Fannie
Mae” means the Federal National Mortgage Association. 
  
 “FBR & Co.” means Friedman, Billings, Ramsey & Co., Inc., a Delaware corporation. 
  
 “FBR Asset” means FBR Asset Investment Corporation, a Virginia corporation. 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it. 
  
 “Financial Officer” means the chief financial officer, chief accounting officer, treasurer or controller of the Borrower. 
  
 “Fitch” means Fitch Ratings. 
  
 “FOCUS Report” means the Financial and Operational Combined Uniform Single Report (Form X-17a-5) required to be filed with the SEC or a
national securities exchange, or any report that is required in lieu of such report. 
  
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America,
each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Freddie Mac” means the Federal Home Loan Mortgage Corporation. 
  
 “GAAP” means generally accepted accounting principles in the United States of America. 
  

 Credit Agreement 
  
 - 8 - 

 “Ginnie Mae” means the Government National Mortgage Association. 
  
 “Governmental Authority” means the government of the United
States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government. 
  
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for
the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not
include endorsements for collection or deposit in the ordinary course of business. Notwithstanding anything herein to the contrary, “Guarantee” shall not include any Swap Agreement of the Borrower in the nature of a market value swap or
total return swap with respect to assets of a Special Purpose Subsidiary. 
  
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos
or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
  
 “Indebtedness” of any Person means, without duplication, (a)
all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which
interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase
price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person,
(i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. The
Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in
or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is 

  

 Credit Agreement 
  
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not liable therefor. Anything to the contrary herein notwithstanding, the Indebtedness of any Person shall include the Aggregate Deficit Amount for the Repo
Transactions of such Person (but shall not include any other obligation or liability of such Person arising from such Repo Transactions). 
  
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 
  
 “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in
accordance with Section 2.05. 
  
 “Interest Payment
Date” means (a) with respect to any ABR Loan, the last day of each January, April, July and October and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such
Interest Period. 
  
 “Interest Period” means,
with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect;
provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding
Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date
of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended
from time to time. 
  
 “JPMCB” means JPMorgan
Chase Bank, N.A. 
  
 “Lenders” means the Persons
listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an instrument executed by such Person pursuant to Section 2.06(c) or an Assignment and Assumption, other than any such Person that ceases to be a party
hereto pursuant to an Assignment and Assumption. 
  
 “LIBO
Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on any successor or substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on such page of such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such
rate is not 

  

 Credit Agreement 
  
 - 10 - 

 
available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or
a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such securities. 
  
 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Agreement or (c) the validity or enforceability of this Agreement or of the rights of or benefits
available to the Lenders under this Agreement. 
  
 “Material Indebtedness” means Indebtedness (other than the Loans), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding
$25,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of (a) any Swap Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time and (b) any Repo Transactions thereof at any time shall be the Aggregate Deficit Amount for such Repo
Transactions at such time. 
  
 “Maturity Date”
means the Commitment Termination Date or, if the Term-Out Option shall have exercised and become effective, July 20, 2007. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
  
 “NASD” means the National Association of Securities Dealers,
Inc., or any other self-regulatory organization that succeeds to the functions thereof. 
  
 “Net Capital Rule” means Rule 15c3-1 of the General Rules and Regulations as promulgated by the SEC under the Exchange Act (17 CFR 240.15c3-1), as such Rule may be amended from time to time, or any
rule or regulation of the SEC which replaces Rule 15c3-1. 
  

 Credit Agreement 
  
 - 11 - 

 “NYSE” means the New York Stock Exchange, Inc. 
  
 “Other Taxes” means any and 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 from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement. 
  
 “Participant” has the meaning set forth in Section 9.04.

  
 “PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity performing similar functions. 
  
 “Permitted Encumbrances” means: 
  
 (a) Liens imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.04; 
  
 (b) carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.04;

  
 (c) pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations; 
  
 (d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (e) judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII; and 
  
 (f) easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary
conduct of business of the Borrower; 
  
 provided that the term
“Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Permitted Holders” means Emanuel J. Friedman, Eric F. Billings and any Permitted Transferee thereof. 
  
 “Permitted Transferee” means, with respect to any individual, (a) such individual’s spouse, parents, immediate family members,
descendants, heirs, executors, administrators, testamentary trustees, legatees or beneficiaries and (b) a trust, the beneficiaries of which, or a corporation or partnership, the stockholders or partners of which, are such individual and/or his or
her spouse, parents, immediate family members and/or descendants. 
  

 Credit Agreement 
  
 - 12 - 

 “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the IRC or Section 302 of ERISA, and in respect of
which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  
 “Pre-Merger FBR” means Friedman, Billings, Ramsey Group,
Inc., a Virginia corporation (as constituted prior to the merger with FBR Asset). 
  
 “Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each change in the Prime Rate
shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Register” has the meaning set forth in Section 9.04. 
  
 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  
 “Repo Transaction” means any repurchase agreement, reverse repurchase agreement, sale buyback or buy sellback agreement or securities
lending and borrowing agreement. 
  
 “Required
Lenders” means, at any time, Lenders having Credit Exposures and unused Commitments representing more than 50% of the sum of the total Credit Exposures and unused Commitments at such time. 
  
 “Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any option, warrant or other right to acquire any such Equity Interests in the Borrower. 
  
 “SEC” means the Securities and Exchange Commission, or any
regulatory body that succeeds to the functions thereof. 
  
 “SIPA” means the Securities Investor Protection Act of 1970, as amended from time to time. 
  
 “SIPC” means the Securities Investor Protection Corporation established pursuant to SIPA or any other corporation that succeeds to the
functions thereof. 
  

 Credit Agreement 
  
 - 13 - 

 “S&P” means Standard & Poor’s Ratings Services. 
  
 “Special Purpose Subsidiaries” means (a) Georgetown Funding
Company, LLC, (b) Arlington Funding Company, LLC and (c) any other special purpose vehicle sponsored by the Borrower or a wholly-owned, direct or indirect Subsidiary of the Borrower for the purpose of financing solely mortgage loans, receivables of
a type commonly securitized, mortgage-backed securities and/or other asset-backed securities (but only if the accounts of such vehicle would be consolidated with those of the Borrower in the Borrower’s consolidated financial statements),
provided that, prior to the formation of any such vehicle under this clause (c), the Borrower shall notify the Administrative Agent thereof. 
  
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
  
 “Subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared
in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than
50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or
more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise specified, any reference to a “Subsidiary” shall be a reference to a Subsidiary of the Borrower. Notwithstanding anything herein
to the contrary, solely for purposes of Sections 3.12 and 6.06, “Subsidiary” shall not include any Special Purpose Subsidiary. 
  
 “Subordinated Indebtedness” of any Person means any Indebtedness of such Person that by its terms (or the terms of the applicable
subordination agreement) is subordinated in right of payment to any other Indebtedness or other obligations of such Person. 
  
 “Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former 

  

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directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement. 
  
 “Tangible Net Worth” means, for the Borrower (determined on
an unconsolidated basis in accordance with GAAP), the sum of (a) shareholders’ equity of the Borrower minus (b) goodwill (including goodwill recorded as a result of the merger of Pre-Merger FRB and FBR Asset). 
  
 “Taxes” means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
  
 “Term-Out Option” means the option of the Borrower to extend the maturity of the Loans pursuant to Section 2.01(b). 
  
 “Transactions” means the execution, delivery and performance by the Borrower of this Agreement, the
borrowing of Loans and the use of the proceeds thereof. 
  
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate. 
  
 “Unsecured Long-Term Indebtedness”
means, at any time, unsecured Indebtedness of the Borrower with a remaining term of greater than one year (other than the Loans) to the extent the same should be set forth on a balance sheet of the Borrower (excluding items which appear solely in
the footnotes thereto) in accordance with GAAP; provided that if such Indebtedness shall be owing by the Borrower to a Subsidiary (other than FBR & Co.), such Indebtedness shall be subordinated in right of payment to the payment of all
principal, interest and other amounts payable under this Agreement on terms satisfactory to the Administrative Agent. 
  
 “U.S. Broker-Dealer Subsidiary” means any Subsidiary which is registered as a broker-dealer with the SEC. 
  
 “Withdrawal Liability” means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans or Borrowings may be classified and referred to by Type
(e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”, respectively). 
  
 SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be
construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to 

  

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any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall
be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
  
 SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the
effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision
hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
  
 ARTICLE II 
  
 THE CREDITS 
  
 SECTION 2.01. Commitments; Term-Out Option. (a) Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower from time to time during the Availability Period in an aggregate principal amount
that will not result in (i) such Lender’s Credit Exposure exceeding such Lender’s Commitment or (ii) the total Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Loans. 
  
 (b) The Borrower may, by notice to the Administrative Agent (which shall promptly notify the Lenders) not less than 30 days prior to the Commitment Termination Date, extend the Maturity Date for all Loans outstanding at the opening of
business on the Commitment Termination Date to the first anniversary of the Commitment Termination Date; provided that such extension shall not be effective unless (i) no Default shall have occurred and be continuing on each of the date of
the notice requesting such extension and on the Commitment Termination Date; (ii) the representations and warranties of the Borrower set forth in this Agreement shall be true and complete on and as of the date of such notice and the Commitment
Termination Date with the same force and effect as if made on and as of each such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (iii) the Borrower shall
have furnished to the Administrative Agent a certificate of a Financial Officer dated as of the Commitment Termination Date confirming compliance with the conditions set forth in clauses (i) and (ii) above. 
  

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 SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be made as part of a Borrowing consisting
of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the
Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
  
 (b) Subject to Section 2.11, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the
Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $10,000,000. At the time that
each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $10,000,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments. Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of five Eurodollar Borrowings outstanding. 
  
 (d) Notwithstanding any other provision of this Agreement, the Borrower shall
not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
  
 SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of
such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New
York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business Day; 

 
 (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; 
  
 (iv) in the case of a Eurodollar Borrowing, the
initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.04.

  

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 If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no
Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 
  
 SECTION 2.04. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by 3:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make
such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City and designated by the Borrower in the applicable Borrowing
Request. 
  
 (b) Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made
such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount
shall constitute such Lender’s Loan included in such Borrowing. 
  
 SECTION 2.05. Interest Elections. (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such
Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The
Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a
Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or 

  

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telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower.

  
 (c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing; and 
  
 (iv)
if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. 
  
 (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such
Lender’s portion of each resulting Borrowing. 
  
 (e) If the
Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end
of the Interest Period applicable thereto. 
  
 SECTION 2.06.
Termination, Reduction and Increase of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the Commitment Termination Date. 
  

(b) The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is an integral multiple of $5,000,000 and not less than $25,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with
Section 2.08, the total Credit Exposures would exceed the total 

  

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Commitments. The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under this paragraph at least three
Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.
Each such notice delivered by the Borrower shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities,
in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Each
reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments. 
  
 (c) The Borrower may, at any time by notice to the Administrative Agent, propose an increase in the total Commitments hereunder (each such proposed
increase being a “Commitment Increase”) either by having a Lender increase its Commitment then in effect (each an “Increasing Lender”) or by adding as a Lender with a new Commitment hereunder a Person which is not
then a Lender (each an “Assuming Lender”) in each case with the approval of the Administrative Agent (not to be unreasonably withheld), which notice shall specify the name of each Increasing Lender and/or Assuming Lender, as
applicable, the amount of the Commitment Increase and the portion thereof being assumed by each such Increasing Lender or Assuming Lender, and the date on which such Commitment Increase is to be effective (the “Commitment Increase
Date”) (which shall be a Business Day at least three Business Days after delivery of such notice and 30 days prior to the Commitment Termination Date); provided that: 
  
 (i) the minimum amount of the increase of the Commitment of any Increasing Lender, and the minimum amount of
the Commitment of any Assuming Lender, as part of any Commitment Increase shall be in an amount that is an integral multiple of $5,000,000 and not less than $10,000,000; 
  
 (ii) immediately after giving effect to any Commitment Increase, the total Commitments hereunder shall not
exceed $300,000,000; 
  
 (iii) no Default shall
have occurred and be continuing on the relevant Commitment Increase Date or shall result from any Commitment Increase; and 
  
 (iv) the representations and warranties of the Borrower set forth in this Agreement shall be true and correct on and as of the relevant
Commitment Increase Date as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date). 
  
 Each Commitment Increase (and the increase of the Commitment of each Increasing Lender and/or
the new Commitment of each Assuming Lender, as applicable, resulting therefrom) shall become effective as of the relevant Commitment Increase Date upon receipt by the Administrative Agent, on or prior to 9:00 a.m., New York City time, on such
Commitment Increase Date, of (A) a certificate of a duly authorized officer of the Borrower stating that the conditions with respect to such Commitment Increase under this paragraph (c) have been satisfied and (B) an agreement, in form and substance
satisfactory to the Borrower and the Administrative Agent, pursuant to which, effective as of such Commitment Increase Date, the Commitment of each such Increasing Lender 

  

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shall be increased or each such Assuming Lender, as applicable, shall undertake a Commitment, duly executed by such Increasing Lender or Assuming Lender, as
the case may be, and the Borrower and acknowledged by the Administrative Agent. Upon the Administrative Agent’s receipt of a fully executed agreement from each Increasing Lender and/or Assuming Lender referred to in clause (B) above, together
with the certificate referred to in clause (A) above, the Administrative Agent shall record the information contained in each such agreement in the Register and give prompt notice of the relevant Commitment Increase to the Borrower and the Lenders
(including, if applicable, each Assuming Lender). On each Commitment Increase Date the Borrower shall simultaneously (i) prepay in full the outstanding Loans (if any) held by the Lenders immediately prior to giving effect to the relevant Commitment
Increase, (ii) if the Borrower shall have so requested in accordance with this Agreement, borrow new Loans from all Lenders (including, if applicable, any Assuming Lender) such that, after giving effect thereto, the Loans are held ratably by the
Lenders in accordance with their respective Commitments (after giving effect to such Commitment Increase) and (iii) pay to the Lenders the amounts, if any, payable under Section 2.13. 
  
 SECTION 2.07. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Maturity Date. 
  
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  
 (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder
for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure
of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 
  
 (e) Any Lender may request that Loans made by it be evidenced by a promissory
note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the
Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the
order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  

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 SECTION 2.08. Prepayment of Loans. (a) The Borrower shall have the right at any time and from time
to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section. 
  
 (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the
date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by Section 2.06, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06. Promptly following receipt of any such
notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same
Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.10. 
  
 SECTION 2.09. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which shall accrue at a rate of 0.15% per annum on the average daily unused amount of the Commitment of such Lender during the period from and including the date on which this
Agreement shall have been executed and delivered to but excluding the date on which such Commitment terminates. Accrued commitment fees shall be payable in arrears on the last day of January, April, July and October of each year and on the date on
which the Commitments terminate, commencing on the first such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). 
  
 (b) The Borrower agrees
to pay to the Administrative Agent, for its own account, an administration fee in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. 
  
 (c) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent
for distribution, in the case of commitment fees, to the Lenders. Fees paid shall not be refundable under any circumstances. 
  
 SECTION 2.10. Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable
Margin. 
  
 (b) The Loans comprising each Eurodollar Borrowing
shall bear interest, in the case of a Eurodollar Loan, at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin. 
  
 (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the
Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as 

  

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well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such
Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section. 
  
 (d) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan, upon the termination of the Commitments and (if the Term-Out Option shall be exercised) upon the Maturity Date; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable
on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

  
 (e) All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each
case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error. 
  
 SECTION 2.11. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing: 
  
 (a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or 
  
 (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately
and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
  
 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a
Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. 
  

SECTION 2.12. Increased Costs. (a) If any Change in Law shall: 
  
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or 
  

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 (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender; 
  
 and the result of any
of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 
  
 (b) If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to a level
below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender setting forth the amount or amounts necessary
to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the
amount shown as due on any such certificate within 10 days after receipt thereof. 
  
 (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower
shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above
shall be extended to include the period of retroactive effect thereof. 
  
 SECTION 2.13. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.08(b) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a
request by the Borrower pursuant to Section 2.16, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any
Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan 

  

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had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of
any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as
due on any such certificate within 10 days after receipt thereof. 
  
 SECTION 2.14. Taxes. (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent or the Lenders (as the case may be) shall receive an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
  
 (c) The Borrower shall indemnify the Administrative Agent and each Lender,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or such Lender (as the case may be) on or with respect to any payment by or on account of any obligation of
the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable 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 Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. 
  
 (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver
to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent. 
  
 (e) Any Foreign Lender that is entitled
to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be
made without withholding or at a reduced rate. 
  

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 (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay over such refund to the Borrower (but only to the extent
of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This Section 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 which it deems confidential) to the Borrower or any other
Person. 
  
 SECTION 2.15. Payments Generally; Pro Rata
Treatment; Sharing of Set-offs. (a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or other amounts payable under Section 2.12, 2.13 or 2.14 or otherwise) prior to 12:00 noon, New
York City time, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except that payments pursuant to Sections 2.12, 2.13, 2.14 and
9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any
payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder shall be made in dollars. 
  
 (b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest
and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the
Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by 

  

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the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
  
 (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent
for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender
with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. 
  
 (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(b) or 2.15(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof),
apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 SECTION 2.16. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall use
reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.14, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
  
 (b) If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender

  

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and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall
have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower represents and warrants to the Lenders that: 
  
 SECTION 3.01. Organization; Powers. Each of the Borrower and its Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 SECTION 3.02. Authorization; Enforceability. The Transactions are within the Borrower’s corporate powers and have been duly authorized by all
necessary corporate and, if required, stockholder action. This Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  
 SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other
instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result in the creation or imposition of
any Lien on any asset of the Borrower or any of its Subsidiaries. 
  

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 SECTION 3.04. Financial Condition; No Material Adverse Change. 
  
 (a) The Borrower has heretofore furnished to the Lenders (i) the consolidated
balance sheet and statements of operations, changes in shareholders’ equity and cash flows of the Borrower as of and for the fiscal year ended December 31, 2004, reported on by PriceWaterhouseCoopers LLP, (ii) the consolidated balance sheet and
statements of operations, changes in shareholders’ equity and cash flows of the Borrower as of and for the fiscal quarter ended March 31, 2005, certified by the chief financial officer of the Borrower and (iii) the consolidating balance sheet
and statements of operations, changes in shareholders’ equity and cash flows of each of the Borrower and its Subsidiaries as of and for the fiscal year ended December 31, 2004 and the fiscal quarter ended March 31, 2005, in each case certified
by the chief financial officer of the Borrower. Such financial statements as at December 31, 2004 and March 31, 2005 present fairly (in the case of said consolidated statements), in all material respects, the consolidated financial position and
consolidated results of operations and cash flows of the Borrower and its consolidated Subsidiaries and (in the case of said consolidating financial statements) the respective unconsolidated financial position of each of the Borrower and its
Subsidiaries and the unconsolidated results of their respective operations, as of such dates and for such periods in accordance with GAAP, subject (in the case of each financial statement as at March 31, 2005 and each consolidating financial
statement referred to above) to year-end audit adjustments and the absence of footnotes. Except as referred to or reflected or provided in such balance sheets (or the related footnotes) as at December 31, 2004, in the Borrower’s report on Form
10-K for the fiscal year ended December 31, 2004 or in the Borrower’s report on Form 10-Q for the fiscal quarter ended March 31, 2005, none of the Borrower nor any of its Subsidiaries has on the Effective Date any material contingent
liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are required to be disclosed by GAAP or in such reports on Form 10-K or 10-Q. 
  
 (b) Since December 31, 2004, there has been no material adverse change in the
business, assets, operations, prospects or condition, financial or otherwise, of the Borrower and its Subsidiaries, taken as a whole. 
  
 SECTION 3.05. Properties. (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all its real and
personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. 
  
 (b) Each of the Borrower and its Subsidiaries owns, or is licensed to use,
all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined,
could reasonably be expected, individually or in the aggregate, to result in a 

  

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Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions. 
  
 (b) Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or
comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability. 
  
 (c) Since the date of
this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect. 
  
 SECTION 3.07. Compliance with Laws and Agreements. Each of the
Borrower and its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing. 
  
 SECTION 3.08. Investment and Holding Company Status. Neither the Borrower nor any of its Subsidiaries is (a) required
to register as an “investment company” as defined in the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935. 
  
 SECTION 3.09. Taxes. Each of the Borrower and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

  
 SECTION 3.10. ERISA. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than
$25,000,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87)
did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $25,000,000 the fair market value of the assets of all such underfunded Plans. 
  
 SECTION 3.11. Disclosure. The Borrower has disclosed to the Lenders all agreements, instruments and corporate or
other restrictions to which it or any of its Subsidiaries is 

  

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subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None
of the reports, financial statements, certificates or other written information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any material misstatement of 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; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 
  
 SECTION 3.12. Subsidiaries. Set forth in Schedule 3.12 is a complete
and correct list of all of the Subsidiaries of the Borrower as of the date hereof, together with, for each such Subsidiary, (a) the jurisdiction of organization of such Subsidiary, (b) each Person holding Equity Interests of such Subsidiary and (c)
the nature of the Equity Interests held by each such Person and the percentage of ownership of such Subsidiary represented by such Equity Interests. Except as disclosed in Schedule 3.12, as of the date hereof, (i) each of the Borrower and its
Subsidiaries owns, free and clear of Liens (other than Liens permitted in Section 6.02(b)), and has the unencumbered right to vote, all outstanding Equity Interests in each Person shown to be held by it in Schedule 3.12, (ii) all of the issued and
outstanding capital stock of each such Person organized as a corporation is validly issued, fully paid and nonassessable and (iii) there are no outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind
(including any shareholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or securities convertible into, any additional shares of capital stock of any class of, or partnership or other ownership interests of
any type in, any Subsidiary. 
  
 SECTION 3.13. REIT
Qualification. The Borrower has elected to be taxed as a “real estate investment trust” under the IRC. The Borrower has qualified as a “real estate investment trust” under the IRC for its taxable year ended December 31, 2004.
The Borrower’s present and contemplated operations, assets and income will enable the Borrower to meet the requirements for qualification and taxation as a “real estate investment trust” under the IRC. 
  
 SECTION 3.14. Regulatory Matters Pertaining to FRB & Co. FBR &
Co. is a registered broker-dealer in each jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so register except to the extent that failure to so register does not and is not reasonably likely to
have a Material Adverse Effect. FBR & Co. is a member in good standing of the NASD and is duly registered as a broker-dealer with the SEC. The Examining Authority for FBR & Co. is the NASD. 
  
 ARTICLE IV 
  
 CONDITIONS 
  
 SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed
on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement. 

 

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 (b) The Administrative Agent shall have received a favorable written opinion (addressed
to the Administrative Agent and the Lenders and dated the Effective Date) of Hunton & Williams, counsel for the Borrower, substantially in the form of Exhibit B, and covering such other matters relating to the Borrower, this Agreement or the
Transactions as the Required Lenders shall reasonably request (and the Borrower hereby requests such counsel to deliver such opinion). 
  
 (c) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and
dated the Effective Date) of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB, substantially in the form of Exhibit C (and JPMCB hereby instructs such counsel to deliver such opinion to the Lenders). 
  
 (d) The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Borrower, the authorization of the Transactions and any other legal matters relating to the
Borrower, this Agreement or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel. 
  
 (e) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or
a Financial Officer of the Borrower, confirming compliance with the conditions set forth in clauses (a) and (b) of Section 4.02. 
  
 (f) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including,
to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. 
  
 (g) The Administrative Agent shall have received evidence that any intercompany loans or notes outstanding on the date hereof owing by the
Borrower to any of its Subsidiaries (other than any such loans or notes to any of its Broker-Dealer Subsidiaries or any Indebtedness permitted under Section 6.01(g)) shall be subordinated to the payment of the Loans and all obligations hereunder on
terms satisfactory to the Administrative Agent. 
  
 The Administrative Agent shall
notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on July 21, 2005 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time). 

 

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 SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of
any Borrowing is subject to the satisfaction of the following conditions: 
  
 (a) the representations and warranties of the Borrower set forth in this Agreement shall be true and correct on and as of the date of such Borrowing (or, if any such representation or warranty is expressly stated to
have been made as of a specific date, as of such specific date); and 
  
 (b) at the time of and immediately after giving effect to such Borrowing, no Default shall have occurred and be continuing. 
  
 Each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in clauses (a) and (b) of this
Section. 
  
 ARTICLE V 
  
 AFFIRMATIVE COVENANTS 
  
 Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 5.01. Financial Statements; Other Information. The Borrower will furnish to the Administrative Agent and each Lender: 
  
 (a) within five Business Days of the earlier of (i) the date
on which the same shall have been filed with the SEC and (ii) the date the same are required to be filed with the SEC (without regard to any extension of the SEC’s filing requirements), the audited consolidated balance sheet and related
statements of operations, changes in shareholders’ equity and cash flows of the Borrower as of the end of and for each fiscal year of the Borrower, setting forth in each case in comparative form the figures for the previous fiscal year, all
reported on by PriceWaterhouseCoopers LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of
such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance
with GAAP consistently applied; 
  
 (b) within
five Business Days of the earlier of (i) the date on which the same shall have been filed with the SEC and (ii) the date the same are required to be filed with the SEC (without regard to any extension of the SEC’s filing requirements), the
audited consolidated balance sheet and related statements of operations, changes in shareholders’ equity and cash flows of each U.S. Broker-Dealer Subsidiary as of the end of and for each fiscal year of such U.S. Broker-Dealer Subsidiary, all
reported on by PriceWaterhouseCoopers LLP or other independent public accountants of recognized 

  

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national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such
audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of such U.S. Broker-Dealer Subsidiary and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied; 
  
 (c) within five Business Days of the earlier of (i) the date on which the same shall have been filed with the SEC and (ii) the date the same are required to be filed with the SEC (without regard to any extension of the SEC’s filing
requirements), the consolidated balance sheet and related statements of operations, changes in shareholders’ equity and cash flows of the Borrower as of the end of and for each of the first three fiscal quarters of each fiscal year of Borrower
and the then elapsed portion of each such fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all
certified by the chief financial officer of the Borrower as presenting fairly in all material respects the consolidated financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (d) on or before the respective dates by which the financial statements respectively referred to in Sections 5.01(a) and 5.01(c) are
required to be delivered, the consolidating balance sheet and related statements of operations of each of the Borrower and its Subsidiaries as of the end of and for each of the fiscal quarters of each fiscal year of the Borrower and the then elapsed
portion of each such fiscal year, all certified by the chief financial officer of the Borrower as presenting fairly in all material respects the respective individual unconsolidated financial condition and results of operations of each of the
Borrower and its Subsidiaries in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (e) concurrently with any delivery of financial statements under clause (a) or (c) above (but without duplication), a certificate of a
Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 6.01, 6.05, 6.10, 6.11 and 6.12 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in
Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate; 
  
 (f) within five Business Days after the filing thereof with the SEC or a national securities exchange, as applicable, the FOCUS Report of
FBR & Co. for each calendar quarter and fiscal year; 
  
 (g) promptly after the same become publicly available, copies of all periodic reports and proxy statements and all other material documents filed by the Borrower or any Subsidiary with the SEC or the NYSE, any other
national securities, any commodities exchange or any self-regulatory organization, or distributed by the Borrower to its shareholders generally, as the case may be; and 
  

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 (h) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request. 
  
 SECTION 5.02. Notices of Material Events. The Borrower will furnish to
the Administrative Agent and each Lender prompt written notice of the following: 
  
 (a) the occurrence of any Default; 
  
 (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or
affecting the Borrower or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000; and 
  
 (d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
  
 Each notice delivered under this Section shall be accompanied by a statement of a Financial
Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 SECTION 5.03. Existence; Conduct of Business. The Borrower will, and
will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its
business (including, in the case of any Broker-Dealer Subsidiary, all registrations, licenses, memberships and other authorizations with respect to its activities); provided that the foregoing shall not prohibit any merger, consolidation,
liquidation or dissolution permitted under Section 6.03. 
  
 SECTION 5.04. Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall
become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 5.05. Maintenance of Properties; Insurance. The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain all
property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and 

  

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(b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by
companies engaged in the same or similar businesses operating in the same or similar locations. 
  
 SECTION 5.06. Books and Records; Inspection Rights. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested. 
  
 SECTION 5.07. Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations (including the Net Capital Rules) and orders of any Governmental
Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used only for general corporate purposes of the
Borrower. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X. 
  
 ARTICLE VI 
  
 NEGATIVE COVENANTS 
  
 Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full, the
Borrower covenants and agrees with the Lenders that: 
  
 SECTION
6.01. Indebtedness. The Borrower will not create, incur, assume or permit to exist any Indebtedness, except: 
  
 (a) Indebtedness created hereunder; 
  
 (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof; 
  
 (c) Indebtedness of the Borrower owing to any Subsidiary; 
  
 (d) (i) Indebtedness of the Borrower in respect of, and any other obligations or liabilities of the Borrower arising from, Repo
Transactions entered into the ordinary course of business of the Borrower; and (ii) Guarantees, entered into in the ordinary course of business of the Borrower, of Repo Transactions of others, provided that the assets which 

  

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are the subject of such Repo Transactions so guaranteed by the Borrower shall be deemed to constitute assets of the Borrower for purposes of, and shall
accordingly be included in, clause (c), (d), (e), (f) or (g) (as applicable) of the definition of “Assets for Purposes of Assessing Liquidity” (subject to the percentage limitations thereof); 
  
 (e) Indebtedness of the Borrower incurred in the ordinary
course of its business to finance the acquisition of Eligible MBS, asset-backed securities, warehouse advances or Eligible Sub-Prime Loans, in each case, of the type described in paragraphs (c), (d), (e) and (f), respectively, of the definition of
“Assets for Purposes of Assessing Liquidity”; 
  
 (f) Indebtedness of the Borrower (other than any Guarantee by the Borrower of the Indebtedness of any other Person) which on the date of its incurrence shall have had a term to maturity of greater than one year;

  
 (g) Indebtedness of the Borrower which on the
date of its incurrence shall have had a term to maturity of greater than one year issued to a wholly-owned Subsidiary of the Borrower in connection with such Subsidiary’s issuance of its preferred stock (and any related Guarantee by the
Borrower of such Subsidiary’s obligations in respect of such preferred stock, the obligations of the Borrower under which Guarantee shall not exceed the amount of such Indebtedness); and 
  
 (h) unsecured Indebtedness of the Borrower (other than any
Guarantee by the Borrower of the Indebtedness of any other Person) in addition to the Indebtedness permitted under Sections 6.01(a) through (g), provided that the aggregate amount of unsecured Indebtedness outstanding pursuant to this Section
6.01(h) shall not at any time exceed $100,000,000. 
  
 SECTION
6.02. Liens. The Borrower will not create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect
of any thereof, except: 
  
 (a) Permitted
Encumbrances; 
  
 (b) any Lien on any property of
the Borrower existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property of the Borrower and (ii) such Lien shall secure only those obligations which it secures on the date
hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (c) Liens securing Indebtedness permitted under Section 6.01(c) owing by the Borrower to FBR & Co.; 
  
 (d) (i) Liens securing Indebtedness, other obligations or
liabilities permitted under Section 6.01(d) and (ii) Liens on Eligible MBS, asset-backed securities, warehouse advances or Eligible Sub-Prime Loans of the Borrower being financed with the Indebtedness permitted under Section 6.01(e), provided
that no such Lien shall extend to any property of the Borrower other than (as applicable) the property subject to the relevant Repo Transaction or such Eligible MBS, asset-backed securities, warehouse advances or Eligible Sub-Prime Loans; and

  

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 (e) Liens on cash or Cash Equivalents securing obligations in respect of Swap Agreements
entered into in the ordinary course of business and not for speculative purposes. 
  
 SECTION 6.03. Mergers, Consolidations, Sale of Assets, etc. The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of the assets of the Borrower (whether now owned or hereafter acquired), or liquidate or
dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing: 
  
 (a) any Person may merge into the Borrower in a transaction in which the Borrower is the surviving corporation; 
  
 (b) any Person may merge into any Subsidiary in a
transaction in which the surviving entity is a Subsidiary; 
  
 (c) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to another Subsidiary; and 
  

(d) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the
best interests of the Borrower and is not materially disadvantageous to the Lenders. 
  
 SECTION 6.04. Restricted Payments. The Borrower will not declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except: 
  
 (a) the Borrower may declare and pay dividends with respect
to its Equity Interests payable solely in additional shares of its common stock; 
  
 (b) the Borrower may declare and pay cash dividends in such amounts (but not more than such amounts) and at such times as shall be
necessary to meet the requirements for qualification and taxation as a “real estate investment trust” under the IRC; 
  
 (c) so long as no Default shall have occurred and be continuing or would result therefrom, the Borrower may declare and pay cash dividends
during any calendar year in an aggregate amount not at any time exceeding the difference (if positive) between (i) 110% of the Borrower’s “REIT taxable income” (determined in accordance with the IRC) for the calendar year most
recently ended, less (ii) the aggregate amount of any dividends declared and paid under Section 6.04(b) during such calendar year; and 
  
 (d) so long as no Default shall have occurred and be continuing or would result therefrom, the Borrower may make Restricted Payments,
provided that the aggregate amount of such Restricted Payments made pursuant to this clause (d) during the period commencing on the date hereof and ending on the date of any such Restricted Payment 

  

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shall not exceed 10% of the shareholders’ equity of the Borrower (determined on an unconsolidated basis in accordance with GAAP) as of the last day of
the fiscal quarter most recently ended. 
  
 SECTION 6.05.
Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrower and its wholly-owned Subsidiaries not involving any other Affiliate and (c) any Restricted Payment permitted by Section 6.04. 
  
 SECTION 6.06. Restrictive Agreements. The Borrower will not, and will
not permit any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower to create, incur or permit
to exist any Lien upon any of its property or assets or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Borrower or to Guarantee
Indebtedness of the Borrower; provided that the foregoing shall not apply to (i) restrictions and conditions imposed by law or by this Agreement, (ii) restrictions and conditions existing on the date hereof identified on Schedule 6.06 (but
shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder and (iv) (in the case of clause (a) above) restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and customary provisions in leases and other contracts restricting the assignment
thereof. 
  
 SECTION 6.07. Subordinated Indebtedness. The
Borrower will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for a sinking, defeasance or other analogous fund for the purchase, redemption, retirement or other acquisition of, or make any voluntary payment or
prepayment of the principal of or interest on, or any other amount owing in respect of, any Subordinated Indebtedness, except for regularly scheduled payments, prepayments or redemptions of principal and interest in respect thereof required pursuant
to the instruments evidencing such Subordinated Indebtedness. 
  
 SECTION 6.08. Lines of Business. The Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than the businesses of the type conducted by the Borrower and its
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto; provided that nothing in this Section 6.08 shall prevent the Borrower from acquiring or engaging in, or prevent the Borrower from permitting
any of its Subsidiaries to acquire or engage in, any business or businesses that provide financial products or financial services, or create financial assets, that are used in the business of the type conducted by the Borrower and its Subsidiaries
on the date of execution of this Agreement and businesses reasonably related thereto. 
  

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 SECTION 6.09. Change in Fiscal Periods. The Borrower will not change its fiscal quarters and
fiscal year from that in effect on the date hereof. 
  
 SECTION
6.10. Tangible Net Worth. The Borrower will not at any time permit Tangible Net Worth to be less than the sum of (a) $1,000,000,000 plus (b) 75% of the aggregate net proceeds received by the Borrower in respect of any issuance of
Equity Interests by the Borrower after March 31, 2005. 
  
 SECTION
6.11. Liquidity. The Borrower will not at any time permit the sum of (a) shareholders’ equity of the Borrower at such time (calculated on an unconsolidated basis in accordance with GAAP) plus (b) Unsecured Long-Term Indebtedness
at such time to be less than Assets for Purposes of Assessing Liquidity at such time. 
  
 SECTION 6.12. Leverage Ratio. The Borrower will not at any time permit Unsecured Long-Term Indebtedness to be greater than an amount equal to 25% of the sum of (a) Tangible Net Worth plus (b) Unsecured
Long-Term Indebtedness at such time. 
  
 ARTICLE VII 
  
 EVENTS OF DEFAULT 
  
 If any of the following events (“Events of Default”) shall
occur: 
  
 (a) the Borrower shall fail to pay any
principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  
 (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an
amount referred to in clause (a) of this Article) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days; 
  
 (c) any representation or warranty made or deemed made by or
on behalf of the Borrower in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this
Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed made; 
  
 (d) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to
the Borrower’s existence) or 5.08 or in Article VI; 
  
 (e) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall
continue unremedied for a period of 30 days after 

  

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notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender); 
  
 (f) the Borrower or any Subsidiary shall fail to make any
payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable, and all grace periods with respect thereto have expired; 
  
 (g) any event or condition occurs that results in any
Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or
their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Borrower or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed
for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (i) the Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization
or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, (iv)
file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

  
 (j) the Borrower or any Subsidiary shall
become unable, admit in writing its inability or fail generally to pay its debts as they become due; 
  
 (k) one or more judgments for the payment of money in an aggregate amount in excess of $25,000,000 shall be rendered against the Borrower
or any Subsidiary (or any combination thereof) and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach
or levy upon any assets of the Borrower or any Subsidiary to enforce any such judgment; 
  

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 (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000; 
  
 (m) a Change of Control shall occur; 
  
 (n) any U.S. Broker-Dealer Subsidiary shall cease to be a
member organization of the NASD or any national securities exchange or shall fail to maintain its registration as a broker-dealer with the SEC, in either case for a period of 10 days; or SIPC shall apply for a protective decree with respect to any
U.S. Broker-Dealer Subsidiary as provided in the SIPA and such application shall remain undismissed for a period of five days; or any self-regulatory organization or Governmental Authority shall revoke the membership therein of any Broker-Dealer
Subsidiary and such membership shall not be reinstated within 10 days of such suspension; 
  
 (o) the Borrower shall cease at any time to own, directly or indirectly, 100% of the capital stock of FBR & Co.; or 
  
 (p) the Borrower shall cease at any time to meet the
requirements for qualification and taxation as a “real estate investment trust” under the IRC; 
  
 then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative
Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower. 
  
 ARTICLE VIII 
  
 THE ADMINISTRATIVE AGENT 
  
 Each of the Lenders hereby irrevocably appoints the Administrative Agent as
its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental
thereto. 
  

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 The bank serving as the Administrative Agent hereunder 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 the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the
Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder. 
  
 The Administrative Agent shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its
own gross negligence or wilful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the Administrative
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, (ii) the contents of any certificate, report or other document delivered
hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  
 The Administrative 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 believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
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. 
  
 The Administrative Agent may perform any and all its duties and exercise its
rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative 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 Administrative Agent. 
  

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 Subject to the appointment and acceptance of a successor Administrative Agent as provided in this
paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the approval of the Borrower, which approval shall not be unreasonably
withheld, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative 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 it was acting as Administrative Agent. 
  
 Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender 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 the Administrative Agent or any other Lender 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 related agreement or any document furnished hereunder or thereunder. 
  
 Notwithstanding anything herein to the contrary, the Sole Bookrunner and the Sole Lead Arranger and the Syndication Agents
named on the cover page of this Agreement shall not have any duties or liabilities under this Agreement, except in their capacity, if any, as Lenders. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 SECTION 9.01. Notices. (a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) of this Section), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
  
 (i) if to the Borrower, to it at Friedman, Billings Ramsey Group, Inc., 1001 Nineteenth Street North, Arlington, Virginia 22209, Attention
of Kurt R. Harrington, Senior Vice President & Chief Financial Officer (Telephone No. (703) 312-9647; Telecopy No. (703) 312-9780); 
  

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 (ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 1111 Fannin Street,
10th Floor, Houston, Texas 77002-8069, Attention of Carla Kinney, Loan and Agency Services (Telephone No. (713)
750-3560; Telecopy No. (713) 750-2223), with a copy to JPMorgan Chase Bank, N.A., 277 Park Avenue, New York 10172, Attention of Thomas H. Mulligan (Telephone No. (212) 622-8620; Telecopy No. (646) 534-1720); and 
  
 (iii) if to any other Lender, to it at its address (or
telecopy number) set forth in its Administrative Questionnaire. 
  
 (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to
notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. 
  
 (c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to
the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 
  
 SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a
right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether
the Administrative Agent or any Lender may have had notice or knowledge of such Default at the time. 
  
 (b) 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 Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written
consent of such Lender, (ii) reduce 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 affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan, 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 Commitment, without the written
consent of each Lender affected thereby, (iv) change 

  

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Section 2.15(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, or alter the pro rata treatment requirements hereunder
with respect to Borrowings, payments, prepayments or reductions of Commitments, in any such case, without the written consent of each Lender, or (v) change any of the provisions of this Section or 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;
providedfurther that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior written consent of the Administrative Agent. 
  
 SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated)
and (ii) all out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent or any Lender, in connection with the enforcement or protection of its
rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Loans or in connection with this Agreement. 
  
 (b) The
Borrower shall indemnify the Administrative Agent and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its Subsidiaries, 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 and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee. 
  
 (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent 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 the Administrative Agent in its capacity as such. 

 

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 (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, 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 or any agreement or
instrument contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable promptly but not later than 10 days after written demand therefor. 
  
 SECTION 9.04. Successors and Assigns. (a) 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 (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section. 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 paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b)(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or
a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 
  
 (A) the Borrower, provided that no consent of the
Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has occurred and is continuing, any other assignee; and 
  
 (B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required
for an assignment to a Lender. 
  
 (ii) Assignments shall be
subject to the following additional conditions: 
  
 (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the
Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing; 
  
 (B) 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; 
  

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 (C) the parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with a processing and recordation fee of $3,500; and 
  
 (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
  
 (iii) Subject to acceptance and recording thereof pursuant to paragraph
(b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto 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 Sections 2.12, 2.13, 2.14 and 9.03).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 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 paragraph (c) of this Section. 
  
 (iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices 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 the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower,
the Administrative Agent and the Lenders may 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 and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register
as provided in this paragraph. 
  
 (c)(i) Any Lender may, without
the consent of the Borrower and the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative 

  

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Agent and the other 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, modification or waiver described in the first proviso to Section
9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided that such Participant
agrees to be subject to Section 2.15(c) as though it were a Lender. 
  
 (ii) A Participant shall not be entitled to receive any greater payment under Section 2.12 or 2.14 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.14 unless the Borrower is notified of
the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.14(e) as though it were a Lender. 
  
 (d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
  
 SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution
and delivery of this Agreement and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default
or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid and so long as the Commitments have not expired or terminated. The provisions of Sections 2.12, 2.13, 2.14 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation
of the transactions contemplated hereby, the repayment of the Loans or the termination of this Agreement or any provision hereof. 
  
 SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any separate letter agreements with respect to fees payable to the Administrative Agent
constitute the entire contract among the parties relating to the subject matter 

  

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hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the
other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 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. 
  
 SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. 
  
 SECTION 9.08. Right of Setoff. If an
Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or
hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 
  
 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by
the law of the State of New York. 
  
 (b) The Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent or any Lender may otherwise have
to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction. 
  
 (c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now
or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably 

  

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waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

  
 (d) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
  
 SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY 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 THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 SECTION 9.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 SECTION 9.12. Confidentiality. Each of the Administrative Agent and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the
consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a
source other than the Borrower. For the purposes of this Section, “Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date hereof, such information is clearly identified at the time
of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same 

  

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degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 SECTION 9.13. USA PATRIOT Act. Each Lender hereby notifies the
Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), such Lender may be required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with said Act. 
  

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

					
	 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

		
	By	 	/s/ Kurt Harrington
	 	 	 Name: Kurt Harrington

	 	 	 Title: Chief Financial Officer

	
	 U.S. Federal Tax Identification No.: 54-1873198

  

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	JPMORGAN CHASE BANK, N.A.,
individually and as Administrative Agent,
		
	By	 	/s/ Pandora Setian
	 	 	 Name: Pandora Setian

	 	 	 Title: Vice President

  

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	 BANK OF AMERICA, N.A.

		
	By	 	/s/ Maryanne Fitzmaurice
	 	 	 Name: Maryanne Fitzmaurice

	 	 	 Title: Senior Vice President

  

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	 CALYON NEW YORK BRANCH

		
	By	 	/s/ Jay Buckley
	 	 	 Name: Jay Buckley

	 	 	 Title: Managing Director

  

					
		
	By	 	 /s/ Gina Harth-Cryde

	 	 	 Name: Gina Harth-Cryde

	 	 	 Title: Managing Director

  

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 - 56 - 

					
	 THE BANK OF NEW YORK

		
	 By
	 	 /s/ Paul Schmidt

	 	 	 Name:
	 	 Paul Schmidt

	 	 	 Title:
	 	 Vice President

  

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 - 57 - 

					
	 HARRIS NESBITT FINANCING INC.

		
	 By
	 	 /s/ Pam Schwartz

	 	 	 Name:
	 	 Pamela E. Schwartz

	 	 	 Title:
	 	 Vice President

  

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	 BRANCH BANKING AND TRUST CO.

		
	 By
	 	 /s/ James E. Davis

	 	 	 Name:
	 	 James E. Davis

	 	 	 Title:
	 	 Senior Vice President

  

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 - 59 - 

					
	 CHEVY CHASE BANK, F.S.B.

		
	 By
	 	 /s/ Richard L. Amador

	 	 	 Name:
	 	 Richard L. Amador

	 	 	 Title:
	 	 Group Vice President

  

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	 PNC BANK, NATIONAL ASSOCIATION

		
	 By
	 	 /s/ Kirk Seggers

	 	 	 Name:
	 	 Kirk Seggers

	 	 	 Title:
	 	 Vice President

  

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 SCHEDULE 2.01 
  
 Commitments 
  

				
	 Name of Lender

	  	Commitment ($)

	 JPMORGAN CHASE BANK, N.A.
	  	$	35,000,000
	 BANK OF AMERICA, N.A.
	  	$	35,000,000
	 CALYON NEW YORK BRANCH
	  	$	35,000,000
	 THE BANK OF NEW YORK
	  	$	25,000,000
	 HARRIS NESBITT FINANCING INC.
	  	$	25,000,000
	 BRANCH BANKING AND TRUST CO.
	  	$	15,000,000
	 CHEVY CHASE BANK, F.S.B.
	  	$	15,000,000
	 PNC BANK, NATIONAL ASSOCIATION
	  	$	15,000,000
		
	 TOTAL
	  	$	200,000,000

  

 Schedule 2.01 to Credit Agreement 

  
 SCHEDULE 3.06 
  
 Disclosed Matters 
  

	1.	In re Initial Public Offering Securities Litigation, 21 MC 92 (SAS) (S.D.N.Y): 

  
 This is a collection of securities class actions involving more than 300 issuers and nearly 50 underwriters.
The class actions all are presently pending in the United States District Court for the Southern District of New York. The complaints allege widespread manipulation of the IPO and IPO aftermarkets, including undisclosed commissions and other
compensation and undisclosed pre-arranged “tie-in” arrangements requiring purchasers of allocations of IPO securities also to purchase in the aftermarket. The claims are brought under various sections of the Securities Act of 1933 and the
Securities Exchange Act of 1934. Friedman, Billings, Ramsey Group, Inc. (“FBR”) is a defendant in class actions involving certain securities offerings by Aether Systems, Inc., OTG Software, Inc., and WebMethods, Inc. 
  
 Discovery in the litigation is ongoing, beginning with
certain “focus cases.” FBR is not a defendant in any of the focus cases. 
  
 In connection with the litigation, FBR has received indemnification requests from several issuers. 
  
 FBR is contesting liability in the litigation. 

 

	2.	Brian T. Weiss v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04617 (S.D.N.Y.); L. Norman
Showers v. Friedman, Billings, Ramsey Group, Inc., Emanuel J. Friedman, Eric F. Billings, Kurt R. Harrington and Robert J. Kiernan, 05-CV-06219 (S.D.N.Y.); Van Der Jagt Family Trust v. Friedman, Billings, Ramsey Group, Inc., Eric F.
Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04706 (S.D.N.Y.); John Graebner v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04771 (S.D.N.Y.);
Michelle Posner v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04795 (S.D.N.Y); Sam Manewitz v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and
Kurt R. Harrington, 05-CV-04824 (S.D.N.Y.); Steven Weissman v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04851 (S.D.N.Y.); Daniel C. Pfister and Honey Lee Richless v.
Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-04877 (S.D.N.Y.); Merle Davis v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R.
Harrington, 05-CV-04889 (S.D.N.Y.); Steven A. Ettinger v. Friedman, Billings, Ramsey Group, Inc., Eric F. Billings, Emanuel J. Friedman and Kurt R. Harrington, 05-CV-05090 (S.D.N.Y.): 

  
 This is a series of putative class action securities
lawsuits brought against Friedman, Billings, Ramsey Group, Inc. (“FBR”) and certain current and former FBR senior 

  

 Schedule 3.06 to Credit Agreement 

 
officers and directors. The actions all are presently pending in the United States District Court for the Southern District of New York. The complaints
allege misstatements and omissions concerning (i) various investigations into FBR’s involvement in a PIPE transaction by CompuDyne Corporation and (ii) FBR’s expected earnings, including the potential adverse impact on the company of
changes in interest rates. The claims are brought under various sections of the Securities Exchange Act of 1934. 
  
 Motions to consolidate these cases have been filed, as have motions to appoint a “lead plaintiff” to direct the litigation.
These motions are pending. FBR has not responded to any of the complaints, and no discovery has yet commenced. 
  

	3.	Lemon Bay Partners, LLP v. Eric F. Billings, Emanuel J. Friedman, Kurt R. Harrington, and Friedman, Billings, Ramsey Group, Inc., 05-CV-4818 (S.D.N.Y.):

  
 This is a shareholders’
derivative action brought against nominal defendant Friedman, Billings, Ramsey Group, Inc. (“FBR”) and certain current and former FBR officers and directors. The action is presently pending in the United States District Court for the
Southern District of New York. The complaints allege conduct substantially similar to that alleged in the Weiss et al. putative class actions described above in the immediately preceding paragraphs. 
  
 FBR has not responded to the complaint, and no discovery has
yet commenced. 
  

	4.	Compudyne Related Matters. 

  
 FBR & Co., Inc. (“FBR&Co” or “the Company”) has made an offer of settlement to the staff of the Division of
Enforcement (“SEC staff”) of the Securities and Exchange Commission (“Commission”) and the staff of the Department of Market Regulation of NASD (“NASD staff”), and the Company has requested the SEC and NASD staffs
recommend such proposal to the Commission and NASD National Adjudicatory Council or NASD Office of Disciplinary Affairs, respectively, pending final negotiation of the settlement language, to resolve ongoing investigations by the SEC and NASD
staffs. The proposed settlement concerns insider trading and other charges concerning the Company’s trading in a Company account and the offering of a private investment in public equity (“PIPE”) on behalf of CompuDyne, Inc.
(“CDCY”) in October 2001. 
  
 In the
SEC proceeding, the Company, without admitting or denying any wrongdoing, offered to pay disgorgement, civil penalties, and prejudgment interest totaling approximately $3.5 million and to consent to the entry of a permanent injunction with respect
to violations of the antifraud provisions of the federal securities laws. The Company also agreed to consent to an administrative proceeding under Section 15(b) of the Securities Exchange Act of 1934 in which the Company would be subjected to a
censure and would agree to certain undertakings, including review by an independent consultant of its Chinese Wall procedures and implementation of any recommended improvements. FBR&Co. has requested that the SEC staff 

  

 Schedule 3.06 to Credit Agreement 
  
 - 2 - 

 
recommend to the Commission that such an offer of settlement be approved, pending final negotiation of the settlement language. 
  
 In the parallel NASD proceeding, based upon the same
circumstances described above, the Company will submit a Letter of Acceptance, Waiver and Consent (“AWC”), pending final negotiation of appropriate language, proposing a settlement of alleged violations of the antifraud provisions of the
federal securities laws and NASD Rules 2110, 2120, 3010 and 3370. The Company will also agree to the same undertakings provided for in the proposed settlement with the SEC, including agreeing to an independent consultant to review its Chinese Wall
procedures and implementing any recommended improvements, and FBR&Co offered to pay a fine of $4 million to NASD. The AWC must be reviewed and accepted by NASD’s Department of Market Regulation and National Adjudicatory Council or the
Office of Disciplinary Affairs. 
  
 CDCY has contacted the Company about these
matters and seeks compensation for alleged damages resulting from the Company’s role as placement agent for the PIPE. While no civil complaint has been filed against the Company by CDCY, the parties have entered into a tolling agreement
extending the time for which a complaint could be filed. 
  

 Schedule 3.06 to Credit Agreement 
  
 - 3 - 

  
 SCHEDULE 3.12 
  
 Subsidiaries 
  

									
	 Name

	  	Jurisdiction

	  	 Person holding
 equity interests

	  	 Nature of equity
 interests

	  	 Percentage
 ownership

					
	 FBR TRS Holdings, Inc. [“TRS”]
	  	Virginia	  	Borrower	  	Stock	  	100%
					
	 FBR Securitization, Inc.
	  	Delaware	  	TRS	  	Stock	  	100%
					
	 FBR Bancorp, Inc. [“Bank”]
	  	Delaware	  	TRS	  	Stock	  	100%
					
	 FBR National Trust Company [“Trust”]
	  	U.S.	  	Bank	  	Stock	  	100%
					
	 Money Management Advisers, Inc.
	  	Delaware	  	Trust	  	Stock	  	100%
					
	 FNLC Financial Services, Inc.
	  	Delaware	  	TRS	  	Stock	  	100%
					
	 First NLC Financial Services, Inc
	  	Delaware	  	FNLC Financial
Services, Inc.	  	Stock	  	100%
					
	 First NLC Financial Services, LLC
	  	Florida	  	FNLC Financial
Services, Inc.	  	Member Interests	  	100%
					
	 First NLC, Inc.
	  	Minnesota	  	First NLC Financial
Services, LLC	  	Stock	  	100%
					
	 NLC, Inc.
	  	Tennessee	  	First NLC Financial
Services, LLC	  	Stock	  	100%
					
	 MHC I, Inc.
	  	Delaware	  	Borrower	  	Stock	  	100%
					
	 FBR Trust Investments, LLC
	  	Delaware	  	MHC I, Inc.	  	Member Interests	  	100%
					
	 FBR Asset Management Holdings, Inc. [“Holdings”]
	  	Virginia	  	TRS	  	Stock	  	100%
					
	 FBR Investment Management, Inc. [“Management”]
	  	Delaware	  	Holdings	  	Stock	  	100%
					
	 FBR Fund Advisers, Inc.
	  	Delaware	  	Holdings	  	Stock	  	100%
					
	 FBR Capital Markets Holdings, Inc. [“Capital”]
	  	Delaware	  	TRS	  	Stock	  	100%
					
	 Friedman, Billings, Ramsey & Co., Inc. [“FBR & Co.]
	  	Delaware	  	Capital	  	Stock	  	100%
					
	 FBRC Ltd.
	  	Cayman
Islands	  	FBR & Co.
Management	  	Stock
Stock	  	99%
1%
					
	 Friedman, Billings, Ramsey International, Ltd.
	  	England	  	Capital	  	Stock	  	100%
					
	 FBR Investment Services, Inc.
	  	Delaware	  	Capital	  	Stock	  	100%
					
	 FBR CCP Ltd. [“CCP”]
	  	Cayman
Islands	  	Borrower
Management	  	Stock
Stock	  	66.67%
33.33%

  

 Schedule 3.12 to Credit Agreement 

									
	 Name

	  	Jurisrdiction

	  	 Person holding
 equity
interests

	  	 Nature of equity
 interests

	  	 Percentage
 ownership

	 FBR Investments, L.L.C.
	  	Virginia	  	CCP	  	Stock	  	100%
	 FBR Capital Crossover Partners, LLC
	  	Delaware	  	CCP	  	Membership Interests	  	100%
	 RNR II (FBR Employees) L.P.
	  	Delaware	  	FBR Capital
Crossover Partners, LLC	  	GP Interests	  	85.009%
	 FBR Arbitrage Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Arbitrage, L.L.C.
	  	Virginia	  	FBR Arbitrage
Management Company,
LLC	  	Management Interests	  	100%*
	 FBR Arbitrage Ltd. Management Co. LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Arbitrage, Ltd.
	  	Bermuda	  	FBR Arbitrage Ltd.
Management Co. LLC	  	Unpaid Voting Shares	  	100%*
	 FBR Ashton Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Ashton, Limited Partnership
	  	Maryland	  	FBR Ashton
Management Company,
LLC	  	General Partner Interests	  	100%*
	 FBR Ashton Income Fund, LLC
	  	Delaware	  	Management	  	Management Interests	  	100%*
	 Dawnay Day Lander Management, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Financial Fund Partners Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Financial Fund Partners, L.L.C.
	  	Delaware	  	FBR Financial Fund
Partners Management
Company, LLC	  	Special Limited Partner
Interests	  	100%
	 FBR Future Financial Fund Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Future Financial Fund, L.P.
	  	Delaware	  	FBR Future Financial
Fund Management
Company, LLC	  	General Partnership
Interests	  	100%*
	 FBR Financial Fund Management, L.L.C.
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Financial Services Partners, L.P.
	  	Delaware	  	FBR Financial Fund
Management, L.L.C.	  	General Partnership
Interests	  	100%*
	 FBR Genomic, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Infinity II Venture Partners Ltd. Management Company, LLC
	  	Delaware	  	Management	  	Management Interest	  	100%*
	 FBR Pegasus Fund Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Pegasus Fund, L.L.C.
	  	Delaware	  	FBR Pegasus Fund
Management Company,
LLC	  	Managing Member Interests	  	100%*
	 FBR Private Equity Fund Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%

  

 Schedule 3.12 to Credit Agreement 
  
 - 2 - 

									
	 Name

	  	Jurisdiction

	  	 Person holding
 equity
interests

	  	 Nature of equity
 interests

	  	 Percentage
 ownership

	 FBR Special Situations Fund, L.P.
	  	Delaware	  	FBR Private Equity
Fund Management
Company, LLC	  	General Partnership
Interests	  	100%*
	 FBR Weston Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Weston, Limited Partnership
	  	Maryland	  	FBR Weston
Management
Company, LLC	  	General Partnership
Interests	  	100%*
	 FBR Multi-Strategy Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Multi-Strategy Fund, LLC
	  	Delaware	  	FBR Multi-
Strategy
Management
Company, LLC	  	Managing Member
Interests	  	100%*
	 FBR Life Science Master Fund, Ltd.
	  	British
Virgin
Islands	  	Management	  	Management Shares	  	100%*
	 FBR Life Sciences Fund, Ltd.
	  	Bermuda	  	Management	  	Management Shares	  	100%*
	 FBR Biotech Fund Management Company, LLC
	  	Delaware	  	Management	  	Membership Interests	  	100%
	 FBR Life Sciences Fund, LLC
	  	Delaware	  	FBR Biotech Fund
Management
Company, LLC	  	General Partnership
Interests	  	100%*

  

	*	Represents % of relevant class or type of interest 

  

 Schedule 3.12 to Credit Agreement 
  
 - 3 - 

 SCHEDULE 6.01 
  
 Existing Indebtedness 
  
 None. 
  

 Schedule 6.01 to Credit Agreement 

 SCHEDULE 6.02 
  
 Existing Liens 
  
 None. 
  

 Schedule 6.02 to Credit Agreement 

 SCHEDULE 6.06 
  
 Existing Restrictions 
  
 None. 
  

 Schedule 6.02 to Credit Agreement 

 EXHIBIT A 
  
 ASSIGNMENT AND ASSUMPTION 
  
 This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by
and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 
  
 For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes
from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered
pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). Such
sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 
  

					
	 1.
	  	Assignor:	  	________________________________
			
	 2.
	  	Assignee:	  	________________________________
	 	  	 	  	[and is an Affiliate of [identify Lender]1]
			
	 3.
	  	Borrower(s):	  	________________________________
		
	 4.
	  	Administrative Agent: JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement

	1	Select as applicable. 

  

 Assignment and Assumption 

					
			
	 5.
	  	Credit Agreement:	  	The $200,000,000 Credit Agreement dated as of July 21, 2005 among Friedman, Billings, Ramsey Group, Inc., the Lenders parties thereto, and JPMorgan Chase Bank, N.A., as Administrative
Agent
			
	 6.
	  	Assigned Interest:	  	 

  

						
	 Aggregate Amount of Commitment/Loans for all Lenders

	  	Amount of
Commitment/Loans
Assigned

	  	 Percentage
 Assigned of
 Commitment/Loans2

	 $
	  	$	 	  	%
	 $
	  	$	 	  	%
	 $
	  	$	 	  	%

  
 Effective Date:
                         , 20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  
 The terms set forth in this Assignment and Assumption are hereby agreed to: 
  

			
	 ASSIGNOR
  
 [NAME OF ASSIGNOR]

		
	By:	 	 
	 	 	 Title:

	
	 ASSIGNEE
  
 [NAME OF ASSIGNEE]

		
	By:	 	 
	 	 	 Title:

	2	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 

  

 Assignment and Assumption 
  
 - 2 - 

			
	 Consented to and Accepted:
  
 JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

		
	By	 	 
	 	 	 Title:

  

			
	 [Consented to:] 3
  
 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

		
	By	 	 
	 	 	 Title:

	3	To be added only if the consent of the Borrower is required by the terms of the Credit Agreement. 

  

 Assignment and Assumption 
  
 - 3 - 

 ANNEX 1 to 
  
 Assignment and Assumption 
  
 STANDARD TERMS AND CONDITIONS FOR 
 ASSIGNMENT
AND ASSUMPTION 
  
 1. Representations and Warranties.

  
 1.1 Assignor. The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit
Agreement, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any
other Person obligated in respect of the Credit Agreement or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under the Credit Agreement. 

 
 1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the
requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned
Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to (or delivered with) the Assignment and
Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative
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 Credit Agreement, and (ii) it will
perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. 
  
 2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 
  

 Assignment and Assumption 

 3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a
signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with,
the law of the State of New York. 
  

 Assignment and Assumption 
  
 - 2 - 

 EXHIBIT B 
  
 [Form of Opinion of Counsel for the Borrower] 
  
 July     , 2005             
  
 To the Lenders and the Administrative 
     Agent referred to below 
 c/o JPMorgan Chase Bank, N.A., 
     as Administrative Agent 
 270 Park Avenue 
 New York, New York 10017 
  
 Ladies and Gentlemen: 
  
 We have acted as counsel for Friedman, Billings, Ramsey Group, Inc., a Virginia corporation (the “Borrower”), in connection with the Credit
Agreement dated as of July 21, 2005 (the “Credit Agreement”), among the Borrower, the banks and other financial institutions identified therein as Lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent. This opinion is being
delivered, at the request of the Borrower, pursuant to Section 4.01(b) of the Credit Agreement. Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned in the Credit Agreement. 
  
 In rendering the opinions set forth below, we have examined and relied on
originals or copies, certified or otherwise identified to our satisfaction, of the following: 
  
 (a) the Amended and Restated Articles of Incorporation of the Borrower, as duly filed with the State Corporation Commission of the Commonwealth of Virginia; 
  
 (b) the Borrower’s Bylaws; 
  
 (c) the Credit Agreement; and 
  
 (d) the promissory notes, if any, issued on the date hereof pursuant to the
Credit Agreement (together with the Credit Agreement, the “Credit Documents”). 
  
 We also have examined originals or copies, certified or otherwise identified to our satisfaction, of such other documents, corporate records, certificates of public officials and other instruments as we have deemed
necessary or advisable for purposes of this opinion. Whenever the phrases “to our knowledge” or “known to us” are used herein, such phrases refer to the actual knowledge of the attorneys of this firm who are involved in the
representation of the Borrower in this transaction (including the partner of this firm who coordinates this firm’s general representation of the Borrower). 
  

For purposes of the opinions expressed below, we have assumed: 
  

(a) the authenticity of all documents submitted to us as originals; 
  

 Opinion of Counsel for the Borrower 

 (b) the conformity to the originals of all documents submitted to us as certified or photostatic copies;

  
 (c) the due authorization, execution and delivery by the
Administrative Agent and each Lender of the Credit Agreement, the validity and binding effect thereof upon the Administrative Agent and each Lender and the enforceability of the obligations of the Administrative Agent and each Lender thereunder;

  
 (d) with respect to the opinion expressed in Paragraph 4(c),
the Transactions do not and will not violate the financial covenants contained in Section 1004 of the Senior Indenture listed as item 1 on Schedule 1 attached hereto; 
  
 (e) with respect to the opinion expressed in Paragraph 6 below: 
  
 (i) during its taxable year ending December 31, 2004 and
subsequent taxable years, the Borrower will operate in such a manner that makes and will continue to make the representations as to factual matters contained in the certificate, dated July 21, 2005 and executed by a duly appointed officer of the
Borrower, a copy of which is attached as Exhibit A hereto (the “Officer’s REIT Certificate”), true for such years; 
  
 (ii) the Borrower will not make any amendments to its organizational documents after the date of this opinion that would affect its
qualification as a real estate investment trust (“REIT”) for any taxable year; and 
  
 (iii) no action will be taken by the Borrower or any of its Subsidiaries after the date hereof that would have the effect of altering the
facts upon which the opinions set forth below are based; and 
  
 (f) with respect to the opinion expressed in Paragraph 5(a) below, the accuracy of the factual representations contained in the certificate dated July 21, 2005 and executed by a duly appointed officer of the Borrower, a copy of which is
attached as Exhibit B hereto (the “Officer’s Investment Company Certificate”), without independent investigation. 
  
 In connection with the opinion rendered in Paragraph 6 below, we also have relied upon the correctness of the factual representations contained in the
Officer’s REIT Certificate. Where such factual representations involve terms defined in the Internal Revenue Code of 1986, as amended (the “Code”), the Treasury regulations thereunder (the “Regulations”), published rulings
of the Internal Revenue Service (the “Service”), or other relevant authority, we have reviewed with the individuals making such representations the relevant provisions of the Code, the applicable Regulations, and published administrative
interpretations thereof. After reasonable inquiry, we are not aware of any facts inconsistent with the representations set forth in the Officer’s REIT Certificate. 
  

 Opinion of Counsel for the Borrower 
  
 - 2 - 

 Upon the basis of the foregoing, and subject to the qualifications and assumptions set forth herein, we
are of the opinion that: 
  
 1. The Borrower (a) is a corporation duly
incorporated, validly existing and in good standing under the laws of Commonwealth of Virginia and (b) has all requisite corporate power and authority to carry on its business as described in the most recently filed Annual Report on Form 10-K and
Quarterly Report on Form 10-Q of the Borrower filed with the United States Securities and Exchange Commission (the “Current SEC Reports”). The Borrower has all legal right, power and authority under the laws of the Commonwealth of Virginia
to qualify as a REIT under the Code. 
  
 2. The Transactions are within the
Borrower’s corporate powers and have been duly authorized by all necessary corporate action. 
  
 3. Each of the Credit Documents has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws relating to or affecting the rights of creditors generally, and except as the enforceability of the Credit Documents is
subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including without limitation (a) the possible unavailability of specific performance, injunctive relief or any other
equitable remedy and (b) concepts of unconscionability materiality, reasonableness, good faith and fair dealing. 
  
 4. The Transactions do not and will not (a) require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority of the
Commonwealth of Virginia, the State of New York, or the United States of America, except such as have been obtained or made and are in full force and effect, (b) violate the articles or certificate of incorporation or bylaws of the Borrower, any
material provision of any statutory law or regulation of the Commonwealth of Virginia, the State of New York or the United States of America, or any order of any Governmental Authority known to us binding on the Borrower, (c) violate or result in a
breach in any material respect of any provision of, or constitute (with due notice or lapse of time or both) a default under, or result in the creation or imposition of any Lien upon any assets of the Borrower or any Subsidiary pursuant to any
agreement described on Schedule 1 attached hereto. 
  
 5. Neither the Borrower nor
any of its Subsidiaries is (a) required to register as an “investment company” as defined in the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding
Company Act of 1935. 
  
 6. The Borrower qualified to be taxed as a REIT pursuant
to sections 856 through 860 of the Code for its taxable year ended December 31, 2004, and the Borrower’s organization and current and proposed method of operation will enable it to continue to qualify as a REIT for its taxable year ending
December 31, 2005, and in the future. 
  
 The foregoing opinions
are also subject to the following comments and qualifications: 
  
 (a) The enforceability of provisions in the Credit Agreement to the effect that terms may not be waived or modified except in writing may be limited under certain circumstances. 
  

 Opinion of Counsel for the Borrower 
  
 - 3 - 

 (b) The enforceability of Section 9.03 of the Credit Agreement may be limited by laws limiting the
enforceability of provisions exculpating or exempting a party from, or requiring indemnification of a party for, liability for its own action or inaction, to the extent the action or inaction involves gross negligence, recklessness, willful
misconduct or unlawful conduct. 
  
 (c) We express no opinion as
to (i) the effect of the laws of any jurisdiction in which any Lender is located (other than New York and Virginia) that limits the interest, fees or other charges it may impose for the loan or use of money or other credit, (ii) Section 9.08 of the
Credit Agreement, (iii) the last sentence of each of Sections 2.15(c) and 9.04(c)(i) of the Credit Agreement, (iv) the first sentence of Section 9.09(b) of the Credit Agreement insofar as such sentence relates to the subject-matter jurisdiction of
the United States District Court for the Southern District of New York to adjudicate any controversy related to the Credit Agreement or (iv) the waiver of inconvenient forum set forth in Section 9.09(c) of the Credit Agreement with respect to
proceedings in the United States District Court for the Southern District of New York. 
  
 (d) We express no opinion whether the Loans made under the Credit Agreement comply with any statutory, regulatory or other loan limits applicable to any Lender, or comply with any statutes, laws, rules or regulations
which prescribe permissible and lawful investments for any Lender. 
  
 (e) We express no opinion with respect to the enforceability of any waiver of a trial by jury (other than under the laws of New York), the waiver of any right to have service of process made in the manner presented by applicable law and the
waiver of any requirement to have an agent for service of process appointed or the enforceability of the waiver of any right that would result in the restriction of the Borrower’s access to courts or to legal or equitable remedies otherwise
available to the Borrower. 
  
 (f) Except as expressly provided in
Paragraph 6, we express no opinion with respect any law or regulation relating to federal, state or local taxation, federal or state environmental regulation, labor laws, intellectual property laws, antitrust laws or those relating to zoning, land
use or subdivision laws, ERISA and similar matters or any Federal or state securities laws or regulations. 
  
 (g) We express no opinion with respect to the enforceability of any right to receive interest on interest (other than under the laws of New York).

  
 (h) We express no opinion as to whether a Virginia court or a
federal court applying Virginia choice of law rules would selecting the laws of the State of New York to govern the Credit Agreement. 
  
 (i) With respect to our opinion expressed in Paragraph 6 above, we will not review on a continuing basis the Borrower’s compliance with the documents
or assumptions set forth herein relating to such opinion, or the representations set forth in the Officer’s REIT Certificate. Accordingly, no assurance can be given that the actual results of the Borrower’s operations for its 2005 and
subsequent taxable years will satisfy the requirements for qualification and taxation as a REIT. Our opinion is based on current provisions of the Code and the Regulations, published administrative interpretations thereof, and published court
decisions. The Service has not issued Regulations or administrative interpretations with respect to various provisions of the 

  

 Opinion of Counsel for the Borrower 
  
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Code relating to REIT qualification. No assurance can be given that the law will not change in a way that will prevent the Borrower from qualifying as a
REIT. 
  
 We are members of the bar of the Commonwealth of
Virginia and the State of New York and the foregoing opinion is limited to the laws of the Commonwealth of Virginia and the State of New York and the Federal laws of the United States of America. This opinion is rendered solely to you in connection
with the above matter. This opinion may not be relied upon by you for any other purpose or relied upon by any other Person (other than your successors and assigns as Lenders and Persons that acquire participations in your Loans) without our prior
written consent. 
  
 Very truly yours,

  

 Opinion of Counsel for the Borrower 
  
 - 5 - 

 EXHIBIT C 
  
 [Form of Opinion of Special New York Counsel to JPMCB] 
  
 July [    ], 2005             
  
 To the Lenders and the Administrative 
     Agent referred to below 
 c/o JPMorgan Chase Bank, N.A., 
     as Administrative Agent 
 270 Park Avenue 
 New York, New York 10017 
  
 Ladies and Gentlemen: 
  
 We have
acted as special New York counsel to JPMorgan Chase Bank, N.A. (“JPMCB”) in connection with the Credit Agreement dated as of July 21, 2005 (the “Credit Agreement”) between Friedman, Billings, Ramsey Group, Inc. (the
“Borrower”), the entities referred to as “Lenders” in the Credit Agreement (the “Lenders”) and the Administrative Agent. Terms defined in the Credit Agreement have the same respective defined meanings when
used herein. 
  
 In rendering the opinions expressed below, we
have examined an executed counterpart of the Credit Agreement. In our examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with authentic original documents
of all documents submitted to us as copies. When relevant facts were not independently established, we have relied upon representations made in or pursuant to the Credit Agreement. We have also assumed that the Credit Agreement has been duly
authorized, executed and delivered by, and (except, to the extent set forth below, as to the Borrower) constitutes a legal, valid, binding and enforceable obligation of, all of the parties thereto, that all signatories thereto have been duly
authorized and that all such parties are duly organized and validly existing and have the power and authority (corporate or other) to execute, deliver and perform the same. 
  
 Based upon and subject to the foregoing and subject also to the comments and qualifications set forth below, and having
considered such questions of law as we have deemed necessary as a basis for the opinions expressed below, we are of the opinion that the Credit Agreement constitutes a legal, valid and binding obligation of the Borrower, enforceable against it in
accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws relating to or affecting the rights of creditors generally, and except as the
enforceability of the Credit Agreement is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including without limitation (i) the possible unavailability of specific
performance, injunctive relief or any other equitable remedy and (ii) concepts of materiality, reasonableness, good faith and fair dealing. 
  

 Opinion of Special New York Counsel to JPMCB 

 The foregoing opinions are also subject to the following comments and qualifications: 
  
 (A) The enforceability of provisions in the Credit Agreement
to the effect that terms may not be waived or modified except in writing may be limited under certain circumstances. 
  
 (B) The enforceability of Section 9.03 of the Credit Agreement may be limited by laws limiting the enforceability of provisions
exculpating or exempting a party from, or requiring indemnification of a party for, liability for its own action or inaction, to the extent the action or inaction involves gross negligence, recklessness, wilful misconduct or unlawful conduct.

  
 (C) We express no opinion as to (i) the
effect of the laws of any jurisdiction in which any Lender is located (other than New York) that limits the interest, fees or other charges it may impose for the loan or use of money or other credit, (ii) Section 9.08 of the Credit Agreement, (iii)
the last sentence of each of Sections 2.15(c) and 9.04(c)(i) of the Credit Agreement, (iv) the first sentence of Section 9.09(b) of the Credit Agreement insofar as such sentence relates to the subject-matter jurisdiction of the United States
District Court for the Southern District of New York to adjudicate any controversy related to the Credit Agreement or (v) the waiver of inconvenient forum set forth in Section 9.09(c) of the Credit Agreement with respect to proceedings in the United
States District Court for the Southern District of New York. 
  
 The foregoing opinions are limited to matters involving the Federal laws of the United States and the law of the State of New York, and we do not express any opinion as to the law of any other jurisdiction. 
  
 The opinion letter is provided to you by us as special New York counsel to
JPMCB pursuant to Section 4.01(c) of the Credit Agreement and may not be relied upon by any other person or for any purpose other than in connection with the transactions contemplated by the Credit Agreement without our prior written consent in each
instance. 
  
 Very truly yours, 
  

 Opinion of Special New York Counsel to JPMCB 
  
 - 2 -

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