Document:

EX-4.1

 Exhibit 4.1 
  

 
 JOHN DEERE OWNER TRUST 2017-B 

Class A-1 1.35000% Asset Backed Notes 

Class A-2A 1.59% Asset Backed Notes 

Class A-2B Floating Rate Asset Backed Notes 

Class A-3 1.82% Asset Backed Notes 

Class A-4 2.11% Asset Backed Notes 
  

 
 INDENTURE 

Dated as of July 18, 2017 
  

 
 U.S. BANK
NATIONAL ASSOCIATION 
 Indenture Trustee 

   
  

 Table of Contents 

Page 
 ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 
  

					
	 SECTION 1.01. Definitions
	  	 	2	 
	 SECTION 1.02. Incorporation by Reference of Trust Indenture Act
	  	 	11	 
	 SECTION 1.03. Rules of Construction
	  	 	11	 
	 SECTION 1.04. Calculations of Interest
	  	 	11	 
		
	 ARTICLE II
	  			
		
	 THE NOTES
	  			
		
	 SECTION 2.01. Form
	  	 	12	 
	 SECTION 2.02. Execution, Authentication and Delivery
	  	 	12	 
	 SECTION 2.03. Temporary Notes
	  	 	13	 
	 SECTION 2.04. Registration; Registration of Transfer and Exchange
	  	 	13	 
	 SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes
	  	 	15	 
	 SECTION 2.06. Persons Deemed Owner
	  	 	16	 
	 SECTION 2.07. Payment of Principal and Interest; Defaulted Interest
	  	 	16	 
	 SECTION 2.08. Cancellation
	  	 	18	 
	 SECTION 2.09. Release of Collateral
	  	 	18	 
	 SECTION 2.10. Book-Entry Notes
	  	 	18	 
	 SECTION 2.11. Notices to Clearing Agency
	  	 	19	 
	 SECTION 2.12. Definitive Notes
	  	 	19	 
	 SECTION 2.13. Notes as Indebtedness for Tax Purposes
	  	 	19	 
	 SECTION 2.14. Noteholder FATCA Information
	  	 	19	 
		
	 ARTICLE III
	  			
		
	 COVENANTS
	  			
		
	 SECTION 3.01. Payment of Principal and Interest
	  	 	20	 
	 SECTION 3.02. Maintenance of Office or Agency
	  	 	20	 
	 SECTION 3.03. Money for Payments to be Held in Trust
	  	 	20	 
	 SECTION 3.04. Existence
	  	 	22	 
	 SECTION 3.05. Protection of Trust Estate
	  	 	22	 
	 SECTION 3.06. Opinions as to Trust Estate
	  	 	23	 
	 SECTION 3.07. Performance of Obligations; Servicing of Receivables
	  	 	24	 
	 SECTION 3.08. Negative Covenants
	  	 	26	 
	 SECTION 3.09. Annual Statement as to Compliance
	  	 	27	 
	 SECTION 3.10. Issuing Entity May Consolidate, etc., Only on Certain Terms
	  	 	27	 
	 SECTION 3.11. Successor or Transferee
	  	 	29	 
	 SECTION 3.12. No Other Business
	  	 	29	 

  
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	 SECTION 3.13. No Borrowing
	  	 	29	 
	 SECTION 3.14. Servicer’s Obligations
	  	 	29	 
	 SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities
	  	 	29	 
	 SECTION 3.16. Capital Expenditures
	  	 	29	 
	 SECTION 3.17. Removal of Administrator
	  	 	29	 
	 SECTION 3.18. Restricted Payments
	  	 	29	 
	 SECTION 3.19. Notice of Events of Default
	  	 	30	 
	 SECTION 3.20. Further Instruments and Acts
	  	 	30	 
		
	 ARTICLE IV
	  			
		
	 SATISFACTION AND DISCHARGE
	  			
		
	 SECTION 4.01. Satisfaction and Discharge of Indenture
	  	 	30	 
	 SECTION 4.02. Application of Trust Money
	  	 	31	 
	 SECTION 4.03. Repayment of Moneys Held by Paying Agent
	  	 	31	 
		
	 ARTICLE V
	  			
		
	 REMEDIES
	  			
		
	 SECTION 5.01. Events of Default
	  	 	32	 
	 SECTION 5.02. Acceleration of Maturity; Rescission and Annulment
	  	 	33	 
	 SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	  	 	34	 
	 SECTION 5.04. Remedies; Priorities
	  	 	36	 
	 SECTION 5.05. Optional Preservation of the Receivables
	  	 	37	 
	 SECTION 5.06. Limitation of Suits
	  	 	37	 
	 SECTION 5.07. Unconditional Rights of Noteholders to Receive Principal and Interest
	  	 	38	 
	 SECTION 5.08. Restoration of Rights and Remedies
	  	 	38	 
	 SECTION 5.09. Rights and Remedies Cumulative
	  	 	38	 
	 SECTION 5.10. Delay or Omission Not a Waiver
	  	 	38	 
	 SECTION 5.11. Control by Noteholders
	  	 	39	 
	 SECTION 5.12. Waiver of Past Defaults
	  	 	39	 
	 SECTION 5.13. Undertaking for Costs
	  	 	39	 
	 SECTION 5.14. Waiver of Stay or Extension Laws
	  	 	40	 
	 SECTION 5.15. Action on Notes
	  	 	40	 
	 SECTION 5.16. Performance and Enforcement of Certain Obligations
	  	 	40	 
		
	 ARTICLE VI
	  			
		
	 THE INDENTURE TRUSTEE
	  			
		
	 SECTION 6.01. Duties of Indenture Trustee
	  	 	41	 
	 SECTION 6.02. Rights of Indenture Trustee
	  	 	43	 
	 SECTION 6.03. Individual Rights of Indenture Trustee
	  	 	45	 
	 SECTION 6.04. Indenture Trustee’s Disclaimer
	  	 	45	 
	 SECTION 6.05. Notice of Defaults
	  	 	45	 

  
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	 SECTION 6.06. Reports by Indenture Trustee to Holders
	  	 	45	 
	 SECTION 6.07. Compensation and Indemnity
	  	 	45	 
	 SECTION 6.08. Replacement of Indenture Trustee
	  	 	46	 
	 SECTION 6.09. Successor Indenture Trustee by Merger
	  	 	47	 
	 SECTION 6.10. Appointment of Co-Trustee or Separate Trustee
	  	 	48	 
	 SECTION 6.11. Eligibility; Disqualification
	  	 	49	 
	 SECTION 6.12. Preferential Collection of Claims Against Issuing Entity
	  	 	49	 
		
	 ARTICLE VII
	  			
		
	 NOTEHOLDERS’ LISTS AND REPORTS
	  			
		
	 SECTION 7.01. Issuing Entity to Furnish Indenture Trustee Names and Addresses of
Noteholders
	  	 	49	 
	 SECTION 7.02. Preservation of Information; Communications to Noteholders
	  	 	49	 
	 SECTION 7.03. Reports by Issuing Entity
	  	 	50	 
	 SECTION 7.04. Reports by Indenture Trustee
	  	 	51	 
		
	 ARTICLE VIII
	  			
		
	 ACCOUNTS, DISBURSEMENTS AND RELEASES
	  			
		
	 SECTION 8.01. Collection of Money
	  	 	51	 
	 SECTION 8.02. Trust Accounts
	  	 	52	 
	 SECTION 8.03. General Provisions Regarding Accounts
	  	 	52	 
	 SECTION 8.04. Release of Trust Estate
	  	 	54	 
	 SECTION 8.05. Opinion of Counsel
	  	 	54	 
		
	 ARTICLE IX
	  			
		
	 SUPPLEMENTAL INDENTURES
	  			
		
	 SECTION 9.01. Supplemental Indentures Without Consent of Noteholders
	  	 	55	 
	 SECTION 9.02. Supplemental Indentures with Consent of Noteholders
	  	 	56	 
	 SECTION 9.03. Execution of Supplemental Indentures
	  	 	57	 
	 SECTION 9.04. Effect of Supplemental Indenture
	  	 	58	 
	 SECTION 9.05. Conformity with Trust Indenture Act
	  	 	58	 
	 SECTION 9.06. Reference in Notes to Supplemental Indentures
	  	 	58	 
		
	 ARTICLE X
	  			
		
	 REDEMPTION OF NOTES
	  			
		
	 SECTION 10.01. Redemption
	  	 	58	 
	 SECTION 10.02. Form of Redemption Notice
	  	 	59	 
	 SECTION 10.03. Notes Payable on Redemption Date
	  	 	59	 

  
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	 ARTICLE XI
	  			
		
	 MISCELLANEOUS
	  			
		
	 SECTION 11.01. Compliance Certificates and Opinions, etc.
	  	 	59	 
	 SECTION 11.02. Form of Documents Delivered to Indenture Trustee
	  	 	61	 
	 SECTION 11.03. Acts of Noteholders
	  	 	62	 
	 SECTION 11.04. Notices, etc., to Indenture Trustee, Issuing Entity and Rating Agencies
	  	 	62	 
	 SECTION 11.05. Notices to Noteholders; Waiver
	  	 	63	 
	 SECTION 11.06. Alternate Payment and Notice Provisions
	  	 	64	 
	 SECTION 11.07. Conflict with Trust Indenture Act
	  	 	64	 
	 SECTION 11.08. Effect of Headings and Table of Contents
	  	 	64	 
	 SECTION 11.09. Successors and Assigns
	  	 	64	 
	 SECTION 11.10. Separability
	  	 	64	 
	 SECTION 11.11. Benefits of Indenture
	  	 	64	 
	 SECTION 11.12. Legal Holidays
	  	 	64	 
	 SECTION 11.13. GOVERNING LAW
	  	 	64	 
	 SECTION 11.14. Counterparts
	  	 	65	 
	 SECTION 11.15. Recording of Indenture
	  	 	65	 
	 SECTION 11.16. Trust Obligation
	  	 	65	 
	 SECTION 11.17. No Petition
	  	 	65	 
	 SECTION 11.18. Subordination Agreement
	  	 	66	 
	 SECTION 11.19. No Recourse
	  	 	66	 
	 SECTION 11.20. Inspection
	  	 	66	 
	 SECTION 11.21. Limitation of Liability
	  	 	66	 
	 SECTION 11.22. Communications with Rating Agencies
	  	 	67	 
		
	 ARTICLE XII
	  			
		
	 ASSET REPRESENTATIONS REVIEW
	  			
		
	 SECTION 12.01. Noteholder Requests for Vote on Asset Representations Review
	  	 	67	 
	 SECTION 12.02. Noteholder Vote on Asset Representations Review
	  	 	68	 
	 SECTION 12.03. Delivery of Repurchase Requests and Repurchase Response Notices
	  	 	68	 
	 SECTION 12.04. Noteholder Communications with Indenture Trustee
	  	 	68	 
	 SECTION 12.05. Resignation or Removal of Asset Representations Reviewer
	  	 	69	 

 EXHIBITS 

Testimonium, Signatures and Seals Acknowledgments 
  

			
		
	Exhibit A	  	Schedule of Receivables
		
	Exhibit B	  	Form of Sale and Servicing Agreement
		
	Exhibit C	  	Form of Depository Agreement
		
	Exhibit D	  	Form of Class A-1 Note
		
	Exhibit E	  	Form of Class A-2A Note
		
	Exhibit F	  	Form of Class A-2B Note
		
	Exhibit G	  	Form of Class A-3 Note

  
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	Exhibit H	  	Form of Class A-4 Note

  
 v 

 INDENTURE dated as of July 18, 2017, between JOHN DEERE OWNER TRUST 2017-B, a Delaware
statutory trust (the “Issuing Entity”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, solely as trustee and not in its individual capacity (the “Indenture Trustee”). 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Issuing
Entity’s Class A-1 1.35000% Asset Backed Notes (the “Class A-1 Notes”), Class A-2A 1.59% Asset Backed Notes (the “Class A-2A Notes”), Class A-2B Floating Rate Asset Backed Notes (the “Class A-2B
Notes” and together with the Class A-2A Notes, the “Class A-2 Notes”), Class A-3 1.82% Asset Backed Notes (the “Class A-3 Notes”) and Class A-4 2.11% Asset Backed Notes (the “Class A-4 Notes” and
together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the “Notes”): 
 GRANTING CLAUSE

 The Issuing Entity hereby Grants to the Indenture Trustee at the Closing Date, as trustee for the benefit of the Holders of the Notes,
all of the Issuing Entity’s right, title and interest, whether now owned or hereafter acquired, in and to (a) the Receivables and all moneys due thereon on or after the Cut-off Date; (b) the security interests in the Financed
Equipment granted by Obligors pursuant to the Receivables and any other interest of the Issuing Entity in the Financed Equipment; (c) any proceeds with respect to the Receivables from claims on any physical damage, credit life or disability
insurance policies covering Financed Equipment or Obligors; (d) the Purchase Agreement, including the right assigned to the Issuing Entity to cause JDCC (as defined below) to repurchase Receivables from the Seller under certain circumstances;
(e) all funds on deposit from time to time in the Trust Accounts, including the Reserve Account Initial Deposit, and in all investments and proceeds thereof (including all income thereon); (f) the Sale and Servicing Agreement (including
all rights of the Seller under the Purchase Agreement assigned to the Issuing Entity pursuant to the Sale and Servicing Agreement); (g) proceeds from the Financed Equipment related to a Repossessed Receivable; and (h) all present and
future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the
conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to
payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, the
“Collateral”). This Indenture shall constitute a security agreement for purposes of the Uniform Commercial Code as in effect in the States of New York and Delaware on the date hereof. 

The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in respect of, the
Notes, equally and ratably without prejudice, priority or distinction and to secure compliance with the provisions of this Indenture, all as provided in this Indenture. 

 The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes, acknowledges
such Grant, and accepts the trusts under this Indenture in accordance with the provisions of this Indenture for the use and benefit of such Holders. 

ARTICLE I 
 DEFINITIONS AND
INCORPORATION BY REFERENCE 
 SECTION 1.01. Definitions. (a) Except as otherwise specified herein or as the context may otherwise
require, the following terms have the respective meanings set forth below for all purposes of this Indenture. 
 “Act” has
the meaning specified in Section 11.03(a). 
 “Administration Agreement” means the Administration Agreement dated as
of July 18, 2017, among the Administrator, the Issuing Entity and the Indenture Trustee as amended or supplemented from time to time. 

“Administrator” means the administrator under the Administration Agreement. 

“Advisers Act” has the meaning specified in Section 2.04. 

“Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common
control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

“Authorized Officer” means, with respect to the Issuing Entity, any officer of the Owner Trustee who is authorized to act for
the Owner Trustee in matters relating to the Issuing Entity and who is identified on the list of Authorized Officers, containing the specimen signature of each such Person, delivered by the Owner Trustee to the Indenture Trustee on the Closing Date
(as such list may be modified or supplemented from time to time thereafter) and, so long as the Administration Agreement is in effect, any Assistant Treasurer, any Vice President or more senior officer of the Administrator who is authorized to act
for the Administrator in matters relating to the Issuing Entity and to be acted upon by the Administrator pursuant to the Administration Agreement and who is identified on the list of Authorized Officers (containing the specimen signatures of such
officers) delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter); provided, however, that for purposes of Section 3.09 and Section 1(a)(J) of
the Administration Agreement such officer of the Administrator must be any of the president, controller, chief executive officer, chief financial officer or chief accounting officer. 

“Bankruptcy Code” means the United States Bankruptcy Code, Title 11 of the United States Code, as amended. 

  
 2 

 “Basic Documents” means this Indenture, the Certificate of Trust, the Trust
Agreement, the Purchase Agreement, the Sale and Servicing Agreement, the Administration Agreement, the Depository Agreement, the Asset Representations Review Agreement and other documents and certificates delivered in connection therewith. 

“Benefit Plan” means (i) any “employee benefit plan” as defined in Section 3(3) of ERISA, which is
subject to Part 4 of Title I of ERISA, (ii) a “plan” described by Section 4975(e)(1) of the Code, which is subject to Section 4975 of the Code or (iii) any entity deemed to hold the plan assets (within the meaning of
Department of Labor Regulation 2510.3-101, as modified by Section 3(42) of ERISA) of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity. 

“Book Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which shall be made through book
entries by a Clearing Agency as described in Section 2.10. 
 “Business Day” means any day other than a Saturday, a
Sunday or a day on which banking institutions or trust companies in The City of New York, Chicago, Illinois or St. Paul, Minnesota are authorized or obligated by law, regulation or executive order to remain closed. 

“Certificate” has the meaning assigned to it in the Trust Agreement. 

“Certificate of Trust” means the certificate of trust of the Issuing Entity substantially in the form of Exhibit A to the
Trust Agreement. 
 “Class A-1 Note” means a Class A-1 1.35000% Asset-Backed Note, substantially in the form of
Exhibit D. 
 “Class A-1 Note Interest Rate” means 1.35000% per annum. 

“Class A-2A Note” means a Class A-2A 1.59% Asset Backed Note, substantially in the form of Exhibit E. 

“Class A-2A Note Interest Rate” means 1.59% per annum. 

“Class A-2B Note” means a Class A-2B Floating Rate Asset Backed Note, substantially in the form of Exhibit F. 

“Class A-2B Note Interest Rate” means One-Month LIBOR + 0.11% per annum; provided, that for the initial interest accrual
period the Class A-2B Note Interest Rate will be 1.33611%; provided, further, that for any interest accrual period for which the sum of One-Month LIBOR + 0.11% is less than 0.00%, the Class A-2B Note Interest Rate shall be deemed to be
0.00%. 

  
 3 

 “Class A-3 Note” means a Class A-3 1.82% Asset Backed Note, substantially
in the form of Exhibit G. 
 “Class A-3 Note Interest Rate” means 1.82% per annum. 

“Class A-4 Note” means a Class A-4 2.11% Asset Backed Note, substantially in the form of Exhibit H. 

“Class A-4 Note Interest Rate” means 2.11% per annum. 

“Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section 17A of the
Exchange Act. 
 “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or other Person
for whom from time to time a Clearing Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency. 

“Closing Date” means July 18, 2017. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated
thereunder. 
 “Collateral” has the meaning specified in the Granting Clause of this Indenture. 

“Corporate Trust Office” means the office of the Indenture Trustee at which at any particular time its corporate trust
business shall be administered which office at the date of the execution of this Indenture is located at 190 South LaSalle Street, 7th Floor, MK-IL-SL7R, Chicago, Illinois 60603, Attention: John
Deere Owner Trust 2017-B, facsimile No.: 312-332-7996, or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Issuing Entity, or the corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the Noteholders and the Issuing Entity). 

“Default” means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default. 

“Definitive Notes” has the meaning specified in Section 2.10. 

“Depository Agreement” means the agreement executed by the Issuing Entity and delivered to The Depository Trust Company, as
the initial Clearing Agency, dated the Closing Date, substantially in the form of Exhibit C, as amended or supplemented from time to time. 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 

“Event of Default” has the meaning specified in Section 5.01. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  
 4 

 “Executive Officer” means, with respect to any (i) corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President, Executive Vice President, any Vice President, the Secretary or the Treasurer of such corporation; and (ii) partnership, any general partner thereof. 

“FATCA” means Sections 1471 through 1474 of the Code (or any amended or successor version) and any current or future
regulations or official interpretations thereof. 
 “FATCA Withholding Tax” means any withholding or deduction pursuant to
an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to FATCA. 
 “Grant” means
mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create, and grant a lien upon and a security interest in and right of set-off against, deposit, set over and confirm pursuant to this Indenture. A Grant
of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the Granting party thereunder, including the immediate and continuing right to claim for, collect, receive and
give receipt for principal and interest payments in respect of the Collateral and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to
bring Proceedings in the name of the Granting party or otherwise and generally to do and receive anything that the Granting party is or may be entitled to do or receive thereunder or with respect thereto. 

“Holder” or “Noteholder” means the Person in whose name a Class A-1 Note, a Class A-2A Note, a
Class A-2B Note, a Class A-3 Note or a Class A-4 Note is registered on the Note Register. 
 “Indenture”
means this Indenture as amended or supplemented from time to time. 
 “Indenture Trustee” means U.S. Bank National
Association, a national banking association, as Indenture Trustee under this Indenture, or any successor Indenture Trustee under this Indenture. 

“Independent” means, when used with respect to any specified Person, that the Person (a) is in fact independent of the
Issuing Entity, any other obligor upon the Notes, the Seller and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Issuing Entity, any such other
obligor, the Seller or any Affiliate of any of the foregoing Persons and (c) is not connected with the Issuing Entity, any such other obligor, the Seller or any Affiliate of any of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions. 
 “Independent Certificate” means a
certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, made by an Independent appraiser, firm of certified public
accountants or other expert appointed by an Issuing Entity Order and acceptable to the Indenture Trustee, and such opinion or certificate shall state that the signer has read the 

  
 5 

 
definition of “Independent” in this Indenture and that the signer is Independent within the meaning thereof. 

“Issuing Entity” means John Deere Owner Trust 2017-B until a successor replaces it and, thereafter, means the successor and,
for purposes of any provision contained herein and required by the TIA (as defined below), each other obligor on the Notes. 

“Issuing Entity Order” and “Issuing Entity Request” means a written order or request signed in the name of
the Issuing Entity by any one of its Authorized Officers and delivered to the Indenture Trustee. 
 “JDCC” means John Deere
Capital Corporation, a Delaware corporation, and its successors. 
 “John Deere Party” has the meaning specified in
Section 7.02(d). 
 “LIBOR Determination Date” means the second London Business Day prior to the Closing Date with
respect to the first Payment Date and, as to each subsequent Payment Date, the second London Business Day prior to the immediately preceding Payment Date. 

“London Business Day” means any day other than a Saturday, Sunday or day on which banking institutions in London, England are
authorized or obligated by law or government decree be closed. 
 “Note Interest Rate” means the per annum interest rate
borne by a Note. 
 “Note Owner” means, with respect to a Book-Entry Note, the Person who is the owner of such Book-Entry
Note, as reflected on the books of the Clearing Agency, or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules
of such Clearing Agency). 
 “Note Register” and “Note Registrar” have the respective meanings specified
in Section 2.04. 
 “Noteholder FATCA Information” means, with respect to any Noteholder or holder of an interest in a
Note, information in reasonable detail sufficient to eliminate the imposition of, or determine the amount of, FATCA Withholding Tax. 

“Noteholder Tax Identification Information” means properly completed and signed tax certifications (generally, in the case of
federal income tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor
form) in the case of a person that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code). 

“Notes” means the Class A-1 Notes, the Class A-2A Notes, the Class A-2B Notes, the Class A-3 Notes and
the Class A-4 Notes. 

  
 6 

 “Officer’s Certificate” means a certificate signed by any Authorized
Officer of the Issuing Entity, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, and delivered to the Indenture Trustee. Unless otherwise specified, any reference in this Indenture
to an Officer’s Certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuing Entity. 

“One-Month LIBOR” means, with respect to any interest period, the London interbank offered rate for deposits in U.S. dollars
having a maturity of one month commencing on the related LIBOR Determination Date which appears on Reuters Screen LIBOR01 Page (or such comparable service as is customarily used to quote One-Month LIBOR) as of 11:00 a.m., London time, on such LIBOR
Determination Date; provided, however, that for the first interest accrual period, One-Month LIBOR shall mean an interpolated rate for deposits based on London interbank offered rates for deposits in U.S. dollars for a period that corresponds to the
actual number of days in the first interest accrual period. If the rates used to determine One-Month LIBOR do not appear on the Reuters Screen LIBOR01 Page (or such comparable service as is customarily used to quote One-Month LIBOR), the rates for
that day will be determined on the basis of the rates at which deposits in U.S. dollars, having a maturity of one month and in a principal balance of not less than U.S. $1,000,000 are offered at approximately 11:00 a.m., London time, on such LIBOR
Determination Date to prime banks in the London interbank market by the reference banks. The Indenture Trustee shall request the principal London office of each of such reference banks to provide a quotation of its rate. If at least two such
quotations are provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of all such quotations. If fewer than two such quotations are
provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of the offered per annum rates that one or more leading banks in New York City,
selected by the Indenture Trustee (after consultation with the Depositor), are quoting as of approximately 11:00 a.m., New York City time, on such LIBOR Determination Date to leading European banks for United States dollar deposits for that
maturity; provided that if the banks selected as aforesaid are not quoting as mentioned in this sentence, One-Month LIBOR in effect for the applicable interest period will be One-Month LIBOR in effect for the previous interest period. The reference
banks are the four major banks in the London interbank market selected by the Indenture Trustee (after consultation with the Depositor). 

“Opinion of Counsel” means one or more written opinions of counsel who may, except as otherwise expressly provided in this
Indenture or the Basic Documents, be employees of or counsel to the Issuing Entity and which opinion or opinions shall, for purposes of the Indenture, be addressed to the Indenture Trustee as Indenture Trustee, and shall comply with any applicable
requirements of Section 11.01. 
 “Outstanding” means, as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except: 
 (i) Notes theretofore cancelled by the Note Registrar or
delivered to the Note Registrar for cancellation; 

  
 7 

 (ii) Notes or portions thereof the payment for which money in the necessary
amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of such Notes (provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor, satisfactory to the Indenture Trustee); and 
 (iii) Notes in exchange for or in lieu of
other Notes which have been authenticated and delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona fide purchaser; 

provided that in determining whether the Holders of the requisite Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuing Entity, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee
actually knows to be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Issuing Entity, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons. 

“Outstanding Amount” means the aggregate principal amount of all Notes, or a Class of Notes, as applicable, Outstanding at
the date of determination. 
 “Owner Trustee” means Wells Fargo Delaware Trust Company, N.A. not in its individual capacity
but solely as Owner Trustee under the Trust Agreement, or any successor Owner Trustee under the Trust Agreement. 
 “Paying
Agent” means the Indenture Trustee, U.S. Bank National Association or any Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 and is authorized by the Issuing Entity to make the payments to
and distributions from the Collection Account and the Note Distribution Account, including payment of principal of or interest on the Notes on behalf of the Issuing Entity. 

“Payment Date” means the 15th day of each month, or, if any such date is not a Business Day, the next succeeding Business
Day, commencing September 15, 2017. 
 “Person” means any individual, corporation, limited liability company, estate,
partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof. 

“Plan Fiduciary” means any fiduciary purchasing a Note on behalf of a Benefit Plan. 

  
 8 

 “Predecessor Note” means, with respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.05 in lieu of a mutilated, lost, destroyed or stolen Note
shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
 “Proceeding” means any suit
in equity, action at law or other judicial or administrative proceeding. 
 “Protected Purchaser” has the meaning specified
in Article Eight of the UCC. 
 “Rating Agency” means Fitch and Moody’s. If no such organization or successor is any
longer in existence, “Rating Agency” shall be a nationally recognized statistical rating organization or other comparable Person designated by the Issuing Entity, notice of which designation shall be given to the Indenture Trustee, the
Owner Trustee and the Servicer. 
 “Rating Agency Condition” means, with respect to any action, (A) in the case of
Moody’s, that such Rating Agency shall have been given 10 days’ (or such shorter period that is acceptable to such Rating Agency) prior notice thereof and that such Rating Agency shall have notified the Seller, the Servicer and the Issuing
Entity in writing that such action will not result in a reduction or withdrawal of the then current ratings of the Notes and (B) in the case of Fitch, that Fitch shall have been given 10 Business Days’ (or such shorter period that is
acceptable to Fitch) prior written notice thereof. 
 “Record Date” means, with respect to a Payment Date or Redemption
Date, the close of business on the day immediately preceding such Payment Date or Redemption Date, unless Definitive Notes are issued, in which case the Record Date with respect to such Definitive Notes as to any Payment Date shall be the last day
of the immediately preceding calendar month. 
 “Redemption Date” means the Payment Date specified by the Servicer or the
Issuing Entity pursuant to Section 10.01(a) or (b), as applicable. 
 “Redemption Price” means in the case of
(a) a redemption of the Notes pursuant to Section 10.01(a), an amount equal to the Outstanding Amount of the Notes redeemed plus accrued and unpaid interest on the Notes at the related Note Interest Rate to but excluding the Redemption
Date, or (b) a payment made to Noteholders pursuant to Section 10.01(b), the amount on deposit in the Note Distribution Account, but not in excess of the amount specified in clause (a) above. 

“Registered Holder” means the Person in whose name a Note is registered on the Note Register on the applicable Record Date.

 “Repurchase Rules and Regulations” has the meaning specified in Section 7.02(d). 

“Responsible Officer” means, with respect to (a) the Indenture Trustee, any officer within the Corporate Trust Office of
the Indenture Trustee who shall have direct responsibility for the administration of this Indenture, including any Vice President, Assistant 

  
 9 

 
Vice President, or any other officer of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject and (b) the Owner Trustee, any officer within the Corporate Trust Office of the Owner
Trustee who shall have direct responsibility for the administration of the Trust Agreement and the other Basic Documents on behalf of the Owner Trustee, including any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary, or any other officer of the Owner Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject. 
 “Sale and Servicing Agreement”
means the Sale and Servicing Agreement dated as of July 18, 2017 among the Issuing Entity, the Seller and the Servicer, in the form of Exhibit B, as amended or supplemented from time to time. 

“Schedule of Receivables” means the listing of the Receivables set forth in Exhibit A (which Exhibit may be in the form of
microfiche). 
 “Similar Law” means any federal, state, local or other law that is substantially similar to Title I of
ERISA or Section 4975 of the Code. 
 “State” means any one of the 50 states of the United States of America or the
District of Columbia. 
 “Successor Servicer” has the meaning specified in Section 3.07(e). 

“Transaction Parties” has the meaning specified in Section 2.04. 

“Trust Accounts” mean the Collection Account, the Note Distribution Account and the Reserve Account established pursuant to
Section 5.01 of the Sale and Servicing Agreement. 
 “Trust Estate” means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security interest of this Indenture for the benefit of the Noteholders (including, without limitation, all property and interests Granted to the Indenture Trustee), including all
proceeds thereof. 
 “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in force on
the date hereof, unless otherwise specifically provided. 
 “UCC” means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time. 
 “Underwriter” means each of
MUFG Securities Americas Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc. and TD Securities (USA) LLC. 

  
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 (b) Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein shall have the respective meanings set forth in the Sale and Servicing Agreement. 
 SECTION
1.02. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings: 
 “Commission” means the Securities and Exchange Commission. 

“indenture securities” means the Notes. 

“indenture security holder” means a Noteholder. 

“indenture to be qualified” means this Indenture. 

“indenture trustee” or “institutional trustee” means the Indenture Trustee. 

“obligor” on the indenture securities means the Issuing Entity and any other obligor on the indenture securities. 

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission
rule have the meaning assigned to them by such definitions. 
 SECTION 1.03. Rules of Construction. Unless the context otherwise
requires: 
 (i) a term has the meaning assigned to it; 

(ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting
principles in the United States as in effect from time to time; 
 (iii) “or” is not exclusive; 

(iv) “including” means “including without limitation”; and 

(v) words in the singular include the plural and words in the plural include the singular. 

SECTION 1.04. Calculations of Interest. All calculations of interest in respect of the Class A-1 Notes and Class A-2B Notes
made hereunder shall be computed on the basis of the actual number of days in the related period of accrual divided by 360. Interest in respect of the Class A-1 Notes and Class A-2B Notes shall accrue from and including the Closing Date or
from and including the most recent Payment Date to which interest has been paid to but excluding the current Payment Date. All calculations of interest in respect of the Class A-2A Notes, the Class A-3 Notes and the Class A-4 Notes
made hereunder shall be made on the basis of a 360-day year 

  
 11 

 
consisting of twelve 30-day months. Interest on the Class A-2A Notes, the Class A-3 Notes and the Class A-4 Notes in respect of a Payment Date will accrue from and including the
15th day of the month preceding such Payment Date (or the Closing Date in the case of the first Payment Date) to and including the 14th day of the month of such Payment Date. 

ARTICLE II 
 THE NOTES 

SECTION 2.01. Form. The Class A-1, Class A-2A, Class A-2B, Class A-3 and Class A-4 Notes, in each case
together with the Indenture Trustee’s certificate of authentication, shall be in substantially the forms set forth in Exhibits D, E, F, G and H, respectively, with such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. 

The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without
steel engraved borders), all as determined by the officers executing such Notes, as evidenced by their execution of such Notes. 
 Each Note
shall be dated the date of its authentication. The terms of the Notes set forth in Exhibits D, E, F, G and H are part of the terms of this Indenture. 

SECTION 2.02. Execution, Authentication and Delivery. The Notes shall be executed on behalf of the Issuing Entity by any of its
Authorized Officers. The signature of any such Authorized Officer on the Notes may be manual or facsimile. 
 Notes bearing the manual or
facsimile signature of individuals who were at any time Authorized Officers of the Issuing Entity shall bind the Issuing Entity, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Notes or did not hold such offices at the date of such Notes. 
 The Indenture Trustee shall upon Issuing Entity Order
authenticate and deliver Class A-1 Notes for original issue in an aggregate principal amount of $200,000,000, Class A-2A Notes for original issue in an aggregate principal amount of $230,000,000, Class A-2B Notes for original issue in an aggregate principal amount of $90,000,000, Class A-3 Notes for original issue in an aggregate principal amount of $250,000,000 and Class A-4 Notes for
original issue in an aggregate principal amount of $87,230,000. The aggregate principal amount of Class A-1, Class A-2A, Class A-2B, Class A-3 and Class A-4 Notes outstanding at any time may not exceed such amounts,
respectively, except as provided in Section 2.05. 
 Each Note shall be dated the date of its authentication. The Notes shall be
issuable as registered Notes in the minimum denomination of $1,000 and in integral multiples thereof. 

  
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 No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any
purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any
Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
 SECTION
2.03. Temporary Notes. Pending the preparation of definitive Notes, the Issuing Entity may execute, and upon receipt of an Issuing Entity Order the Indenture Trustee shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of the definitive Notes in lieu of which they are issued and with such variations not inconsistent with the terms of this Indenture as the officers executing such Notes may
determine, as evidenced by their execution of such Notes. 
 If temporary Notes are issued, the Issuing Entity will cause definitive Notes
to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Issuing Entity to be maintained
as provided in Section 3.02, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the Issuing Entity shall execute and the Indenture Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as definitive Notes. 

SECTION 2.04. Registration; Registration of Transfer and Exchange. The Issuing Entity shall cause to be kept a register (the “Note
Register”) in which, subject to such reasonable regulations as it may prescribe, the Issuing Entity shall provide for the registration of Notes and the registration of transfers of Notes. The Indenture Trustee shall be “Note
Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. Upon any resignation of any Note Registrar, the Issuing Entity shall promptly appoint a successor or, if it elects not to make such an appointment,
assume the duties of Note Registrar. 
 If a Person other than the Indenture Trustee is appointed by the Issuing Entity as Note Registrar,
the Issuing Entity will give the Indenture Trustee prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses
of the Holders of the Notes and the principal amounts and number of such Notes. 
 Upon surrender for registration of transfer of any Note
at the office or agency of the Issuing Entity to be maintained as provided in Section 3.02, if the requirements of Section 8-401(a) of the UCC are met, the Issuing Entity shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes of the same Class in any authorized denominations, of a like aggregate principal amount. 

  
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 At the option of the Holder, Notes may be exchanged for other Notes of the same Class in any
authorized denominations, of a like aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, if the requirements of Section 8-401(a) of the UCC are met
the Issuing Entity shall execute, and the Indenture Trustee authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive. 

All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuing Entity, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 

Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written
instrument of transfer in the form attached to the form of the applicable Note duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Indenture Trustee in addition
to, or in substitution for, STAMP, all in accordance with the Exchange Act, and such other documents as the Indenture Trustee may require. 

No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuing Entity may require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.03 or 9.06 not involving any transfer. 

Each Noteholder, by its acceptance of a Note (and each Note Owner, by its acceptance of a beneficial interest in a Note) will be deemed to
have represented for so long as it holds such Note that (x) it is not, and is not acquiring the Note (or an interest therein) on behalf of, or with the assets of a Benefit Plan or any governmental, non-U.S. or church plan or any other employee
benefit plan or arrangement that is subject to Similar Law or (y) its acquisition and holding of the Note do not give rise to a transaction prohibited under Section 406 of ERISA or Section 4975 of the Code or under any applicable
Similar Law for which an exemption, all of the conditions of which are satisfied, is not available. 
 Each Noteholder that is a Benefit
Plan, including its Plan Fiduciary, is deemed to represent and warrant by its acceptance of a Note that: (a) the decision to acquire the Note has been made on an arms’ length basis by the Plan Fiduciary; (b) the Depositor, the
Servicer, the Sponsor, the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Underwriters or any of their respective affiliates (collectively, the “Transaction Parties”) have not provided nor will provide advice with respect to
the acquisition of the Notes by the Benefit Plan, other than to the Plan Fiduciary which is independent of the Transaction Parties, and the Plan Fiduciary either: (i) is a bank as defined in Section 202 of the Investment Advisers Act of
1940, as amended (the “Advisers Act”), or similar institution that is regulated and supervised and subject to periodic examination by a U.S. state or U.S. federal agency, (ii) is an insurance carrier which is qualified under the laws
of more than one U.S. state to perform the services of managing, acquiring or 

  
 14 

 
disposing of assets of a plan, (iii) is an investment adviser registered under the Advisers Act, or, if not registered an as investment adviser under the Advisers Act by reason of paragraph
(1) of Section 203A of the Advisers Act, is registered as an investment adviser under the laws of the U.S. state in which it maintains its principal office and place of business, (iv) is a broker-dealer registered under the Exchange
Act or (v) holds, or has under its management or control, total assets of at least U.S. $50 million (provided that this clause (v) shall not be satisfied if the Plan Fiduciary is an individual directing his or her own individual retirement
account or plan account or relative of such individual); (c) the Plan Fiduciary is capable of evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies, including the
acquisition by the Benefit Plan of the Note; (d) the Plan Fiduciary is a “fiduciary” with respect to the Benefit Plan within the meaning of Section 3(21) of ERISA, Section 4975 of the Code, or both, and is responsible for
exercising independent judgment in evaluating the Benefit Plan’s acquisition of the Note; (e) none of the Transaction Parties has exercised any authority to cause the Benefit Plan to invest in the Note or to negotiate the terms of the
Benefit Plan’s investment in the Note; and (f) the Plan Fiduciary has been informed by the Transaction Parties: (i) that none of the Transaction Parties are undertaking to provide impartial investment advice or to give advice in a
fiduciary capacity in connection with the Benefit Plan’s acquisition of the Note and (ii) of the existence and nature of the Transaction Parties’ financial interests in the Benefit Plan’s acquisition of the Note. The above
representations in this paragraph are intended to comply with the U.S. Department of Labor’s Regulation. Sections 29 C.F.R. 2510.3-21(a) and (c)(1) as promulgated on April 8, 2016 (81 Fed. Reg. 20,997). To the extent that these regulations
are revoked, repealed or no longer effective, these representations shall be deemed to be no longer in effect. 
 SECTION 2.05.
Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) there is delivered to the Indenture Trustee such security or indemnity as may be required by it to hold the Issuing Entity and the Indenture Trustee harmless, then, in the absence of notice to the Issuing Entity, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a Protected Purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuing Entity shall execute and upon its request the Indenture Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or
within seven days shall be due and payable, or shall have been called for redemption, instead of issuing a replacement Note, the Issuing Entity may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without
surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the preceding sentence, a Protected Purchaser of the original Note in lieu of which such replacement Note
was issued presents for payment such original Note, the Issuing Entity and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note
from such Person to whom such replacement Note was delivered or any assignee of such Person, except a Protected Purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or
expense incurred by the Issuing Entity or the Indenture Trustee in connection therewith. 

  
 15 

 Upon the issuance of any replacement Note under this Section, the Issuing Entity may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee) connected
therewith. 
 Every replacement Note issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Note shall
constitute an original additional contractual obligation of the Issuing Entity, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Notes duly issued hereunder. 
 The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 

SECTION 2.06. Persons Deemed Owner. Prior to due presentment for registration of transfer of any Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name any Note is registered (as of the day of determination) as the owner of such Note for the purpose of receiving payments of principal
of and interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any agent of the Issuing Entity or the Indenture Trustee shall be affected by
notice to the contrary. 
 SECTION 2.07. Payment of Principal and Interest; Defaulted Interest. (a) The Notes shall accrue
interest as provided in the forms of the Class A-1 Note, Class A-2A Note, Class A-2B Note, Class A-3 Note and Class A-4 Note set forth in Exhibits D, E, F, G and H, respectively, and such interest shall be payable on each
Payment Date as specified therein. Any installment of interest or principal, if any, payable on any Note which is punctually paid or duly provided for by the Issuing Entity on the applicable Payment Date shall be paid to the Person in whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that, unless Definitive Notes
have been issued pursuant to Section 2.12, with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made by wire transfer in
immediately available funds to the account designated by such nominee and except for the final installment of principal payable with respect to such Note on a Payment Date (and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.01(a)) which shall be payable as provided below. The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.03. 

(b) The principal of each Note shall be payable in installments on each Payment Date as provided in the forms of the Class A-1 Note,
Class A-2A Note, Class A-2B Note, Class A-3 Note and Class A-4 Note set forth in Exhibits D, E, F, G and H, respectively. For purposes of distributions from the Reserve Account pursuant to Section 5.05(e) of the Sale and
Servicing Agreement, any portion of the Note Monthly Principal Distributable Amount shall be deemed to be due on any Payment Date on which funds sufficient to pay such portion would 

  
 16 

 
be available to make such payment from funds withdrawn from the Reserve Account and distributed with the priorities set forth in accordance with Section 5.04(b) of the Sale and Servicing
Agreement. For the avoidance of doubt, the Note Monthly Principal Distributable Amount, or any portion thereof, shall not be due (other than in accordance with the first sentence of this Section 2.07(b), the subsequent sentence of this
Section 2.07(b), Section 5.02 and Section 10.03 of this Indenture), unless amounts are actually available to make such payments in accordance with Section 5.04(b) of the Sale and Servicing Agreement. Notwithstanding the
foregoing, the entire unpaid principal amount of the Notes shall be due and payable, if not previously paid, on the date on which an Event of Default shall have occurred and be continuing, if the Indenture Trustee or the Holders of the Notes
representing not less than a majority of the Outstanding Amount of the Notes have declared the Notes to be immediately due and payable in the manner provided in Section 5.02. All principal payments on each Class of Notes shall be made pro rata
to the Noteholders of such Class entitled thereto. Upon notice to the Indenture Trustee by the Issuing Entity, the Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the
Payment Date on which the Issuing Entity expects that the final installment of principal of and interest on such Note will be paid. Such notice shall be mailed no later than five Business Days prior to such final Payment Date and shall specify that
such final installment will be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such installment. Notices in connection with redemptions of Notes
shall be mailed to Noteholders as provided in Section 10.02. 
 (c) If the Issuing Entity defaults in a payment of interest on the
Notes, the Issuing Entity shall pay defaulted interest (plus interest on such defaulted interest at a rate per annum equal to the sum of (i) the applicable Note Interest Rate and (ii) 1.0%, to the extent lawful) in any lawful manner. The
Issuing Entity may pay such defaulted interest and interest on such defaulted interest to the persons who are Noteholders on a subsequent special record date, which date shall be at least five Business Days prior to the payment date. The Issuing
Entity shall fix or cause to be fixed any such special record date and payment date, and, at least 10 days before any such special record date, the Issuing Entity shall mail to each Noteholder a notice that states the special record date, the
payment date and the amount of defaulted interest and interest on such defaulted interest to be paid. 
 (d) So long as the Class A-2B
Notes are Outstanding, the Indenture Trustee will determine the Class A-2B Note Interest Rate for each interest accrual period on the LIBOR Determination Date for such interest accrual period and shall promptly provide such rate to the Servicer
or such person as directed by the Servicer; provided, that for the initial interest accrual period the Class A-2B Note Interest Rate will be 1.33611%. All determinations of the Class A-2B Note
Interest Rate by the Indenture Trustee, in the absence of manifest error, will be conclusive and binding on the Noteholders. 

  
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 SECTION 2.08. Cancellation. All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The Issuing Entity may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuing Entity may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall
be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuing Entity shall direct by an Issuing Entity Order that they be returned to it; provided that the Notes have not been previously disposed of by the Indenture Trustee. 

SECTION 2.09. Release of Collateral. Subject to Section 11.01, the Indenture Trustee shall release property from the lien of this
Indenture only upon receipt of an Issuing Entity Request accompanied by an Officer’s Certificate, an Opinion of Counsel and Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(l) or an Opinion of Counsel in lieu of
such Independent Certificates to the effect that the TIA does not require any such Independent Certificates. 
 SECTION 2.10. Book-Entry
Notes. The Notes, upon original issuance, will be issued in the form of a typewritten Note or Notes representing the Book-Entry Notes, to be delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuing
Entity. Such Note shall initially be registered on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency, and no Note Owner will receive a Definitive Note (as hereinafter defined) representing such Note
Owner’s interest in such Note, except as provided in Section 2.12. Unless and until definitive, fully registered Notes (the “Definitive Notes”) have been issued to Note Owners pursuant to Section 2.12: 

(i) the provisions of this Section shall be in full force and effect; 

(ii) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all purposes of this
Indenture (including the payment of principal of and interest on the Notes and the giving of instructions or directions hereunder) as the sole holder of the Notes, and shall have no obligation to the Note Owners; 

(iii) to the extent that the provisions of this Section conflict with any other provisions of this Indenture, the provisions of
this Section shall control; 
 (iv) the rights of Note Owners shall be exercised only through the Clearing Agency and shall
be limited to those established by law and agreements between such Note Owners and the Clearing Agency and/or the Clearing Agency Participants; pursuant to the Depository Agreement, unless and until Definitive Notes are issued pursuant to
Section 2.12, the initial Clearing Agency will make book-entry transfers among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; and 

  
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 (v) whenever this Indenture requires or permits actions to be taken based upon
instructions or directions of Holders of Notes evidencing a specified percentage of the Outstanding Amount of the Notes (or any Class thereof), the Clearing Agency shall be deemed to represent such percentage only to the extent that it has received
instructions to such effect from Note Owners and/or Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes (or any Class thereof) and has delivered such instructions to the
Indenture Trustee. 
 SECTION 2.11. Notices to Clearing Agency. Whenever a notice or other communication to the Noteholders is
required under this Indenture, unless and until Definitive Notes shall have been issued to Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all such notices and communications specified herein to be given to Holders of the
Notes to the Clearing Agency, and shall have no obligation to the Note Owners or other Holders of the Notes. 
 SECTION 2.12. Definitive
Notes. If (i) the Administrator advises the Indenture Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its responsibilities with respect to the Notes, and the Administrator is unable to locate a
qualified successor, (ii) the Administrator at its option advises the Indenture Trustee in writing that it elects to terminate the book-entry system through the Clearing Agency or (iii) after the occurrence of an Event of Default or a
Servicer Default, Note Owners representing beneficial interests aggregating at least a majority of the Outstanding Amount of the Notes advise the Clearing Agency in writing that the continuation of a book-entry system through the Clearing Agency is
no longer in the best interests of the Note Owners, then the Clearing Agency shall notify all Note Owners and the Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting the same.
Upon surrender to the Indenture Trustee of the typewritten Note or Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration instructions, the Issuing Entity shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuing Entity, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 

SECTION 2.13. Notes as Indebtedness for Tax Purposes. The Issuing Entity is entering into this Indenture with the intention that, for
federal, State and local income and franchise tax purposes, each Note will qualify as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes) secured by the Collateral.

 SECTION 2.14. Noteholder FATCA Information. Without limiting any other information or certification requirements under applicable
tax law, each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification
Information and, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in a Note, 

  
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by acceptance of such Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity has the right to withhold any amounts (properly withholdable under
law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note, either because such withholding is required under applicable tax law or as a result of the failure of the Noteholder or holder of an interest in
the Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

ARTICLE III 
 COVENANTS 

SECTION 3.01. Payment of Principal and Interest. The Issuing Entity will duly and punctually pay the principal of and interest on the
Notes in accordance with the terms of the Notes and this Indenture. Without limiting the foregoing, the Issuing Entity will cause to be distributed all amounts on deposit in the Note Distribution Account on a Payment Date. Amounts properly withheld
under the Code by any Person from a payment to any Noteholder of interest and/or principal shall be considered as having been paid by the Issuing Entity to such Noteholder for all purposes of this Indenture. 

SECTION 3.02. Maintenance of Office or Agency. The Issuing Entity will maintain in the Borough of Manhattan, The City of New York, an
office or agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuing Entity in respect of the Notes and this Indenture may be served. The Issuing Entity hereby initially
appoints U.S. Bank National Association to serve as its agent for the foregoing purposes. The Issuing Entity will give prompt written notice to the Indenture Trustee of the location, and of any change in the location, of any such office or agency.
If at any time the Issuing Entity shall fail to maintain any such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and
the Issuing Entity hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and demands. 
 SECTION 3.03.
Money for Payments to be Held in Trust. As provided in Section 8.02(a) and (b), all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Collection Account and the Note
Distribution Account pursuant to Section 8.02(c) shall be made on behalf of the Issuing Entity by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Collection Account and the Note Distribution Account for
payments of Notes shall be paid over to the Issuing Entity except as provided in this Section. 
 At or before noon (New York time) on each
Payment Date and Redemption Date, the Issuing Entity shall deposit or cause to be deposited in the Note Distribution Account an aggregate sum sufficient to pay the amounts then becoming due under the Notes, such sum to be held in trust for the
benefit of the Persons entitled thereto and (unless the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee of its action or failure so to act. 

The Issuing Entity will cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee an instrument
in which such Paying Agent shall 

  
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agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section, that such Paying Agent will: 

(i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 

(ii) give the Indenture Trustee notice of any default by the Issuing Entity of which it has actual knowledge (or any other
obligor upon the Notes) in the making of any payment required to be made with respect to the Notes; 
 (iii) at any time
during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying Agent; 

(iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the
payment of Notes if at any time it ceases to meet the standards required to be met by a Paying Agent at the time of its appointment; and 

(v) comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any
applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith. 
 The
Issuing Entity may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuing Entity Order direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such
Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released
from all further liability with respect to such money. 
 Subject to applicable laws with respect to escheat of funds, any money held by the
Indenture Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust, and the Indenture
Trustee or such Paying Agent, as the case may be, shall give prompt notice of such occurrence to the Issuing Entity and shall release such money to the Issuing Entity on Issuing Entity Request; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuing Entity for payment thereof (but only to the extent of the amounts so paid to the Issuing Entity), and all liability of the Indenture Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuing Entity cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation in The City of New York, notice that such money remains unclaimed 

  
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and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuing
Entity. The Indenture Trustee may also adopt and employ, at the expense of the Issuing Entity, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such repayment to Holders whose Notes have
been called but have not been surrendered for redemption or whose right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each
such Holder). 
 SECTION 3.04. Existence. The Issuing Entity will keep in full effect its existence, rights and franchises as a
statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuing Entity hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case the Issuing Entity
will keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or agreement included in the Trust Estate. 

SECTION 3.05. Protection of Trust Estate. (a) The Issuing Entity will from time to time prepare, execute, deliver and file all
such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and will take such other action necessary or advisable to: 

(i) maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more
effectively the purposes hereof; 
 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made
by this Indenture; 
 (iii) enforce any of the Collateral; or 

(iv) preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders in such Trust
Estate against the claims of all persons and parties. 
 The Issuing Entity hereby designates the Indenture Trustee, and hereby authorizes
the Indenture Trustee as its agent and attorney-in-fact, to execute any financing statement, continuation statement or other instrument delivered to the Indenture Trustee pursuant to this Section. 

(b) The Issuing Entity hereby represents and warrants that, as to the Collateral pledged to the Indenture Trustee for the benefit of the
Noteholders, on the Closing Date: 
 (i) the Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral that is in existence in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Issuing Entity; 

  
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 (ii) the Receivables constitute “tangible chattel paper” or
“electronic chattel paper” under the applicable UCC; 
 (iii) the Issuing Entity owns and has good and marketable
title to such Collateral free and clear of any liens, claims or encumbrances of any Person, other than the interest Granted under this Indenture; 

(iv) the Issuing Entity has acquired its ownership in such Collateral in good faith without notice of any adverse claim; 

(v) the Trust Accounts are not in the name of any person other than the Indenture Trustee and the Issuing Entity has not
consented to the bank maintaining the Trust Accounts to comply with the instructions of any person other than the Indenture Trustee; 

(vi) the Issuing Entity has not assigned, pledged, sold, granted a security interest in or otherwise conveyed any interest in
such Collateral (or, if any such interest has been assigned, pledged or otherwise encumbered, it has been released) other than interests Granted pursuant to this Indenture; 

(vii) the Issuing Entity has caused or will have caused, within ten days after the Closing Date, the filing of all appropriate
financing statements in the proper filing office in the appropriate jurisdiction under the applicable law in order to perfect the security interest Granted hereunder in the Receivables; 

(viii) in the case of each Receivable constituting “electronic chattel paper” as defined under the applicable UCC,
the Servicer, as custodian for the Issuing Entity, has “control” within the meaning of Section 9-105 of the applicable UCC of such Receivables; 

(ix) in the case of the Receivables constituting “electronic chattel paper” as defined under the applicable UCC, the
contracts that constitute or evidence the Receivables do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Issuing Entity; 

(x) other than its Granting hereunder, the Issuing Entity has not Granted such Collateral, the Issuing Entity has not
authorized the filing of and is not aware of any financing statements against the Issuing Entity that include a description of such Collateral other than the financing statement in favor of the Indenture Trustee, and the Issuing Entity is not aware
of any judgment or tax lien filing against it; and 
 (xi) the information relating to such Collateral set forth in the
Schedule of Receivables (attached hereto as Exhibit A) is correct. 
 SECTION 3.06. Opinions as to Trust Estate. (a) On the
Closing Date, the Issuing Entity shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this Indenture, any indentures
supplemental hereto, and any other requisite documents, and with 

  
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respect to the execution and filing of any financing statements and continuation statements, as are necessary to perfect and make effective the lien and security interest of this Indenture and
reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make such lien and security interest effective. 

(b) On or before February 28 in each calendar year, beginning in 2018, the Issuing Entity shall furnish to the Indenture Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite
documents and with respect to the execution and filing of any financing statements and continuation statements as is necessary to maintain the lien and security interest created by this Indenture and reciting the details of such action or stating
that in the opinion of such counsel no such action is necessary to maintain such lien and security interest. Such Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the lien and security interest of this Indenture until
February 28 in the following calendar year. 
 SECTION 3.07. Performance of Obligations; Servicing of Receivables. (a) The
Issuing Entity will not take any action and will use its best efforts not to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement
included in the Trust Estate or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in this
Indenture, the Sale and Servicing Agreement or such other instrument or agreement. 
 (b) The Issuing Entity may contract with other Persons
to assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in an Officer’s Certificate of the Issuing Entity shall be deemed to be action taken by the Issuing
Entity. Initially, the Issuing Entity has contracted with the Servicer and the Administrator to assist the Issuing Entity in performing its duties under this Indenture. 

(c) The Issuing Entity will punctually perform and observe all of its obligations and agreements contained in this Indenture, the Basic
Documents and in the instruments and agreements included in the Trust Estate, including but not limited to filing or causing to be filed all UCC financing statements and continuation statements required to be filed by the terms of this Indenture and
the Sale and Servicing Agreement in accordance with and within the time periods provided for herein and therein. Except as otherwise expressly provided therein, the Issuing Entity shall not waive, amend, modify, supplement or terminate any Basic
Document or any provision thereof without the consent of the Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of the Notes. 

(d) If the Issuing Entity shall have knowledge of the occurrence of a Servicer Default under the Sale and Servicing Agreement, the Issuing
Entity shall promptly notify a Responsible Officer of the Indenture Trustee and the Administrator thereof (and the 

  
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Administrator shall make such notice available to the Rating Agencies), and shall specify in such notice the action, if any, the Issuing Entity is taking with respect to such default. If a
Servicer Default shall arise from the failure of the Servicer to perform any of its duties or obligations under the Sale and Servicing Agreement with respect to the Receivables, the Issuing Entity shall take all reasonable steps available to it to
remedy such failure. 
 (e) As promptly as possible after the giving of notice of termination to the Servicer of the Servicer’s rights
and powers pursuant to Section 8.01 of the Sale and Servicing Agreement, the Issuing Entity shall appoint a successor servicer (the “Successor Servicer”), and such Successor Servicer shall accept its appointment by a written
assumption in a form acceptable to the Indenture Trustee. In the event that a Successor Servicer has not been appointed and accepted its appointment at the time when the Servicer ceases to act as Servicer, the Indenture Trustee without further
action shall automatically be appointed the Successor Servicer, subject to Section 8.02 of the Sale and Servicing Agreement. The Indenture Trustee may resign as the Servicer by giving written notice of such resignation to the Issuing Entity and
in such event will be released from such duties and obligations, such release not to be effective until the date a new servicer enters into a servicing agreement with the Issuing Entity as provided below. In each case of either the appointment of
the Indenture Trustee (or any Affiliate as provided below) as Successor Servicer, or resignation of the Indenture Trustee as Servicer, the Indenture Trustee shall provide to the Depositor, in writing, such information as reasonably requested by the
Depositor to comply with its reporting obligation under the Exchange Act with respect to a successor Servicer or the resignation of the Servicer. Upon delivery of any such notice to the Issuing Entity, the Issuing Entity shall obtain a new servicer
as the Successor Servicer under the Sale and Servicing Agreement. Any Successor Servicer other than the Indenture Trustee shall (i) be an established financial institution having a net worth of not less than $50,000,000 and whose regular
business includes the servicing of equipment receivables, (ii) enter into a servicing agreement with the Issuing Entity having substantially the same provisions as the provisions of the Sale and Servicing Agreement applicable to the Servicer
and (iii) shall provide to the Depositor, in writing, such information as reasonably requested by the Depositor to comply with its reporting obligation under the Exchange Act with respect to a successor Servicer. If within 30 days after the
delivery of the notice referred to above, the Issuing Entity shall not have obtained such a new servicer, the Indenture Trustee may appoint, or may petition a court of competent jurisdiction to appoint, a Successor Servicer. In connection with any
such appointment, the Indenture Trustee may make such arrangements for the compensation of such successor as it and such successor shall agree, subject to the limitations set forth below and in the Sale and Servicing Agreement, and in accordance
with Section 8.02 of the Sale and Servicing Agreement, the Issuing Entity shall enter into an agreement with such successor for the servicing of the Receivables (such agreement to be in form and substance satisfactory to the Indenture Trustee).
If the Indenture Trustee shall succeed to the Servicer’s duties as servicer of the Receivables as provided herein, it shall do so in its capacity as servicer and not in its capacity as Indenture Trustee and, accordingly, the provisions of
Article VI hereof shall be inapplicable to the Indenture Trustee in its duties as the successor to the Servicer and the servicing of the Receivables. In case the Indenture Trustee shall become successor to the Servicer under the Sale and Servicing
Agreement, the Indenture Trustee shall be entitled to appoint as Servicer any one of its affiliates, provided that it shall be fully liable for the actions and omissions of such affiliate in such capacity as Successor Servicer. 

  
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 (f) Upon any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuing Entity shall promptly notify the Indenture Trustee. As soon as a Successor Servicer is appointed, the Issuing Entity shall notify the Indenture Trustee of such appointment, specifying in such notice the name and
address of such Successor Servicer. 
 (g) Without derogating from the absolute nature of the assignment granted to the Indenture Trustee
under this Indenture or the rights of the Indenture Trustee hereunder, the Issuing Entity agrees that it will not, without the prior written consent of the Indenture Trustee or the Holders of at least a majority in Outstanding Amount of the Notes,
amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral (except to the extent otherwise provided in the Sale and Servicing
Agreement) or the Basic Documents, or waive timely performance or observance by the Servicer or the Seller under the Sale and Servicing Agreement or JDCC under the Purchase Agreement; provided, however, that no such amendment shall (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that are required to be made for the benefit of the Noteholders or (ii) reduce the aforesaid percentage of the
Notes which are required to consent to any such amendment, without the consent of the holders of all the outstanding Notes. If any such amendment, modification, supplement or waiver shall be so consented to by the Indenture Trustee or such Holders,
the Issuing Entity agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and other documents as the Indenture Trustee may
reasonably deem necessary or appropriate in the circumstances. 
 SECTION 3.08. Negative Covenants. So long as any Notes are
Outstanding, the Issuing Entity shall not: 
 (i) except as expressly permitted by this Indenture, the Purchase Agreement,
the Trust Agreement or the Sale and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuing Entity, including those included in the Trust Estate, unless directed to do so by the Indenture
Trustee; 
 (ii) claim any credit on, or make any deduction from the principal or interest payable in respect of, the Notes
(other than amounts properly withheld from such payments under the Code) or assert any claim against any present or former Noteholder by reason of the payment of the taxes levied or assessed upon any part of the Trust Estate; or 

(iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to
be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any
lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Trust Estate or any part thereof or any interest

  
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therein or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that arise by operation of law, in each case on a Financed Equipment and arising solely as a result of
an action or omission of the related Obligor) or (C) permit the lien of this Indenture not to constitute a valid first priority (other than with respect to any such tax, mechanics’ or other lien arising by operation of law) security
interest in the Trust Estate. 
 SECTION 3.09. Annual Statement as to Compliance. The Issuing Entity will deliver to the Indenture
Trustee, within 120 days after the end of each fiscal year of the Issuing Entity (commencing with the fiscal year ending in 2017), an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that 

(i) a review of the activities of the Issuing Entity during the 12-month period ending at the end of such fiscal year (or in
the case of the fiscal year ending October 2017, the period from the Closing Date to October 31, 2017) and of performance under this Indenture has been made under such Authorized Officer’s supervision; and 

(ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuing Entity has complied with all
conditions and covenants under this Indenture throughout such year, or, if there has been a default in the compliance of any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof.

 SECTION 3.10. Issuing Entity May Consolidate, etc., Only on Certain Terms. (a) The Issuing Entity shall not consolidate or
merge with or into any other Person, unless 
 (i) the Person (if other than the Issuing Entity) formed by or surviving such
consolidation or merger shall be a Person organized and existing under the laws of the United States of America or any State and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form
satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuing Entity to be performed
or observed, all as provided herein; 
 (ii) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing; 
 (iii) the Rating Agency Condition shall have been satisfied with respect to
such transaction; 
 (iv) the Issuing Entity shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse tax consequence to the Trust, any Noteholder or any Certificateholder; 

(v) any action as is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

  
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 (vi) the Issuing Entity shall have delivered to the Indenture Trustee an
Officer’s Certificate and an Opinion of Counsel each stating that such consolidation or merger and such supplemental indenture comply with this Article III and that all conditions precedent herein provided for relating to such transaction have
been complied with (including any filing required by the Exchange Act). 
 (b) The Issuing Entity shall not convey or transfer any of its
properties or assets, including those included in the Trust Estate, to any Person, unless 
 (i) the Person that acquires by
conveyance or transfer the properties and assets of the Issuing Entity the conveyance or transfer of which is hereby restricted shall (A) be a United States citizen or a Person organized and existing under the laws of the United States of
America or any State, (B) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in a form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on
all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuing Entity to be performed or observed, all as provided herein, (C) expressly agrees by means of such supplemental indenture
that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of Holders of the Notes, (D) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold
harmless the Issuing Entity against and from any loss, liability or expense arising under or related to this Indenture and the Notes, (E) expressly agrees by means of such supplemental indenture that such Person (or if a group of Persons, then
one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes and (F) such conveyance or transfer is expressly permitted by this Indenture, the
Purchase Agreement, the Sale and Servicing Agreement and the Trust Agreement; 
 (ii) immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be continuing; 
 (iii) the Rating Agency Condition shall
have been satisfied with respect to such transaction; 
 (iv) the Issuing Entity shall have received an Opinion of Counsel
(and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse tax consequence to the Trust, any Noteholder or any Certificateholder; 

(v) any action as is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

 (vi) the Issuing Entity shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of
Counsel each stating that such conveyance or transfer and such supplemental indenture comply with this Article III and that all 

  
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conditions precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act). 

SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or merger of the Issuing Entity in accordance with
Section 3.10(a), the Person formed by or surviving such consolidation or merger (if other than the Issuing Entity) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuing Entity under this Indenture with
the same effect as if such Person had been named as the Issuing Entity herein. 
 (b) Upon a conveyance or transfer of all the assets and
properties of the Issuing Entity pursuant to Section 3.10(b), the Issuing Entity will be released from every covenant and agreement of this Indenture to be observed or performed on the part of the Issuing Entity with respect to the Notes
immediately upon the delivery to and acceptance by the Indenture Trustee of the Officer’s Certificate and Opinion of Counsel specified in Section 3.10(b)(vi) stating that the Issuing Entity is to be so released. 

SECTION 3.12. No Other Business. The Issuing Entity shall not engage in any business other than financing, purchasing, owning, selling
and managing the Receivables in the manner contemplated by this Indenture and the Basic Documents, issuing the Notes and Certificates and activities incidental thereto. 

SECTION 3.13. No Borrowing. The Issuing Entity shall not issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness except for the Notes. 
 SECTION 3.14. Servicer’s Obligations. The Issuing Entity shall cause
the Servicer to comply with Sections 4.09, 4.10, 4.11 and 5.06 of the Sale and Servicing Agreement. 
 SECTION 3.15. Guarantees, Loans,
Advances and Other Liabilities. Except as contemplated by the Sale and Servicing Agreement or this Indenture, the Issuing Entity shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the
effect of assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of,
or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 

SECTION 3.16. Capital Expenditures. The Issuing Entity shall not make any expenditure (by long-term or operating lease or otherwise)
for capital assets (either realty or personality). 
 SECTION 3.17. Removal of Administrator. So long as any Notes are Outstanding,
the Issuing Entity shall not remove the Administrator without cause unless the Rating Agency Condition shall have been satisfied in connection with such removal. 

SECTION 3.18. Restricted Payments. The Issuing Entity shall not, directly or indirectly, (i) pay any dividend or make any
distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any 

  
 29 

 
owner of a beneficial interest in the Issuing Entity or otherwise with respect to any ownership or equity interest or security in or of the Issuing Entity or to the Servicer, (ii) redeem,
purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided, however, that the Issuing Entity may make, or cause to be
made, (x) distributions to the Servicer, the Owner Trustee and the Certificateholders as permitted by, and to the extent funds are available for such purpose under, the Sale and Servicing Agreement and (y) payments to the Indenture Trustee
pursuant to Section 1(a)(ii) of the Administration Agreement. The Issuing Entity will not, directly or indirectly, make payments to or distributions from the Collection Account except in accordance with this Indenture and the Basic Documents.

 SECTION 3.19. Notice of Events of Default. The Issuing Entity agrees to give a Responsible Officer of the Indenture Trustee and
the Administrator prompt written notice of each Event of Default hereunder and, within five days after obtaining knowledge of any of the following occurrences, written notice of each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement and each default on the part of JDCC of its obligations under the Purchase Agreement, and the Administrator shall make such notices available to the Rating Agencies. 

SECTION 3.20. Further Instruments and Acts. Upon request of the Indenture Trustee, the Issuing Entity will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 

ARTICLE IV 
 SATISFACTION AND
DISCHARGE 
 SECTION 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect
to the Notes except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon,
(iv) Sections 3.03, 3.04, 3.05, 3.08, 3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.07 and the obligations of the
Indenture Trustee under Section 4.02) and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of
and at the expense of the Issuing Entity, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when 

(A) either 

(1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and
that have been replaced or paid as provided in Section 2.05 and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuing Entity and thereafter repaid to the Issuing

  
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Entity or discharged from such trust, as provided in Section 3.03) have been delivered to the Indenture Trustee for cancellation; or 

(2) all Notes not theretofore delivered to the Indenture Trustee for cancellation 

(a) have become due and payable, 

(b) will become due and payable at the Class A-4 Final Scheduled Payment Date within one year, or 

(c) are to be called for redemption within one year under arrangements satisfactory to the Indenture Trustee for the giving of
notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuing Entity, and the Issuing Entity, in the case of clause (a) or (b) immediately above or this clause (c), has irrevocably deposited or caused to be
irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust for such purpose, in an amount
sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Indenture Trustee for cancellation as of such day of discharge or when due on the Class A-4 Final Scheduled Payment Date or Redemption Date
(if Notes shall have been called for redemption pursuant to Section 10.01(a)), as the case may be; 
 (B) the Issuing
Entity has paid or caused to be paid all other sums payable hereunder by the Issuing Entity; and 
 (C) the Issuing Entity
has delivered to the Indenture Trustee an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA) an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of
Section 11.01(a) and each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 

SECTION 4.02. Application of Trust Money. All moneys deposited with the Indenture Trustee pursuant to Section 4.01 shall be held
in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for the
payment or redemption of which such moneys have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest; but such moneys need not be segregated from other funds except to the extent required
herein or in the Sale and Servicing Agreement or required by law. 
 SECTION 4.03. Repayment of Moneys Held by Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then 

  
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held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to such Notes shall, upon demand of the Issuing Entity, be paid to the Indenture
Trustee to be held and applied according to Section 3.03 and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 

ARTICLE V 
 REMEDIES 

SECTION 5.01. Events of Default. “Event of Default”, wherever used herein, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 
 (i) default in the payment of any interest on any Note when the same becomes due and payable, and such default
shall continue for a period of five days; or 
 (ii) default in the payment of the principal of or any installment of the
principal of any Note when the same becomes due and payable; or 
 (iii) default in the observance or performance of any
covenant or agreement of the Issuing Entity made in this Indenture (other than a covenant or agreement, a default in the observance or performance of which is elsewhere in this Section specifically dealt with), or any representation or warranty of
the Issuing Entity made in this Indenture or in any certificate or other writing delivered pursuant hereto or in connection herewith proving to have been incorrect in any material respect as of the time when the same shall have been made, and such
default shall continue or not be cured, or the circumstance or condition in respect of which such representation or warranty was incorrect shall not have been eliminated or otherwise cured, for a period of 30 days after there shall have been given,
by registered or certified mail, to the Issuing Entity by the Indenture Trustee or to the Issuing Entity and the Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the Notes, a written notice specifying such default or
incorrect representation or warranty and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(iv) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuing Entity
or any substantial part of the Trust Estate in an involuntary case under any applicable federal or State bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for the Issuing Entity or for any substantial part of the Trust Estate, or ordering the winding-up or liquidation of the Issuing Entity’s affairs, and such decree or order shall remain unstayed and in effect for
a period of 90 consecutive days; or 
 (v) the commencement by the Issuing Entity of a voluntary case under any applicable
federal or State bankruptcy, insolvency or other similar law now or 

  
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hereafter in effect, or the consent by the Issuing Entity to the entry of an order for relief in an involuntary case under any such law, or the consent by the Issuing Entity to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part of the Trust Estate, or the making by the Issuing Entity of any general assignment for the
benefit of creditors, or the failure by the Issuing Entity generally to pay its debts as such debts become due, or the taking of action by the Issuing Entity in furtherance of any of the foregoing. 

The Issuing Entity shall deliver to a Responsible Officer of the Indenture Trustee, within five days after the occurrence thereof, written
notice in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become an Event of Default under clause (iii), (iv) and (v), its status and what action the Issuing Entity is taking or
proposes to take with respect thereto. 
 SECTION 5.02. Acceleration of Maturity; Rescission and Annulment. If an Event of Default
should occur and be continuing, then and in every such case, the Indenture Trustee or the Holders of Notes representing a majority of the Outstanding Amount of the Notes may declare all the Notes to be immediately due and payable, by a notice in
writing to the Issuing Entity (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid principal amount of the Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable. 
 At any time after such declaration of acceleration of maturity has been made and before a judgment or
decree for payment of the money due has been obtained by the Indenture Trustee as hereinafter in this Article V provided, the Holders of Notes representing a majority of the Outstanding Amount of the Notes, by written notice to the Issuing Entity
and the Indenture Trustee, may rescind and annul such declaration and its consequences if: 
 (i) the Issuing Entity has paid
or deposited with the Indenture Trustee a sum sufficient to pay 
 (A) all payments of principal of and interest on all Notes
and all other amounts that would then be due hereunder or upon such Notes if the Event of Default giving rise to such acceleration had not occurred; and 

(B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel; and 
 (ii) all Events of Default, other than the nonpayment of
the principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.12. 

No such rescission shall affect any subsequent default or impair any right consequent thereto. 

  
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 SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.
(a) The Issuing Entity covenants that if (i) default is made in the payment of any interest on any Note when the same becomes due and payable, and such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when the same becomes due and payable, the Issuing Entity will, upon demand of the Indenture Trustee, pay to it, for the benefit of the Holders of the Notes, the whole
amount then due and payable on such Notes for principal and interest, with interest upon the overdue principal, and, to the extent payment at such rate of interest shall be legally enforceable, upon overdue installments of interest, at a rate per
annum equal to the sum of (i) the respective Note Interest Rate borne by such Notes and (ii) 1.0% and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel. 
 (b) In case the Issuing Entity
shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to
judgment or final decree, and may enforce the same against the Issuing Entity or other obligor upon such Notes and collect in the manner provided by law out of the property of the Issuing Entity or other obligor upon such Notes, wherever situated,
the moneys adjudged or decreed to be payable. 
 (c) If an Event of Default occurs and is continuing, the Indenture Trustee may, as more
particularly provided in Section 5.04, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings as the Indenture Trustee shall deem most effective to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee
by this Indenture or by law. 
 (d) In case there shall be pending, relative to the Issuing Entity or any other obligor upon the Notes or
any Person having or claiming an ownership interest in the Trust Estate, Proceedings under the Bankruptcy Code or any other applicable federal or State bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuing Entity or its property or such other obligor or Person, or in case of any other comparable judicial
Proceedings relative to the Issuing Entity or other obligor upon the Notes, or to the creditors or property of the Issuing Entity or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings
or otherwise: 
 (i) to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in
respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture

  
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Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the
Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 

(ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any election of a
trustee, a standby trustee or Person performing similar functions in any such Proceedings; 
 (iii) to collect and receive
any moneys or other property payable or deliverable on any such claims and to distribute all amounts received with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and 

(iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Indenture Trustee or the Holders of Notes allowed in any judicial proceedings relative to the Issuing Entity, its creditors and its property; and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is
hereby authorized by each of such Noteholders to make payments to the Indenture Trustee, and, in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts
as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the
Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith. 
 (e) Nothing herein contained
shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 

(f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of
the Holders of the Notes. 
 (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation
of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the 

  
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Holders of the Notes, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 

SECTION 5.04. Remedies; Priorities. (a) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may do
one or more of the following (subject to Section 5.05): 
 (i) institute Proceedings in its own name and as trustee of
an express trust for the collection of all amounts then payable on the Notes or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect from the Issuing Entity and any other obligor
upon such Notes moneys adjudged due; 
 (ii) institute Proceedings from time to time for the complete or partial foreclosure
of this Indenture with respect to the Trust Estate; 
 (iii) exercise any remedies of a secured party under the UCC and take
any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Holders of the Notes; and 

(iv) sell the Trust Estate or any portion thereof or rights or interest therein, at one or more public or private sales called
and conducted in any manner permitted by law; provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate following an Event of Default, other than an Event of Default described in
Section 5.01(i) or (ii), unless (A) the Holders of 100% of the Outstanding Amount of the Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the Noteholders are sufficient to discharge in full all
amounts then due and unpaid upon such Notes for principal and interest or (C) the Indenture Trustee determines that the Trust Estate will not continue to provide sufficient funds for the payment of principal of and interest on the Notes as they
would have become due if the Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of Holders of 66-2/3% of the Outstanding Amount of the Notes. In determining such sufficiency or insufficiency with respect to
clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency
of the Trust Estate for such purpose. 
 (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it shall
pay out the money or property in the following order: 
 FIRST: to the Indenture Trustee for amounts due under
Section 6.07, the Owner Trustee for amounts due under Sections 8.01 and 8.02 of the Trust Agreement, and the Asset Representations Reviewer for amounts due under Article IV and Section 5.03 of the Asset Representations Review Agreement to
the extent due and payable by the Issuing Entity, pro rata on the basis of the amount due to each; 
 SECOND: to the
Noteholders in the following amounts and the following order of priority: 

  
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 (i) to the Noteholders, accrued and unpaid interest on the Outstanding Amount of
each class of Notes at the applicable Note Interest Rate (such amount to be applied pro rata on the basis of the total interest due on the Notes); 

(ii) to the Noteholders on account of principal until the Outstanding Amount of the Notes is reduced to zero (such amount to be
applied pro rata on the basis of the Outstanding Amount of each class of Notes); and 
 THIRD: to the Certificate
Distribution Account for distribution to the Certificateholder. 
 The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section. At least 15 days before such record date, the Issuing Entity shall mail to each Noteholder and the Indenture Trustee a notice that states the record date, the payment date and the amount to be paid.

 SECTION 5.05. Optional Preservation of the Receivables. If the Notes have been declared to be due and payable under
Section 5.02 following an Event of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect to maintain possession of the Trust Estate. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to maintain
possession of the Trust Estate. In determining whether to maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose. 
 SECTION 5.06.
Limitation of Suits. No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 (i) such Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default; 

(ii) the Holders of not less than 25% of the Outstanding Amount of the Notes have made written request to the Indenture Trustee
to institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder; 
 (iii)
such Holder or Holders have offered to the Indenture Trustee indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in complying with such request; 

(iv) the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute
such Proceedings; and 
 (v) no direction inconsistent with such written request has been given to the Indenture Trustee
during such 60-day period by the Holders of a majority of the 

  
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Outstanding Amount of the Notes; it being understood and intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein
provided. 
 In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of
Holders of Notes, each representing less than a majority of the Outstanding Amount of the Notes, the Indenture Trustee in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture,
and shall have no liability to any person for such action or inaction. 
 SECTION 5.07. Unconditional Rights of Noteholders to Receive
Principal and Interest. Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder. 
 SECTION 5.08. Restoration of Rights and Remedies. If the Indenture Trustee or any Noteholder
has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in
every such case the Issuing Entity, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies
of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 
 SECTION 5.09. Rights and
Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law,
be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy. 
 SECTION 5.10. Delay or Omission Not a Waiver. No delay or
omission of the Indenture Trustee or any Holder of any Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the
Noteholders, as the case may be. 

  
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 SECTION 5.11. Control by Noteholders. The Holders of a majority of the Outstanding Amount
of the Notes shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that 
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 

(ii) subject to the express terms of Section 5.04, any direction to the Indenture Trustee to sell or liquidate the Trust
Estate shall be by the Holders of Notes representing not less than 100% of the Outstanding Amount of the Notes; 
 (iii) if
the conditions set forth in Section 5.05 have been satisfied and the Indenture Trustee elects to retain the Trust Estate pursuant to such Section, then any direction to the Indenture Trustee by Holders of Notes representing less than 100% of
the Outstanding Amount of the Notes to sell or liquidate the Trust Estate shall be of no force and effect; and 
 (iv) the
Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction; 
 provided,
however, that, subject to Section 6.01, the Indenture Trustee need not take any action that it determines might involve it in liability or might materially adversely affect the rights of any Noteholders not consenting to such action.

 SECTION 5.12. Waiver of Past Defaults. Prior to the declaration of the acceleration of the maturity of the Notes as provided in
Section 5.02, the Holders of Notes of not less than a majority of the Outstanding Amount of the Notes may waive any past Default or Event of Default and its consequences except a Default (a) in payment of principal of or interest on any of
the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note. In the case of any such waiver, the Issuing Entity, the Indenture Trustee and the Holders of the
Notes shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto. 

Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereto. 

SECTION 5.13. Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Note by such Holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted
by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in 

  
 39 

 
such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to (a) any suit instituted
by the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for the
enforcement of the payment of principal of or interest on any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 

SECTION 5.14. Waiver of Stay or Extension Laws. The Issuing Entity covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuing Entity (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 SECTION 5.15.
Action on Notes. The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture.
Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuing Entity or by the levy of any execution under
such judgment upon any portion of the Trust Estate or upon any of the assets of the Issuing Entity. Any money or property collected by the Indenture Trustee shall be applied in accordance with Section 5.04(b). 

SECTION 5.16. Performance and Enforcement of Certain Obligations. (a) Promptly following a request from the Indenture Trustee to
do so and at the Administrator’s expense, the Issuing Entity agrees to take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Seller and the Servicer, as applicable, of each of
their obligations to the Issuing Entity under or in connection with the Sale and Servicing Agreement or to JDCC under or in connection with the Purchase Agreement in accordance with the terms thereof, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuing Entity under or in connection with the Sale and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the
part of the Seller or the Servicer thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller or the Servicer of each of their obligations under the Sale and Servicing Agreement.

 (b) If an Event of Default has occurred and is continuing, the Indenture Trustee at the direction (which direction shall be in writing or
by telephone (confirmed in writing promptly thereafter)) of the Holders of 66-2/3% of the Outstanding Amount of the Notes shall exercise all rights, remedies, powers, privileges and claims of the Issuing Entity against the Seller or the Servicer
under or in connection with the Sale and Servicing Agreement, including the right or power to take any action to compel or secure performance or observance by the Seller or the Servicer of each of their obligations to the Issuing Entity thereunder
and to give any 

  
 40 

 
consent, request, notice, direction, approval, extension or waiver under the Sale and Servicing Agreement, and any right of the Issuing Entity to take such action shall be suspended. 

(c) Promptly following a request from the Indenture Trustee to do so and at the Administrator’s expense, the Issuing Entity agrees to
take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by JDCC of each of its obligations to the Seller under or in connection with the Purchase Agreement in accordance with the terms
thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuing Entity under or in connection with the Purchase Agreement to the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by JDCC of each of its obligations under the Purchase Agreement. 

(d) If an Event of Default has occurred and is continuing, the Indenture Trustee at the direction (which direction shall be in writing or by
telephone (confirmed in writing promptly thereafter)) of the Holders of 66-2/3% of the Outstanding Amount of the Notes shall exercise all rights, remedies, powers, privileges and claims of the Seller against JDCC under or in connection with the
Purchase Agreement to the extent granted as security for the Notes hereunder, including the right or power to take any action to compel or secure performance or observance by JDCC of each of its obligations to the Seller thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the Purchase Agreement, and any right of the Seller to take such action shall be suspended. 

Notwithstanding the foregoing, the Indenture Trustee (i) shall have no duty or obligation to monitor the Servicer’s, the
Seller’s, the Custodian’s, JDCC’s or the Asset Representations Reviewer’s performance of any of their obligations under or in connection with the Sale and Servicing Agreement, the Purchase Agreement or the Asset Representations
Review Agreement, and (ii) shall have no responsibility for the performance or nonperformance of any such party’s obligations under such agreements. 

ARTICLE VI 
 THE INDENTURE TRUSTEE

 SECTION 6.01. Duties of Indenture Trustee. (a) If an Event of Default has occurred and is continuing, the Indenture Trustee
shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 

(b) Except during the continuance of an Event of Default: 

(i) the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee; and 

(ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions 

  
 41 

 
expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture; however, the Indenture Trustee shall examine the
certificates and opinions which by any provision hereof are specifically required to be furnished to the Indenture Trustee to determine whether or not they conform on their face to the requirements of this Indenture, but need not confirm or
investigate the accuracy of any mathematical calculations or other facts stated therein. 
 The Indenture Trustee shall not be required to
determine, confirm or recalculate the information contained in the Servicer’s Certificate delivered to it pursuant to the Sale and Servicing Agreement. 

(c) The Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful
misconduct, except that: 
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 

(ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it
is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; and 
 (iii) the Indenture Trustee
shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 5.11 or otherwise from Holders under the Indenture. 

(d) Every provision of this Indenture that in any way relates to the Indenture Trustee is subject to paragraphs (a), (b) and (c) of
this Section. 
 (e) The Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may
agree in writing with the Issuing Entity. 
 (f) Money held in trust by the Indenture Trustee need not be segregated from other funds except
to the extent required by law or the terms of this Indenture or the Sale and Servicing Agreement. 
 (g) No provision of this Indenture
shall require the Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to
believe that repayments of such funds or adequate indemnity satisfactory to it against such loss, liability or expense is not reasonably assured to it and none of the provisions contained in this Indenture shall in any event require the Indenture
Trustee to perform, or be responsible for the performance of, any of the obligations of the Servicer under this Indenture except during such time, if any, as the Indenture Trustee shall be the successor to, and be vested with the rights, duties,
powers and privileges of the Servicer in accordance with the terms of this Indenture. 
 (h) Every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be subject to the provisions of this Section and to the provisions of the TIA. 

  
 42 

 SECTION 6.02. Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper person. The Indenture Trustee need not investigate any fact or matter stated in the document. 

(b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The
Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officer’s Certificate or Opinion of Counsel. 

(c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care by
it hereunder. In addition, the Indenture Trustee (i) may act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Indenture Trustee shall not be liable for the conduct or misconduct of such
agents or attorneys if such agents or attorneys shall have been selected by the Indenture Trustee with reasonable care, and (ii) may consult with counsel, accountants and other skilled persons to be selected with reasonable care and employed by
it. The Indenture Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountants or other such persons and not contrary to this Agreement or
any Basic Document. 
 (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers; provided, however, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith. 

(e) The Indenture Trustee (i) may act directly or through its agents or attorneys pursuant to agreements entered into with any of them,
and the Indenture Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Indenture Trustee with reasonable care, and (ii) may consult with counsel,
accountants and other skilled persons to be selected with reasonable care and employed by it. The Indenture Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of
any such counsel, accountants or other such persons and not contrary to this Indenture or any Basic Document. With respect to Section 2.04 hereof, in no event shall the Indenture Trustee be deemed to be a Plan Fiduciary; and it is understood
that the Indenture Trustee has not provided any advice with respect to the acquisition of the Notes. 
 (f) The Indenture Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture other than requests, demands or directions relating to an asset representations
review request under Article XII or noteholder communications with regard to Repurchase Requests and Repurchase Response Notices under Section 12.03, unless such Holders shall have offered to the Indenture Trustee security or indemnity
satisfactory to the 

  
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Indenture Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 

(g) The Indenture Trustee shall not be deemed to have notice of or have discovered any default, breach of a representation or warranty made by
the Depositor or Sponsor made in the Transaction Documents or Event of Default unless a Responsible Officer of the Indenture Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default or breach is
received by the Indenture Trustee at the Corporate Trust Office of the Indenture Trustee, and such notice references the Notes and this Indenture. For the avoidance of doubt, the receipt by the Indenture Trustee of a Review Report or a Repurchase
Request shall not constitute actual knowledge of any breach of a representation or warranty made by the Seller or JDCC. 
 (h) The rights,
privileges, protections, immunities and benefits given to the Indenture Trustee, including, without limitation, its right to be indemnified are extended to, and shall be enforceable by, the Indenture Trustee in each of its capacities hereunder, and
to each agent, custodian and other Person employed to act hereunder. 
 (i) In no event shall the Indenture Trustee be responsible or liable
for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of
the form of action. 
 (j) The Indenture Trustee will not be responsible or liable for a failure or delay in the performance of its
obligations under this Indenture from or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear catastrophes, fires, floods, earthquakes,
storms, hurricanes or other natural catastrophes and interruptions, loss or failures of mechanical, electronic or communication systems. The Indenture Trustee will use reasonable efforts consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances. 
 (k) In no event shall the Indenture Trustee have any
responsibility to monitor compliance with or enforce compliance with Regulation RR or other rules or regulations relating to risk retention. The Indenture Trustee shall not be charged with knowledge of such rules, nor shall it be liable to any
Noteholder or other party for violation of such rules now or hereafter in effect. 
 (l) The Indenture Trustee shall not be required to take
any action it is directed to take under this Indenture if the Indenture Trustee determines in good faith that the action so directed would involve the Indenture Trustee in personal liability, be unjustly prejudicial to the non-directing Holders, or
is inconsistent with the Indenture. 
 (m) In no event shall the Indenture Trustee be liable for failure to perform its duties hereunder if
such failure is a direct or proximate result of another party’s failure to perform its obligations hereunder. 

  
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 (n) Any discretion, permissive right, or privilege of the Indenture Trustee hereunder shall not
be deemed to be or otherwise construed as a duty or obligation. 
 SECTION 6.03. Individual Rights of Indenture Trustee. The
Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuing Entity or its affiliates with the same rights it would have if it were not Indenture Trustee. Any Paying
Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Indenture Trustee must comply with Sections 6.10 and 6.11. 

SECTION 6.04. Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of the Trust Estate, this Indenture or the Notes, it shall not be accountable for the Issuing Entity’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Issuing Entity in the
Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication. 

SECTION 6.05. Notice of Defaults. If a Default occurs and is continuing and if it is actually known to a Responsible Officer of the
Indenture Trustee, the Indenture Trustee shall mail to each Noteholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal of or interest on any Note (including payments pursuant to the
redemption provisions of such Note), the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders; and provided that
in the case of any default of the character specified in Section 5.01(iii), no such notice to Holders shall be given until at least 30 days after the occurrence thereof. 

SECTION 6.06. Reports by Indenture Trustee to Holders. The Indenture Trustee shall deliver to each Noteholder such information as may
be required to enable such holder to prepare its federal and State income tax returns. The Indenture Trustee shall only be required to provide to the Noteholders the information given to it by the Servicer. The Indenture Trustee shall not be
required to determine, confirm or recompute any such information. 
 SECTION 6.07. Compensation and Indemnity. The Issuing Entity
shall or shall cause the Servicer (pursuant to the Sale and Servicing Agreement) to pay to the Indenture Trustee from time to time reasonable compensation for its services. The Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Issuing Entity shall or shall cause the Servicer (pursuant to the Sale and Servicing Agreement) to reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it,
including pursuant to Section 6.08 and costs of collection and enforcement of this Section 6.07, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and
advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Issuing Entity shall or shall cause the Servicer (pursuant to the Sale and Servicing Agreement) to indemnify the Indenture Trustee against any and all loss,
liability, claim, damage or expense (including the fees of either in-house counsel or outside counsel, but not both) incurred by it in connection with the administration of this trust and the performance of its duties hereunder. The Indenture
Trustee 

  
 45 

 
shall notify the Issuing Entity and the Servicer promptly of any claim for which it may seek indemnity. Failure by the Indenture Trustee to so notify the Issuing Entity and the Servicer shall not
relieve the Issuing Entity or the Servicer of its obligations hereunder. The Issuing Entity shall or shall cause the Servicer to defend the claim and the Indenture Trustee may have separate counsel and the Issuing Entity shall or shall cause the
Servicer to pay the fees and expenses of such counsel. Neither the Issuing Entity nor the Servicer need reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s
own willful misconduct, negligence or bad faith. 
 The Issuing Entity’s payment obligations to the Indenture Trustee pursuant to this
Section shall survive the discharge of this Indenture. When the Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.01(iv) or (v) with respect to the Issuing Entity, the expenses are intended to
constitute expenses of administration under the Bankruptcy Code or any other applicable federal or State bankruptcy, insolvency or similar law. 

SECTION 6.08. Replacement of Indenture Trustee. No resignation or removal of the Indenture Trustee and no appointment of a successor
Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.08. Upon thirty (30) days’ prior written notice to the Issuing Entity and the Depositor, the
Indenture Trustee may resign at any time, and the Indenture Trustee shall provide all information reasonably requested by the Depositor in order to comply with its reporting obligation under Item 6.02 of Form 8-K with respect to the resignation
of the Indenture Trustee. The Holders of a majority in Outstanding Amount of the Notes may remove the Indenture Trustee by providing thirty (30) days’ prior written notice thereof to the Indenture Trustee and the Depositor, and such
Holders may appoint a successor Indenture Trustee. The Issuing Entity shall remove the Indenture Trustee if: 
 (i) the
Indenture Trustee fails to comply with Section 6.11; 
 (ii) the Indenture Trustee is adjudged a bankrupt or insolvent;

 (iii) a receiver or other public officer takes charge of the Indenture Trustee or its property; or 

(iv) the Indenture Trustee otherwise becomes incapable of acting. 

The Depositor may remove the Indenture Trustee if the Indenture Trustee fails to comply with Section 3.07(e), Section 6.08 or
Section 6.09 of the Indenture with respect to notice to or providing information to the Depositor, or with Section 4.16 of the Sale and Servicing Agreement, in each case if such failure continues for the lesser of 10 days or such period in
which the applicable report required to be filed under the Exchange Act can be filed timely (without taking into account any extensions). 

If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee
in such event being referred to herein as the retiring Indenture Trustee), the Issuing Entity shall promptly appoint a successor Indenture Trustee, which successor shall be, if JDCC is the Servicer, reasonably acceptable to the Seller. 

  
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 A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuing Entity and shall also provide all information reasonably requested by the Depositor in order to comply with its reporting obligation under the Exchange Act with respect to the replacement Indenture
Trustee. Thereupon, the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. 

If a successor Indenture Trustee does not take office within 60 days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuing Entity or the Holders of a majority in Outstanding Amount of the Notes may petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee. 

If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the
removal of the Indenture Trustee and the appointment of a successor Indenture Trustee. 
 Expenses associated with replacing the Indenture
Trustee with a successor indenture trustee shall be paid by the Servicer, unless the removal of the Indenture Trustee is a result of the willful misconduct, negligence or bad faith of the Indenture Trustee as determined by a final non-appealable
order by a court of competent jurisdiction, in which case the removed Indenture Trustee will be responsible for such expenses. 

Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the Issuing Entity’s and the Administrator’s
obligations under Section 6.07 shall continue for the benefit of the retiring Indenture Trustee. 
 SECTION 6.09. Successor
Indenture Trustee by Merger. If the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting,
surviving or transferee corporation or banking association without any further act shall be the successor Indenture Trustee. The Indenture Trustee shall provide prior written notice of any such transaction to the Depositor and the Administrator (and
the Administrator shall make such notice available to the Rating Agencies), provided that such corporation or banking association shall be otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall provide the Depositor
with written notice of such event no later than one (1) Business Day after the effective date of such merger, together with the information reasonably requested by the Depositor in order to comply with its reporting obligation under the
Exchange Act with respect to a successor Indenture Trustee. 
 In case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of
any predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been 

  
 47 

 
authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee; and in
all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Indenture Trustee shall have. 

SECTION 6.10. Appointment of Co-Trustee or Separate Trustee. (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more
Persons reasonably acceptable to the Issuing Entity to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Trust, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or
separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under
Section 6.08. 
 (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the
following provisions and conditions: 
 (i) all rights, powers, duties and obligations conferred or imposed upon the
Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act
separately without the Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Indenture Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Indenture Trustee; 
 (ii) no trustee hereunder shall be personally liable by
reason of any act or omission of any other trustee hereunder; and 
 (iii) the Indenture Trustee may at any time accept the
resignation of or remove any separate trustee or co-trustee. 
 (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of
this Article VI. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as
may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording

  
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protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee. 

(d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 

SECTION 6.11. Eligibility; Disqualification. The Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a).
The Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition and its long-term unsecured debt shall be rated at least “Baa3” by Moody’s.
The Indenture Trustee shall comply with TIA § 310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other securities of the Issuing Entity are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 

SECTION 6.12. Preferential Collection of Claims Against Issuing Entity. The Indenture Trustee shall comply with TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b). An indenture trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated. 

ARTICLE VII 
 NOTEHOLDERS’
LISTS AND REPORTS 
 SECTION 7.01. Issuing Entity to Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuing Entity
will furnish or cause to be furnished to the Indenture Trustee (a) not more than five days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a list, in such form as the Indenture Trustee may
reasonably require, of the names and addresses of the Holders of Notes as of such Record Date, (b) at such other times as the Indenture Trustee may request in writing, within 30 days after receipt by the Issuing Entity of any such request, a
list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished. 

SECTION 7.02. Preservation of Information; Communications to Noteholders. (a) The Indenture Trustee shall preserve, in as current
a form as is reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes received by
the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished. 

  
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 (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect
to their rights under this Indenture or under the Notes. 
 (c) The Issuing Entity, the Indenture Trustee and the Note Registrar shall have
the protection of TIA § 312(c). 
 (d) The Indenture Trustee shall provide prompt notice to John Deere Capital Corporation and John
Deere Receivables, Inc. (each, a “John Deere Party,” and together, the “John Deere Parties”) of all demands communicated (by any entity other than a John Deere Party) to the Indenture Trustee for the repurchase or replacement of
any Receivable for breach of the representations and warranties concerning such Receivable. The Indenture Trustee shall, upon written request of either John Deere Party, provide notification to the John Deere Parties with respect to any actions
taken by the Indenture Trustee with respect to any such demand communicated to the Indenture Trustee in respect of any Receivables, such notifications to be provided by the Indenture Trustee as soon as practicable and in any event within five
Business Days of such request or such other time frame as may be mutually agreed to by the Indenture Trustee and the applicable John Deere Party. Such notices shall be provided to the John Deere Parties at (i) John Deere Capital Corporation at
10587 Double R Blvd, Suite 100, Reno, Nevada 89521, Attention: Manager, (775) 786-5914, with a copy to Deere & Company, One John Deere Place, Moline, Illinois 61265-8098, Attention: Treasury Department, Assistant Treasurer,
(309) 765-5025, or at such other address or by such other means of communication as may be specified by John Deere Capital Corporation to the Indenture Trustee from time to time, and (ii) John Deere Receivables, Inc., 10587 Double R Blvd,
Suite 100, Reno, Nevada 89521, Attention: Manager, (775) 786-5527, with a copy to Deere & Company, One John Deere Place, Moline, Illinois 61265-8098, Attention: Treasury Department, Assistant Treasurer, (309) 765-5025, or at such
other address or by such other means of communication as may be specified by John Deere Receivables, Inc. to the Indenture Trustee from time to time. 

The Indenture Trustee and the Issuing Entity acknowledge and agree that the purpose of this Section 7.02(d) is to facilitate compliance
by the John Deere Parties with Rule 15Ga-1 under the Exchange Act and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase Rules and Regulations”). The Indenture Trustee acknowledges that interpretations of the requirements of the
Repurchase Rules and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to
comply with reasonable requests made by the John Deere Parties in good faith for delivery of information under these provisions on the basis of evolving interpretations of the Repurchase Rules and Regulations. The Indenture Trustee shall cooperate
fully with the John Deere Parties to deliver any and all records and any other information necessary in the good faith determination of the John Deere Parties to permit them to comply with the provisions of Repurchase Rules and Regulations. 

SECTION 7.03. Reports by Issuing Entity. (a) The Issuing Entity shall: 

(i) file with the Indenture Trustee, within 15 days after the Issuing Entity is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the 

  
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foregoing as the Commission may from time to time by rules and regulations prescribe) which the Issuing Entity may be required to file with the Commission pursuant to Section 13 or 15(d) of
the Exchange Act; 
 (ii) file with the Indenture Trustee and the Commission in accordance with rules and regulations
prescribed from time to time by the Commission such additional information, documents and reports with respect to compliance by the Issuing Entity with the conditions and covenants of this Indenture as may be required from time to time by such rules
and regulations; and 
 (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all
Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports required to be filed by the Issuing Entity pursuant to clauses (i) and (ii) of this Section 7.03(a) as may be required by rules and
regulations prescribed from time to time by the Commission. 
 The Indenture Trustee shall have no obligation to confirm or investigate the
accuracy of any mathematical calculations or other facts stated in the reports provided pursuant to this Section. 
 (b) Unless the Issuing
Entity otherwise determines, the fiscal year of the Issuing Entity shall end on October 31 of each year. 
 SECTION 7.04. Reports by
Indenture Trustee. If required by TIA § 313(a), within 60 days after each February 1 beginning with February 1, 2018, the Indenture Trustee shall mail to each Noteholder as required by TIA § 313(c) a brief report dated as of
such date that complies with TIA § 313(a). The Indenture Trustee also shall comply with TIA § 313(b). 
 A copy of each report at
the time of its mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and each stock exchange, if any, on which the Notes are listed. The Issuing Entity shall notify the Indenture Trustee if and when the Notes are listed
on any stock exchange. 
 ARTICLE VIII 

ACCOUNTS, DISBURSEMENTS AND RELEASES 

SECTION 8.01. Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery
of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is
part of the Trust Estate, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to
any right to claim a Default or Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 

  
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 SECTION 8.02. Trust Accounts. (a) On or prior to the Closing Date, the Issuing Entity
shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders and the Certificateholders, the Collection Account and the Note Distribution Account as provided in Section 5.01 of the
Sale and Servicing Agreement. On or prior to the Closing Date, the Issuing Entity shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Trust, the Reserve Account as provided in
Section 5.01 of the Sale and Servicing Agreement. 
 (b) Not less than one Business Day prior to each Payment Date, the Total
Distribution Amount with respect to the preceding Collection Period will be deposited in the Collection Account as provided in Section 5.02 of the Sale and Servicing Agreement. On or before each Payment Date, the Noteholders’ Distributable
Amount with respect to the preceding Collection Period will be transferred from the Collection Account, and/or the Reserve Account to the Note Distribution Account as provided in Sections 5.04 and 5.05 of the Sale and Servicing Agreement. 

(c) Except as otherwise provided in Section 5.04(b), on each Payment Date and Redemption Date, the Indenture Trustee shall distribute all
amounts on deposit in the Note Distribution Account to Noteholders in respect of the Notes to the extent of amounts due and unpaid on the Notes for principal and interest in the following amounts and in the following order of priority: 

(i) accrued and unpaid interest on the Outstanding Amount of each class of Notes at the applicable Note Interest Rate (such
amount to be applied pro rata on the basis of the total interest due on the Notes); 
 (ii) the Note Monthly Principal
Distributable Amount in the following order of priority: 
 (a) to the Class A-1 Noteholders on account of principal
until the Outstanding Amount of the Class A-1 Notes is reduced to zero; and 
 (b) to each of the Class A-2A
Noteholders and the Class A-2B Noteholders, ratably, on account of principal until the Outstanding Amount of each of the Class A-2A and Class A-2B Notes is reduced to zero; and 

(c) to the Class A-3 Noteholders on account of principal until the Outstanding Amount of the Class A-3 Notes is
reduced to zero; and 
 (d) to the Class A-4 Noteholders on account of principal until the Outstanding Amount of the
Class A-4 Notes is reduced to zero. 
 SECTION 8.03. General Provisions Regarding Accounts. (a) So long as no Default or
Event of Default shall have occurred and be continuing, all or a portion of the funds in 

  
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the Trust Accounts shall be invested in Eligible Investments and reinvested by the Indenture Trustee upon Issuing Entity Order, subject to the provisions of Section 5.01(b) of the Sale and
Servicing Agreement; provided that funds on deposit in the Reserve Account shall be invested only in Eligible Investments meeting the requirements of §246.4(b)(2) of Regulation RR, as determined solely by the Servicer. All income or other gain
from investments of monies deposited in the Trust Accounts net of any investment expenses and any losses resulting from such investments shall be deposited by the Indenture Trustee in the Collection Account. The Issuing Entity will not direct the
Indenture Trustee to make any investment of any funds or to sell any investment held in any of the Trust Accounts unless the security interest granted and perfected in such account will continue to be perfected in such investment or the proceeds of
such sale, in either case without any further action by any Person, and, in connection with any direction to the Indenture Trustee to make any such investment or sale, if requested by the Indenture Trustee, the Issuing Entity shall deliver to the
Indenture Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to such effect. 
 (b) Subject to Section 6.01(c), the
Indenture Trustee shall not in any way be held liable by reason of any insufficiency in any of the Trust Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Indenture Trustee’s
failure to make payments on such Eligible Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as Indenture Trustee, in accordance with their terms. 

(c) If (i) the Issuing Entity shall have failed to give investment directions for any funds on deposit in the Trust Accounts to the
Indenture Trustee by 12:00 noon New York Time (or such other time as may be agreed by the Issuing Entity and Indenture Trustee) on any Business Day or (ii) a Default or Event of Default shall have occurred and be continuing with respect to the
Notes but the Notes shall not have been declared due and payable pursuant to Section 5.02, or, if such Notes shall have been declared due and payable following an Event of Default, amounts collected or receivable from the Trust Estate are being
applied in accordance with Section 5.05 as if there had not been such a declaration, then the Indenture Trustee shall, to the fullest extent practicable, invest and reinvest funds in the Trust Accounts in the Eligible Investments described in
the most recent Issuing Entity Order received. 
 Except as otherwise provided hereunder or agreed in writing among the parties hereto, the
Issuing Entity shall retain the authority to institute, participate and join in any plan of reorganization, readjustment, merger or consolidation with respect to the issuer of any securities held hereunder, and, in general, to exercise each and
every other power or right with respect to each such asset or investment as individuals generally have and enjoy with respect to their own assets and investment, including power to vote upon any securities. 

With respect to any Eligible Investments, the Indenture Trustee is permitted to purchase and sell Eligible Investments through or from
affiliated banks and broker-dealers, invest funds in registered investment companies that receive investment management and custodial services from the trustee or its affiliates subject to limitations set forth herein with respect to Eligible
Investments. 

  
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 (d) U.S. Bank National Association in its capacity as “Securities Intermediary” with
respect to a Trust Account established pursuant to the Transaction Documents agrees that (x) if it has or subsequently obtains by agreement, by operation of law or otherwise, a security interest in a Trust Account or any financial asset
credited thereto, such security interest shall be subordinate to the security interest of the Indenture Trustee in such Trust Account and any financial asset credited thereto and (y) the financial assets and other items deposited to such an
Eligible Deposit Account will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than the Indenture Trustee. 

SECTION 8.04. Release of Trust Estate. (a) Subject to the payment of its fees and expenses pursuant to Section 6.07, the
Indenture Trustee may, and when required by the provisions of this Indenture shall, execute instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture. No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority,
inquire into the satisfaction of any conditions precedent or see to the application of any monies. 
 (b) The Indenture Trustee shall, at
such time as there are no Notes Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have been paid, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture and release to
the Issuing Entity or any other Person entitled thereto any funds then on deposit in the Trust Accounts; provided, that, any amounts on deposit in the Reserve Account shall be distributable only to the Depositor following the final
distribution to the Certificateholders. The Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.04(b) only upon receipt of an Issuing Entity Request accompanied by an Officer’s Certificate,
an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.01. 

SECTION 8.05. Opinion of Counsel. The Indenture Trustee shall receive at least seven days’ notice when requested by the Issuing
Entity to take any action pursuant to Section 8.04(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require as a condition to such action, an Opinion of Counsel stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such action have been complied with and such action will not materially and adversely impair the security for the Notes or the
rights of the Noteholders in contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust Estate. Counsel rendering any such opinion
may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action. 

  
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 ARTICLE IX 

SUPPLEMENTAL INDENTURES 
 SECTION
9.01. Supplemental Indentures Without Consent of Noteholders. (a) Without the consent of the Holders of any Notes but with prior notice made available by the Administrator to the Rating Agencies, the Issuing Entity and the Indenture
Trustee, when authorized by an Issuing Entity Order, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Indenture Trustee, for any of the following purposes: 

(i) to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to
assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the lien of this Indenture additional property; 

(ii) to evidence the succession, in compliance with the applicable provisions hereof, of another person to the Issuing Entity,
and the assumption by any such successor of the covenants of the Issuing Entity herein and in the Notes contained; 
 (iii)
to add to the covenants of the Issuing Entity, for the benefit of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuing Entity; 

(iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 

(v) to cure any ambiguity, to correct or supplement any provision herein or in any supplemental indenture which may be
inconsistent with any other provision herein or in any supplemental indenture or to make any other provisions with respect to matters or questions arising under this Indenture or in any supplemental indenture; provided that such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of the Holders of the Notes; 

(vi) to evidence and provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes
and to add to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI; or 

(vii) to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the
qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the TIA. 

The Indenture Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate
agreements and stipulations that may be therein contained. 

  
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 (b) The Issuing Entity and the Indenture Trustee, when authorized by an Issuing Entity Order,
may, also without the consent of any of the Holders of the Notes but with prior notice made available by the Administrator to the Rating Agencies, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to,
or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that such action shall not adversely affect in any
material respect the interests of any Noteholder; provided that 10 days’ (or, in the case of Fitch, 10 Business Days’) prior written notice of any such indenture or supplement indenture hereto be made available by the Administrator to each
Rating Agency and, if Moody’s notifies the Indenture Trustee before the expiration of such 10-day period that such indenture or supplement indenture hereto will result in a downgrading or withdrawal of the then current rating of any Class of
the Notes or the Certificate, such amendment shall become effective with the consent of the Holders of Notes evidencing not less than a majority of the Outstanding Amount of the Notes and the consent of the Certificateholder; provided that any
solicitation of such consent shall disclose the resulting downgrading or withdrawal as a result of such amendment. 
 SECTION 9.02.
Supplemental Indentures with Consent of Noteholders. The Issuing Entity and the Indenture Trustee, when authorized by an Issuing Entity Order, also may, with prior written notice made available by the Administrator to the Rating Agencies and
with the consent of the Holders of not less than a majority of the Outstanding Amount of the Notes, by Act of such Holders delivered to the Issuing Entity and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby: 
 (i)
change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption Price with respect thereto, change the provision of this Indenture relating to
the application of collections on, or the proceeds of the sale of, the Trust Estate to payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is
payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after
the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date); 
 (ii) reduce the
percentage of the Outstanding Amount of the Notes, the consent of the Holders of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in this Indenture; 
 (iii) modify or alter the
provisions of the proviso to the definition of the term “Outstanding”; 

  
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 (iv) reduce the percentage of the Outstanding Amount of the Notes required to
direct the Indenture Trustee to direct the Issuing Entity to sell or liquidate the Trust Estate pursuant to Section 5.04; 

(v) modify any provision of this Section except to increase any percentage specified herein or to provide that certain
additional provisions of this Indenture or the Basic Documents cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby; 

(vi) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of
interest or principal due on any Note on any Payment Date (including the calculation of any of the individual components of such calculation) or to affect the rights of the Holders of Notes to the benefit of any provisions for the mandatory
redemption of the Notes contained herein; or 
 (vii) permit the creation of any lien ranking prior to or on a parity with
the lien of this Indenture with respect to any part of the Trust Estate or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of
the security provided by the lien of this Indenture. 
 The Indenture Trustee may in its discretion determine whether or not any Notes would
be affected by any supplemental indenture and any such determination shall be conclusive upon the Holders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder. The Indenture Trustee shall not be liable for any such
determination made in good faith. 
 It shall not be necessary for any Act of Noteholders under this Section to approve the particular form
of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 Promptly after the
execution by the Issuing Entity and the Indenture Trustee of any supplemental indenture pursuant to this Section, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or supplemental indenture relates a notice setting
forth in general terms the substance of such supplemental indenture or a copy of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the
validity of any such supplemental indenture. 
 SECTION 9.03. Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Indenture Trustee shall be provided with, and subject to Sections 6.01 and 6.02, shall be
fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and all conditions precedent have been satisfied. The Indenture Trustee may, but shall not
be obligated to, enter into any such supplemental indenture that affects 

  
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the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise. 

SECTION 9.04. Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof,
this Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this
Indenture of the Indenture Trustee, the Issuing Entity and the Holders of the Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of
any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 

SECTION 9.05. Conformity with Trust Indenture Act. Every amendment of this Indenture and every supplemental indenture executed pursuant
to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be qualified under the Trust Indenture Act. 

SECTION 9.06. Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in such supplemental indenture. If the Issuing Entity or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuing Entity, to any such supplemental indenture may be prepared and executed by the Issuing Entity and authenticated and delivered by
the Indenture Trustee in exchange for Outstanding Notes. 
 ARTICLE X 

REDEMPTION OF NOTES 
 SECTION
10.01. Redemption. (a) The Notes are subject to redemption in whole, but not in part, at the written direction of the Servicer pursuant to Section 9.01(a) of the Sale and Servicing Agreement, on any Payment Date, following the last
day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off Date, for a purchase price equal to the Redemption Price; provided, however, that the Issuing Entity has available funds sufficient to
pay the Redemption Price. The Servicer or the Issuing Entity shall furnish to the Administrator notice of such redemption, and the Administrator shall make such notice available to the Rating Agencies. If the Notes are to be redeemed pursuant to
this Section 10.01(a), the Servicer or the Issuing Entity shall furnish notice of such election to the Indenture Trustee not later than 30 days prior to the Redemption Date and the Issuing Entity shall deposit with the Indenture Trustee in the
Note Distribution Account the Redemption Price of the Notes to be redeemed whereupon all such Notes shall be due and payable on the Redemption Date upon the furnishing of a notice complying with Section 10.02 to each Holder of the Notes. 

(b) In the event that the assets of the Trust are sold pursuant to Section 9.02 of the Trust Agreement, all amounts on deposit in the
Note Distribution Account shall be paid to 

  
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the Noteholders up to the Outstanding Amount of the Notes and all accrued and unpaid interest thereon. If amounts are to be paid to Noteholders pursuant to this Section 10.01(b), the
Servicer or the Issuing Entity shall, to the extent practicable, furnish notice of such event to the Indenture Trustee not later than 30 days prior to the Redemption Date whereupon all such amounts shall be payable on the Redemption Date. 

SECTION 10.02. Form of Redemption Notice. (a) Notice of redemption under Section 10.01(a) shall be given by the Indenture
Trustee by first-class mail, postage prepaid, mailed not less than five days prior to the applicable Redemption Date to each Holder of Notes, as of the close of business on the Record Date preceding the applicable Redemption Date, at such
Holder’s address appearing in the Note Register. 
 All notices of redemption shall state: 

(i) the Redemption Date; 

(ii) the Redemption Price; 

(iii) the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency
of the Issuing Entity to be maintained as provided in Section 3.02); and 
 (iv) the CUSIP number. 

Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at the expense of the Issuing Entity. Failure to
give notice of redemption, or any defect therein, to any Holder of any Note shall not impair or affect the validity of the redemption of any other Note. 

(b) Prior notice of redemption under Section 10.01(b) is not required to be given to Noteholders. 

SECTION 10.03. Notes Payable on Redemption Date. The Notes or portions thereof to be redeemed shall, following notice of redemption as
required by Section 10.02 (in the case of redemption pursuant to Section 10.01(a)), on the Redemption Date become due and payable at the Redemption Price and (unless the Issuing Entity shall default in the payment of the Redemption Price)
no interest shall accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Redemption Price. 

ARTICLE XI 
 MISCELLANEOUS 

SECTION 11.01. Compliance Certificates and Opinions, etc. (a) Upon any application or request by the Issuing Entity to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuing Entity shall furnish to the Indenture Trustee (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with, (ii) an Opinion of Counsel stating that 

  
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in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of this Section, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished. 
 Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include: 
 (i) a statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein relating thereto; 
 (ii) a brief statement as to the
nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

(iii) a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is
necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(iv) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with. 

(b) (i) Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis
for the release of any property or securities subject to the lien of this Indenture, the Issuing Entity shall, in addition to any obligation imposed in Section 11.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days of such deposit) to the Issuing Entity of the Collateral or other property or securities to be so deposited.

 (ii) Whenever the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s Certificate certifying
or stating the opinion of any signer thereof as to the matters described in clause (i) above, the Issuing Entity shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the Issuing
Entity of the securities to be so deposited and of all other such securities made the basis of any such withdrawal or release since the commencement of the then-current fiscal year of the Issuing Entity, as set forth in the certificates delivered
pursuant to clause (i) above and this clause (ii), is 10% or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the fair value thereof to the Issuing Entity
as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the Notes. 

(iii) Other than with respect to the release of any Purchased Receivables or Liquidated Receivables, whenever any property or
securities are to be released from the lien of this Indenture, the Issuing Entity shall also furnish to the 

  
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Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days of such release) of the property or
securities proposed to be released and stating that in the opinion of such person the proposed release will not impair the security under this Indenture in contravention of the provisions hereof. 

(iv) Whenever the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or
stating the opinion of any signer thereof as to the matters described in clause (iii) above, the Issuing Entity shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value of the property or
securities and of all other property other than Purchased Receivables and Liquidated Receivables, or securities released from the lien of this Indenture since the commencement of the then current calendar year, as set forth in the certificates
required by clause (iii) above and this clause (iv), equals 10% or more of the Outstanding Amount of the Notes, but such certificate need not be furnished in the case of any release of property or securities if the fair value thereof as set
forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the then Outstanding Amount of the Notes. 

(v) Notwithstanding Section 2.09, Section 3.10(b) or any other provision of this Section, the Issuing Entity may
(A) collect, liquidate, sell or otherwise dispose of Receivables as and to the extent permitted or required by the Basic Documents and (B) make cash payments out of the Trust Accounts as and to the extent permitted or required by the Basic
Documents. 
 SECTION 11.02. Form of Documents Delivered to Indenture Trustee. In any case where several matters are required to be
certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

Any certificate or opinion of an Authorized Officer of the Issuing Entity may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the
Servicer, the Seller, the Issuing Entity or the Administrator, stating that the information with respect to such factual matters is in the possession of the Servicer, the Seller, the Issuing Entity or the Administrator, unless such counsel knows, or
in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 

  
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 Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 

Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the
Issuing Entity shall deliver any document as a condition of the granting of such application, or as evidence of the Issuing Entity’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of
such application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuing Entity to have such application
granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document
as provided in Article VI. 
 SECTION 11.03. Acts of Noteholders. (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly
appointed in writing; and except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to the Issuing
Entity. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Indenture Trustee and the Issuing Entity, if made in the manner provided in this
Section. 
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved in any manner that the
Indenture Trustee deems sufficient. 
 (c) The ownership of Notes shall be proved by the Note Register. 

(d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder of
every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuing Entity in reliance thereon, whether or not notation of
such action is made upon such Note. 
 SECTION 11.04. Notices, etc., to Indenture Trustee, Issuing Entity and Rating Agencies. Any
request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture to be made upon, given or furnished to or filed with: 

(a) the Indenture Trustee by any Noteholder or by the Issuing Entity shall be sufficient for every purpose hereunder if made, given, furnished
or filed in writing, or sent by facsimile, to or with the Indenture Trustee and received at its Corporate Trust Office, or 

  
 62 

 (b) the Issuing Entity by the Indenture Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if in writing and mailed, first-class, postage prepaid, or sent by facsimile, to the Issuing Entity addressed to: John Deere Owner Trust 2017-B, in care of Wells Fargo Delaware Trust Company, N.A., 919 North Market Street,
Suite 1600, Wilmington, Delaware 19801, Attention: Corporate Trust Services, facsimile No.: (302) 575-2006, or at any other address previously furnished in writing to the Indenture Trustee by the Issuing Entity. The Issuing Entity shall
promptly transmit any notice received by it from the Noteholders to the Indenture Trustee. The Indenture Trustee shall likewise promptly transmit any notice received by it from the Noteholders to the Issuing Entity and the Administrator and, if such
notice is a Repurchase Request, to the Seller and the Sponsor in addition to any other parties entitled to receive such notice pursuant to the terms hereof. 

Notices required to be given to the Rating Agencies shall be in writing, personally delivered or mailed by certified mail, return receipt
requested to (i) in the case of Moody’s, at the following address: Moody’s Investors Service, Inc., ABS Monitoring Department, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007; and (ii) in the case of Fitch,
at the following address: Fitch Ratings, Inc., 33 Whitehall Street, New York, New York 10004, Attention: ABS Surveillance or as to each of the foregoing, at such other address as shall be designated by written notice to the other parties. 

SECTION 11.05. Notices to Noteholders; Waiver. Where this Indenture provides for notice to Noteholders of any event, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at his address as it appears on the Note Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder
shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given. 

Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver. 
 In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage
or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the
Indenture Trustee shall be deemed to be a sufficient giving of such notice. 
 Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute a Default or Event of Default. 

  
 63 

 SECTION 11.06. Alternate Payment and Notice Provisions. Notwithstanding any provision of
this Indenture or any of the Notes to the contrary, to the extent satisfactory to the Indenture Trustee, the Issuing Entity may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee
or any Paying Agent to such Holder, that is different from the methods provided for in this Indenture for such payments or notices. The Issuing Entity will furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee will
cause payments to be made and notices to be given in accordance with such agreements. 
 SECTION 11.07. Conflict with Trust Indenture
Act. If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this indenture by any of the provisions of the Trust Indenture Act, such required provision shall control. 

The provisions of TIA §§ 310 through 317 that impose duties on any person (including the provisions automatically deemed included
herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein. 

SECTION 11.08. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 
 SECTION 11.09. Successors and Assigns. All covenants and agreements
in this Indenture and the Notes by the Issuing Entity shall bind its successors and assigns, whether so expressed or not. 
 All agreements
of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents of the Indenture Trustee. 
 SECTION 11.10.
Separability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 SECTION 11.11. Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, and the Noteholders, and any other party secured hereunder, and any other Person with an ownership interest in any part of the Trust Estate, any benefit or any legal or equitable right,
remedy or claim under this Indenture. 
 SECTION 11.12. Legal Holidays. In any case where the date on which any payment is due shall
not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on
which nominally due. 
 SECTION 11.13. GOVERNING LAW; WAIVER OF TRIAL BY JURY. 

  
 64 

 (a) THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

(b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 
 SECTION
11.14. Counterparts. This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

SECTION 11.15. Recording of Indenture. If this Indenture is subject to recording in any appropriate public recording offices, such
recording is to be effected by the Issuing Entity and at its expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 

SECTION 11.16. Trust Obligation. No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing
Entity, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee in their
individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in their individual
capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in their individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacity) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided
by applicable law, for any unpaid consideration for stock, unpaid capital contribution or any failure to pay any installment or call owing to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the
Issuing Entity hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement. 

SECTION 11.17. No Petition. The Indenture Trustee, by entering into this Indenture, and each Noteholder or Note Owner, by accepting a
Note or, in the case of a Note Owner, a beneficial interest in a Note, hereby covenant and agree that, prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization vehicle in
respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy, reorganization,
arrangement, insolvency or 

  
 65 

 
liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

SECTION 11.18. Subordination Agreement. Each Noteholder, by accepting a Note, hereby covenants and agrees that, to the extent it is
deemed to have any interest in any assets of the Seller, or a securitization vehicle related to the Seller, dedicated to other debt obligations of the Seller or debt obligations of any other securitization vehicle related to the Seller, its interest
in those assets is subordinate to claims or rights of such other debtholders to those other assets. Furthermore, each Noteholder, by accepting a Note, hereby covenants and agrees that such agreement constitutes a subordination agreement for purposes
of Section 510(a) of the Bankruptcy Code. 
 SECTION 11.19. No Recourse. Notwithstanding any provisions herein to the contrary,
all of the obligations of the Issuing Entity under or in connection with the Notes and this Indenture are nonrecourse obligations of the Issuing Entity payable solely from the Collateral and following realization of the Collateral and its reduction
to zero, any claims of the Noteholders and the Indenture Trustee against the Issuing Entity shall be extinguished and shall not thereafter revive. It is understood that the foregoing provisions of this Section 11.19 shall not (i) prevent
recourse to the Collateral for the sums due or to become due under any security, instrument or agreement which is part of the Collateral or (ii) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Notes
or secured by this Indenture (to the extent it relates to the obligation to make payments on the Notes) until such Collateral has been realized and reduced to zero, whereupon any outstanding indebtedness or obligation in respect of the Notes shall
be extinguished and shall not thereafter revive. It is further understood that the foregoing provisions of this Section 11.19 shall not limit the right of any Person to name the Issuing Entity as a party defendant in any Proceeding or in the
exercise of any other remedy under the Notes or this Indenture, so long as no judgment in the nature of a deficiency judgment shall be asked for or (if obtained) enforced against any such Person or entity. 

SECTION 11.20. Inspection. The Issuing Entity agrees that, on reasonable prior notice, it will permit any representative of the
Indenture Trustee, during the Issuing Entity’s normal business hours, to examine all the books of account, records, reports, and other papers of the Issuing Entity, to make copies and extracts therefrom, to cause such books to be audited by
independent certified public accountants, and to discuss the Issuing Entity’s affairs, finances and accounts with the Issuing Entity’s officers, employees, and independent certified public accountants, all at such reasonable times and as
often as may be reasonably requested. The Indenture Trustee shall and shall cause its representatives to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential
treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder. 

SECTION 11.21. Limitation of Liability. It is expressly understood that (a) this Indenture is executed and delivered by Wells
Fargo Delaware Trust Company, N.A., not individually or personally but solely as Owner Trustee, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, dated as of July 17, 2017 (the “Trust
Agreement”), between John Deere Receivables, Inc. and Wells Fargo Delaware Trust 

  
 66 

 
Company, N.A., (b) each of the representations, undertakings and agreements herein made on the part of the Issuing Entity is made and intended not as personal representations, undertakings
and agreements by Wells Fargo Delaware Trust Company, N.A., but is made and intended for the purpose for binding only the Issuing Entity and (c) under no circumstances shall Wells Fargo Delaware Trust Company, N.A. be personally liable for the
breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuing Entity under this Indenture or the other related documents. 

SECTION 11.22. Communications with Rating Agencies. If the Indenture Trustee shall receive any written or oral communication from any
Rating Agency (or any of their respective officers, directors or employees) with respect to the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes, the Indenture Trustee agrees to refrain from
communicating with such Rating Agency and to promptly (and, in any event, within one Business Day) notify the Administrator of such communication. The Indenture Trustee agrees to act at the direction of the Administrator with respect to any
communication to a Rating Agency and further agrees that in no event shall the Indenture Trustee engage in any oral communication with respect to the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes
with any Rating Agency (or any of their respective officers, directors or employees) without the participation of the Administrator. For the avoidance of doubt, the Indenture Trustee may make statements to Noteholders available on its website (as
contemplated by Section 5.06(a) of the Sale and Servicing Agreement), and such action is not prohibited by this Section 11.22. 

ARTICLE XII 
 ASSET REPRESENTATIONS
REVIEW 
 SECTION 12.01. Noteholder Requests for Vote on Asset Representations Review. Upon the occurrence of a Delinquency Trigger
as reported on Form 10-D, Noteholders and Note Owners may, in writing, request a vote on whether to cause all ARR Receivables to be reviewed by the Asset Representations Reviewer pursuant to the Asset Representations Review Agreement; provided that
(i) if the requesting party is a Note Owner and not a Noteholder, the Note Owner must include with its request a written certification that the requesting party is a Note Owner of a specified principal balance of the Notes, together with one of
the following additional forms of documentation of the requesting party’s status as a Note Owner: (A) a trade confirmation, (B) an account statement; (C) a letter from a broker-dealer; or (D) other similar document; and
(ii) all such requests must be received by the Indenture Trustee within 90 days after the date on which the Form 10-D disclosing the occurrence of a Delinquency Trigger was filed. If Noteholders and Note Owners representing at least 5% of the
aggregate Outstanding Amount of all Notes Outstanding as of the date of the filing of such Form 10-D properly and timely request a vote (such requesting Noteholders and Note Owners, collectively, the “Requesting Noteholders”), then the
Indenture Trustee will promptly notify the Servicer thereof; provided that for the purpose of determining whether the requisite amount of Noteholders and Note Owners have so voted, any Notes held by the Sponsor or Servicer or any of their Affiliates
shall not be included in such calculation. 

  
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 SECTION 12.02. Noteholder Vote on Asset Representations Review. Promptly after receipt of
a notice from the Servicer pursuant to Section 11.01(b)(iii) of the Sale and Servicing Agreement, the Indenture Trustee shall distribute such notice to each Noteholder (and to each applicable Clearing Agency for distribution to Note Owners in
accordance with the rules of such Clearing Agency). If, by no later than the deadline specified by the Servicer pursuant to Section 11.01(b)(i) of the Sale and Servicing Agreement, a majority of the Noteholders casting a vote to initiate a
review of the ARR Receivables, the Indenture Trustee will promptly notify the Servicer and Depositor of such vote and the Servicer will direct the Asset Representations Reviewer to initiate an Asset Representations Review; provided that for the
purpose of determining whether the requisite amount of Noteholders have so voted, any Notes held by the Sponsor or Servicer or any of their Affiliates shall not be included in such calculation. In any event, the Indenture Trustee will provide a
notice of the result of the vote to all Noteholders (including via the applicable Clearing Agency for further distribution to each Note Owner). 

SECTION 12.03. Delivery of Repurchase Requests and Repurchase Response Notices. If the Indenture Trustee receives a Repurchase Request
from a Noteholder or Note Owner it shall promptly forward such Repurchase Request to the Seller and the Sponsor. If the Indenture Trustee receives a Repurchase Response Notice from the Sponsor or the Seller, it shall promptly deliver such Repurchase
Response Notice to the related Noteholder or Note Owner. If the Indenture Trustee receives a notice from a Noteholder or Note Owner indicating that it wishes to pursue an ADR Proceeding with respect to an unfulfilled Repurchase Request, the
Indenture Trustee shall promptly forward such notice to the Seller and the Sponsor. The Indenture Trustee shall have no obligation to pursue or otherwise be involved in resolving any Repurchase Request, including any such request that is the subject
of an ADR Proceeding, unless it is directed to do so by Noteholders representing not less than a majority of the Outstanding Amount and such Noteholders shall have offered to the Indenture Trustee security or indemnity satisfactory to it against the
reasonable costs, expenses, disbursements, advances and liabilities that might be incurred by it, its agents and its counsel in compliance with such direction. For the avoidance of doubt, if the Indenture Trustee does not agree to pursue or
otherwise be involved in resolving any Repurchase Request, the related Noteholders may independently pursue an ADR Proceeding in respect of such Repurchase Request in accordance with Section 11.02 of the Sale and Servicing Agreement. 

SECTION 12.04. Noteholder Communications with Indenture Trustee. A Noteholder (if the Notes are represented by Definitive Notes) or a
Note Owner (if the Notes are represented by Book-Entry Notes) may communicate with the Indenture Trustee and give notices and make requests and demands and give directions to the Indenture Trustee through the procedures of the Clearing Agency and by
written notice to the Indenture Trustee. Any Note Owner must provide a written certification stating that the Note Owner is a beneficial owner of a Note, together with supporting documentation such as a trade confirmation, an account statement, a
letter from a broker or dealer verifying ownership or another similar document evidencing ownership of a Note. The Indenture Trustee will not be required to take action in response to requests, demands or directions of a Noteholder or a Note Owner,
other than requests, demands or directions relating to an asset representations review request, a Repurchase Request or a Repurchase Response Notice under this Article XII, unless the Noteholder or Note Owner has offered reasonable security or
indemnity reasonably satisfactory to the Indenture Trustee to protect it against the fees and expenses that it may incur in complying with the 

  
 68 

 
request, demand or direction. Noteholders may request a copy of any Review Report issued by the Asset Representations Reviewer, as redacted pursuant to Section 11.01(d) of the Sale and
Servicing Agreement, and the Indenture Trustee shall provide such report to such requesting Noteholder; for the avoidance of doubt, the Indenture Trustee shall not have any liability with respect to the disclosure of any personally identifiable
information in connection with its delivery of a Review Report in accordance with this Section 12.04. 
 SECTION 12.05. Resignation
or Removal of Asset Representations Reviewer. If the Asset Representations Reviewer gives notice of its intent to resign or the Administrator terminates the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review
Agreement or if a vacancy exists in the office of the Asset Representations Reviewer for any reason (the Asset Representations Reviewer in such event being referred to herein as the retiring Asset Representations Reviewer), the Administrator shall
promptly appoint and designate a successor Asset Representations Reviewer. In the event that an Asset Representations Review has commenced at the time the retiring Asset Representations Reviewer resigns or a vacancy exists, the Administrator shall
cause the retiring Asset Representations Reviewer to provide the successor Asset Representations Reviewer with any information relating to the Asset Representations Review. The Administrator shall deliver a written notice to the Depositor, the
Servicer, the Seller and the Indenture Trustee of the appointment and acceptance of a successor Asset Representations Reviewer. Upon the resignation or removal of, or appointment of a successor to, the Asset Representations Reviewer, the Indenture
Trustee shall deliver a written notice to Noteholders and the Administrator shall notify the Rating Agencies then rating the Notes (which, in the case of any such appointment of a successor, shall consist of prior written notice thereof to the
Rating Agencies then rating the Notes) of such appointment. 

  
 69 

 IN WITNESS WHEREOF, the Issuing Entity and the Indenture Trustee have caused this Indenture to be
duly executed by their respective officers, thereunto duly authorized, all as of the day and year first above written. 
  

			
	JOHN DEERE OWNER TRUST 2017-B
		
	By:	 	WELLS FARGO DELAWARE TRUST
		 	 COMPANY, N.A., not in its individual

capacity but solely as Owner Trustee

		
	By:	 	/s/ Rosemary Kennard
		 	Name: Rosemary Kennard
		 	Title: Vice President
	
	U.S. BANK NATIONAL ASSOCIATION,
		 	not in its individual capacity but solely as Indenture Trustee and with respect to Section 8.03(d) as Securities Intermediary
		
	By:	 	/s/ Jose A. Galarza
		 	Name: Jose A. Galarza
		 	Title: Vice President

 JDOT 2017-B - Indenture 

 EXHIBIT A 

Schedule of Receivables 

[To be delivered to the Trust at Closing] 

 EXHIBIT B 

[Form of Sale and Servicing Agreement] 

 EXHIBIT C 
  

[Form of Depository Agreement] 

The Depository Trust Company 

A subsidiary of the Depository Trust & Clearing Corporation 

ISSUER LETTER OF REPRESENTATIONS 

(To be completed by Issuer and Co-Issuer(s), if applicable) 

John Deere Owner Trust 2017-B 

(Name of Issuer and Co-Issuer(s), if applicable) 

Asset-Backed Securities JDOT 2017-B 

(Security Description, including series designation if applicable) 

See Rider 1 
 John Deere
Owner Trust 2017-B 
  

													
	 Class
	  	CUSIP No.	 	  	Aggregate
Principal
Balance 	 	  	Maturity Date	  	Interest Rate
	 Class A-1
	  	 	47788B AA2	 	  	$	200,000,000	 	  	July 16, 2018	  	1.35000%
	 Class A-2A
	  	 	47788B AB0	 	  	$	230,000,000	 	  	April 15, 2020	  	1.59%
	 Class A-2B
	  	 	47788B AC8	 	  	$	90,000,000	 	  	April 15, 2020	  	One-Month LIBOR + 0.11%
	 Class A-3
	  	 	47788B AD6	 	  	$	250,000,000	 	  	October 15, 2021	  	1.82%
	 Class A-4
	  	 	47788B AE4	 	  	$	87,230,000	 	  	July 15, 2024	  	2.11%

 (CUSIP Number(s) of the Securities) 

 

	
	            July 18, 2017            
	(Date)

 The Depository Trust Company 

570 Washington Blvd, 4th FL 
 Jersey City, NJ 07310 

Attention: Underwriting Department 
 Ladies and Gentlemen: 

This letter sets forth our understanding with respect to the Securities represented by the CUSIP number(s) referenced above (the
“Securities”). Issuer requests that The Depository Trust Company (“DTC”) accept the Securities as eligible for deposit at DTC. 
 Issuer
is: (Note: Issuer must represent one and cross out the other.) 
 [formed under the laws of] the state of Delaware. 

The DTC Clearing Participant MUFG Securities Americas Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., and
TD Securities (USA) LLC will distribute the Securities through DTC. 
 To induce DTC to accept the Securities as eligible for deposit at
DTC, and to act in accordance with DTC’s Rules with respect to the Securities, Issuer represents to DTC that Issuer will comply with the requirements stated in DTC’s Operational Arrangements, as they may be amended from time to time. 

  

					
		  	Very truly yours,
	Note:	  		  	John Deere Owner Trust 2017-B
	Schedule A contains statements that DTC believes accurately describe DTC, the method of effecting book-entry transfers of securities distributed through DTC, and certain related matters.	  	By: Wells Fargo Delaware Trust Company, N.A., not in its individual capacity but solely as Owner Trustee
	  		  	 (Issuer)
  

	  	By:	  	  

		  		  	(Authorized Officer’s Signature)
			
		  		  	  

		  		  	(Print Name)
			
		  		  	 919 North Market Street, Suite 1600

Attention: Corporate Trust Services

		  		  	(Street Address)
			
		  		  	
Wilmington            Delaware   
         USA            19801

		  		  	        (City)                          
  (State)          (Country)                (Zip Code)
			
		  		  	      

	

	  		  	(Phone Number)
	  		  	
	  		  	  

	  		  	(E-mail Address)

  

  
 ILOR 06-2013 

C-1 

 The Depository Trust Company 

A subsidiary of the Depository Trust & Clearing Corporation 

Additional Signature Page to 

ISSUER LETTER OF REPRESENTATIONS 

For use with Co-Issuers 
  

 
 Name of Issuer and Co-Issuer(s) 

In signing this Issuer Letter of Representations dated as of
                    . 
 Co-Issuer agrees to and
shall be bound by all “Issuer” representations. 
  

			
	  

	(Co-Issuer)
		
	By:	 	      

	(Authorized Officer’s Signature)
	
	  

	(Print Name)
	
	  

	(Street Address)
	
	  

	(City)        (State)            (Country)            
(Zip Code)
	
	  

	(Phone Number)
	
	  

	(E-mail Address)

  
 ILOR 06-2013 

C-2 

 SCHEDULE A 

(To Issuer Letter of Representations) 

SAMPLE OFFERING DOCUMENT LANGUAGE 

DESCRIBING BOOK-ENTRY-ONLY ISSUANCE 

(Prepared by DTC—bracketed material may be applicable only to certain issues) 

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the
“Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One
fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a
“banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency”
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and
money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions
in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S.
and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the
holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly
(“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com. 
 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial
Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on
behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 

4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s
partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not
effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or
may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 

  
 ILOR 06-2013 

C-3 

 SCHEDULE A 

(To Issuer Letter of Representations) 
  

 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
[Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security
documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to
provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] 
 [6. Redemption
notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a
Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting
rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 

8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as
may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance
with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer
form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption
proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants
will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 

[9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
[Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to [Tender/Remarketing] Agent. The requirement for
physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a
book-entry credit of tendered Securities to [Tender/Remarketing] Agent’s DTC account.] 
 10. DTC may discontinue providing its
services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed
and delivered. 
 11. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities
depository). In that event, Security certificates will be printed and delivered to DTC. 
 12. The information in this section concerning
DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. 

  
 ILOR 06-2013 

C-4 

 EXHIBIT D 
  

			
	REGISTERED	  	$200,000,000

 No. R – [•] 

SEE REVERSE FOR CERTAIN DEFINITIONS 

CUSIP NO. 47788B AA2 
 Unless this
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in
the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC)—ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY
TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
 JOHN DEERE OWNER TRUST 2017-B 

1.35000% ASSET BACKED NOTES, 
 CLASS
A-1 
 John Deere Owner Trust 2017-B, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to
as the “Issuing Entity”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of TWO HUNDRED MILLION DOLLARS payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $200,000,000 and the denominator of which is $200,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of principal of the Class A-1
Notes pursuant to Section 8.02(c) of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of July 16, 2018 and the Redemption Date, if any, pursuant to
Section 10.01(a) of the Indenture. The Issuing Entity will pay interest on this Note at the Class A-1 Note Interest Rate on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount
of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on such preceding Payment Date (or on the initial principal amount of this Note from and including July 18, 2017 in the case of the
first Payment Date). Interest on this Note will accrue for each Payment Date from and including the most recent Payment Date (or, if no interest has yet been paid on this Note, from and including July 18, 2017) to but excluding such Payment
Date. Interest will be computed on the basis of the actual number of days in the period for which such interest is payable divided by 

  
 D-1 

 
360. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under the indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 

  
 D-2 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

							
	Date: July     , 2017	 		 	JOHN DEERE OWNER TRUST 2017-B
				
		 		 	By:	 	 WELLS FARGO DELAWARE TRUST
 COMPANY,
N.A., not in its individual
 capacity but solely as Owner Trustee under

the Trust Agreement

		 		 		 
	 		 	 
				
		 		 	By:	 	 
		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

							
		 		 	 U.S. BANK NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture
 Trustee

				
		 		 	By:	 	 
		 		 		 	Authorized Signatory

  
 D-3 

 [REVERSE OF NOTE] 

This Note is one of the Class A-1 Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Asset Backed Notes,
all issued under an Indenture dated as of July 18, 2017 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and U.S. Bank National Association, as indenture trustee (the
“Indenture Trustee”, which term includes any successor indenture trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 The Notes are and will be equally and ratably
secured by the collateral pledged as security therefor as provided in the Indenture. 
 Principal of the Notes will be payable on each
Payment Date in an amount described on the face hereof. 
 As described above, the entire unpaid principal amount of, together with accrued
and unpaid interest on, this Note shall be due and payable on the earlier of July 16, 2018 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing and the Indenture Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount of the Notes have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled thereto. 

Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent not
in full payment of this Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment
Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment
Date and the amount then due and payable shall be payable 

  
 D-4 

 
only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in The City of New York. 
 The Issuing Entity shall pay interest on overdue installments of interest at a rate per annum
equal to the sum of (i) the Class A-1 Note Interest Rate and (ii) 1.0%, to the extent lawful. 
 As provided in the
Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any Payment Date, following the last day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off
Date. 
 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization
vehicle in respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

  
 D-5 

 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the time Outstanding.
The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuing Entity with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The Issuing Entity has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. Each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a beneficial interest in a Note), will be deemed to agree to treat the
Notes for federal, State and local income and franchise tax purposes as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes). 

Without limiting any other information or certification requirements under applicable tax law, each Noteholder or holder of an interest in
this Note, by acceptance of this Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding
Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in this Note, by acceptance of this Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity
has the right to withhold any amounts (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in this Note, either because such withholding is required under applicable tax law or as
a result of the failure of the Noteholder or holder of an interest in this Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 

  
 D-6 

 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing
Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 

Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, neither Wells Fargo Delaware Trust
Company, N.A. in its individual capacity, U.S. Bank National Association, in its individual capacity, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made by the Owner Trustee for the sole purposes of binding the interests of the Owner Trustee in
the assets of the Issuing Entity. The Holder of this Note by the acceptance hereof agrees that except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 

  
 D-7 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 

                       
                              

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 

	
	 
	
	 
	(name and address of assignee)

 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to
transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  

							
	Dated:                                    
	 		 		 	                                    
                                         
               NOTE:
		 		 		 	The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.
				
		 		 		 	Signature Guaranteed:
				
		 		 		 	 
		 		 		 	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		 		 		 	
		 		 		 	 

  
 D-8 

 EXHIBIT E 
  

			
	REGISTERED	  	$230,000,000

 No. R – [•] 

SEE REVERSE FOR CERTAIN DEFINITIONS 

CUSIP NO. 47788B AB0 
 Unless this
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in
the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC)—ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS 

AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING 

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS 

THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

JOHN DEERE OWNER TRUST 2017-B 

1.59% ASSET BACKED NOTES, 
 CLASS
A-2A 
 John Deere Owner Trust 2017-B, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to
as the “Issuing Entity”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of TWO HUNDRED THIRTY MILLION DOLLARS payable on each Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $230,000,000 and the denominator of which is $230,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of principal of the
Class A-2A Notes pursuant to Section 8.02(c) of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of April 15, 2020 and the Redemption Date, if
any, pursuant to Section 10.01(a) of the Indenture. Except as provided in the Indenture, no payments of principal of the Class A-2A Notes shall be made until the principal of the Class A-1 Notes has been paid in its entirety. The
Issuing Entity will pay interest on this Note at the Class A-2A Note Interest Rate on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding
Payment Date after giving effect to all payments of principal made on such preceding Payment Date (or on the initial principal amount of this Note from and including July 18, 2017 in the case of the first Payment Date). Interest on this Note
will accrue for each Payment Date from and including the 15th day of the month preceding such Payment Date (or, from and including, July 18, 2017 in the case of 

  
 E-1 

 
the first Payment Date) to and including the 14th day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Such
principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this
Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this Note. 
 Reference is made to the further
provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 

Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this
Note shall not be entitled to any benefit under the indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 

  
 E-2 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

							
	Date: July     , 2017	 		 	JOHN DEERE OWNER TRUST 2017-B
				
		 		 	By:	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee under the Trust Agreement
				
		 		 	By:	 	 
		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

							
		 		 	 U.S. BANK NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture Trustee

				
		 		 	By:	 	 
		 		 		 	Authorized Signatory

  
 E-3 

 [REVERSE OF NOTE] 

This Note is one of the Class A-2A Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Asset Backed Notes,
all issued under an Indenture dated as of July 18, 2017 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and U.S. Bank National Association, as indenture trustee (the
“Indenture Trustee”, which term includes any successor indenture trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 The Notes are and will be equally and ratably
secured by the collateral pledged as security therefor as provided in the Indenture. 
 Principal of the Notes will be payable on each
Payment Date in an amount described on the face hereof. 
 As described above, the entire unpaid principal amount of, together with accrued
and unpaid interest on, this Note shall be due and payable on the earlier of April 15, 2020 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing and the Indenture Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount of the Notes
have declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled thereto. 

Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent not
in full payment of this Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment
Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment
Date and the amount then due and payable shall be payable 

  
 E-4 

 
only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in The City of New York. 
 The Issuing Entity shall pay interest on overdue installments of interest at a rate per annum
equal to the sum of (i) the Class A-2A Note Interest Rate and (ii) 1.0%, to the extent lawful. 
 As provided in the
Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any Payment Date, following the last day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off
Date. 
 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization
vehicle in respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

  
 E-5 

 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the time Outstanding.
The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuing Entity with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The Issuing Entity has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. Each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a beneficial interest in a Note), will be deemed to agree to treat the
Notes for federal, State and local income and franchise tax purposes as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes). 

Without limiting any other information or certification requirements under applicable tax law, each Noteholder or holder of an interest in
this Note, by acceptance of this Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding
Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in this Note, by acceptance of this Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity
has the right to withhold any amounts (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in this Note, either because such withholding is required under applicable tax law or as
a result of the failure of the Noteholder or holder of an interest in this Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 

  
 E-6 

 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing
Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 

Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, neither Wells Fargo Delaware Trust
Company, N.A. in its individual capacity, U.S. Bank National Association, in its individual capacity, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made by the Owner Trustee for the sole purposes of binding the interests of the Owner Trustee in
the assets of the Issuing Entity. The Holder of this Note by the acceptance hereof agrees that except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 

  
 E-7 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 

                       
                              

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 

	
	 
	
	 
	(name and address of assignee)

 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to
transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  

							
	Dated:                                    
	 		 		 	                                    
                                         
               NOTE:
		 		 		 	The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.
				
		 		 		 	Signature Guaranteed:
				
		 		 		 	 
		 		 		 	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		 		 		 	 

  
 E-8 

 EXHIBIT F 
  

			
	REGISTERED	  	$90,000,000

 No. R – [•] 

SEE REVERSE FOR CERTAIN DEFINITIONS 

CUSIP NO. 47788B AC8 
 Unless this
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in
the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC)—ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS 

AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING 

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS 

THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

JOHN DEERE OWNER TRUST 2017-B 

FLOATING RATE ASSET BACKED NOTES, 

CLASS A-2B 
 John Deere Owner
Trust 2017-B, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to as the “Issuing Entity”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of NINETY MILLION DOLLARS payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a fraction the numerator of which is $90,000,000 and the denominator of which is $90,000,000 by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect of principal of the Class A-2B Notes pursuant to Section 8.02(c) of the Indenture; provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the earlier of April 15, 2020 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Except as provided in the Indenture, no payments of principal of the Class A-2B Notes
shall be made until the principal of the Class A-1 Notes has been paid in its entirety. The Issuing Entity will pay interest on this Note at a rate equal to One-Month LIBOR + 0.11% on each Payment Date, provided, that for the first Payment Date
such rate will be [    ]%3 and, provided, further, that on any Payment Date on which the sum of One-Month LIBOR + 0.11% is 

 

	3 	 One-Month LIBOR for the initial interest accrual period for the Class A-2B Notes will be determined two
London Business Days prior to the Closing Date. The Class A-2B Note Interest Rate for the initial interest accrual period will be included in the final executed Indenture to be filed with the Securities and Exchange Commission on or about the
Closing Date. 

  
 F-1 

 
less than 0.00%, such rate will be 0.00%, until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date
after giving effect to all payments of principal made on such preceding Payment Date (or on the initial principal amount of this Note from and including July 18, 2017 in the case of the first Payment Date). Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date (or, if no interest has yet been paid on this Note, from and including July 18, 2017) to but excluding such Payment Date. Interest will be computed on the basis of the actual
number of days in the period for which such interest is payable divided by 360. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 

So long as the Class A-2B Notes are Outstanding, the Indenture Trustee will determine the Class A-2B Note Interest Rate for each
interest accrual period on the LIBOR Determination Date for such interest accrual period and shall promptly provide such rate to the Servicer or such person as directed by the Servicer. All determinations of the Class A-2B Note Interest Rate by
the Indenture Trustee, in the absence of manifest error, will be conclusive and binding on the Noteholders. For purposes of such determination, One-Month LIBOR shall mean, with respect to any interest period, the London interbank offered rate for
deposits in U.S. dollars having a maturity of one month commencing on the related LIBOR Determination Date which appears on Reuters Screen LIBOR01 Page (or such comparable service as is customarily used to quote One-Month LIBOR) as of 11:00 a.m.,
London time, on such LIBOR Determination Date; provided, however, that for the first interest accrual period, One-Month LIBOR shall mean an interpolated rate for deposits based on London interbank offered rates for deposits in U.S. dollars for a
period that corresponds to the actual number of days in the first interest accrual period. If the rates used to determine One-Month LIBOR do not appear on the Reuters Screen LIBOR01 Page (or such comparable service as is customarily used to quote
One-Month LIBOR), the rates for that day will be determined on the basis of the rates at which deposits in U.S. dollars, having a maturity of one month and in a principal balance of not less than U.S. $1,000,000 are offered at approximately 11:00
a.m., London time, on such LIBOR Determination Date to prime banks in the London interbank market by the reference banks. The Indenture Trustee shall request the principal London office of each of such reference banks to provide a quotation of its
rate. If at least two such quotations are provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of all such quotations. If fewer than
two such quotations are provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of the offered per annum rates that one or more leading
banks in New York City, selected by the Indenture Trustee (after consultation with the Depositor), are quoting as of approximately 11:00 a.m., New York City time, on such LIBOR Determination Date to leading European banks for United States dollar
deposits for that maturity; provided that if the banks selected as aforesaid are not quoting as mentioned in this sentence, One-Month LIBOR in effect for the applicable interest period will be One-Month LIBOR in effect for the previous interest
period. The reference banks are the four major banks in the London interbank market selected by the Indenture Trustee (after consultation with the Depositor). 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and 

  
 F-2 

 
private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal
of this Note. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect
as though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 

  
 F-3 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

							
	Date: July     , 2017	 		 	JOHN DEERE OWNER TRUST 2017-B
				
		 		 	By:	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee under the Trust Agreement
				
		 		 	By:	 	 
		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

							
		 		 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee
				
		 		 	By:	 	 
		 		 		 	Authorized Signatory

  
 F-4 

 [REVERSE OF NOTE] 

This Note is one of the Class A-2B Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Floating Rate Asset
Backed Notes, all issued under an Indenture dated as of July 18, 2017 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and U.S. Bank National Association, as indenture trustee
(the “Indenture Trustee”, which term includes any successor indenture trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or amended, shall
have the meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 The Notes are and will be equally and
ratably secured by the collateral pledged as security therefor as provided in the Indenture. 
 Principal of the Notes will be payable on
each Payment Date in an amount described on the face hereof. 
 As described above, the entire unpaid principal amount of, together with
accrued and unpaid interest on, this Note shall be due and payable on the earlier of April 15, 2020 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Notwithstanding the foregoing, the entire unpaid principal
amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing and the Indenture Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount of the
Notes have declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled thereto.

 Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment
Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed

  
 F-5 

 
within five days of such Payment Date and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate
Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in The City of New York. 
 The
Issuing Entity shall pay interest on overdue installments of interest at a rate per annum equal to the sum of (i) the Class A-2B Note Interest Rate and (ii) 1.0%, to the extent lawful. 

As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any Payment Date,
following the last day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off Date. 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization
vehicle in respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

  
 F-6 

 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the time Outstanding.
The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuing Entity with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The Issuing Entity has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. Each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a beneficial interest in a Note), will be deemed to agree to treat the
Notes for federal, State and local income and franchise tax purposes as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes). 

Without limiting any other information or certification requirements under applicable tax law, each Noteholder or holder of an interest in
this Note, by acceptance of this Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding
Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in this Note, by acceptance of this Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity
has the right to withhold any amounts (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in this Note, either because such withholding is required under applicable tax law or as
a result of the failure of the Noteholder or holder of an interest in this Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 

  
 F-7 

 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing
Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 

Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, neither Wells Fargo Delaware Trust
Company, N.A. in its individual capacity, U.S. Bank National Association, in its individual capacity, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made by the Owner Trustee for the sole purposes of binding the interests of the Owner Trustee in
the assets of the Issuing Entity. The Holder of this Note by the acceptance hereof agrees that except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 

  
 F-8 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 

                       
                              

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 
  
  

 
 (name and address of assignee) 

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept
for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                                     
   	  	
                          
                                         
     NOTE:
 The signature to this assignment must correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any change whatsoever.

		
		  	Signature Guaranteed:
		
		  	  

		
		  	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		
		  	  

  
 F-9 

 EXHIBIT G 
  

			
	REGISTERED	  	$250,000,000

 No. R – [•] 

SEE REVERSE FOR CERTAIN DEFINITIONS 

CUSIP NO. 47788B AD6 
 Unless this
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in
the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC)—ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS 

AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING 

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS 

THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

JOHN DEERE OWNER TRUST 2017-B 

1.82% ASSET BACKED NOTES, 
 CLASS
A-3 
 John Deere Owner Trust 2017-B, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to
as the “Issuing Entity”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of TWO HUNDRED FIFTY MILLION DOLLARS payable on each Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $250,000,000 and the denominator of which is $250,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of principal of the
Class A-3 Notes pursuant to Section 8.02(c) of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of October 15, 2021 and the Redemption Date,
if any, pursuant to Section 10.01(a) of the Indenture. Except as provided in the Indenture, no payments of principal of the Class A-3 Notes shall be made until the principal of each of the Class A-1 Notes and the Class A-2 Notes
has been paid in its entirety. The Issuing Entity will pay interest on this Note at the Class A-3 Note Interest Rate on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on such preceding Payment Date (or on the initial principal amount of this Note from and including July

  
 G-1 

 
18, 2017 in the case of the first Payment Date). Interest on this Note will accrue for each Payment Date from and including the 15th day of the month preceding such Payment Date (or from and
including July 18, 2017 in the case of the first Payment Date) to and including the 14th day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of this Note. 
 Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the
certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose. 

  
 G-2 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

							
	Date: July     , 2017	 		 	JOHN DEERE OWNER TRUST 2017-B
				
		 		 	By:	 	 WELLS FARGO DELAWARE TRUST
 COMPANY, N.A., not
in its individual
 capacity but solely as Owner Trustee under

the Trust Agreement

				
		 		 	By:	 	 
		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

							
		 		 	 U.S. BANK NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture
 Trustee

				
		 		 	By:	 	 
		 		 		 	Authorized Signatory
		 		 		 	

  
 G-3 

 [REVERSE OF NOTE] 

This Note is one of the Class A-3 Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Asset Backed Notes,
all issued under an Indenture dated as of July 18, 2017 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and U.S. Bank National Association, as indenture trustee (the
“Indenture Trustee”, which term includes any successor indenture trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 The Notes are and will be equally and ratably
secured by the collateral pledged as security therefor as provided in the Indenture. 
 Principal of the Notes will be payable on each
Payment Date in an amount described on the face hereof. 
 As described above, the entire unpaid principal amount of, together with accrued
and unpaid interest on, this Note shall be due and payable on the earlier of October 15, 2021 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing and the Indenture Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount of the Notes
have declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled thereto. 

Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent not
in full payment of this Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment
Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment
Date and the amount then due and payable shall be payable 

  
 G-4 

 
only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in The City of New York. 
 The Issuing Entity shall pay interest on overdue installments of interest at a rate per annum
equal to the sum of (i) the Class A-3 Note Interest Rate and (ii) 1.0%, to the extent lawful. 
 As provided in the
Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any Payment Date, following the last day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off
Date. 
 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization
vehicle in respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

  
 G-5 

 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the time Outstanding.
The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuing Entity with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The Issuing Entity has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. Each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a beneficial interest in a Note), will be deemed to agree to treat the
Notes for federal, State and local income and franchise tax purposes as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes). 

Without limiting any other information or certification requirements under applicable tax law, each Noteholder or holder of an interest in
this Note, by acceptance of this Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding
Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in this Note, by acceptance of this Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity
has the right to withhold any amounts (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in this Note, either because such withholding is required under applicable tax law or as
a result of the failure of the Noteholder or holder of an interest in this Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 

  
 G-6 

 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing
Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 

Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, neither Wells Fargo Delaware Trust
Company, N.A. in its individual capacity, U.S. Bank National Association, in its individual capacity, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made by the Owner Trustee for the sole purposes of binding the interests of the Owner Trustee in
the assets of the Issuing Entity. The Holder of this Note by the acceptance hereof agrees that except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 

  
 G-7 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 

                       
                              

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 
  
  

 
 (name and address of assignee) 

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept
for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                                     
   	  	
                          
                                         
                                 NOTE:

The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular,
without alteration, enlargement or any change whatsoever.

		
		  	Signature Guaranteed:
		
		  	  

		
		  	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		
		  	  

  
 G-8 

 EXHIBIT H 
  

			
	REGISTERED	  	$87,230,000

 No. R – [•] 

SEE REVERSE FOR CERTAIN DEFINITIONS 

CUSIP NO. 47788B AE4 
 Unless this
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in
the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC)—ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS 

AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING 

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS 

THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

JOHN DEERE OWNER TRUST 2017-B 

2.11% ASSET BACKED NOTES, 
 CLASS
A-4 
 John Deere Owner Trust 2017-B, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to
as the “Issuing Entity”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of EIGHTY-SEVEN MILLION TWO HUNDRED THIRTY THOUSAND DOLLARS payable on each Payment Date in an amount
equal to the result obtained by multiplying (i) a fraction the numerator of which is $87,230,000 and the denominator of which is $87,230,000 by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of
principal of the Class A-4 Notes pursuant to Section 8.02(c) of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of July 15, 2024 and the
Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Except as provided in the Indenture, no payments of principal of the Class A-4 Notes shall be made until the principal of each of the Class A-1 Notes, the
Class A-2 Notes and the Class A-3 Notes has been paid in its entirety. The Issuing Entity will pay interest on this Note at the Class A-4 Note Interest Rate on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on such preceding Payment Date (or on the initial principal amount of this Note from and
including July 18, 2017 in the case of the first Payment 

  
 H-1 

 
Date). Interest on this Note will accrue for each Payment Date from and including the 15th day of the month preceding such Payment Date (or from and including July 18, 2017 in the case of
the first Payment Date) to and including the 14th day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and payable on this Note as provided above
and then to the unpaid principal of this Note. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has
been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 

  
 H-2 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

							
	Date: July     , 2017	 		 	JOHN DEERE OWNER TRUST 2017-B
				
		 		 	By:	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee under the Trust Agreement
				
		 		 	By:	 	 
		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

							
		 		 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee
				
		 		 	By:	 	 
		 		 		 	Authorized Signatory

  
 H-3 

 [REVERSE OF NOTE] 

This Note is one of the Class A-4 Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Asset Backed Notes,
all issued under an Indenture dated as of July 18, 2017 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and U.S. Bank National Association, as indenture trustee (the
“Indenture Trustee”, which term includes any successor indenture trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 The Notes are and will be equally and ratably
secured by the collateral pledged as security therefor as provided in the Indenture. 
 Principal of the Notes will be payable on each
Payment Date in an amount described on the face hereof. 
 As described above, the entire unpaid principal amount of, together with accrued
and unpaid interest on, this Note shall be due and payable on the earlier of July 15, 2024 and the Redemption Date, if any, pursuant to Section 10.01(a) of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing and the Indenture Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount of the Notes have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled thereto. 

Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent not
in full payment of this Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment
Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment
Date and the amount then due and payable shall be payable 

  
 H-4 

 
only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in The City of New York. 
 The Issuing Entity shall pay interest on overdue installments of interest at a rate per annum
equal to the sum of (i) the Class A-4 Note Interest Rate and (ii) 1.0%, to the extent lawful. 
 As provided in the
Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any Payment Date, following the last day of a Collection Period as of which the Note Value is 10% or less of the initial Note Value as of the Cut-off
Date. 
 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that prior to the end of the period that is one year and one day after there has been paid in full all debt issued by any securitization
vehicle in respect of which the Seller holds any interest, they will not institute against the Seller or the Trust, or join in, or assist or encourage others to institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or State bankruptcy or similar law. 

  
 H-5 

 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the time Outstanding.
The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuing Entity with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The Issuing Entity has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. Each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a beneficial interest in a Note), will be deemed to agree to treat the
Notes for federal, State and local income and franchise tax purposes as indebtedness (except to the extent such Notes are retained or treated as retained by the Depositor or its affiliates for such purposes). 

Without limiting any other information or certification requirements under applicable tax law, each Noteholder or holder of an interest in
this Note, by acceptance of this Note or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding
Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an interest in this Note, by acceptance of this Note or such interest therein, agrees that the Indenture Trustee, any Paying Agent or the Issuing Entity
has the right to withhold any amounts (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in this Note, either because such withholding is required under applicable tax law or as
a result of the failure of the Noteholder or holder of an interest in this Note to comply with the requirements of the preceding sentence or other provisions requiring withholding under applicable tax law. 

The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 

  
 H-6 

 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing
Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 

Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, neither Wells Fargo Delaware Trust
Company, N.A. in its individual capacity, U.S. Bank National Association, in its individual capacity, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made by the Owner Trustee for the sole purposes of binding the interests of the Owner Trustee in
the assets of the Issuing Entity. The Holder of this Note by the acceptance hereof agrees that except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 

  
 H-7 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 

                       
                              

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 
  
  

 
 (name and address of assignee) 

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept
for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                                     
   	  	
                          
                                         
                                 NOTE:

The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular,
without alteration, enlargement or any change whatsoever.

		
		  	Signature Guaranteed:
		
		  	  

		
		  	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Indenture Trustee which requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		
		  	  

  
 H-8Exhibit 10.1

 

 

 

 

 

CAPITAL ONE, NATIONAL ASSOCIATION,

as Administrative Agent and a Lender,

 

 

THE FINANCIAL INSTITUTIONS WHO ARE
OR HEREAFTER

BECOME PARTIES TO THIS LOAN AGREEMENT,

 

 

 

SUMMIT CHANDLER, LLC,

as Borrower

 

 

 

 

 

LOAN AGREEMENT

 

 

 

 

 

Dated
as of: July 17, 2017

 

DOCUMENT
PREPARED BY:

 

Winston & Strawn LLP

101 California Street, 34th Floor

San Francisco, California 94111

 

 

 

 

 

    	 

    	 

    

TABLE OF CONTENTS

 

Page

	ARTICLE 1 DEFINITIONS	1
	 	 
	Section 1.1   Certain Definitions	1
	Section 1.2   Definitions	20
	Section 1.3   Phrases	21
	Section 1.4   UCC Terms	21
	 	 
	ARTICLE 2 LOAN TERMS	21
	 	 
	Section 2.1   The Loan	21
	Section 2.2   Interest Rate; Late Charge	22
	Section 2.3   Terms of Payment	22
	Section 2.4   Prepayment	23
	Section 2.5   Security; Establishment of Escrowed Funds	24
	Section 2.6   Application of Payments	27
	Section 2.7   Sources and Uses	28
	Section 2.8   Capital Adequacy; Increased Costs; Illegality or Unavailability	28
	Section 2.9   Interest Rate Protection	30
	Section 2.10   Libor Breakage Amount	30
	Section 2.11   [Reserved]	30
	Section 2.12   Evidence of Debt	30
	Section 2.13   Substitution of Lenders	31
	Section 2.14   Pro Rata Treatment	32
	Section 2.15   Fees.	32
	Section 2.16   Withholding Taxes	32
	Section 2.17   [Reserved]	36
	Section 2.18   Defaulting Lenders	36
	 	 
	ARTICLE 3 INSURANCE, CONDEMNATION AND IMPOUNDS	36
	 	 
	Section 3.1   Insurance	36
	Section 3.2   Use and Application of Insurance Proceeds	41
	Section 3.3   Condemnation Awards	43
	 	 
	ARTICLE 4 LEASING MATTERS	44
	 	 
	Section 4.1   Representations and Warranties on Leases	44
	Section 4.2   Standard Form of Lease.	44
	Section 4.3   Covenants – Operating Lease; Security Deposit	45
	Section 4.4   Tenant Estoppels	45
	Section 4.5   Payment of Rents Under Operating Lease	46
	 	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES	46
	 	 

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	Section 5.1   Organization, Power and Authority; Formation Documents	46
	Section 5.2   Validity of Loan Documents	47
	Section 5.3   Liabilities; Litigation	47
	Section 5.4   Taxes and Assessments	47
	Section 5.5   Other Agreements Defaults	48
	Section 5.6   Compliance with Laws	48
	Section 5.7   Condemnation	48
	Section 5.8   Access	48
	Section 5.9   Location of Borrower	48
	Section 5.10   ERISA Employees	48
	Section 5.11   Use of Loan Proceeds	49
	Section 5.12   Forfeiture	49
	Section 5.13   Tax Filings	49
	Section 5.14   Solvency	49
	Section 5.15   Full and Accurate Disclosure, No Material Adverse Change	49
	Section 5.16   Flood Zone	50
	Section 5.17   Single Purpose Entity/Separateness	50
	Section 5.18   Anti-Money Laundering/International Trade Law Compliance; Patriot Act	53
	Section 5.19   Intentionally Deleted	54
	Section 5.20   Operator Agreements	54
	Section 5.21   Physical Condition	54
	Section 5.22   Healthcare Representations	54
	 	 
	ARTICLE 6 FINANCIAL REPORTING	56
	 	 
	Section 6.1   Financial Statements	56
	Section 6.2   Additional Reports	58
	Section 6.3   Compliance Certificate	58
	Section 6.4   Accounting Principles	58
	Section 6.5   Other Information; Access.	58
	Section 6.6   Annual Budget	59
	Section 6.7   Books and Records/Audits	59
	 	 
	ARTICLE 7 COVENANTS	59
	 	 
	Section 7.1   Transfers or Encumbrance of Project	59
	Section 7.2   Taxes Utility Charges	60
	Section 7.3   Management	61
	Section 7.4   Operation; Maintenance; Inspection	62
	Section 7.5   Taxes on Security	62
	Section 7.6   Legal Existence, Name, Etc	62
	Section 7.7   Further Assurances	62
	Section 7.8   Estoppel Certificates Regarding Loan	63
	Section 7.9   Notice of Certain Events	63
	Section 7.10   Payment For Labor and Materials	63
	Section 7.11   Use of Proceeds and Revenues	63
	Section 7.12   Compliance with Laws and Contractual Obligations	64
	 	 

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	Section 7.13   Operating and Financial Covenants	64
	Section 7.14   Healthcare Covenants	64
	Section 7.15   Cooperation Regarding Licenses and Permits	66
	Section 7.16   Transactions With Affiliates	67
	Section 7.17   Alterations	67
	Section 7.18   Business and Operations	67
	Section 7.19   Severability of Covenants	67
	Section 7.20   Forfeiture	67
	Section 7.21   Patriot Act Compliance	68
	 	 
	ARTICLE 8 EVENTS OF DEFAULT	68
	 	 
	Section 8.1   Payments	68
	Section 8.2   Insurance	68
	Section 8.3   Prohibited Transfer	68
	Section 8.4   Covenants	68
	Section 8.5   Representations and Warranties	68
	Section 8.6   Other Encumbrances	68
	Section 8.7   Involuntary Bankruptcy or Other Proceeding	68
	Section 8.8   Voluntary Petitions, etc	69
	Section 8.9   [Reserved]	69
	Section 8.10   Certain Covenants	69
	Section 8.11   Financial Information	69
	Section 8.12   Default Under Guaranty	69
	Section 8.13   Criminal Act	69
	Section 8.14   Operating Lease	69
	Section 8.15   [Reserved]	69
	Section 8.16   Environmental Indemnity Agreement	69
	Section 8.17   Post-Closing Requirements	70
	Section 8.18   [Reserved]	70
	Section 8.19   Secured Hedge Agreement	70
	Section 8.20   Cash Management Agreement	70
	Section 8.21   Admission Restrictions.	70
	Section 8.22   Healthcare Investigation	70
	 	 
	ARTICLE 9 REMEDIES	70
	 	 
	Section 9.1   Remedies - Insolvency Events	70
	Section 9.2   Remedies - Other Events	70
	Section 9.3   Administrative Agent’s Right to Perform the Obligations	71
	Section 9.4   Special Right to Cure with Respect to Operational Defaults	71
	 	 
	ARTICLE 10 ADMINISTRATIVE AGENT	72
	 	 
	Section 10.1   Appointment and Duties	72
	Section 10.2   Binding Effect	74
	Section 10.3   Use of Discretion	74
	 	 

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	Section 10.4   Delegation of Rights and Duties	74
	Section 10.5   Liability	74
	Section 10.6   Administrative Agent Individually	75
	Section 10.7   Lender Credit Decision	76
	Section 10.8   Resignation of Administrative Agent	76
	Section 10.9   Additional Secured Parties	77
	Section 10.10   Reliance by Administrative Agent	77
	Section 10.11   Rights as a Lender	77
	Section 10.12   Standard of Care; Indemnification	78
	Section 10.13   Failure to Act	78
	Section 10.14   The Platform	78
	 	 
	ARTICLE 11 MISCELLANEOUS	79
	 	 
	Section 11.1   Notices	79
	Section 11.2   Amendments and Waivers	80
	Section 11.3   Assignments and Participations; Binding Effect	82
	Section 11.4   Renewal, Extension or Rearrangement	85
	Section 11.5   Indemnities	85
	Section 11.6   Debtor-Creditor Relationship	86
	Section 11.7   Right of Setoff; Sharing of Payments	86
	Section 11.8   Marshaling; Payments Set Aside	87
	Section 11.9   Limitation on Interest	88
	Section 11.10   Invalid Provisions	88
	Section 11.11   Reimbursement of Expenses	88
	Section 11.12   Approvals; Third Parties; Conditions	89
	Section 11.13   Administrative Agent and Lenders Not in Control; No Partnership	90
	Section 11.14   Contest of Certain Claims	90
	Section 11.15   Time of the Essence	91
	Section 11.16   Successors and Assigns	91
	Section 11.17   Waivers	91
	Section 11.18   Cumulative Rights	91
	Section 11.19   [Intentionally Deleted]	91
	Section 11.20   Singular and Plural	91
	Section 11.21   Exhibits and Schedules	91
	Section 11.22   Titles of Articles, Sections and Subsections	92
	Section 11.23   Promotional Material	92
	Section 11.24   Survival	92
	Section 11.25   WAIVER OF JURY TRIAL	92
	Section 11.26   Waiver of Punitive or Consequential Damages	94
	Section 11.27   Governing Law	94
	Section 11.28   Entire Agreement	95
	Section 11.29   Counterparts	95
	Section 11.30   Consents and Approvals	95
	Section 11.31   Effectiveness of Facsimile Documents and Signatures	95
	Section 11.32   Venue	95
	Section 11.33   Important Information Regarding Procedures for Requesting Credit	96
	 	 

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	Section 11.34   Method of Payment	96
	Section 11.35   Non-Public Information; Confidentiality; Disclosure	96
	Section 11.36   Post-Closing Obligations of Borrower	96
	Section 11.37   Release and Waiver Regarding Special Audits	96
	Section 11.38   Component Notes	97
	Section 11.39   Waivers	98
	Section 11.40   HUD Engagement; Eligibility	98
	 	 
	ARTICLE 12 LIMITATIONS ON LIABILITY	98
	 	 
	Section 12.1   Limitation on Liability	98
	Section 12.2   Limitation on Liability of Lender’s Officers, Employees, etc	101

 

Exhibits and Schedules

 

	Exhibit A	Description of the Project
	Exhibit B	Loan Commitments
	Exhibit C	Form of Assignment and Assumption
	Schedule 2.1	Conditions Precedent to Funding
	Schedule 2.7	Sources and Uses
	Schedule 5.1	Organizational Information; Organizational Chart
	Schedule 6.2	Form of Compliance Certificate
	Schedule 11.36	Post-Closing Obligations

 

 

 

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LOAN AGREEMENT

 

This Loan Agreement
(this “Agreement”) is entered into as of July 17, 2017, by and among CAPITAL ONE, NATIONAL ASSOCIATION
(“CONA”), as administrative agent and collateral agent for the Lenders (as defined herein) (in such
capacity and together with its successors and permitted assigns, the “Administrative Agent”), THE PARTIES
WHO ARE OR HEREAFTER BECOME PARTIES TO THIS AGREEMENT as Lenders (together with their successors and permitted assigns, each a
“Lender” and collectively, the “Lenders”), and SUMMIT CHANDLER, LLC,
a Delaware limited liability company (“Borrower”).

 

ARTICLE
1

DEFINITIONS

 

Section 1.1          
Certain Definitions. As used herein, the following terms have the meanings
indicated:

 

“Account
Debtor” means “account debtor”, as defined in Article 9 of the UCC, and any other obligor in respect
of an Account.

 

“ACH”
has the meaning assigned in Section 2.6(c).

 

“ACH Authorization
Form” means the form to be executed by Borrower authorizing ACH debits from Borrower’s account designated therein
for the payment of Debt Service and escrow payments required under Section 2.6 hereof.

 

“Adjusted
Expenses” means actual operating expenses related to the Project, excluding any rent and interest paid and depreciation
recorded by Operating Tenant, on a stabilized accrual basis for the period in question (or if no period is specified, then for
the most current previous twelve (12) month period) (as the same may be reasonably adjusted by Administrative Agent), including:
(a) recurring expenses as determined under GAAP, (b) real estate taxes, (c) management fees (whether paid or not) in
an amount not less than five percent (5%) of effective gross income (or the actual management fee paid, if higher) and
(d) a replacement reserve (whether reserved or not) of not less than Three Hundred Fifty and No/100 Dollars ($350.00) per
Residential Unit per annum.

 

“Adjusted
Net Operating Income” or “ANOI” means annualized Adjusted Revenue less Adjusted Expenses,
based upon the financial reports provided by Borrower under Article 6 and approved by Administrative Agent in its reasonable
discretion.

 

“Adjusted
Revenue” means revenues generated by the Operators at the Project for the period in question (and if none specified,
then for the most current twelve (12) months), as determined under GAAP, but excluding (a) nonrecurring income and non-property
related income (as determined by Administrative Agent in its sole discretion) and income from tenants that is classified as
“bad debt” under GAAP, and (b) late fees and interest income; provided, however, if actual occupancy of the Project
exceeds 95%, Adjusted Revenue shall be proportionately reduced assuming an occupancy of 95%. If the Project participates in Medicare
or Medicaid, Adjusted Revenue may be adjusted by Administrative Agent to account for federal or state changes in Medicare and Medicaid
rates, as applicable.

 

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“Administrative
Agent” has the meaning assigned in the preamble to this Agreement.

 

“Affected
Lender” has the meaning assigned in Section 2.13(a).

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls or is Controlled
by or is under common Control with such Person or is a director or officer of such Person or of an Affiliate of such Person. Each
Borrower Party shall be deemed an Affiliate of Borrower.

 

“Affiliated
Manager” means any property manager in which Borrower, or any Affiliate of Borrower has, directly or indirectly,
any legal, beneficial or economic interest.

 

“Agreement”
means this Loan Agreement, as amended, restated, supplemented, or otherwise modified from time to time.

 

“Anti-Terrorism
Laws” has the meaning assigned in Section 5.18(f).

 

“Application”
has the meaning assigned in Section 11.40.

 

“Approved
Fund” means, with respect to Administrative Agent or any Lender, any Person (other than a natural Person) that
(a) is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions
of credit in the ordinary course of its business and (b) is advised or managed or co-managed by (i) Administrative Agent
or such Lender, (ii) any Affiliate of Administrative Agent or such Lender or (iii) any Person (other than an individual) or
any Affiliate of any Person (other than an individual) that administers or manages Administrative Agent or such Lender.

 

“Approved
Insurer” means any insurer (other than Medicaid/Medicare/TRICARE) as may be approved by Administrative Agent from
time to time in its sole discretion.

 

“Assignment
and Assumption” means an assignment and assumption agreement duly executed by the parties thereto in connection with
the assignment of all or any portion of the Loan in accordance with Section 11.3, in the form attached as Exhibit
C hereto.

 

“Assignment
of Hedge Agreement” means any collateral assignment by Borrower in favor of Administrative Agent of any Hedge Agreement
obtained by Borrower in connection with the Loan, as the same may be amended, restated, supplemented and otherwise modified from
time to time.

 

“Assignment
of Ownership Interests” means the Ownership Pledge, Assignment of Membership/Partnership Interests and Security Agreement,
executed by the sole member of Borrower for the benefit of Administrative Agent (on behalf of the Lenders), and pertaining to all
of the membership/partnership interests in Borrower, as amended, restated, supplemented, or otherwise modified from time to time.

 

“ASTM”
means the American Society for Testing and Materials.

 

“Award”
has the meaning assigned in Section 3.3.

 

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“Bankruptcy Party”
has the meaning assigned in Section 8.7.

 

“Bank Secrecy
Act” means the Bank Secrecy Act, 31 U.S.C. Section 5311, et seq.

 

“Base Rate”
means the rate of interest from time to time announced by CONA at its principal office as its prime commercial lending rate, it
being understood that such prime commercial rate is a reference rate and does not necessarily represent the lowest or best rate
being charged by CONA to any customer and such rate is set by CONA based upon various factors including CONA’s costs and
desired return, general economic conditions and other factors. Any change in such prime rate announced by CONA shall take effect
at the opening of business on the day specified in the announcement of such change.

 

“Borrower”
has the meaning assigned in the preamble to this Agreement.

 

“Borrower
Formation Documents” has the meaning assigned in Section 5.1(b).

 

“Borrower
Party” means Borrower, any Guarantor, any general partner of Borrower, and any general partner in any partnership
that is a general partner of Borrower, any managing member of Borrower, any managing member in any limited liability company that
is a managing member of Borrower, and any member of Borrower that is party to an Assignment of Membership Interests.

 

“Borrower’s
Knowledge” means the knowledge of Borrower after diligent inquiry including review of existing reports (e.g., environmental
and property condition reports) regarding the Project, inquiry of the current operator of the Project.

 

“Business
Associate Agreement” means the Business Associate Agreement dated as of the Closing Date among Administrative Agent
and Operators.

 

“Business
Day” means a day other than a Saturday, a Sunday, or a legal holiday on which national banks located in the State
of Illinois are not open for general banking business. If such day relates to the determination of the Libor Rate, “Business
Day” means any such day on which dealings in Dollar deposits are conducted by and between banks in the London interbank Eurodollar
market.

 

“Cash Management
Agreement” means any agreement existing as of the date hereof or from time to time during the term of the Loan among
Administrative Agent (on behalf of itself and the Lenders), Borrower and a bank approved by Administrative Agent regarding the
establishment and operation of a lockbox account, blocked account or similar account into which rents and other revenue arising
from the Project are to be deposited, and includes the Deposit Account Control Agreement, as the same may be amended, restated,
supplemented, or otherwise modified from time to time.

 

“Casualty”
has the meaning assigned in Section 3.2.

 

“Census
Report” means, with respect to the Project, a report which records the number of licensed beds for the Project, as
well as the number of patients and patient census days by Third Party Payor source.

 

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“Change
in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption of any
law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not
having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued
in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements,
the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities,
in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the
date enacted, adopted, issued or implemented.

 

“Closing
Date” means the date the Loan is funded by the Lenders.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

 

“Collateral”
means all real and personal property with respect to which Liens in favor of Administrative Agent (for the benefit of Lenders)
are executed, identified or purported to be granted pursuant to the Loan Documents and which secure the Obligations described in
the Loan Documents and the Secured Hedge Agreement, and includes all of Borrower’s right, title and interest in, to and under
all personal property, real property, and other assets that arise from, are used in connection with, are related to or are located
at the Project, whether now owned by or owing to, or hereafter acquired by or arising in favor of Borrower (including all personal
property and other assets owned or acquired under any trade names, styles or derivations thereof), and whether owned or consigned
by or to, or leased from or to, Borrower, and regardless of where located.

 

“Collateral
Assignment” means the Collateral Assignment, Subordination and Agreement Regarding Management Agreement executed
by Operating Tenant, Property Manager and Administrative Agent, as amended, restated, supplemented, or otherwise modified from
time to time.

 

“Commercial
Lease” means all leases and subleases of the Project or any part thereof now existing or hereafter executed in accordance
with the terms hereof but excluding the (a) Residential Leases and (b) the Operating Lease.

 

“Compliance
Authority” has the meaning assigned in Section 5.18(f).

 

“Compliance
Certificate” means the compliance certificate in the form of Schedule 6.2 attached hereto.

 

“CON”
means a certificate of need or similar certificate, license or approval issued by the State Regulator for the requisite number
of Residential Units in the Project.

 

“CONA”
has the meaning assigned in the introductory paragraph hereof.

 

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“CONA Agency
Lender” means Capital One Multifamily.

 

“Condemnation”
has the meaning assigned in Section 3.3.

 

“Contest”
has the meaning assigned in Section 12.1(b).

 

“Contract
Rate” has the meaning assigned in Section 2.2.

 

“Control”
or “controls” means, when used with respect to any specified Person, the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interests,
by contract, by its position with such Person as general partner or managing member, or otherwise; and the terms “Controlling”
and “Controlled” have the meanings correlative to the foregoing.

 

“Covered
Entity” has the meaning assigned in Section 5.18(f).

 

“Debt”
means, for any Person, without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under
a letter of credit, or for the deferred purchase price of property for which such Person or any of its assets is liable, (b) all
unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person or any of its assets
would be liable or subject, if such amounts were advanced under the credit facility, (c) all amounts required to be paid by
such Person as a guaranteed payment to partners or a preferred or special dividend, including any mandatory redemption of shares
or interests, (d) all indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases
that constitute capital leases for which such Person or any of its assets is liable or subject, and (f) all obligations of
such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person
or any of its assets is liable or subject contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which
obligations such Person otherwise assures a creditor against loss.

 

“Debt Service”
means, for any particular period, the aggregate interest, fixed principal (if applicable), and other payments due during such period
under the Loan and under any other permitted Debt relating to the Project expressly approved by Administrative Agent (but not including
payments applied to escrows or reserves required by Administrative Agent or the Lenders). If Debt Service for a period of twelve
(12) months (or other calculation period) is not available, Administrative Agent shall annualize the Debt Service for such
period of time as is available.

 

“Debt Service
Coverage Ratio” means the ratio of (a) Adjusted Net Operating Income for the Project for a particular period,
to (b) Debt Service for such period.

 

“Default
Rate” means the lesser of (a) the maximum rate of interest allowed by applicable law, and (b) five percent
(5%) per annum in excess of the Contract Rate.

 

“Defaulting
Lender” means a Lender that (a) has given written notice to Borrower, Administrative Agent, or any other Lender that
it will fail to fund any amounts to be funded by such Lender after the Closing Date under this Agreement or otherwise fails to
fund such amount under this Agreement; (b) is in default for failing to make payments under one or more syndicated

 

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credit facilities (unless subject to a
good faith dispute); (c) has declared (or the holding company of such Lender has declared) bankruptcy or is otherwise involved
in a liquidation proceeding and Administrative Agent has determined such Lender is reasonably likely to become a Defaulting Lender
or (d) is the subject of a receivership.

 

“Deposit
Account” means a “deposit account” (as defined in Article 9 of the UCC), an investment
account, or other account in which funds are held or invested for credit to or for the benefit of Borrower.

 

“Deposit
Account Bank” means each bank in which Borrower maintains a Deposit Account.

 

“Deposit
Account Control Agreement” means an agreement, in form and substance satisfactory to Administrative Agent, among
Administrative Agent, Borrower and the Deposit Account Bank, which agreement provides that (a) such bank shall comply with
instructions originated by Administrative Agent directing disposition of the funds in such Deposit Account without further consent
by Borrower, and (b) such bank shall agree that it shall have no Lien on, or right of setoff or recoupment against, such Deposit
Account or the contents thereof, other than in respect of commercially reasonable fees and other items, in each such case expressly
consented to by Administrative Agent, and containing such other terms and conditions as Administrative Agent may require, as amended,
restated, supplemented, or otherwise modified from time to time. The initial Deposit Account Control Agreements are the Deposit
Account Control Agreement (“Shifting Control”) of even date herewith among Borrower, Administrative Agent and Pacific
Western Bank.

 

“Determination
Date” has the meaning assigned in Section 7.13.

 

“Dollars”
and the sign “$” each mean the lawful money of the United States of America.

 

“Electronic
Transmission” means any process of communication that does not directly involve the physical transfer of paper and
that is suitable for the retention, retrieval and reproduction of information by the recipient.

 

“Environmental
Indemnity Agreement” means that certain Environmental Indemnity Agreement dated of even date hereof in favor of Administrative
Agent (for itself and on behalf of the Lenders) executed by Borrower and Guarantor with respect to the Project, as amended,
restated, supplemented, or otherwise modified from time to time.

 

“Environmental
Laws” means any federal, state or local law (whether imposed by statute, ordinance, rule, regulation, administrative
or judicial order, or common law), now or hereafter enacted, governing health, safety, industrial hygiene, the environment or natural
resources, or Hazardous Materials, including such laws (a) governing or regulating the use, generation, storage, removal,
recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous Materials, (b) governing
or regulating the transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental
condition of such property, or (c) requiring notification or disclosure of releases of Hazardous Materials or other environmental
conditions whether or not in connection with a transfer of title to or interest in property.

 

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“ERISA”
means the Employment Retirement Income Security Act of 1974, as amended from time to time, and all rules and regulations promulgated
thereunder.

 

“Escrowed
Funds” means, collectively, the Replacement Escrow Fund, the Insurance Impound, the Tax Impound and the Operating
Lease Fund.

 

“Event
of Default” has the meaning assigned in Article 8.

 

“Excluded
Taxes”  has the meaning assigned in Section 2.16(a).

 

“Exit Fee”
means, with respect to any repayment or prepayment of principal of the Indebtedness, including, without limitation, any prepayment
as a result of the acceleration of the Indebtedness after an Event of Default, an amount equal to two percent (2.0%) of the amount
of principal amount of the Indebtedness being repaid or prepaid.

 

“First
Extended Maturity Date” means January 17, 2019.

 

“Extension
Request” has the meaning assigned in Section 2.3(c).

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version of FATCA made
after the Closing Date) and any current or future regulations (whether final, temporary or proposed) or official interpretations
thereof.

 

“Federal
Bankruptcy Code” means Chapter 11 of Title II of the United States Code (11 U.S.C. § 101, et seq.), as amended.

 

“Federal
Flood Insurance” means, for any Improvements (including
any personal property Collateral) located in a Special Flood Hazard Area, Federal or private flood insurance reasonably satisfactory
to Administrative Agent, in either case, that (a) meets the requirements of FEMA and other applicable federal agencies, (b) includes
a deductible not to exceed $50,000 and (c) has a coverage amount equal to the lesser of (i) the insurable value of the buildings
and any personal property Collateral located on the Project as determined by Administrative Agent or (ii) the maximum policy limits
set under the National Flood Insurance Program.

 

“FEMA”
means the Federal Emergency Management Agency, a component of the U.S. Department of Homeland Security that administers the National
Flood Insurance Program.

 

“Financial
Institution” means a United States Financial Institution as defined in 31 U.S.C. 5312, as amended from time to time.

 

“FIRREA”
has the meaning assigned in Schedule 2.1.

 

“Forfeiture
Rights” means the right of any Governmental Authority or other Person to require the forfeiture of the property of
a Person.

 

“GAAP”
means generally accepted accounting principles of the Accounting Principles Board of the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board that are applicable on the date so indicated and consistently applied.

 

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“Government
Lists” means (i) the Specially Designated Nationals and Blocked Persons Lists maintained by OFAC, (ii) any other
list of terrorists, terrorist organizations or narcotics traffickers maintained pursuant to any of the Rules and Regulations of
OFAC that Administrative Agent notified Borrower in writing is now included in “Governmental Lists”, or (iii) any similar
lists maintained by the United States Department of State, the United States Department of Commerce or any other government authority
or pursuant to any Executive Order of the President of the United States of America that Administrative Agent notified Borrower
in writing is now included in “Governmental Lists”.

 

“Governmental
Approvals” means, collectively, all consents, licenses and permits and all other authorizations or approvals required
from any Governmental Authority to operate the Project.

 

“Governmental
Authority” means any federal, state, county or municipal government or political subdivision thereof, any governmental
or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body (including the State
Regulator), or any court, administrative tribunal, or public body.

 

“Guarantor”
means individually and collectively, as the context may require, Summit Healthcare REIT, Inc. and each other Person (excluding
another Borrower) who from time to time is party to a Recourse Guaranty Agreement or otherwise guarantees the Obligations or any
portion thereof.

 

“Hazardous
Materials” means (a) petroleum or chemical products, whether in liquid, solid, or gaseous form, or any fraction
or by-product thereof, (b) asbestos or asbestos-containing materials, (c) polychlorinated biphenyls (pcbs), (d) radon
gas, (e) underground storage tanks, (f) any explosive or radioactive substances, (g) lead or lead-based paint, (h) any
other substance, material, waste or mixture which is or shall be listed, defined, or otherwise determined by any Governmental Authority
to be hazardous, toxic, dangerous or otherwise regulated, controlled or giving rise to liability under any Environmental Laws,
(i) any excessive moisture, mildews, mold or other fungi in quantities and/or concentrations that could reasonably be expected
to pose a risk to human health or the environment, or negatively impact the value of the Project or (j) any elements, material,
compounds, mixtures, chemicals, wastes, pollutants, contaminants or substances known to cause cancer or reproductive toxicity,
that, because of its quantity, concentration or physical or chemical characteristics, exposure is limited or regulated by any Governmental
Authority having jurisdiction over human health and safety, natural resources or the environment, or which poses a significant
present or potential hazard to human health and safety, or to the environment, if released into the workplace or the environment.

 

“Healthcare
Investigations” means (a) any inquiries, investigations, probes, audits or proceedings by any Governmental Authorities
concerning the compliance of the business affairs, practices, licensing or reimbursement entitlements of Borrower, Guarantor or
any Operator with applicable Healthcare Laws (including inquiries involving the Comprehensive Error Rate Testing and any inquiries,
investigations, probes, audits or proceedings initiated by a Fiscal Intermediary/Medicare Administrative Contractor, Medicaid Integrity
Contractor, Recovery Audit Contractor, Program Safeguard Contractor, Zone Program Integrity Contractor, State Attorney General,
Office of Inspector General, U.S. Department of Health and Human Services, Department

 

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of Justice or similar governmental agencies
or contractors for such agencies), (b) any whistleblower suits, or suits brought by any third party or any patient, employee or
resident pursuant to federal or state “false claims acts” and Medicaid, Medicare or state fraud and/or abuse laws,
(c) any notice of violation of Healthcare Laws at a level that under Healthcare Laws requires the immediate or accelerated filing
of a plan of correction with a Governmental Authority and (d) any notice that the Project is to be added or has been added to the
CMS Special Focus Facility list.

 

“Healthcare
Laws” means (a) all applicable state and federal statutes, codes, ordinances, orders, rules, and regulations (i)
relating to health information (as defined at 45 C.F.R. 160.103 (“Protected Health Information”), including HIPAA,
as amended by HITECH and the respective rules and regulations promulgated thereunder, and all other applicable state and federal
laws regarding the privacy and security of Protected Health Information, (ii) accreditation standards of the State Regulator and
(iii) governing the establishment, construction, ownership, operation, licensure, use or occupancy of the Project or any part thereof
as an assisted living or other healthcare or senior living facility, including all conditions of participation pursuant to Medicare
and/or Medicaid certification; (b) 42 U.S.C. Section 1320a-7(b) (Criminal Penalties for Acts Involving Federal Health Care Programs),
commonly referred to as the “Federal Anti-Kickback Statute”; (c) 42 U.S.C. Section 1395nn (Limitation
on Certain Physician Referrals), commonly referred to as the “Stark Statute”; and (d) 31 U.S.C. Section
3729-33, and commonly referred to as the “False Claims Act”.

 

“Hedge
Agreement” means, collectively, any and all interest rate swap agreements, interest rate cap agreements, interest
rate collar agreements or other similar agreements designed to provide protection against fluctuations in interest rates or currency
exchange rates, now or hereafter entered into by or on behalf of Borrower pursuant to Section 2.9 of this Agreement,
as the same may be renewed, extended, amended or replaced from time to time.

 

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

 

“HIPAA
Compliance Plan” has the meaning assigned in Section 7.14(b).

 

“HIPAA
Compliance Date” has the meaning assigned in Section 7.14(b).

 

“HIPAA
Compliant” has the meaning assigned in Section 7.14(b).

 

“HITECH”
means the Health Information Technology for Economic and Clinical Health Act of 2009.

 

“HUD”
means The Department of Housing and Urban Development.

 

“HUD Loan
Financing” means a permanent take-out loan for the full principal amount of the Indebtedness obtained from HUD and
originated by CONA Agency Lender, and secured by the Project.

 

“Improvements”
means the buildings and other improvements now or hereafter located on the Land.

 

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“Indebtedness”
means all payment obligations of Borrower or any other Borrower Party to Administrative Agent or to any Lender under the Loan or
any of the Loan Documents, including any and all interest, whether or not accruing after the filing of any petition in bankruptcy
or the commencement of any insolvency, reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition
interest is allowed in any such proceeding.

 

“Indemnified
Matters” has the meaning assigned in Section 11.5.

 

“Indemnified
Person” has the meaning assigned in Section 11.5.

 

“Initial
Maturity Date” means July 17, 2018.

 

“Insurance
Impound” has the meaning assigned in Section 2.5.

 

“Insurance
Premiums” has the meaning assigned in Section 3.1(c).

 

“Land”
means, collectively, the real property described in Exhibit A attached hereto.

 

“Lease
Party” means the party to any Lease that grants to the other party the right to use or occupy any portion of the
Project, whether it be Borrower or an Operator.

 

“Leases”
means, collectively, the Commercial Leases and the Residential Leases, all amendments, modifications or supplements thereto.

 

“Lender”
has the meaning assigned in the preamble to this Agreement. In addition to the foregoing, solely for the purpose of identifying
the Persons entitled to share in payments and collections from the Collateral and the benefit of any guarantees of the Obligations
as more fully set forth in this Agreement and the other Loan Documents, the term “Lender” shall include Secured Hedge
Providers. For the avoidance of doubt, any Person to whom any Obligations in respect of a Secured Hedge Agreement are owed and
which does not hold any portion of the Loan or any Loan Commitment hereunder shall not be entitled to any other rights as a “Lender”
under this Agreement or the other Loan Documents.

 

“Lender
Transferee” has the meaning assigned in Section 11.3(b).

 

“Liabilities”
means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions,
costs, fees, taxes, commissions, charges, disbursements and expenses, in each case of any kind or nature (including interest accrued
thereon or as a result thereof and fees, charges and disbursements of financial, legal and other advisors and consultants), whether
joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise.

 

“Libor
Breakage Amount” means an amount, as reasonably calculated by any Lender, equal to the amount of any losses, expenses
and liabilities (including any loss (including interest paid) and lost opportunity cost in connection with the re-employment of
such funds) that such Lender or any of its Affiliates may sustain as a result of any payment of the Loan (or any portion thereof) on
any day that is not the last day of the Libor Interest Period applicable thereto (regardless of the source of such prepayment and
whether voluntary, by acceleration or otherwise).

 

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“Libor
Interest Period” means (a) the period from the Closing Date through the last day of the month in which the Closing
Date occurs, and (b) thereafter, each period commencing on the first day of a calendar month and ending on the last day of
such month; provided, however, that any Libor Interest Period that would otherwise extend beyond the Maturity Date of the Loan
shall end on the Maturity Date. For purposes of example, a Libor Interest Period commencing January 1, 2018, would end on January
31, 2018.

 

“Libor
Rate” means, with respect to each Libor Interest Period, the rate for a Libor Reset Date which will be the rate determined
by Administrative Agent to be the offered rate for deposits in Dollars for the applicable Libor Interest Period appearing on the
Reuters Screen LIBOR01 page as of 11:00 a.m. (London time) two (2) Business Days prior to such Libor Reset Date. If such
rate does not appear on the Reuters Screen LIBOR01 page at such time, the “Libor Rate” shall be determined
by reference to such other comparable publicly available service for displaying the offered rate for deposit in Dollars in the
London interbank market as may be selected by Administrative Agent and, in the absence of availability, such other method to determine
such offered rate as may be selected by Administrative Agent in its sole discretion, provided, that if at any time the Libor Rate,
as determined hereby, would be less than zero, it shall be deemed to be zero for purposes of this Agreement.

 

“Libor
Reset Date” means, commencing on September 1, 2017, and continuing thereafter, the first day of each Libor Interest
Period.

 

“Lien”
means any interest, or claim thereof, in, on or encumbering the Project that secures an obligation owed to, or a claim by, any
Person other than the owner of the Project, whether such interest is based on common law, statute or contract, including the lien
or security interest arising from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement, conditional sale
or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include
reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title
exceptions and encumbrances affecting the Project.

 

“Loan”
means the loan made by the Lenders to Borrower under this Agreement, together with all other amounts evidenced or secured by the
Loan Documents.

 

“Loan Commitment”
means, with respect to each Lender, the commitment of such Lender to make its Pro Rata Share of the Loan to Borrower, which commitment
is in the amount set forth opposite such Lender’s name on Exhibit B under the caption “Lender’s
Loan Commitment.”

 

“Loan Documents”
means: (a) this Agreement, (b) the Notes, (c) the Mortgage, (d) the UCC financing statements, (e) the
Collateral Assignment, (f) the Business Associate Agreement, (g) the Recourse Guaranty Agreement, (h) Assignment
of Ownership Interests, (i) the Cash Management Agreement, (j) the Secured Hedge Agreements, if any, (k) all other
documents evidencing, securing, governing or otherwise pertaining to the Loan, (l) any letter of credit provided to Administrative
Agent (for itself and on behalf of the Lenders) in connection with the Loan, (m) each document or agreement that states
that it is a “Loan Document” and (n) all amendments, modifications, renewals, substitutions and replacements of
any of the foregoing;

 

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provided however, in no event shall the
term “Loan Documents” include the Environmental Indemnity Agreement.

 

“Loan Year”
means (a) for the first Loan Year, the period commencing on the Closing Date and ending on the last day of the month in which
the first anniversary of the Closing Date occurs (unless the Closing Date is on the first day of a month, in which case the first
Loan Year shall commence on such Closing Date and end on the date twelve (12) months after the last day of the month immediately
preceding the Closing Date) and (b) each consecutive twelve month calendar period after the first Loan Year until the Maturity
Date.

 

“Management
Agreement” means (a) that certain agreement between Operating Tenant and Property Manager for the management
of the Project in the form approved by Administrative Agent on or before the Closing Date, (b) any subsequent management agreement,
in form and substance approved by Administrative Agent in accordance with Section 7.3, between Operating Tenant and Property
Manager or Borrower and Property Manager and (c) all amendments, restatements, modifications and supplements to a Management Agreement
approved by Administrative Agent in accordance with Section 7.3.

 

“Material
Action” means to file any insolvency, or reorganization case or proceeding, to institute proceedings to have any
Borrower Party be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law, to seek any
relief under any law relating to relief from debts or the protection of debtors, to consent to the filing or institution of bankruptcy
or insolvency proceedings against any Borrower Party, to file a petition seeking, or consent to, reorganization or relief with
respect to any Borrower Party under any applicable federal or state law relating to bankruptcy or insolvency, to seek or consent
to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian, or any similar official of or for any
Borrower Party or a substantial part of its respective property, to make any assignment for the benefit of creditors of any Borrower
Party, the admission in writing by any Borrower Party of such Person’s inability to pay its debts generally as they become
due, or to take action in furtherance of any of the foregoing.

 

“Material
Adverse Change” or “material adverse change” means, in Administrative Agent’s reasonable
discretion, the business prospects, operations or financial condition of a Person or property has changed in a manner which could
impair the value of the Collateral, prevent timely repayment of the Loan or otherwise prevent the applicable Person from timely
performing any of its material obligations under the Loan Documents or Environmental Indemnity Agreement.

 

“Material
Adverse Effect” or “material adverse effect” means, in Administrative Agent’s reasonable
discretion, a material adverse effect on (a) the condition (financial or otherwise), operations, business, assets, liabilities
or prospects of Borrower or any other Borrower Party, (b) the ability of Borrower, or any other Borrower Party, to perform
any material obligation required of them under the Loan Documents, (c) the rights and remedies of Administrative Agent and
the Lenders under the Loan Documents, (d) the ability of the Operators to operate all or a material portion of the Project
or (e) the ability of Operating Tenant to make the required rental payments under the Operating Lease.

 

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“Maturity
Date” means, as applicable, the earlier of (a) the Scheduled Maturity Date and (b) the date on which the
Obligations are required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents.

 

“Medicaid”
means Title XIX of the Social Security Act, which was enacted in 1965 to provide a cooperative federal-state program for low income
and medically indigent persons, which is partially funded by the federal government and administered by the states.

 

“Medicare”
means Title XVIII of the Social Security Act, which was enacted in 1965 to provide a federally funded and administered health program
for the aged and certain disabled persons.

 

“Mortgage”
means, collectively (whether one or more), as applicable, the Mortgage(s), Assignment of Leases and Rents, Security Agreement and
Fixture Filing, the Deed(s) of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, or the Deed(s) to
Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, each executed by Borrower in favor of Administrative
Agent (for itself and on behalf of the Lenders), covering the Project, as amended, restated, supplemented, or otherwise modified
from time to time.

 

“National
Flood Insurance Program” means the program created by the U.S. Congress pursuant to the National Flood Insurance
Act of 1968 and the Flood Disaster Protection Act of 1973, as revised by the National Flood Insurance Reform Act of 1994, and as
the same may be further amended, modified or supplemented, and including the regulations issued thereunder, that, among other things,
mandates the purchase of flood insurance to cover real property improvements and contents located in Special Flood Hazard Areas
in participating communities and may provide protection to property owners through a federal insurance program.

 

“Non-Conforming
Policy” has the meaning assigned in Section 3.1.

 

“Non-U.S.
Lender Party” means each of Administrative Agent, the Lenders and each participant, in each case that is not a U.S.
Person.

 

“Note”
and “Notes” means, respectively, (a) each promissory note executed at any time by Borrower and payable
to the order of a Lender in evidence of the Loan of such Lender and (b) all such promissory notes, together with all renewals,
modifications and extensions thereof and any replacement or additional notes executed by Borrower pursuant to the terms hereof.

 

“Obligations”
means the Indebtedness and all other Obligations of Borrower hereunder and under the other Loan Documents, including any obligations
under any Secured Hedge Agreements. Without limiting the generality of the foregoing, Obligations shall include any other debts,
liabilities or obligations owing to Administrative Agent, any Lender or any Lender Affiliate in connection with any Secured Hedge
Agreements; provided, however, than any obligations with respect to Secured Hedge Agreements that are owing to a (i) Lender or
an Affiliate of a Lender other than Administrative Agent or its Affiliates or (ii) a Secured Hedge Provider which is not a Lender
or an Affiliate of a Lender shall only constitute “Obligations” hereunder if the applicable Secured Hedge Agreement
was entered into on or after the Closing Date and the applicable Lender, Affiliate of a Lender or Secured Hedge Provider gave written
notice to Administrative Agent of the same within 10 days thereafter.

 

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“OFAC”
means the Office of Foreign Assets Control, Department of the Treasury.

 

“Operating
Lease” means that certain Lease, dated as of the Closing Date, between Borrower, as landlord, and Operating Tenant,
as tenant, as the same may be amended, restated, supplemented and otherwise modified from time to time.

 

“Operating
Lease Payments” has the meaning assigned in Section 4.5.

 

“Operating
Lease Subordination Agreement” means those certain Subordination, Non-Disturbance and Attornment Agreement, dated
as of the Closing Date, executed by Operating Tenant, Borrower and Administrative Agent (on behalf of Lenders), as the same may
be, in each case, amended, restated, supplemented and otherwise modified from time to time.

 

“Operating
Tenant” means (a) CSL – Chandler, LLC, an Oregon limited liability company, and (b)  any successor
operating tenant of the Project approved by Administrative Agent or expressly permitted under this Agreement.

 

“Operational
Default” has the meaning assigned in Section 9.4.

 

“Operational
Default Forbearance Period” has the meaning assigned in Section 9.4.

 

“Operator”,
individually, and “Operators”, collectively, means the applicable Property Manager, Operating Tenant
and/or operator under any Operator Agreement, approved by Administrative Agent and any successor to such Operator approved by Administrative
Agent. If there exists a Property Manager and an Operating Tenant, then “Operator” shall refer to all such entities,
collectively and individually as applicable and as the context may require.

 

“Operator
Agreements” means, collectively, the Operating Lease, the Management Agreement and/or other similar agreement regarding
the management and operation of the Project between Borrower and Operating Tenant, and Operating Tenant and Property Manager and
“Operator Agreement” means any one of the Operator Agreements.

 

“Other
Taxes” has the meaning assigned in Section 2.16(c).

 

“Participant
Register” has the meaning assigned in Section 11.3(b).

 

“Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) Act of 2001 (Public Law 107-56), as the same may be amended from time to time, and corresponding provisions
of future laws related thereto.

 

“Payment
Date” means the first (1st) day of each calendar month during the term of the Loan.

 

“Permit”
means, with respect to any Person, any permit, approval, authorization, license, registration, certificate (including certificates
of occupancy), concession, grant, franchise, variance or permission from, and any other contractual obligations with, any Governmental
Authority, in

 

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each case whether or not having the force
of law and applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Permitted
Exceptions” (i) the Liens created by the Loan Documents and any Secured Hedge Agreement, (ii) all Liens
and other matters disclosed in the Title Policy, (iii) Liens, if any, for Taxes or Other Charges not yet due and payable and
not delinquent, (iv) any workers’, mechanics’ or other similar Liens on the Project provided that any such Lien
is bonded (per Requirements of Law that result in the release of such Lien as against the Project) or discharged within thirty
(30) days after Borrower first receives notice of such Lien and (v) such other title and survey exceptions as Administrative
Agent approves in writing in Administrative Agent’s discretion.

 

“Permitted
Transfer” means (a) a Transfer expressly permitted under Section 7.1(c) or (b) a Prohibited
Transfer approved by Administrative Agent.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision
thereof, or any other form of entity.

 

“Platform”
means any electronic system, including Intralinks®, ClearPar® and any other internet or extranet-based site, whether
such electronic system is owned, operated or hosted by Administrative Agent, any of their respective Related Parties or any other
Person, providing for access to data protected by passcodes or other security system.

 

“Post-Closing
Obligations” has the meaning assigned in Section 11.36.

 

“Potential
Default” means the occurrence of any event or condition which, with the giving of notice, the passage of time, or
both, would constitute an Event of Default.

 

“Primary
Licenses” means, with respect to the Project or Person operating the Project, as the case may be, the CON, permit
or license to operate as an assisted living, memory care or skilled nursing facility, as applicable, and each Medicaid/Medicare/TRICARE
provider agreement.

 

“Prohibited
Person” means any Person:

 

(a)       listed
in the Annex to, or otherwise subject to the provisions of, the Executive Order No. 13224 on Terrorist Financing, effective September
24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (the “Executive Order”);

 

(b)       that
is owned or controlled by, or acting for or on behalf of, any person or entity that is listed to the Annex to, or is otherwise
subject to the provisions of, the Executive Order;

 

(c)       with
whom any Lender is prohibited from dealing or otherwise engaging in any transaction by any terrorism or money laundering law, including
the Executive Order;

 

    	LOAN AGREEMENT – Page 15
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(d)       who
is known to Borrower to commit, threaten or conspire to commit or support “terrorism”, as defined in the Executive
Order;

 

(e)       that
is named as a “specially designated national and blocked person” on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control at its official website, http://www.treas.gov.ofac/t11sdn.pdf or at any replacement
website or other replacement official publication of such list;

 

(f)       that
is named on the consolidated list of asset freeze targets by the United Nations, the European Union and the United Kingdom (maintained
by the Asset Freezing Unit of the United Kingdom Treasury: http://www.hm-treasury.gov.uklfinancialsanctions);

 

(g)       that
is named on the most current lists pertaining to EU-Regulations Nos. 2580/2001 and/or 881/2002;

 

(h)       that
violates any of the criminal laws of the United States of America or of any of the several states, or commits any act that would
be a criminal violation if committed within the jurisdiction of the United States of America or any of the several states, relating
to terrorism or the laundering of monetary instruments, including any offense under (i) the criminal laws against terrorism; (ii)
the criminal laws against money laundering, (iii) the Bank Secrecy Act, as amended, (iv) the Money Laundering Control Act of 1986,
as amended, (v) the Trading with the Enemy Act, as amended, (vi) the International Emergency Economic Powers Act or the (vii) Patriot
Act; or

 

(i)       who
is known to Borrower to be an Affiliate of or affiliated with a Person listed above.

 

“Prohibited
Transfer” has the meaning assigned in Section 7.1(a).

 

“Project”
means the Land and Improvements and all related facilities, amenities, fixtures, and personal property owned by Borrower. The Project
is more particularly described on Exhibit A hereto.

 

“Project
Yield” means the ratio, as of any particular date, expressed as a percentage, of (a) annualized Adjusted Net
Operating Income from the Project, as determined by Administrative Agent as of such date, to (b) the outstanding principal
balance of the Loan as of such date.

 

“Property
Condition Report” has the meaning assigned in Schedule 2.1.

 

“Property
Manager” means (a) Compass Senior Living, LLC, an Oregon limited liability company, the manager of the Project
approved by Administrative Agent and (b) any subsequent manager of the Project approved by Administrative Agent following
the Closing Date pursuant to Section 7.3.

 

“Pro Rata
Outstandings” means, with respect to any Lender at any time, the outstanding principal amount of the Loan owing to
such Lender at such time.

 

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“Pro Rata
Share” means, with respect to any Lender at any time (a) on or prior to the Closing Date, the percentage obtained
by dividing (i) the Loan Commitment of such Lender then in effect by (ii) the sum of the Loan Commitments and (b) after
the making of the Loan, the percentage obtained by dividing (i) the Pro Rata Outstandings of such Lender by (ii) the
total outstanding principal amount of the Loan; provided, however, that, if there are no Loan Commitments and no Pro Rata Outstandings,
such Lender’s Pro Rata Share shall be determined based on the Pro Rata Share most recently in effect, after giving effect
to any subsequent assignment and any subsequent non-pro rata payments of any Lender pursuant to the terms of this Agreement.

 

“Prorated
Interest” has the meaning assigned in Section 2.4(b).

 

“Recipient”
has the meaning assigned in Section 11.37.

 

“Recourse
Guaranty Agreement” means, collectively, (a) each Guaranty of Recourse Obligations executed and delivered by
a Guarantor on the Closing Date; (b) each Substitute Guaranty and (c) each additional guaranty of recourse obligations
executed and delivered to Administrative Agent by each Person who from time to time becomes a Guarantor hereunder, as the same
may be, in each case, amended, restated, supplemented, or otherwise modified from time to time.

 

“Register”
has the meaning specified in Section 2.12(b).

 

“Related
Persons” means, with respect to any Person, each of such Person’s Affiliates, officers, directors, employees,
agents, trustees, representatives, attorneys, accountants, and each insurance, environmental, legal, financial and other advisor
and other consultants and agents of or to such Person or any of its Affiliates.

 

“Replacement
Escrow Fund” has the meaning assigned in Section 2.5.

 

“Reportable
Compliance Event” has the meaning assigned in Section 5.18(f).

 

“Reports”
has the meaning assigned in Section 11.37.

 

“Required
Lenders” means, as to any consent, approval, authorization, direction or determination required to be given or made
by the Lenders, the Lenders holding fifty percent (50%) of the aggregate outstanding principal amount of the Loan or, if the Loan
has not been made, fifty percent (50%) of the aggregate Loan Commitments.

 

“Requirements
of Law” means, with respect to any Person or Project, collectively, the common law and all federal, state, local,
foreign, multinational or international laws, statutes, codes, treaties, standards, rules and regulations, guidelines, ordinances,
orders, judgments, writs, injunctions, decrees (including administrative or judicial precedents or authorities) and the interpretation
or administration thereof by, and other determinations, directives, requirements or requests of, any Governmental Authority, in
each case whether or not having the force of law and that are applicable to or binding upon such Person or Project or any other
property or to which such Person or any of its property is subject, as the same may be amended from time to time.

 

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“Residential
Leases” means, collectively, occupancy and admission agreements (including all patient and resident care agreements
and service agreements which include an occupancy agreement) covering the Residential Units.

 

“Residential
Units” means, collectively, (a) each skilled nursing bed, Alzheimer’s unit and/or assisted living unit
authorized under the Primary Licenses and (b) each independent living unit comprising the Project.

 

“Restoration
Threshold” means, as of any date, the lesser of (a) two and one-half percent (2.5%) of the replacement
value of the Improvements at the Project as of such date, and (b) $500,000.00.

 

“Restricted
Party” means Borrower, any Affiliated Manager, Guarantor or any shareholder, partner, member or non-member manager
of Borrower or of any Affiliated Manager, or of any direct or indirect legal or beneficial owner of Borrower, of any Affiliated
Manager or of any shareholder, partner, member or any non-member manager hereof.

 

“Sanctioned
Country” has the meaning assigned in Section 5.18(f).

 

“Sanctioned
Person” has the meaning assigned in Section 5.18(f).

 

“Scheduled
Maturity Date” means the Initial Maturity Date or, if the Initial Maturity Date has been extended in accordance with
Section 2.3(c), the First Extended Maturity Date or, if the First Extended Maturity Date has been extended in accordance
with Section 2.3(c), the Second Extended Maturity Date.

 

“Second
Extended Maturity Date” means July 17, 2019.

 

“Secured
Hedge Agreement” means any Hedge Agreement between Borrower (or an Affiliate of Borrower) and a Secured Hedge
Provider.

 

“Secured
Hedge Provider” means (a) a Lender or an Affiliate of a Lender (or a Person who was a Lender or an Affiliate
of a Lender at the time of execution and delivery of a Hedge Agreement) who has entered into a Hedge Agreement with Borrower,
or (b) a Person with whom Borrower has entered into a Hedge Agreement provided or arranged by CONA or an Affiliate of CONA
or for which CONA or an Affiliate of CONA has provided credit enhancement through either an assignment right or a letter of credit
in favor of such Person, and any assignee thereof.

 

“Secured
Party(ies)” means, individually or collectively, as the case may be, the Lenders, Administrative Agent and their
respective Affiliates, each such Person’s Related Persons and any Secured Hedge Provider.

 

“Security”
means all of the real and personal property securing the Obligations described in the Loan Documents and the Secured Hedge Agreements.

 

“Security
Deposits” means any and all (a) security deposits and entrance fees from any Tenant or occupant of the Project
collected or held by Borrower or any Operator or (b) security deposit collected or held by Borrower under the Operating Lease.

 

    	LOAN AGREEMENT – Page 18
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“Single
Purpose Entity” means a Person (other than an individual, a government or any agency or political subdivision thereof),
which exists solely for the purpose of owning and leasing the Project, observes corporate, company or partnership formalities,
as applicable, independent of any other entity, and which otherwise complies with the covenants set forth in Section 5.17
hereof.

 

“Site Assessment”
means an environmental engineering report for the Project prepared at Borrower’s expense by an engineer engaged by Borrower,
or by Administrative Agent on behalf of Borrower, and approved by Administrative Agent, and in a manner reasonably satisfactory
to Administrative Agent, based upon an investigation relating to and making appropriate inquiries concerning the existence of Hazardous
Materials on or about the Project, and the past or present discharge, disposal, release or escape of any such substances, all consistent
with ASTM Standard E1527-13 (or any successor thereto published by ASTM) and good customary and commercial practice.

 

“Social
Security Act” means 42 U.S.C. 401 et seq., as enacted in 1935, and amended, restated or otherwise supplemented thereafter
from time to time and all rules and regulations promulgated thereunder.

 

“Special
Flood Hazard Area” means an area that FEMA has designated as an area subject to special flood hazards, the current
standard for which is at least a one percent (1%) chance of a flood equal to or exceeding the base flood elevation (a 100-year
flood) in any given year as per the applicable flood maps.

 

“Specially
Designated National and Blocked Persons” means those Persons that have been designated by executive order or by the
sanction regulations of OFAC as Persons with whom U.S. Persons may not transact business or must limit their interactions to types
approved by OFAC.

 

“SPV”
means any special purpose funding vehicle identified as such in a writing by any Lender to Administrative Agent.

 

“State
Regulator” means the applicable state department of health or other applicable state or local regulatory agency having
jurisdiction over the operation of the Project.

 

“Subaccount”
means a subaccount, which may be a ledger or book entry account and not an actual account.

 

“Substitute
Lender” has the meaning assigned in Section 2.13(a).

 

“Survey”
has the meaning assigned in Schedule 2.1.

 

“Tax Impound”
has the meaning assigned to such term in Section 2.5.

 

“Taxes”
has the meaning assigned in Section 7.2.

 

“Tenant”
means any tenant or occupant of the Project under a Lease. The term “Tenant” excludes Operating Tenant.

 

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“Term Sheet”
means that certain letter agreement dated June 9, 2017, from Administrative Agent and accepted by and on behalf of Borrower on
June 12, 2017.

 

“Third
Party Payor” means the payor under a Third Party Payor Program.

 

“Third
Party Payor Programs” means any participation or provider agreements, including Medicare, Medicaid, TRICARE and any
Approved Insurer, and any other private commercial insurance managed care and employee assistance program, to which Borrower or
any Operator may be subject with respect to the Project.

 

“Title
Policy” has the meaning assigned in Schedule 2.1.

 

“Transfer”
means any direct or indirect sale, transfer, conveyance, mortgage, grant of lien or other interest, bargain, installment sale,
master lease, encumbrance, pledge, assignment, grant of any options with respect to, or any other transfer or disposition of (directly
or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) of
all or any portion of the direct or indirect legal or beneficial ownership of, or any interest in, (a) the Project or any
part thereof or (b) any Restricted Party including any agreement to transfer or cede to another Person any voting management
or approved rights, or any other rights, appurtenant to such legal or beneficial ownership or other interest.

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the State of Illinois; provided, however, that, in the event
that, by reason of mandatory provisions of any Requirements of Law, any of the attachment, perfection or priority of Administrative
Agent’s or any other Lender’s security interest in any Collateral is governed by the Uniform Commercial Code of a jurisdiction
other than the State of Illinois, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of the definitions related
to or otherwise used in such provisions.

 

“U.S. Lender
Party” means each of Administrative Agent, the Lenders, and each participant of a Lender, in each case that is a
U.S. Person.

 

“U.S. Person”
means any United States citizen, any entity organized under the laws of the United States or its constituent states or territories,
or any entity, regardless of where organized, having its principal place of business within the United States or any of its territories.

 

“Withholding
Taxes” has the meaning assigned in Section 2.16.

 

“Zoning
Report” has the meaning assigned in Schedule 2.1.

 

Section 1.2          
Definitions. All terms defined in Section 1.1 above or otherwise
in this Agreement shall, unless otherwise defined therein, have the same meanings when used in any other Loan Document or Environmental
Indemnity Agreement, or any certificate or other document made or delivered pursuant hereto. The words “hereof”, “herein”,
and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole. The
words “include” and “include(s)” when used in this Agreement and the other Loan Documents or Environmental
Indemnity Agreement means “include(s), without limitation,” and the word

 

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“including” means “including,
but not limited to.” The word “or” when used in this Agreement and the other Loan Documents or Environmental
Indemnity Agreement has the inclusive meaning represented by the phrase “and/or”, unless the usage would clearly indicate
otherwise. Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document
shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document),
(ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, the Loan Document in which such references appear, and (iv) any reference to any law shall include all statutory
and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

 

Section 1.3          
Phrases. When used in this Agreement and the other Loan Documents or Environmental
Indemnity Agreement, the phrase “including” shall mean “including, but not limited to,” the phrases “satisfactory
to Administrative Agent,” “satisfactory to Lenders,” and “satisfactory to Required Lenders” shall
mean “in form and substance satisfactory to the applicable Person in all respects”, the phrases “with Administrative
Agent’s consent,” “with the Lenders’ consent,” and “with the Required Lenders’ consent,”
or “with Administrative Agent’s approval,” “with the Lenders’ approval,” and “with the
Required Lenders’ approval” shall mean such consent or approval at such Person’s sole discretion, and the phrases
“acceptable to Administrative Agent,” “acceptable to Lenders,” and “acceptable to the Required Lenders”
shall mean “acceptable to such Person at such Person’s sole discretion” unless otherwise specified in this Agreement.

 

Section 1.4          
UCC Terms. Unless
otherwise specified herein, the following terms have the meanings ascribed to them in the UCC, provided that if such term shall
be defined differently in multiple divisions or articles of the UCC, the definitions for such terms specified in Article or Division
9 of the UCC shall control: “Accounts,” “Account Debtor,” “Chattel Paper,”
“Contracts,” “Deposit Accounts,” “Documents,” “Equipment,”
“Fixtures,” “General Intangibles,” “Goods,” “Health-Care Insurance
Receivable,” “Instruments,” “Inventory,” “Investment Property,”
“Letter-of-Credit Rights,” “Payment Intangible,” “Securities Account,”
“Software” and “Supporting Obligations.”

 

ARTICLE
2

LOAN TERMS

 

Section 2.1          
The Loan.

 

(a)              
Initial Advance. Upon satisfaction of all the terms and conditions of the Term
Sheet and this Agreement (including the items listed on and Schedule 2.1 attached hereto), each Lender severally,
but not jointly, agrees to make its Pro Rata Share of the Loan in Dollars to Borrower in the amount of such Lender’s Loan
Commitment, which shall be funded in one advance on the Closing Date and repaid in accordance with the terms of this Agreement
and the Notes. Borrower hereby agrees to accept the Loan on the Closing Date, subject to and upon the terms and conditions set
forth herein. The aggregate amount of all advances of the Loan on a cumulative

 

    	LOAN AGREEMENT – Page 21
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basis shall not exceed $10,050,000.00.
The Loan is not a revolving credit loan, and Borrower is not entitled to any readvances of any portion of the Loan which it may
(or are otherwise required to) prepay pursuant to the provisions of this Agreement.

 

(b)              
Several Obligations. The failure of any Lender to make any advance of its Loan
Commitment to be made by it on the date specified therefor shall not relieve any other Lender of its obligation to make the advance
of its Loan Commitment, but neither any Lender nor Administrative Agent shall be responsible for the failure of any other Lender
to make the advance to be made by such other Lender.

 

Section 2.2          
Interest Rate; Late Charge. The outstanding principal balance of the Loan shall
bear interest at a floating rate of interest equal to two and 95/100 percent (2.95%) per annum in excess of the Libor Rate (the
“Contract Rate”). If Borrower fails to pay any installment of interest or principal within five (5) days
after the date on which the same is due (excluding the final payment due on the Maturity Date), Borrower shall pay to Administrative
Agent, for the account of the Lenders, a late charge on such past due amount, as liquidated damages and not as a penalty, equal
to five percent (5%) of such amount, but not in excess of the maximum amount of interest allowed by applicable law. Administrative
Agent shall pay to each Lender its portion of the late charge based on each Lender’s Pro Rata Share of the Loan in accordance
with Section 2.6. The foregoing late charge is intended to compensate each Lender for the expenses incident to handling
any such delinquent payment and for the losses incurred by each Lender as a result of such delinquent payment. Borrower agrees
that, considering all of the circumstances existing on the date this Agreement is executed, the late charge represents a reasonable
estimate of the costs and losses each Lender will incur by reason of late payment. Borrower and each Lender further agree that
proof of actual losses would be costly, inconvenient, impracticable and extremely difficult to fix. Acceptance of the late charge
shall not constitute a waiver of the Event of Default arising from the overdue installment, and shall not prevent any Lender from
exercising any other rights or remedies available to such Lender with respect to such Event of Default. While any Event of Default
exists, the Loan shall bear interest at the Default Rate.

 

Section 2.3          
Terms of Payment. The Loan shall be payable as follows:

 

(a)              
Interest and Principal.

 

(i)          
On the Closing Date, Borrower shall pay to Administrative Agent for the account of the Lenders, a payment of interest only
representing interest accrued from the Closing Date hereof through the last day of the month in which the Closing Date occurs,
computed at the Contract Rate.

 

(ii)       
Commencing on September 1, 2017, and continuing on each Payment Date thereafter through and including the Payment Date immediately
prior to the Maturity Date, Borrower shall pay to Administrative Agent, for the account of the Lenders, interest in arrears computed
at the Contract Rate on the outstanding principal balance of the Loan.

 

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(b)              
Maturity. On the Maturity Date, Borrower shall pay to Administrative Agent for
the account of the Lenders, all outstanding principal, accrued and unpaid interest, default interest, late charges, the Exit Fee
and any and all other amounts due under the Loan Documents.

 

(c)              
Option to Extend Scheduled Maturity Date. Borrower may elect to extend the Scheduled Maturity Date from the Initial
Maturity Date to the First Extended Maturity Date and the First Extended Maturity Date to the Second Extended Maturity Date upon
satisfaction of each the following conditions, as determined by Administrative Agent in its reasonable discretion:

 

(i)          
Borrower shall have delivered to Administrative Agent a written notice of its request to extend the Scheduled Maturity Date
(the “Extension Request”) at least thirty (30) but no more than ninety (90) days before the then applicable
Scheduled Maturity Date;

 

(ii)       
Concurrently with delivery of the Extension Request, Borrower shall have delivered to Administrative Agent a certificate
in form and substance satisfactory to Administrative Agent certifying that (A) no Potential Default (other than Potential
Defaults that Borrower is proceeding with diligence to cure, which cure shall be completed prior to the then-current Scheduled
Maturity Date) or Event of Default is in existence, and (B) as of the last day of the most recently ended month for which
financial statements are required to have been delivered pursuant to Section 6.1(a)(i), the Project Yield was equal to or
greater than 9.75% based upon Adjusted Net Operating Income for the twelve (12) month period ending on the last day of such month,
which certificate shall be accompanied by operating statements for the Project sufficient for Administrative Agent to verify compliance
with the foregoing;

 

(iii)     
Borrower shall have executed and delivered to Administrative Agent such documents as Administrative Agent shall request
(A) evidencing the extension of the Scheduled Maturity Date, (B) confirming that it has no claims, defenses or offsets
with respect to the Obligations, (C) releasing any potential claims, known or unknown, against Administrative Agent and Lenders
and (D) containing Guarantor’s reaffirmation of its obligations under the Recourse Guaranty Agreement to which it is
party;

 

(iv)      
The Application has been submitted and Borrower is diligently pursuing a HUD Loan Financing;

 

(v)        
Agent shall have confirmed to its satisfaction that, as of the last day of the most recently ended month for which financial
statements are required to have been delivered pursuant to Section 6.1(a)(i), the Project Yield was equal to or greater
than 9.75% based upon Adjusted Net Operating Income for the twelve (12) month period ending on the last day of such month; and

 

(vi)      
If requested by Administrative Agent, Borrower shall have delivered to Administrative Agent an endorsement to each Title
Policy insuring the absence of intervening liens (excluding ad valorem taxes, a lien not yet payable).

 

Section 2.4          
Prepayment.

 

    	LOAN AGREEMENT – Page 23
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(a)              
Prepayment. The Indebtedness may be prepaid in whole, but not in part, at any time,
provided that Borrower pays with such prepayment the Exit Fee, all accrued interest and all other outstanding amounts then due
and unpaid under the Loan Documents.

 

(b)              
Prepayment Not Made on a Payment Date. If for any reason the Loan or any portion thereof is prepaid on a day other
than a scheduled monthly Payment Date, interest shall be prorated through the date of prepayment (the “Prorated Interest”).
On the prepayment date, Borrower shall pay to Administrative Agent, for the account of Lenders, the outstanding principal balance
of the Loan, Prorated Interest and Libor Breakage Amount, and any other amounts, if any, required under this Agreement.

 

(c)              
[Intentionally Deleted]

 

(d)              
Prepayment Due to Casualty or Condemnation. In the event of a prepayment resulting from the application of insurance
or condemnation proceeds pursuant to Article 3 hereof, no prepayment penalty or premium shall be imposed. If Borrower elects to
prepay the Indebtedness in accordance with the terms of Section 3.2(c), Borrower shall (i) provide not less than ten
(10) Business Days’ notice to Administrative Agent of such prepayment and (ii) pay with such prepayment all accrued interest,
including Prorated Interest, on the amount being prepaid. Concurrently with the completion of the prepayment, Administrative Agent
and Lenders shall (i) release and discharge the Project from the Mortgage, and (ii) execute and deliver all instruments reasonably
required to effect such release and discharge. Borrower shall also pay all reasonable out of pocket expenses incurred by Administrative
Agent and Lenders in connection with the prepayment and the release and discharge of the Project from the Mortgage and the other
Loan Documents.

 

(e)              
[Intentionally Deleted]

 

(f)               
Partial Prepayment. If, notwithstanding Section 2.4(a), Administrative Agent permits the Loan to be prepaid
in part, Borrower shall pay, in addition to the principal amount prepaid, Prorated Interest on the amount of such prepayment, plus
the Exit Fee on the amount of such prepayment, plus any Libor Breakage Amount applicable to such principal being prepaid.

 

Section 2.5          
Security; Establishment of Escrowed Funds.

 

(a)              
Security. The Loan shall be secured by the Mortgage,
which shall create a first lien on the Project, subject only to the Permitted Exceptions, and the other Loan Documents.

 

(b)              
Replacement Escrow Fund. Borrower shall deposit with Administrative Agent on each
Payment Date, the product of Three Hundred Dollars ($300) multiplied by the number of Residential Units in the Project, divided
by twelve, which shall be held by Administrative Agent for replacements and repairs required to be made to the Project during the
term of the Loan (the “Replacement Escrow Fund”). Administrative Agent shall make disbursements from
the Replacement Escrow Fund as requested by Borrower, and approved by Administrative Agent in its reasonable discretion, on a monthly
basis in increments of no less than $5,000.00 upon delivery by Borrower of Administrative Agent’s standard form of draw request
accompanied by copies of paid invoices for the amounts requested and, if required by

 

    	LOAN AGREEMENT – Page 24
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Administrative Agent, lien waivers and
releases from all parties furnishing materials and/or services in connection with the requested payment. Administrative Agent may
require an inspection of the Project at Borrower’s expense prior to making a monthly disbursement in order to verify completion
of replacements and repairs for which reimbursement is sought.

 

(c)              
Operating Lease Fund. Borrower hereby agrees to the establishment of a reserve (each, a “Operating Lease
Fund”), into which, during any period in which Operating Tenant is not in compliance with the “Minimum Rent
Coverage” (as defined under the Operating Lease), Borrower shall deposit an amount equal to the additional monthly deposit
required under the Operating Lease to be deposited with Borrower by the Operating Tenant, to the extent such deposit is made by
the Operating Tenant. Upon such time as Borrower delivers evidence reasonably satisfactory to Administrative Agent (and Administrative
Agent confirms to its reasonable satisfaction) that Operating Tenant has been in compliance with the “Minimum Rent Coverage”
applicable thereto for a period of twelve (12) consecutive months, and provided no Event of Default is then in existence, the funds
contained in the Operating Lease Fund shall be released to the Borrower.

 

(d)              
Insurance Impound.

 

(i)          
Borrower shall deposit with Administrative Agent, monthly on each Payment Date, a sum of money (the “Insurance
Impound”) equal to one-twelfth (l/12th) of the annual charges for the Insurance Premiums. In addition to
the foregoing, Borrower shall deposit with Administrative Agent, within ten (10) days following demand by Administrative Agent,
a sum of money that, together with the monthly installments described in the foregoing sentence, will be sufficient to make each
of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments.
Deposits shall be made on the basis of Administrative Agent’s reasonable estimate from time to time of the Insurance Premiums
for the current year. Until an Event of Default exists, Administrative Agent shall apply the funds deposited to pay Insurance Premiums
as provided herein. Borrower shall furnish Administrative Agent with bills for the Insurance Premiums for which such deposits are
required at least thirty (30) days prior to the date on which the Insurance Premiums first become payable. If at any time
the amount on deposit with Administrative Agent, together with amounts to be deposited by Borrower before such Insurance Premiums
are payable, is insufficient to pay such Insurance Premiums, Borrower shall (or shall cause Operator to) deposit any deficiency
with Administrative Agent immediately upon demand. Administrative Agent shall pay such Insurance Premiums when the amount on deposit
with Administrative Agent is sufficient to pay such Insurance Premiums and Administrative Agent has received a bill for such Insurance
Premiums.

 

(ii)       
Notwithstanding the foregoing, while the Insurance Premiums are paid via a premium financing arrangement to which Administrative
Agent has given its written consent, then (A) the amount to be escrowed with Administrative Agent at any given time in respect
of such Insurance Premiums shall be three months of payments under the premium finance arrangement (and, for the avoidance of doubt,
Borrower shall not be required to make the monthly deposits required under Section 2.5(d)(i), provided Borrower is
otherwise in compliance with this Section 2.5(d)(ii) and no Event of Default is in existence), (B) Borrower shall
tender to Administrative Agent each month (on such schedule as Administrative Agent

 

    	LOAN AGREEMENT – Page 25
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shall reasonably request) evidence
that Borrower (or the owner of the policy if the Borrower shares in a blanket policy) have paid the applicable premium finance
amount due for the preceding month and (C) Administrative Agent shall have no obligation to remit such escrowed sums in payment
of the premium finance amounts.

 

(e)              
Real Estate Tax Impound. Borrower shall deposit (or cause
to be deposited) with Administrative Agent, monthly on each Payment Date, a sum of money (the “Tax Impound”) equal
to one-twelfth (1/12th) of the annual Taxes. At or before the initial advance of the Loan, Borrower shall deposit (or cause
to be deposited) with Administrative Agent a sum of money which together with the monthly installments will be sufficient to make
each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments.
Deposits shall be made on the basis of Administrative Agent’s estimate from time to time of the Taxes for the current year
(after giving effect to any reassessment or, at Administrative Agent’s election, on the basis of the Taxes for the prior
year, with adjustments when the Taxes are fixed for the then current year). Until an Event of Default exists, Administrative Agent
shall apply the funds deposited to pay the Taxes as provided herein. Borrower shall furnish Administrative Agent with bills for
the Taxes for which such deposits are required at least thirty (30) days prior to the date on which the Taxes first become
payable. If at any time the amount on deposit with Administrative Agent, together with amounts to be deposited by Borrower before
such Taxes are payable, is insufficient to pay such Taxes, Borrower shall deposit (or cause to be deposited) any deficiency with
Administrative Agent immediately upon demand. Administrative Agent shall pay such Taxes when the amount on deposit with Administrative
Agent is sufficient to pay such Taxes and Administrative Agent has received a bill for such Taxes. The obligation of Borrower to
pay the Taxes, as set forth in the Loan Documents, is not affected or modified by the provision of this paragraph; provided, however,
that Borrower shall not be in default under the Loan for failure to pay Taxes if and to the extent there are sufficient funds on
deposit in the Tax Impound to timely pay such Taxes.

 

(f)               
Escrowed Funds, Generally; Pledge of Security Interest. Borrower hereby pledges to Administrative Agent and the Lenders,
and grants a security interest in, any and all monies now or hereafter deposited in the Escrowed Funds as additional security for
the payment of the Loan. Administrative Agent shall hold the Escrowed Funds, and any and all other impounds or reserves otherwise
provided for in this Agreement, for the benefit of all Lenders. The Lenders and Borrower acknowledge and agree that the Escrowed
Funds shall be held without interest in Administrative Agent’s name or in the name of an Affiliate of Administrative Agent
and may be commingled with the general funds of Administrative Agent, including (i) with Administrative Agent’s own
funds at financial institutions selected by Administrative Agent in its reasonable discretion or (ii) with Administrative
Agent’s funds at CONA, and may be held in a Subaccount designated for such purpose. Upon the occurrence and continuance of
an Event of Default, Administrative Agent may (and at the direction of the Required Lenders shall) apply any sums then present
in the Escrowed Funds to the payment of the Loan in any order in the sole discretion of Administrative Agent in accordance with
Section 2.6(a). Until expended or applied as above provided, the Escrowed Funds shall constitute additional security
for the Loan. Administrative Agent shall have no obligation to release any of the Escrowed Funds while any Event of Default or
Potential Default exists or any Material Adverse Change has occurred in Borrower or any Borrower Party or the Project. All costs
and expenses reasonably incurred by Administrative Agent in the disbursement of any of the Escrowed Funds shall be paid by Borrower
promptly upon

 

    	LOAN AGREEMENT – Page 26
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demand or, at Administrative Agent’s
sole discretion, deducted from the Escrowed Funds. On the Maturity Date, the monies then remaining on deposit in the Escrowed Funds
with Administrative Agent shall, at Administrative Agent’s option, be applied against the Indebtedness or if no Event of
Default exists hereunder, returned to Borrower.

 

Section 2.6          
Application of Payments.

 

(a)              
Waterfall. Provided no Event of Default has occurred and is continuing, all payments
received by Administrative Agent under the Loan Documents shall be applied, (i) first, to pay Obligations in respect of any
cost or expense reimbursements, fees or indemnities then due to Administrative Agent pursuant to this Agreement, any Loan Document
or the Environmental Indemnity Agreement, (ii) second, to pay Default Rate interest or late charges, (iii) third, to
pay interest then due and payable calculated at the Contract Rate, (iv) fourth, to principal payments due under the Loan and
to any Obligations under the Secured Hedge Agreements, (v) fifth, to any reserves, escrows or other impounds required to be
maintained pursuant to the Loan Documents, (vi) sixth, to any Exit Fee then due and (vii) seventh, to the ratable payment
of all other Obligations. Upon the occurrence and during the continuance of an Event of Default, all payments shall be applied
in such order as Administrative Agent shall determine in its sole discretion. Notwithstanding anything herein to the contrary,
if at any time while an Event of Default is in continuance, following acceleration of the Obligations or on or after the Maturity
Date, Administrative Agent applies any payments received or the proceeds of any Collateral to principal payments on the Loan, Administrative
Agent shall apply such payments or proceeds pro rata between such principal payments on the Loan and the Obligations under the
Secured Hedge Agreements based on the outstanding principal balance of the Loan and the Obligations under Secured Hedge Agreements.

 

(b)              
Application of Payments Generally. All repayments of the Loan shall be applied
to reduce the remaining installments of the outstanding principal amount of the Loan in the stated order of maturity. If sufficient
amounts are not available to repay all outstanding Obligations described in any priority level set forth in this Section 2.6,
the available amounts shall be applied, unless otherwise expressly specified herein, to such Obligations ratably based on the proportion
of the Secured Parties’ interest in such Obligations. Any priority level set forth in this Section 2.6 that includes
interest shall include all such interest, whether or not accruing after the filing of any petition in bankruptcy or the commencement
of any insolvency, reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition interest is
allowed in any such proceeding. All prepayments of principal, if permitted hereunder or otherwise accepted by Administrative Agent,
shall be applied in the inverse order of maturity (i.e., to the final principal installment due with respect to the Loan).

 

(c)              
Payments and Computations. Borrower shall make each payment under any Loan Document
not later than 1:00 p.m. (Eastern Standard or Daylight Savings time) on the day when due to Administrative Agent by wire transfer
(or Automated Clearing House (“ACH”) transfer to be initiated by Administrative Agent pursuant to the
ACH Authorization Form (which shall be the exclusive means of payment hereunder) to the following account (or at such other account
or by such other means to such other address as Administrative Agent shall have notified Borrowers in writing within a reasonable
time prior to such payment) in immediately available Dollars and without setoff or counterclaim:

 

    	LOAN AGREEMENT – Page 27
[Summit Pennington]

     

    

	Bank:	Capital One Bank
	ABA No.:	065000090
	Account Number:	38395-100002129
	Account Name:	CLS Specialty Finance
	Reference:	Summit Pennington

 

(d)              
Administrative Agent shall cause to be distributed immediately available funds relating to the
payment of principal, interest or fees to the Lenders, in accordance with the application of payments set forth in Section 2.6(a),
promptly after receipt or deemed receipt, but not later than one Business Day following receipt (or deemed receipt) by Administrative
Agent. Administrative Agent shall have no obligation to make any payments to a Lender except out of amounts received or
applied by Administrative Agent with respect to the Loan, and only if and to the extent payable in accordance with said Section 2.6(a).
Payments received by Administrative Agent after 1:00 p.m. (Eastern Standard or Daylight Savings time) shall be deemed to be received
on the next Business Day.

 

(e)              
Computations of Interests and Fees. All computations of interest and of fees shall
be made by Administrative Agent on the basis of a fraction, the denominator of which is three hundred sixty (360) and the
numerator of which is the actual number of days elapsed from the Closing Date or the date of the preceding Payment Date, as the
case may be, to the date of the next Payment Date or the Maturity Date. Each determination of an interest rate or the amount of
a fee hereunder shall be made by Administrative Agent and shall be conclusive, binding and final for all purposes, absent manifest
error.

 

(f)               
Payment Dates. Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, the due date for such payment shall be extended to the next succeeding Business Day without any increase
in such payment as a result of additional interest or fees.

 

(g)              
Advancing Payments. Unless Administrative Agent shall have received notice from
Borrower prior to the date on which any payment is due hereunder that Borrower will not make such payment in full, Administrative
Agent may assume that Borrower has made such payment in full to Administrative Agent on such date and Administrative Agent may,
in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due
such Lender. If and to the extent that Borrower shall not have made such payment in full to Administrative Agent, each Lender shall
repay to Administrative Agent on demand such amount distributed to such Lender together with interest thereon (at the then-applicable
interest rate) for each day from the date such amount is distributed to such Lender until the date such Lender repays such
amount to Administrative Agent.

 

Section 2.7          
Sources and Uses. The sources and uses of funds for the contemplated transaction
are as described on Schedule 2.7 attached hereto.

 

Section 2.8          
Capital Adequacy; Increased Costs; Illegality or Unavailability.

 

(a)              
If any Change in Law increases or would have the effect of increasing the amount of capital,
reserves or other funds required to be maintained by such Lender and thereby

 

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reducing the rate of return on such Lender’s
capital as a consequence of its obligations hereunder, then Borrower shall from time to time upon demand by such Lender, pay to
such Lender, additional amounts sufficient to compensate such Lender for such reduction. A certificate as to the amount of that
reduction and showing the basis of the computation thereof submitted by the affected Lender to Borrower shall, absent manifest
error, be final, conclusive and binding for all purposes. Each Lender agrees that, as promptly as practicable after it becomes
aware of any circumstances referred to above which would result in any such increased cost, such Lender shall, to the extent not
inconsistent with such Lender’s internal policies of general application, use reasonable commercial efforts to minimize costs
and expenses incurred by it and payable to it by Borrower pursuant to this Section 2.8(a).

 

(b)              
If, due to any Change in Law, there shall be any increase in the cost to any Lender of agreeing
to make or making, funding or maintaining the Loan, then Borrower shall from time to time, upon demand by such Lender, pay to such
Lender additional amounts sufficient to compensate such Lender for such increased cost. A certificate as to the amount of
such increased cost, submitted to Borrower by such Lender, shall be conclusive and binding on Borrower for all purposes, absent
manifest error. Each Lender agrees that, as promptly as practicable after it becomes aware of any circumstances referred to above
which would result in any such increased cost, such Lender shall, to the extent not inconsistent with such Lender’s internal
policies of general application, use reasonable commercial efforts to minimize costs and expenses incurred by it and payable to
it by Borrower pursuant to this Section 2.8(b).

 

(c)              
Notwithstanding anything to the contrary contained herein, if, after the Closing Date, (i) any
Change in Law shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for
any Lender to agree to make or to make or to continue to fund or maintain any Loan bearing interest computed by reference to the
Libor Rate, or (ii) the Libor Rate is discontinued or is otherwise no longer available, then (A) with respect to the occurrence
described in subsection (i) above, unless such Lender is able to make or to continue to fund or to maintain the Loan at another
office of such Lender without, in such Lender’s opinion, adversely affecting it or its Loan or the income obtained therefrom,
on notice thereof and demand therefor by such Lender to Borrower, (1) the obligation of such Lender to agree to make or to
make or to continue to fund or maintain the Loan shall terminate and (2) Borrower shall prepay in full such Lender’s
Pro Rata Share of the Loan, together with interest accrued thereon, but without payment of any Exit Fee, within thirty (30) days
following such Lender’s demand for payment, unless such Lender elects to use the Base Rate as a replacement index, plus an
applicable spread to approximate the Contract Rate before such change in law or regulation and (B) with respect to the occurrence
described in subsection (ii) above, Administrative Agent will use the Base Rate as a replacement index, plus an applicable spread
to approximate the Contract Rate. If any Lender elects to use the Base Rate as contemplated by subsection (A) above or if
subsection (B) above is applicable, Administrative Agent will notify Borrower of the Base Rate and spread to be used and the same
shall be applied to the Loan effective as of the date such Lender or Administrative Agent determined that the Libor Rate was no
longer available, as applicable.

 

(d)              
Notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith shall be deemed to
be a change in any Requirements

 

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of Law under subsection (b) above
and/or a change in capital adequacy requirements under subsection (a) above, as applicable, regardless of the date enacted,
adopted or issued.

 

(e)              
Notwithstanding anything else to the contrary in this Section 2.8, Borrower shall not be
under any obligation to compensate any Lender under this Section 2.8 with respect to increased costs or reductions where the
Lender is not demanding such compensation from all of its customers similarly situated.

 

Section 2.9          
Interest Rate Protection. Borrower, at its
sole cost and expense and for their benefit, may obtain and maintain an interest rate cap pursuant to a Hedge Agreement reasonably
satisfactory to the Administrative Agent, which Hedge Agreement shall, at Administrative Agent’s request, be collaterally
assigned to Administrative Agent (for the benefit of Lenders). Any such Hedge Agreement shall be provided by either Administrative
Agent or any Lender (or an Affiliate of such Person) or a bank or other financial institution whose long-term debt rating is equal
to or greater than “A”. Upon repayment of the Loan in full, Administrative Agent shall assign the Hedge Agreements
back to Borrower or an Affiliate of Borrower. Except in connection with a Secured Hedge Agreement, the Project shall not be pledged
or encumbered in any manner to secure any obligation under the Hedge Agreement. Borrower shall not enter into any interest rate
swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement pertaining to fluctuations
in interest rates, or any swaps, caps or collar agreements or similar arrangements providing for protection against fluctuations
in currency exchange rates, either generally or under specific contingencies, other than the Hedge Agreement contemplated by this
Section 2.9, and not for speculative purposes. 

 

Section 2.10      
Libor Breakage Amount. Upon any payment of the Loan (or any portion thereof) on
any day that is not the last day of the Libor Interest Period applicable thereto (regardless of the source of such prepayment and
whether voluntary, by acceleration or otherwise), Borrower shall pay to Administrative Agent, for the account of Lenders, the Libor
Breakage Amount.

 

Section 2.11      
[Reserved]

 

Section 2.12      
Evidence of Debt.

 

(a)              
Records of Lenders. Each Lender shall maintain in accordance with its usual practice
accounts evidencing the Indebtedness of Borrower to each Lender resulting from the Pro Rata Share of the Loan of such Lender from
time to time outstanding, including the amounts of principal and interest payable and paid to such Lender from time to time under
this Agreement. In addition, with respect to each Lender having sold a participation interest in any of the Obligations owing to
it, such Lender, acting as agent of Borrower solely for this purpose and solely for tax purposes, shall establish and maintain
at its address referred to in Section 11.1 (or at such other address as Administrative Agent shall notify Borrower) a
record of ownership, in which such Lender shall register by book entry (A) the name and address of each such participant (and
each change thereto, whether by assignment or otherwise) and (B) the rights, interest or obligation of each such participant
in any Obligation owing to such Lender, in any Loan Commitment or any portion of the Loan and in any right of such Lender to receive
any payment hereunder.

 

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(b)              
Records of Administrative Agent. Administrative Agent, acting solely for this purpose as an agent of Borrower, shall
maintain at one of its offices in the United States 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 Commitments of, and principal amounts (and stated interest)
of the Loan 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; provided, however, that no error in such account and no failure
of any Lender or Administrative Agent to maintain any such account shall affect the obligations of any Borrower Party to repay
the Loan in accordance with its terms. Borrower, Administrative Agent and the Lenders shall treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available
for inspection by Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(c)              
Registered Obligations. Notwithstanding anything to the contrary contained in this Agreement, the Loan (including
any Notes evidencing the Loan) shall constitute a registered obligation, the right, title and interest of the Lenders and
their assignees in and to the Loan shall be transferable only upon notation of such transfer in the Register and no assignment
thereof shall be effective until recorded therein. This Section 2.12 and Section 11.3 shall be
construed so that the Loan is at all times maintained in “registered form” within the meaning of Sections 163(f),
871(h)(2) and 881(c)(2) of the Code and any related regulations (and any successor provisions).

 

Section 2.13      
Substitution of Lenders.

 

(a)              
In the event that any Lender that is not an Affiliate of Administrative Agent (an “Affected
Lender”), (i) makes a claim under Section 2.8 or notifies Borrower
and Administrative Agent pursuant to Section 2.8 that it becomes illegal for such
Lender to continue to fund or maintain its Pro Rata Share of the Loan using the Libor Rate or (ii) does not consent to any
amendment, waiver or consent to any Loan Document or the Environmental Indemnity Agreement for which the consent of the Required
Lenders is obtained but that requires the consent of other Lenders, Borrower may either pay in full such Affected Lender with respect
to amounts due with the consent of Administrative Agent or substitute for such Affected Lender any Lender or any Affiliate or Approved
Fund of any Lender or any other Person acceptable (which acceptance shall not be unreasonably withheld or delayed) to Administrative
Agent (in each case, a “Substitute Lender”).

 

(b)              
To substitute such Affected Lender or pay in full the Obligations owed to such Affected Lender,
Borrower shall deliver a notice to Administrative Agent and such Affected Lender. The effectiveness of such payment or substitution
shall be subject to the delivery to Administrative Agent by Borrower (or, as may be applicable in the case of a substitution, by
the Substitute Lender) of (i) payment for the account of such Affected Lender, of, to the extent accrued through, and
outstanding on, the effective date for such payment or substitution, all Obligations owing to such Affected Lender (including those
that will be owed because of such payment and all Obligations that would be owed to such Lender if it was solely a Lender), and
(ii) in the case of a substitution, (A) payment by the Substitute Lender of the assignment fee set forth in Section 11.3
and (B) an Assignment and Assumption executed by Affected Lender and Substitute Lender.

 

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(c)              
Upon satisfaction of the conditions set forth in clause (b) above, Administrative Agent
shall record such substitution or payment in the Register, whereupon (i) in the case of any payment in full, such Affected
Lender’s Loan Commitment shall be terminated and (ii) in the case of any substitution, (A) the Affected Lender
shall sell and be relieved of, and the Substitute Lender shall purchase and assume, all rights and claims of such Affected Lender
under the Loan Documents with respect to the Loan, except that the Affected Lender shall retain such rights expressly providing
that they survive the repayment of the Obligations and the termination of the Loan Commitments, (B) the Substitute Lender
shall become a “Lender” hereunder having a Loan Commitment in the amount of such Affected Lender’s Loan Commitment
and (C) the Affected Lender and the applicable Substitute Lender shall execute and deliver to Administrative Agent an Assignment
and Assumption to evidence such substitution and deliver any Note in its possession; provided, however, that the failure of any
Affected Lender to execute any such Assignment and Assumption or deliver any such Note shall not render such sale and purchase
(or the corresponding assignment) invalid.

 

Section 2.14      
Pro Rata Treatment. (i) Each advance of the Loan from the Lenders under
Section 2.1 shall be made by the Lenders, and any termination of the obligation to make an advance of the Loan shall
be applied to the respective Loan Commitments of the Lenders, based on their Pro Rata Share; (ii) each payment or prepayment
of principal of the Loan by Borrower shall be made for account of the Lenders based on their Pro Rata Share; and (iii) each
payment of interest on the Loan by Borrower shall be made for account of the Lenders pro rata in accordance with the amounts of
interest on the Loan then due and payable to the respective Lenders.

 

Section 2.15      
Fees.

 

(a)              
Loan Origination Fee. Borrower agrees to pay to Administrative
Agent for the benefit of the Lenders on the Closing Date a loan origination fee in an amount equal to one percent (1.0%) of the
Loan, which shall be fully earned, due and payable and non-refundable on the Closing Date.

 

(b)              
Exit Fee.

 

(i)          
Upon any repayment or prepayment of all or any portion of the principal amount of the Loan, Borrower shall pay to Administrative
Agent for the account of the Lenders on the date of such repayment or prepayment the Exit Fee applicable thereto. All Exit Fees
hereunder shall be deemed to be earned by Lenders upon the funding of the Loan.

 

(ii)       
Notwithstanding the foregoing, Administrative Agent agrees to waive the Exit Fee (A) in connection with a repayment of the
Indebtedness that occurs as a result of a refinancing of the Loan pursuant to a HUD Loan Financing, (B) if CONA Agency Lender is
not legally qualified under HUD requirements to represent the Borrower in connection with obtaining such a mortgage insurance commitment
or (C) CONA Agency Lender otherwise fails to successfully close such HUD Loan Financing for reasons unrelated to the Project,
the Borrower, the Guarantor or CONA Agency Lender’s underwriting requirements.

 

Section 2.16      
Withholding Taxes.

 

    	LOAN AGREEMENT – Page 32
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(a)              
Payments Free and Clear of Withholding Taxes. Except as otherwise provided in this
Section 2.16, each payment by Borrower under any Loan Document or the Environmental Indemnity Agreement shall be made
free and clear of all present or future taxes, levies, imposts, deductions, charges or withholdings and all liabilities with respect
thereto (and without deduction for any of them) (collectively, but excluding the taxes set forth in clauses (i) through
(iv) below, the “Withholding Taxes”) other than for (i) taxes measured by net income (including
branch profits taxes) and franchise taxes imposed in lieu of net income taxes, in each case imposed on any Lender as a result
of a connection between such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision
or taxing authority thereof or therein (other than such connection arising solely from any Lender having executed, delivered or
performed its obligations or received a payment under, or enforced, any Loan Document or the Environmental Indemnity Agreement),
(ii) Withholding Taxes to the extent that the obligation to withhold amounts existed on the date that such Lender became a
“Lender” under this Agreement in the capacity under which such Lender makes a claim under this clause (b), except in
each case to the extent such Lender is a direct or indirect assignee (other than pursuant to Section 2.13 (Substitution
of Lenders)) of any other Lender that was entitled, at the time the assignment of such other Lender became effective, to receive
additional amounts under Section 2.16(b), (iii) taxes that are directly attributable to the failure (other than
as a result of a change in any Requirements of Law) by any Lender to deliver the documentation required to be delivered pursuant
to clause (f) below and (iv) any United States Withholding Taxes imposed under FATCA (the taxes described in subsections
(i) through (iv) herein called “Excluded Taxes”).

 

(b)              
Gross-Up. If any Taxes shall be required by any Requirements of Law to be deducted
from or in respect of any amount payable under any Loan Document or the Environmental Indemnity Agreement to any Lender and such
Taxes are Withholding Taxes, (i) such amount payable shall be increased as necessary to ensure that, after all required deductions
for Withholding Taxes are made (including deductions applicable to any increases to any amount under this Section 2.16),
such Lender receives the amount it would have received had no such deductions been made, (ii) the relevant Borrower Party
shall make such deductions, (iii) the relevant Borrower Party shall timely pay the full amount deducted to the relevant taxing
authority or other authority in accordance with applicable Requirements of Law and (iv) within 30 days after such payment
is made, Borrower shall deliver to Administrative Agent an original or certified copy of a receipt evidencing such payment; provided,
however, that no such increase shall be made with respect to, and Borrower shall not be required to indemnify any such Lender
pursuant to clause (d) below for, Withholding Taxes to the extent that the obligation to withhold amounts existed on the
date that such Lender became a “Lender” under this Agreement in the capacity under which such Lender makes a claim
under this clause (b), except in each case to the extent such Lender is a direct or indirect assignee (other than pursuant
to Section 2.13 (Substitution of Lenders)) of any other Lender that was entitled, at the time the assignment of such other
Lender became effective, to receive additional amounts under this clause (b)..

 

(c)              
Other Taxes. In addition, Borrower agrees to pay, and authorizes Administrative
Agent to pay in Borrower’s name, any stamp, documentary, excise or property tax, charges or similar levies imposed by any
applicable Requirements of Law or Governmental Authority and all Liabilities with respect thereto (including by reason of any delay
in payment thereof), in each case arising from the execution, delivery or registration of, or otherwise with

 

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respect to, any Loan Document, the Environmental
Indemnity Agreement or any transaction contemplated therein (collectively, “Other Taxes”). Within thirty
(30) days after the date of any payment of Withholding Taxes or Other Taxes by any Borrower Party, Borrower shall furnish
to Administrative Agent, at its address referred to in Section 11.1, the original or a certified copy of a receipt
evidencing payment thereof.

 

(d)              
Indemnification. Borrower shall reimburse and indemnify, within thirty (30) days
after receipt of demand therefor (with copy to Administrative Agent), each Lender for all Withholding Taxes and Other Taxes (including
any Withholding Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.16) paid
by such Lender and any Liabilities arising therefrom or with respect thereto, whether or not such Withholding Taxes or Other Taxes
were correctly or legally asserted. A certificate of the Lender (or of Administrative Agent on behalf of such Lender) claiming
any compensation under this clause (d), setting forth the amounts to be paid thereunder and delivered to Borrower with copy to
Administrative Agent, shall be conclusive, binding and final for all purposes, absent manifest error. In determining such amount,
Administrative Agent and such Lender may use any reasonable averaging and attribution methods.

 

(e)              
Mitigation. Any Lender claiming any additional amounts payable pursuant to this
Section 2.16 shall use its reasonable efforts (consistent with its internal policies and Requirements of Law) to
change the jurisdiction of its lending office if such a change would reduce any such additional amounts (or any similar amount
that may thereafter accrue) and would not, in the sole determination of such Lender, be otherwise disadvantageous to such
Lender.

 

(f)               
Tax Forms.

 

(i)          
Each Non-U.S. Lender Party that, at any of the following times, is entitled to an exemption from United States Withholding
Tax or, after a change in any Requirements of Law, is subject to such withholding Tax at a reduced rate under an applicable Tax
treaty, shall (w) on or prior to the date such Non-U.S. Lender Party becomes a “Non-U.S. Lender Party” hereunder,
(x) on or prior to the date on which any such form or certification expires or becomes obsolete, (y) after the occurrence
of any event requiring a change in the most recent form or certification previously delivered by it pursuant to this clause (i) and
(z) from time to time if requested by Borrower or Administrative Agent (or, in the case of a participant or SPV, the relevant
Lender), provide Administrative Agent and Borrower (or, in the case of a participant or SPV, the relevant Lender) with two
completed originals of each of the following, as applicable: (A) Forms W-8ECI (claiming exemption from U.S. withholding tax
because the income is effectively connected with a U.S. trade or business), W-8BEN (claiming exemption from, or a reduction of,
U.S. withholding tax under an income tax treaty) and/or W-8IMY (together with appropriate forms, certifications and supporting
statements) or any successor forms, (B) in the case of a Non-U.S. Lender Party claiming exemption under Sections 871(h) or
881(c) of the Code, Form W-8BEN (claiming exemption from U.S. withholding tax under the portfolio interest exemption) or
any successor form and a certificate in form and substance acceptable to Administrative Agent that such Non-U.S. Lender Party is
not (1) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10 percent
shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code or (3) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code or (C) any other applicable document prescribed

 

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by the IRS certifying as to the
entitlement of such Non-U.S. Lender Party to such exemption from United States withholding tax or reduced rate with respect to
all payments to be made to such Non-U.S. Lender Party under the Loan Documents. Unless Borrower and Administrative Agent have received
forms or other documents satisfactory to them indicating that payments under any Loan Document to or for a Non-U.S. Lender Party
are not subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, the
Borrower Parties and Administrative Agent shall withhold amounts required to be withheld by applicable Requirements of Law from
such payments at the applicable statutory rate.

 

(ii)       
Each U.S. Lender Party shall (A) on or prior to the date such U.S. Lender Party becomes a “U.S. Lender Party”
hereunder, (B) on or prior to the date on which any such form or certification expires or becomes obsolete, (C) after
the occurrence of any event requiring a change in the most recent form or certification previously delivered by it pursuant to
this clause (f) and (D) from time to time if requested by Borrower or Administrative Agent (or, in the case of a participant,
the relevant Lender), provide Administrative Agent and Borrower (or, in the case of a participant, the relevant Lender) with
two completed originals of Form W-9 (certifying that such U.S. Lender Party is entitled to an exemption from U.S. backup withholding
tax) or any successor form.

 

(iii)     
Each Lender having sold a participation in any of its Obligations shall collect from such participant the documents described
in this clause (f) and provide them to Administrative Agent.

 

(iv)      
If a payment made to a Non-U.S. Lender Party would be subject to United States federal withholding Tax imposed by FATCA
if such Non-U.S. Lender Party fails to comply with the applicable reporting requirements of FATCA, such Non-U.S. Lender Party shall
deliver to Administrative Agent and Borrower any documentation under any Requirements of Law or reasonably requested by Administrative
Agent or Borrower sufficient for Administrative Agent or Borrower to comply with their respective obligations under FATCA and to
determine that such Non-U.S. Lender has complied with its obligations under FATCA or to determine the amount to deduct and withhold
from such payment. Solely for the purposes of this clause (iv), “FATCA” shall include any amendments made to FATCA
after the date of this Agreement.

 

(g)              
Refunds. If a Lender has received a refund of (or tax credit with respect to) any
Withholding Taxes or Other Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional
amounts pursuant to this Section 2.16, it shall pay over such refund (or the benefit realized as a result of such tax
credit) to Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by Borrower under this
Section 2.16 with respect to the Withholding Taxes or Other Taxes giving rise to such refund), net of all out of pocket
expenses of the Lender (including any Withholding Taxes imposed with respect to such refund) as is determined by the Lender
in good faith, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that Borrower, upon the request of the Lender, agrees to repay as soon as reasonably practicable the amount paid over
to Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Lender in
the event the Lender is required to repay such refund to such Governmental Authority. This Section 2.16 shall not be
construed to require the Lender to

 

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make available its tax returns (or any
other information relating to its Withholding Taxes or Other Taxes which it deems in good faith to be confidential) to Borrower
or any other person.

 

Section 2.17      
[Reserved]

 

Section 2.18      
Defaulting Lenders.

 

(a)              
Cure of Defaulting Lender Status. A Defaulting Lender may regain its status
as a non-defaulting Lender hereunder upon satisfaction of each of the following conditions, as applicable: (i) payment by such
Defaulting Lender of all amounts owing hereunder (whether to Administrative Agent for indemnity purposes or otherwise); (ii) receipt
by Administrative Agent of (A) a written revocation by Defaulting Lender of any written notice by Defaulting Lender to Borrower,
Administrative Agent, or any other Lender that such Defaulting Lender will fail to fund under this Agreement, or (B) evidence satisfactory
to Administrative Agent (in consultation with the Required Lenders) that such Defaulting Lender has publicly revoked any public
announcement of the same; (iii) evidence satisfactory to Administrative Agent (in consultation with the Required Lenders) that
such Defaulting Lender is no long in default for failing to make payments under one or more syndicated credit facilities; and (iv)
evidence satisfactory to Administrative Agent (in consultation with the Required Lenders) that such Defaulting Lender (or the holding
company of such Defaulting Lender) is no longer the subject of a bankruptcy proceeding and is not otherwise involved in any liquidation
proceeding, and Administrative Agent has determined such Defaulting Lender is able to meet its obligations hereunder.

 

(b)              
Cash Collateral. Administrative Agent may, in its discretion, hold any payment
made by Borrower toward the Loan that is owing to a Defaulting Lender in a non-interest bearing account. Administrative Agent may
use such amount to set-off any unfunded reimbursement obligations of such Defaulting Lender until the earliest to occur of (i)
such Lender’s no longer being a Defaulting Lender hereunder, (ii) such Defaulting Lender being replaced pursuant to Section 2.18(c),
and (iii) indefeasible payment in full by the Borrower of all amounts owing hereunder and performance by Borrower of all Obligations.

 

(c)              
Replacement of Defaulting Lender. If any Lender is a Defaulting Lender,
Administrative Agent may, upon notice to such Lender and the Borrower, replace such Lender by causing such Lender to assign its
Loan (with the related assignment fee to be paid by such Defaulting Lender) pursuant to Section 12.3 to one or more Persons
eligible under such Section procured by Administrative Agent. Borrower shall pay in full all principal, interest, fees and other
amounts owing to such Defaulting Lender through the date of replacement. Any Defaulting Lender being replaced under this Section
2.14(c) shall execute and deliver an Assignment and Assumption with respect to such Lender’s Pro Rata Share of the Loan.

 

ARTICLE
3

INSURANCE, CONDEMNATION AND IMPOUNDS

 

Section 3.1          
Insurance. Borrower, at its sole cost and expense, shall maintain (or cause
to be maintained), during the entire term of the Loan, insurance providing at least the following coverages:

 

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(a)           Property; Business Interruption. Borrower
shall (i) keep the Project insured against damage by fire, acts of domestic and foreign terrorism, any type of wind (including
named storms) and such other hazards covered by a special form or all-risk insurance policy (A) for the full insurable value thereof
on a replacement cost basis without any coinsurance (B) with a deductible not to exceed $25,000, except for wind/named storms and
earthquake, which shall provide for a deductible of no more than five percent (5%) of the total insurable value of the Project,
(C) containing Law & Ordinance coverage if any of the Improvements or the use of the Project shall at any time constitute legal
non-conforming structures or uses, including coverage for loss to the undamaged portion of the building (with a limit equal to
replacement cost), the cost of demolition and the increased costs of construction (each in amounts as required by Administrative
Agent) and (D) shall maintain boiler and machinery insurance and such other property insurance as reasonably required by Administrative
Agent. Administrative Agent reserves the right to require such other insurance from time to time, including but not limited to
earthquake, flood (in addition to Federal Flood Insurance) and sinkhole, each in amounts acceptable to Administrative Agent. The
full insurable value shall be re-determined from time to time (but not more frequently than once in any twelve (12) calendar months)
at the request of Administrative Agent by an appraiser or contractor designated and paid by Borrower and approved by Administrative
Agent, or by an engineer or appraiser in the regular employ of the insurer. No omission on the part of Administrative Agent to
request any such ascertainment shall relieve Borrower of any of its obligations under this subsection. Further, if any portion
of the Improvements or personal property at the Project is located currently or at any time in the future in Special Flood Hazard
Area, Borrower shall deliver to Administrative Agent the following: (1) evidence as to whether the community in which the Project
is located is participating in the National Flood Insurance Program, (2) Borrower’s written acknowledgment of receipt of
written notification from Administrative Agent as to the fact that the Project is located in a Special Flood Hazard Area and as
to whether the community in which such Real Estate is located is participating in the National Flood Insurance Program and (3)
copies of the application for a Federal Flood Insurance policy, plus proof of premium payment, a declaration page confirming that
Federal Flood Insurance has been issued, or such other evidence of Federal Flood Insurance satisfactory to Administrative Agent,
in all cases naming Administrative Agent as Mortgagee on behalf of the Lenders; and (ii) maintain business interruption insurance,
including rental income loss and extra expense, (A) with loss payable to Administrative Agent, (B) covering all perils required
herein to be insured against, (C) covering a period of restoration of twelve (12) months and containing an extended period of indemnity
endorsement which provides that after the physical loss to Improvements has been repaired, the continued loss of income will be
insured until such income either returns to the same level it was at prior to the loss, or the expiration of six (6) months from
the date that the Project is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that
the policy may expire prior to the end of such period and (D) in an amount equal to one hundred percent (100%) of the projected
gross revenue (less non-continuing expenses) from the Project as determined by Administrative Agent for a period of twelve (12)
months. The amount of such business interruption insurance shall be determined prior to the date hereof and at least once each
year thereafter based on Borrower’s reasonable estimate of the gross revenue (less non-continuing expenses) from the Project
for the succeeding twelve (12) month period. All business interruption proceeds shall be held by Administrative Agent and shall
be applied to the Obligations secured by the Loan Documents from time to time due and payable hereunder and under the Note; provided,
however, that nothing herein contained shall be deemed to relieve Borrower of its obligation to

 

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pay Debt Service on the Payment Dates
set forth herein, except to the extent such amounts are actually paid out of the proceeds of such business interruption insurance.

 

(b)              
Liability. Borrower shall maintain (or cause to be maintained) (i) commercial general liability insurance (with
no exclusion for acts of domestic and foreign terrorism) with respect to the Project for both personal injury, bodily injury to
or death of a person and for property damage providing for limits of liability in the amount approved by Administrative Agent but
in no event less than $1,000,000 per occurrence and $2,000,000 in the aggregate, (ii) umbrella liability coverage in the amount
and to the extent required by Administrative Agent on terms consistent with the general liability insurance required hereinabove,
and (iii) other liability insurance as reasonably required by Administrative Agent, including but limited to auto liability
or worker’s compensation and employer’s liability covering employees of Borrower. In addition, Borrower shall cause
Operators to maintain (A) if applicable, worker’s compensation insurance and employer’s liability insurance covering
employees at the Project employed by such Operator (in the amounts required by applicable Requirements of Law) and (B) professional
liability insurance. In no event shall Borrower consents to any decrease in the amount or scope of coverage or increase the deductibles
from those previously approved by Administrative Agent.

 

(c)              
Construction, Repairs, Alterations. At all times during which structural construction, repairs or alterations are
being made with respect to the Improvements, and only if the property or liability coverage forms do not otherwise apply, (A) commercial
general liability and umbrella liability insurance covering claims related to the construction, repairs or alterations being made
which are not covered by or under the terms or provisions of the commercial general liability and umbrella liability insurance
policy required in Section 3.1(b); and (B) the insurance provided for in Section 3.1(a) written in a so-called builder’s
risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to Section 3.1(a), and (3)
including permission to occupy the Project.

 

(d)              
Form and Quality. All insurance policies shall be obtained under valid and enforceable policies and shall
be subject to the approval of Administrative Agent as to form and substance, including insurance companies, amounts, deductibles,
loss payees and insureds. Such policies shall be endorsed in form and substance acceptable to Administrative Agent to name Administrative
Agent (on behalf of the Lenders) thereunder as an additional insured, as its interest may appear, on liability insurance policies
and as mortgagee/lender’s loss payable, as its interest may appear, on all property insurance policies, including but not
limited to special form/all-risk, business interruption, boiler and machinery, terrorism, windstorm, flood and earthquake insurance,
with all loss payable to Administrative Agent, without contribution, under a standard non-contributory mortgagee clause. No
policy shall contain a Protective Safeguard Endorsement. Administrative Agent shall act on behalf of the Lenders in respect of
insurance matters. The proceeds of insurance paid on account of any damage or destruction to the Project shall be paid to Administrative
Agent, on behalf of the Lenders, to be applied as provided in Section 3.2. In the event Borrower or any Operator receives
any insurance proceeds (without the same having been disbursed to Administrative Agent), Borrower will or will cause Operator to
immediately return such proceeds to Administrative Agent for application in accordance with the provisions of Section 3.2. All
such insurance policies and endorsements shall be fully paid for and contain such provisions and expiration dates and be in such
form acceptable to Administrative Agent and issued by such insurance companies authorized to do business in the state in which
the Project is located,

 

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with a rating of “A-X”
or better as established by Best’s Rating Guide or “A-” or better by Standard & Poor’s
Ratings Group. Each property insurance policy shall provide that such policy may not be canceled except upon thirty (30) days’
prior written notice (except ten (10) days’ prior notice for non-renewal or cancellation due to non-payment of premium) to
Administrative Agent and that no act or negligence of Borrower, or any other insured under the policy, or failure to comply with
the provisions of any Policy which might otherwise result in a forfeiture of the insurance or any part thereof, or commencement
of foreclosure or similar action, shall in any way affect the validity or enforceability of the insurance insofar as Administrative
Agent is concerned. If available using commercially reasonable efforts, each liability insurance policy shall provide that such
policy may not be canceled except upon thirty (30) days’ prior written notice (except ten (10) days’ prior notice
for non-renewal or cancellation due to non-payment of premium) to Administrative Agent (provided that, if the insurer will not
or cannot provide the required notice, Borrower shall be obligated to provide such notice). Blanket policies shall be permitted
only if (i) any such policy shall in all other respects comply with the requirements of this Section and (ii) such policy
is approved in advance in writing by Administrative Agent and such policy includes changes to the coverages and requirements set
forth herein as may be required by Administrative Agent (including increases to the amount of coverages required herein). Notwithstanding
Administrative Agent’s approval of any blanket policy hereunder, Administrative Agent reserves the right, in its sole discretion,
to require Borrower to obtain a separate policy in compliance with this Section 3.1. Borrower authorizes Administrative
Agent to pay the premiums for such policies (the “Insurance Premiums”) from the Insurance Impound
as the same become due and payable annually in advance. If Borrower fails to deposit funds into the Insurance Impound sufficient
to permit Administrative Agent to pay the Insurance Premiums when due, Administrative Agent may obtain such insurance and pay the
premium therefor and Borrower shall, on demand, reimburse Administrative Agent for all expenses incurred in connection therewith.
Borrower shall not maintain any separate or additional insurance which is contributing in the event of loss unless it is properly
endorsed and otherwise reasonably satisfactory to Administrative Agent in all respects. Notwithstanding the foregoing, Borrower
shall be permitted to keep in force the existing premium finance agreement provided that Borrower submits to Lender proof of payment
of each and every installment due under such premium financing agreement or installment arrangement directly to the insurance company,
as such installments become due and payable.

 

(e)              
Assignment; Delivery of Certificates and Policies. Borrower shall assign (or cause to be assigned) the policies and
all proceeds payable thereunder or proofs of insurance to Administrative Agent (for the benefit of the Lenders), in such manner
and form that Administrative Agent and its successors and assigns shall at all times have and hold the same as security for the
payment of the Loan. In the event of a foreclosure of the applicable Mortgage or other transfer of title to the Project in extinguishment
in whole or in part of the Indebtedness, all right, title and interest of Borrower in and to the Policies then in force concerning
the Project and all proceeds payable thereunder shall thereupon vest exclusively in Administrative Agent or the purchaser at such
foreclosure or other transferee in the event of such other transfer of title. Unless otherwise approved by Administrative Agent,
with respect to the property insurance required under this Section 3.1, Borrower shall provide (i) on or before
the Closing Date, an ACORD 27 or 28 along with a policy binder which is valid for at least sixty (60) days following the Effective
Date or a complete copy of the policy, (ii) endorsements required by Administrative Agent within thirty (30) days following
the Closing Date if not provided on or before the Closing Date and (iii) a copy of the full policy within sixty (60) days
following the Closing Date or prior to expiration of the

 

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binder. Unless otherwise approved by Administrative
Agent, with respect to the liability insurance required under this Section 3.1, Borrower shall provide (i) on
or before the Closing Date, an ACORD 25 along with evidence of 30-day notice of cancellation of coverage along with a policy binder
which is valid for at least sixty (60) days following the Effective Date or a complete copy of the policy, (ii) endorsements
required by Administrative Agent within thirty (30) days following the Closing Date if not provided on or before the Closing
Date and (c) a copy of the full policy within sixty (60) days following the Closing Date. If Borrower elects to obtain
any insurance that is not required under this Agreement, all related insurance policies shall be endorsed in compliance with Section 3.1(d),
and such additional insurance shall not be canceled without prior notice to Administrative Agent. From time to time upon Administrative
Agent’s request, Borrower shall identify to Administrative Agent all insurance maintained by Borrower with respect to the
Project. The proceeds of insurance policies coming into the possession of Administrative Agent shall not be deemed trust funds,
and Administrative Agent shall be entitled to apply such proceeds as herein provided.

 

(f)               
Adjustments. Borrower shall give (or cause to be given) immediate written notice of any loss to the insurance carrier
and to Administrative Agent. Borrower hereby irrevocably authorizes and empowers Administrative Agent, as attorney in fact for
Borrower coupled with an interest, to (i) notify any of Borrower’s insurance carriers to add Administrative Agent (for
itself and the benefit of the Lenders) as a loss payee, mortgagee insured or additional insured, as the case may be, to any
policy maintained by Borrower (regardless of whether such policy is required under this Agreement), (ii) if such loss exceeds
the Restoration Threshold, make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute
any action arising from such insurance policies and (iii) collect and receive insurance proceeds, and to deduct therefrom
Administrative Agent’s reasonable expenses incurred in the collection of such proceeds. Nothing contained in this Section 3.1(f),
however, shall require Administrative Agent to incur any expense or take any action hereunder.

 

(g)              
WARNING REGARDING RIGHT OF ADMINISTRATIVE AGENT TO PURCHASE INSURANCE: If Borrower fails to provide Administrative
Agent with evidence of the insurance coverages required by this Agreement, Administrative Agent shall have the right take such
action deemed necessary to protect the interest of Administrative Agent and Lenders, including the purchasing of insurance at Borrower’s
expense as Administrative Agent in its sole discretion deems appropriate. This insurance may, but need not, also protect Borrower’s
interest. If the Collateral becomes damaged, the coverage Administrative Agent purchases may not pay any claim Borrower makes or
any claim made against Borrower. After receiving written consent from Administrative Agent, Borrower may later cancel this coverage
by providing evidence that the required property coverage was purchased elsewhere. Borrower is responsible for all expenses incurred
by Administrative Agent in connection with such action and the cost of any insurance purchased pursuant to this provision and such
cost is payable on demand; if Borrower fails to pay such cost, it may be added to the Indebtedness and bear interest at the Default
Rate. The effective date of coverage may be the date Borrower’s prior coverage lapsed or the date Borrower failed to provide
proof of coverage. The coverage Administrative Agent purchases may be considerably more expensive than insurance Borrower can obtain
and may not satisfy any need for property damage coverage or any mandatory liability insurance imposed by Requirements of Law.

 

    	LOAN AGREEMENT – Page 40
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(h)              
Illinois Disclosure. The following notice is provided pursuant to paragraph (3) of
815 ILCS 180/10: Unless Borrower provides evidence of the insurance coverage required by this Agreement, Administrative Agent may
purchase such insurance at Borrower’s expense to protect Administrative Agent’s and Lenders’ interests in the
Collateral. This insurance may, but need not, protect Borrower’s interests. The coverage that Administrative Agent purchases
may not pay any claim that Borrower may make or any claim that is made against Borrower in connection with the Collateral. Borrower
may later cancel any insurance purchased by Administrative Agent, but only after providing evidence that Borrower has obtained
insurance as required by the Loan Documents. If Administrative Agent purchases insurance for the Collateral, Borrower will be responsible
for the costs of that insurance, including the insurance premium, interest and any other charges that Administrative Agent may
impose in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance.
The costs of the insurance may be added to the Obligations of Borrower. The costs of the insurance may be more than the cost of
insurance that Borrower may be able to obtain on Borrower’s own.

 

(i)                
Non-Conforming Policy. As an alternative to the policies required to be maintained pursuant to the preceding provisions
of this Section 3.1, Borrower will not be in default under this Section 3.1 if Borrower maintains (or causes to be maintained)
policies which (i) have coverages, deductibles and/or other related provisions other than those specified above and/or (ii) are
provided by insurance companies not meeting the credit ratings requirements set forth above (any such policy, a “Non-Conforming
Policy”), provided, that, prior to obtaining such Non-Conforming Policies (or permitting such Non-Conforming Policies
to be obtained), Borrower shall have received Administrative Agent’s prior written consent thereto. Notwithstanding the foregoing,
Administrative Agent hereby reserves the right to deny its consent to any Non-Conforming Policy regardless of whether or not Administrative
Agent has consented to the same on any prior occasion.

 

Section 3.2          
Use and Application of Insurance Proceeds.

 

(a)              
Notice; Repair Obligation. If the Project shall be damaged or destroyed, in whole
or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt written notice thereof
to Administrative Agent. Following the occurrence of a Casualty, Borrower shall promptly repair, restore or rebuild any of the
affected Improvements that may become damaged or be destroyed, such restored or rebuilt improvements to be of at least equal value
and substantially the same character as prior to such damage or destruction, provided that any insurance proceeds relating to such
damage or destruction have been released to Borrower under the terms of this Agreement to effectuate such repairs or restoration,
but regardless of whether such insurance proceeds are sufficient for such repairs or restoration.

 

(b)              
Application of Insurance Proceeds. Administrative Agent shall make insurance proceeds
available to Borrower for application to the costs of restoring the Project or to the payment of the Loan as follows:

 

(i)          
if the loss is less than or equal to the Restoration Threshold, Administrative Agent shall make the insurance proceeds available
to Borrower, which proceeds shall be used by Borrower to pay for the restoration of the Project provided (A) no Event of

 

    	LOAN AGREEMENT – Page 41
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Default or Potential Default exists,
and (B) Borrower promptly commences and diligently pursues restoration of the Project;

 

(ii)       
if the loss exceeds the Restoration Threshold but is not more than 25% of the replacement value of the Improvements, Administrative
Agent shall disburse the insurance proceeds to Borrower, which proceeds shall be used by Borrower for the restoration of the Project
provided that at all times during such restoration (A) no Event of Default or Potential Default exists; (B) Borrower
delivers reasonably detailed plans and a budget to Administrative Agent for the proposed restoration; (C) Administrative Agent
determines that there are sufficient funds available to restore and repair the Project to a condition existing immediately prior
to such Casualty or, if Administrative Agent reasonably determines there is any such insufficiency, Borrower provides additional
security to address such insufficiency to Administrative Agent’s satisfaction; (D) Administrative Agent determines that
the Adjusted Net Operating Income of the Project during restoration, taking into account rent loss or business interruption insurance,
will be sufficient to pay Debt Service; (E) Administrative Agent determines that the ratio of the outstanding principal balance
of the Loan to appraised value of the Project after restoration of the Project will not exceed the loan-to-value ratio that existed
on the Closing Date; (F) Administrative Agent determines that after restoration of the Project, the Project and Borrower will
comply with the financial covenants in Section 7.13; (G) Administrative Agent determines that restoration and repair
of the Project to a condition approved by Administrative Agent will be completed within six (6) months after the date of loss
or casualty and in any event ninety (90) days prior to the Maturity Date; (H) Borrower promptly commences and is diligently
pursuing restoration of the Project; and (I)  after the restoration, the Project will be in compliance with and permitted
under all Requirements of Law; and

 

(iii)     
if the conditions set forth in (i) and (ii) above are not satisfied or the loss exceeds the maximum amount specified
in Section 3.2(b)(ii) above, (A) if no Event of Default exists hereunder, Administrative Agent may elect
to apply any insurance proceeds Administrative Agent receives as a prepayment of the Loan, or allow all or a portion of such proceeds
to be used for the restoration of the Project and (B) if an Event of Default exists hereunder, Administrative Agent shall
apply any insurance proceeds Administrative Agent receives as a prepayment of the Loan, unless the Required Lenders otherwise consent
in writing to allow all or a portion of the proceeds to be used for the restoration of the Project.

 

(c)              
Disbursement of Insurance Proceeds. Insurance proceeds received by Administrative
Agent and to be applied to restoration pursuant to the terms of this Section 3.2, will be disbursed by Administrative
Agent to Borrower on a monthly basis, commencing within ten (10) Business Days following receipt by Administrative Agent of
plans and specifications, contracts and subcontracts, schedules, budgets, lien waivers and architects’ certificates all in
form reasonably satisfactory to Administrative Agent, and otherwise in accordance with prudent commercial construction lending
practices for construction loan advances (including appropriate retainages to ensure that all work is completed in a workmanlike
manner). Any insurance proceeds remaining after payment of all restoration costs shall be applied by Administrative Agent to the
balance of the Loan or, at Administrative Agent’s sole option, remitted to Borrower.

 

(d)              
Special Right to Repay Loan. Notwithstanding anything
in this Section 3.2 to the contrary, if pursuant
to Section 3.2(b)(iii) above, Administrative Agent
elects to require that

 

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the insurance proceeds be applied as a
prepayment of the Loan, Borrower shall have the option to prepay the Indebtedness within ninety (90) days following Administrative
Agent’s election and otherwise in accordance Section 2.4(e), less
any insurance proceeds actually received by Administrative Agent at the time of such prepayment, if any. If the insurance proceeds
have not been received by Administrative Agent at the time of such prepayment, Borrower will be entitled to receive all insurance
proceeds after the prepayment of the Loan.

 

Section 3.3          
Condemnation Awards. Borrower shall promptly give Administrative Agent written
notice of the actual or threatened commencement of any condemnation or eminent domain proceeding affecting the Project (a “Condemnation”) and
shall deliver to Administrative Agent copies of any and all papers served in connection with such Condemnation. Following the occurrence
of a Condemnation, Borrower, regardless of whether any award or compensation (an “Award”) is available,
shall promptly proceed to restore, repair, replace or rebuild the same to the extent practicable to be of at least equal value
and of substantially the same character as prior to such Condemnation, all to be effected in accordance with all Requirements of
Law. Administrative Agent may participate in any such proceeding (for itself and on behalf of the Lenders) and Borrower will
deliver to Administrative Agent all instruments necessary or required by Administrative Agent to permit such participation. Without
Administrative Agent’s prior consent, Borrower (a) shall not agree to any Award, and (b) shall not take any action
or fail to take any action which would cause the Award to be determined. All Awards for the taking or purchase in lieu of condemnation
of the Project or any part thereof are hereby assigned to and shall be paid to Administrative Agent to be held and disbursed or
applied as hereinafter provided. Administrative Agent is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled
with an interest, with exclusive power to collect, receive and retain any Award and to make any compromise or settlement in connection
with any such Condemnation and to give proper receipts and acquittances therefor, and in Administrative Agent’s sole discretion
(in consultation with the Required Lenders) to apply the same toward the payment of the Loan, notwithstanding that the Loan
may not then be due and payable, or to the restoration of the Project; provided, however, if the Award is less than or equal to
$250,000 and Borrower requests that such proceeds be used for nonstructural site improvements (such as landscape, driveway, walkway
and parking area repairs) required to be made as a result of such Condemnation, Administrative Agent will apply the Award
to such restoration in accordance with disbursement procedures applicable to insurance proceeds provided there exists no Potential
Default or Event of Default. Borrower, upon request by Administrative Agent, shall execute all instruments requested to confirm
the assignment of the Awards to Administrative Agent, free and clear of all liens, charges or encumbrances. Anything herein to
the contrary notwithstanding, if a Potential Default or Event of Default exists, Administrative Agent is authorized to adjust such
Award without the consent of Borrower and to collect such Award in the name of Administrative Agent (on behalf of itself and the
Lenders) and Borrower.

 

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ARTICLE 4

LEASING MATTERS

 

Section 4.1          
Representations and Warranties on Leases.

 

(a)              
Leases. Borrower represents and warrants to Administrative Agent and the Lenders with respect to the Leases for residential
occupancy, to Borrower’s Knowledge, (i) the rent roll or Census Report for the Project delivered to Administrative Agent
is true and correct; (ii) such Leases are valid and in and full force and effect; and (iii) the interests of the landlord and the
rents under such Leases have not been assigned or pledged. Borrower represents and warrants to Administrative Agent and Lenders
with respect to the Commercial Leases, if any, to Borrower’s Knowledge, (i) the rent roll with respect to such Commercial
Leases, if any, delivered to Administrative Agent is true and correct; (ii) such Commercial Leases are in full force and effect;
(iii) the Commercial Leases (including amendments) are in writing, and there are no oral agreements with respect thereto; (iv)
the copies of the Leases delivered to Administrative Agent are true and complete; (v) neither the landlord nor any tenant is in
default under any of the Commercial Leases; (vi) Borrower has no knowledge of any notice of termination or default with respect
to any Commercial Lease; (vii) Borrower has not assigned or pledged any of the Commercial Leases, the rents or any interests therein
except to Administrative Agent and the Lender; (viii) no Tenant or other party has an option to purchase all or any portion of
Project; (ix) no Tenant has the right to terminate its Commercial Lease prior to expiration of the stated term of such Commercial
Lease; (x) no Tenant has prepaid more than one month’s rent in advance (except for bona fide Security Deposits not in excess
of an amount equal to two months’ rent); and (xi) all existing Commercial Leases are subordinate to the Mortgage either pursuant
to their terms or a recorded subordination agreement.

 

(b)              
Operating Lease. Borrower represents and warrants to Administrative Agent and the Lenders that: (i) the Operating
Lease is valid and in and full force and effect; (ii) the Operating Lease (including amendments) is in writing, and there are no
oral agreements with respect thereto; (iii) the copy of the Operating Lease delivered to Administrative Agent is true and complete;
(iv) neither Borrower nor, to Borrower’s Knowledge, Operating Tenant is, in default under the Operating Lease; (v) neither
Borrower nor Operating Tenant has any knowledge of any notice of termination or default with respect to the Operating Lease; (vi)
Borrower has not assigned or pledged its interest in the Operating Lease, the rents or any interests therein, except to Administrative
Agent and the Lenders; (vii) Operating Tenant does not have an option to purchase all or any portion of the Project; (viii)
except as set forth in the Operating Lease, Operating Tenant does not have the right to terminate the Operating Lease prior to
expiration of the stated term of the Operating Lease (unless due to casualty or condemnation of the Project); (ix) Operating
Tenant has not prepaid more than one month’s rent payable thereunder in advance of the date on which the same will become
due and payable; and (x) to Borrower’s Knowledge, Operating Tenant has not assigned or pledged its interest under the
Operating Lease to which it is party or, as of the Closing Date, the interest of the Operating Tenant in any Accounts payable to
Operating Tenant.

 

Section 4.2          
Standard Form of Lease. Borrower
shall require Operator to (a) use a standard form of lease approved by Administrative Agent on or before the Closing Date
for all Residential Leases entered into after the Closing Date, with no modifications (except for (i) non-material
modifications made in the ordinary course of business, (ii) modifications required by

 

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Requirements of Law or (iii) modifications
otherwise approved by Administrative Agent, which approval will not be unreasonably withheld or delayed); and (b) hold, in
trust, all tenant Security Deposits in a segregated account, and, to the extent required by any Requirements of Law, shall not
commingle any such funds with any other funds of Operator. Neither Operator nor Borrower shall enter into any Commercial Lease
(including any extensions or modifications related thereto) without Administrative Agent’s consent, unless (i) the economic
terms of the Lease conform to those of the market in the area in which the Project is located, (ii) the initial term does not exceed
five (5) years, and (iii) the Commercial Lease does not demise more than five percent (5%) of the square footage of the Project
or generate more five percent (5%) of the revenue at the Project.

 

Section 4.3          
Covenants – Operating Lease; Security Deposit. Borrower shall (a) perform
the obligations which Borrower is required to perform under the Operating Lease; (b) enforce the material obligations to be performed
by the Operating Tenant under the Operating Lease; (c) promptly furnish to Administrative Agent any notice of default or termination
received by Borrower from Operating Tenant, and any notice of default or termination given by Borrower to Operating Tenant under
the Operating Lease; (d) not collect any rents for more than one month in advance of the time when the same shall become due under
the Operating Lease, except for any bona fide Security Deposit deposited by Operating Tenant with Borrower in accordance with the
Operating Lease; (e) not enter into any ground lease or master lease of any part of the Project other than the Operating Lease;
(f) not further assign or encumber the Operating Lease; (g) not, except with Administrative Agent’s prior written consent,
cancel or accept surrender or termination of the Operating Lease, or consent to any assignment of the Operating Lease by the Operating
Tenant or sublease (except pursuant to Leases permitted hereunder) of the Project by the Operating Tenant; (h) not approve
any financing by Operating Tenant of any financing of Operating Tenant’s interest in the Accounts and other amounts payable
by Tenants under the Leases without first obtaining the prior written consent of Administrative Agent and, if requested by Administrative
Agent, entering into an intercreditor agreement with the lender providing such financing, and (i) not, except with Administrative
Agent’s prior written consent, modify or amend the Operating Lease (except for minor modifications and amendments entered
into in the ordinary course of business, consistent with prudent property management practices, not affecting the economic terms
of the Operating Lease), and any action in violation of clauses (e), (f), (g), and (i) of this Section 4.3 shall be void
at the election of Administrative Agent. Borrower will not suffer or permit any breach or default to occur in any of Borrower’s
obligations under the Operating Lease nor suffer or permit the same to terminate by reason of any failure of Borrower to meet any
requirement of the Operating Lease. If the Security Deposit (including any Security Deposit defined as a “Lease Deposit”
under the Operating Lease) is in the form of a letter of credit, Borrower, at Borrower’s sole cost and expense, shall cause
such letter of credit to be assigned to Administrative Agent, promptly (and, in any event, within twenty-five (25) days) following
Administrative Agent’s written request, which request may be made at any time while a Potential Default or Event of Default
is in existence.

 

Section 4.4          
Tenant Estoppels. At Administrative Agent’s request, Borrower shall use
commercially reasonable efforts to obtain from Operating Tenant and furnish to Administrative Agent, a written estoppel in form
and substance satisfactory to Administrative Agent, executed by Operating Tenant and confirming the term, rent and other provisions
and matters relating to the Operating Lease.

 

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Section 4.5           Payment of Rents Under Operating
Lease. 

 

(a)              
Commencing on the Closing Date and continuing so long as the Loan is outstanding, Borrower shall
direct Operating Tenant to make all payments of rent and all other amounts due under the Operating Lease (such net amount herein
called the “Operating Lease Payments”)
to the Deposit Account Bank for deposit in the account subject to the Deposit Account Control Agreement. So long as no Potential
Default or Event of Default is continuing, Deposit Account Bank shall be authorized to transfer on a daily basis the funds in the
account to the operating account of Borrower, excluding the Security Deposit and any supplements thereto and amounts deposited
by Operating Tenant in connection with future payments of Taxes and Insurance Premiums, which
shall remain on deposit in a Deposit Account subject to a Deposit Account Control Agreement.

 

(b)              
If a Potential Default or an Event of Default exists, Administrative Agent shall have the right
in its sole discretion to direct the Deposit Account Bank to disburse all amounts in the account held by the Deposit Account Bank
to Administrative Agent or as otherwise directed by Administrative Agent, and to the extent disbursed to Administrative Agent,
Administrative Agent shall apply such amounts to the Obligations, in such order as Administrative Agent, in its sole discretion,
may elect.

 

ARTICLE
5

REPRESENTATIONS AND WARRANTIES

 

Borrower represents,
warrants and covenants to Administrative Agent and Lenders unless otherwise specified, as of the Closing Date and as of the date
of each Compliance Certificate delivered to Administrative Agent pursuant to Section 6.2 hereof that:

 

Section 5.1          
Organization, Power and Authority; Formation Documents.

 

(a)              
Organization, etc. Borrower and each other Borrower Party is duly organized, validly
existing and in good standing under the laws of the state of its formation or existence and is in compliance with all Requirements
of Law applicable to doing business in the state in which the Project is located. Borrower is not a “foreign person”
within the meaning of §l445(f)(3) of the Code. Borrower and each other Borrower Party has only one state of incorporation
or organization which is set forth in Schedule 5.1. All other information governing
the formation and existence of Borrower and each other Borrower Party contained in Schedule 5.1, including
the ownership structure of Borrower and its constituent entities, is true and correct as of the Closing Date.

 

(b)              
Formation Documents. A true and complete copy of the formation documents creating
Borrower and each other Borrower Party and any and all amendments thereto (collectively, the “Borrower Formation Documents”) has
been furnished to Administrative Agent. The Borrower Formation Documents constitute the entire agreement governing the formation
and existence of Borrower and each other Borrower Party among the members of Borrower or such other Borrower Party and are binding
upon and enforceable against each of the members in accordance with their terms. No breach exists under the Borrower Formation

 

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Documents and no condition exists which,
with the giving of notice or the passage of time, would constitute a breach under the Borrower Formation Documents.

 

Section 5.2          
Validity of Loan Documents. The execution, delivery and performance by each
Borrower Party of the Loan Documents and the Environmental Indemnity Agreement to which they are a party: (a) are duly authorized
and do not require the consent or approval of any other party or Governmental Authority which has not been obtained; and (b) will
not violate any law or result in the imposition of any Lien upon the assets of any such party, except as contemplated by the Loan
Documents and/or the Environmental Indemnity Agreement. The Loan Documents and/or the Environmental Indemnity Agreement constitute
the legal, valid and binding obligations of Borrower and each other Borrower Party who is a party to such Loan Documents and/or
the Environmental Indemnity Agreement, enforceable in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, or similar laws generally affecting the enforcement of creditors’ rights.

 

Section 5.3          
Liabilities; Litigation.

 

(a)              
Financial Statements. The financial statements delivered by Borrower and each other
Borrower Party are true and correct as of the date prepared with no significant change since the date of preparation. Except as
disclosed in such financial statements, there are no liabilities (fixed or contingent) affecting the Project, Borrower or
any other Borrower Party. Except as disclosed in such financial statements, there is no litigation, administrative proceeding,
investigation or other legal action (including any proceeding under any state or federal bankruptcy or insolvency law) pending
or, to Borrower’s Knowledge, threatened, against the Project, Borrower or any other Borrower Party which if adversely determined
could have a Material Adverse Effect.

 

(b)              
Contemplated Actions. No Borrower Party is contemplating either the filing of a
petition by it under state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets
or property, and no Borrower Party has knowledge of any Person contemplating the filing of any such petition against it.

 

(c)              
Litigation. There are no actions, suits or other proceedings at law or in equity by or before any Governmental Authority
now pending or threatened against or affecting Borrower or the Project, which, if adversely determined, might materially adversely
affect the condition (financial or otherwise) or business of Borrower (including the ability of Borrower to carry out its obligations
under the Loan Documents), or the use, value, condition or ownership of the Project.

 

Section 5.4          
Taxes and Assessments. There are no unpaid or outstanding real estate or other
taxes or assessments on or against the Project or any part thereof, except general real estate taxes not due or payable. The Project
is comprised of one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any
other tax lot. There are no pending or, to Borrower’s Knowledge, proposed, special or other assessments for public improvements
or otherwise affecting the Project, nor are there any contemplated improvements to the Project that may result in such special
or other assessments.

 

          

 

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Section 5.5           Other Agreements
Defaults. No Borrower Party is a party to any agreement or instrument or subject to any court order, injunction, permit, or
restriction which might affect the Project or the business, operations, or condition (financial or otherwise) of any
Borrower Party. No Borrower Party is in violation of any agreement which violation could reasonably be expected to have a
Material Adverse Effect.

 

Section 5.6          
Compliance with Laws. Borrower has all requisite Permits to own and lease the
Project and carry on its business and, to Borrower’s Knowledge, each Operator has all requisite Primary Licenses and Permits
to operate the Project leased or managed, as applicable, by it and carry on its business. Except as described in each Zoning Report
and Property Condition Report delivered to Administrative Agent prior to the Closing Date, the Project in compliance with all applicable
zoning and building requirements and is free of structural defects. Except as described in the Property Condition Report delivered
to Administrative Agent prior to the Closing Date, all of the building systems contained in the Project are in good working order,
subject to ordinary wear and tear. Except as set forth in the Zoning Report, the Project does not constitute, in whole or in part,
a legally non-conforming use under applicable Requirements of Law.

 

Section 5.7          
Condemnation. No condemnation has been commenced or, to Borrower’s Knowledge,
is contemplated with respect to all or any portion of the Project or for the relocation of roadways providing access to the Project

 

Section 5.8          
Access. The Project has adequate rights of access to public ways and is served
by adequate water, sewer, sanitary sewer and storm drain facilities. All public utilities necessary or convenient to the full use
and enjoyment of the Project are located in the public right-of-way abutting the Project, and all such utilities are connected
so as to serve the Project without passing over other property, except to the extent such other property is subject to a perpetual
easement for such utility benefitting the Project. All roads necessary for the full utilization of the Project for its current
purpose have been completed and dedicated to public use and accepted by all Governmental Authorities.

 

Section 5.9          
Location of Borrower. Borrower’s principal place of business and chief
executive offices are located at the address stated in Schedule 5.1 and, except as otherwise set forth in
Schedule 5.1, Borrower at all times has maintained its principal place of business and chief executive office
at such location or at other locations within the same state.

 

Section 5.10      
ERISA Employees.

 

(a)              
As of the Closing Date hereof and throughout the term of the Loan, (i) Borrower is not nor will be an “employee benefit
plan” as defined in Section 3(3) of ERISA, which is subject to Part 4 of Subtitle B of Title I of ERISA, and (ii) the assets
of Borrower do not and will not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA,
as determined under Section 3(42) of ERISA.

 

(b)              
As of the Closing Date hereof and throughout the term of the Loan (i) Borrower is not nor
will be a “governmental plan” within the meaning of Section 3(3) of ERISA and (ii) transactions by or
with Borrower are not and will not violate state statutes applicable to

 

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Borrower regulating investments of and
fiduciary obligations with respect to such governmental plans.

 

(c)              
Borrower does not have any employees.

 

Section 5.11      
Use of Loan Proceeds. The proceeds of the Loan are intended and will be used
for agricultural, business and/or commercial purposes and are not intended and will not be used for personal, family or household
purposes. No part of proceeds of the Loan will be used for purchasing or acquiring any “margin stock” within the meaning
of Regulations T, U or X of the Board of Governors of the Federal Reserve System.

 

Section 5.12      
Forfeiture. There has not been committed by any Borrower Party or any Operator,
any other person in occupancy of or involved with the operation or use of the Project any act or omission affording the federal
government or any state or local government the right of forfeiture as against the Project or any part thereof or any monies paid
in performance of Borrower’s obligations under any of the Loan Documents or the Environmental Indemnity Agreement (the “Forfeiture
Rights”).

 

Section 5.13      
Tax Filings. Each Borrower Party has filed (or have obtained effective extensions
for filing) all federal, state and local tax returns required to be filed and have paid or made adequate provision for the
payment of all federal, state and local taxes, charges and assessments payable by each such Borrower Party, respectively. Each
Borrower Party believes that its respective tax returns properly reflect the income and taxes of each such Borrower Party, for
the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable
tax authority upon audit.

 

Section 5.14      
Solvency. After giving effect to the Loan, the fair saleable value of Borrower’s
assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including subordinated,
unliquidated, disputed and contingent liabilities. Borrower’s assets do not and, immediately following the making of the
Loan, will not constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower
does not intend to, nor believes that it will, incur Debts and liabilities (including contingent liabilities and other commitments)
beyond its ability to pay such Debts as they mature (taking into account the timing and amounts of cash to be received by Borrower
and the amounts to be payable on or in respect of obligations of Borrower). Except as expressly disclosed to Administrative Agent
in writing, no petition in bankruptcy has been filed against any Borrower Party in the last seven (7) years, and no Borrower
Party in the last seven (7) years has ever made an assignment for the benefit of creditors or taken advantage of any insolvency
act for the benefit of debtors. No Borrower Party is contemplating either the filing of a petition by it under state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property, and no Borrower Party has
knowledge of any Person contemplating the filing of any such petition against it.

 

Section 5.15      
Full and Accurate Disclosure, No Material Adverse Change. No statement of fact
made by or on behalf of any Borrower Party in this Agreement, in any of the other Loan Documents or the Environmental Indemnity
Agreement contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained
herein

 

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or therein not misleading nor has there
been any material adverse change in any condition, fact, circumstance or event that would make the financial statements, rent rolls,
reports, certificates or other documents submitted in connection with the Loan inaccurate, incomplete or otherwise misleading in
any material respect There is no fact presently known to Borrower which has not been disclosed to Administrative Agent which could
reasonably be expected to have a Material Adverse Effect. All information supplied by Borrower regarding any other Collateral is
accurate and complete in all material respects. All evidence of each Borrower Party’s identity provided to Administrative
Agent and Lenders is genuine, and all related information is accurate.

 

Section 5.16      
Flood Zone. No portion of the Improvements comprising the Project is located
in an area identified by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood
hazards pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance
Act of 1994, as amended, or any successor law, or, if located within any such area, Borrower has obtained and will maintain the
insurance prescribed in Section 3.1 hereof.

 

Section 5.17      
Single Purpose Entity/Separateness. Borrower represents, warrants and covenants,
from and after the Closing Date for so long as any obligation under the Loan Documents remains outstanding, as follows:

 

(a)              
Limited Purpose. The sole purpose conducted or promoted by Borrower is to engage
in the following activities:

 

(i)          
to acquire, own, hold, lease, operate, manage, maintain, develop and improve the Project (or an undivided interest therein) and
to contract for the operation, maintenance, management and development of the Project;

 

(ii)       
to enter into and perform its obligations under the Loan Documents and Environmental Indemnity Agreement;

 

(iii)     
to sell, transfer, service, convey, dispose of, pledge, assign, borrow money against, finance, refinance or otherwise deal
with the Project to the extent permitted under the Loan Documents; and

 

(iv)      
to engage in any lawful act or activity and to exercise any powers permitted to limited liability companies organized under
the laws of its jurisdiction of formation that are related or incidental to and necessary, convenient or advisable for the accomplishment
of the above mentioned purposes.

 

(b)              
Limitations on Debt, Actions. Notwithstanding anything to the contrary in the Loan
Documents or in any other document governing the formation, management or operation of Borrower, Borrower shall not:

 

(i)          
guarantee any obligation of any Person, including any Affiliate of Borrower, or become obligated for the debts of any other
Person or hold out its credit as being available to pay the obligations of any other Person;

 

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(ii)       
engage, directly or indirectly, in any business other than as required or permitted to be performed under this Section 5.17;

 

(iii)     
incur, create or assume any Debt other than (A) the Loan and (B) unsecured trade payables incurred in the ordinary
course of its business that are related to the ownership and operation of the Project and which shall (1) not exceed two percent
(2%) of the outstanding balance of the Loan, (2) not be evidenced by a note, (3) be paid within sixty (60) days,
and (4) otherwise expressly be permitted under the Loan Documents;

 

(iv)      
make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, except
that Borrower may invest in those investments permitted under the Loan Documents;

 

(v)        
to the fullest extent permitted by law, engage in any dissolution, liquidation, consolidation, merger, sale or other transfer
of any of its assets outside the ordinary course of Borrower’s business;

 

(vi)      
buy or hold evidence of indebtedness issued by any other Person (other than cash or investment-grade securities);

 

(vii)   
form, acquire or hold any subsidiary (whether corporate, partnership, limited liability company or other) or own any
equity interest in any other entity;

 

(viii) 
own any asset or property other than the Project (or an undivided interest therein) and incidental personal property
necessary for the ownership or operation of the Project; or

 

(ix)      
take any Material Action without the unanimous written approval of all members of Borrower.

 

(c)              
Separateness Covenants. In order to maintain its status as a separate entity and
to avoid any confusion or potential consolidation with any Affiliate of Borrower, Borrower represents and warrants that in the
conduct of its operations since its organization it has observed, and covenants that it will continue to observe, the following
covenants:

 

(i)          
maintain books and records and bank accounts separate from those of any other Person;

 

(ii)       
maintain its assets in such a manner that it is not costly or difficult to segregate, identify or ascertain such assets;

 

(iii)     
comply with all organizational formalities necessary to maintain its separate existence;

 

(iv)      
hold itself out to creditors and the public as a legal entity separate and distinct from any other entity;

 

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(v)        
maintain separate financial statements, showing its assets and liabilities separate and apart from those of any other Person
and not have its assets listed on any financial statement of any other Person; except that Borrower’s assets may be included
in a consolidated financial statement of its Affiliate so long as appropriate notation is made on such consolidated financial statements
to indicate the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available
to satisfy the debts and other obligations of such Affiliate or any other Person;

 

(vi)      
other than with respect to the consolidated tax return of its Affiliates, prepare and file its own tax returns separate
from those of any Person to the extent required by Requirements of Law, and pay any taxes required to be paid by Requirements of
Law;

 

(vii)   
allocate and charge fairly and reasonably any common employee or overhead shared with Affiliates;

 

(viii) 
not enter into any transaction with any Person owned or controlled by an Affiliate of Borrower except on an arm’s-length
basis on terms which are intrinsically fair and no less favorable than would be available for unaffiliated third parties, and pursuant
to written, enforceable agreements;

 

(ix)      
conduct business in its own name, and use separate stationery, invoices and checks;

 

(x)        
not commingle its assets or funds with those of any other Person other than as required or permitted by this Agreement;

 

(xi)      
not assume, guarantee or pay the debts or obligations of any other Person;

 

(xii)   
correct any known misunderstanding as to its separate identity;

 

(xiii) 
not permit any Affiliate of Borrower to guarantee or pay its obligations (other than limited guarantees and indemnities
set forth in the Loan Documents and in the Environmental Indemnity Agreement);

 

(xiv)  
not make loans or advances to any other Person;

 

(xv)    
pay its liabilities and expenses out of and to the extent of its own funds;

 

(xvi)  
maintain a sufficient number of employees in light of its contemplated business purpose and pay the salaries of its own
employees, if any, only from its own funds;

 

(xvii)
maintain adequate capital in light of its contemplated business purpose, transactions and liabilities; provided, however,
that the foregoing shall not require any equity owner to make additional capital contributions to Borrower;

 

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(xviii) cause
the managers, officers, employees, agents and other representatives of Borrower to act at all times with respect to Borrower
consistently and in furtherance of the foregoing and in the best interests of Borrower;

 

(xix) not
have any obligation to, and will not, indemnify its partners, officers, directors or members, as the case may be, unless such
an obligation is fully subordinated to the Indebtedness and will not constitute a claim against it in the event that
cash flow in excess of the amount required to pay the Indebtedness is insufficient to pay such obligation;

 

(xx)    
not pledge its assets for the benefit of any other Person other than to Administrative Agent and Lenders in connection with
the Loan; and

 

(xxi)  
observe all partnership, corporate or limited liability company formalities, as applicable.

 

Failure of Borrower
to comply with any of the foregoing covenants or any other covenants contained in this Agreement shall not affect the status of
Borrower as a separate legal entity.

 

Section 5.18      
Anti-Money Laundering/International Trade Law Compliance; Patriot Act.

 

(a)              
No Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody
or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in
or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced
by any Compliance Authority.

 

(b)              
The proceeds of the Loan will not be used to fund any operations in, finance any investments or activities in, or, make
any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by
any Compliance Authority.

 

(c)              
The funds used to repay the Loan are not derived from any unlawful activity.

 

(d)              
Each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by,
any laws of the United States, including but not limited to any Anti-Terrorism Laws.

 

(e)              
Borrower covenants and agrees that it shall immediately notify Administrative Agent in writing upon the occurrence of a
Reportable Compliance Event.

 

(f)               
As used herein: “Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs
and embargoes, import/export licensing, money laundering, or bribery, all as amended, supplemented or replaced from time to time;
“Compliance Authority” means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control,
(b) U.S. Treasury Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls,
(d) U.S. Commerce Department/Bureau of

 

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Industry and Security, (e) U.S. Internal
Revenue Service, (f) U.S. Justice Department, and (g) U.S. Securities and Exchange Commission; “Covered Entity”
means Borrower, its affiliates and subsidiaries, all guarantors, pledgors of collateral, all owners of the foregoing, and all brokers
or other agents of Borrower acting in any capacity in connection with the Loan; “Reportable Compliance Event”
means that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or
receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime
to any Anti-Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with the actual or
possible violation of any Anti-Terrorism Law; “Sanctioned Country” means a country subject to a sanctions program
maintained by any Compliance Authority; and “Sanctioned Person” means any individual person, group, regime,
entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity,
or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions),
under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions
program maintained by any Compliance Authority.

 

(g)              
No Borrower Party nor any partner in any Borrower Party or member of such partner nor any owner of a direct or indirect
interest in any Borrower Party (i) is listed on any Government Lists, (ii) is a Prohibited Person, (iii) has been previously indicted
for or convicted of any felony involving a crime or crimes of moral turpitude, or (iv) is currently under investigation by any
Governmental Authority for alleged criminal activity.

 

Section 5.19      
Intentionally Deleted.

 

Section 5.20      
Operator Agreements. A true, correct and complete copy of each of the Operator
Agreements, together with all amendments thereto, have been delivered to Administrative Agent; and the Operator Agreements and
all amendments thereto are in full force and effect as of the Closing Date.

 

Section 5.21      
Physical Condition. Except as specifically set forth in the Property Condition
Reports, to Borrower’s Knowledge, (a) the Project, including all buildings, improvements, parking facilities, sidewalks,
storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators,
exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair
in all material respects; subject to ordinary wear and tear and (b) there exists no structural or other material defects or
damages in the Project, whether latent or otherwise. Borrower has not received written notice from any insurance company or bonding
company of any defects or inadequacies in the Project, or any part thereof, which would adversely affect the insurability of the
same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any
policy of insurance or bond.

 

Section 5.22      
Healthcare Representations. Borrower represents and warrants to Administrative
Agent and Lenders that:

 

(a)              
The Project (i) is being operated as an assisted living facility or memory care facility
having the number of Residential Units as set forth on Exhibits A-1 through
A-2,

 

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attached hereto, and (ii) is in compliance
with all applicable Requirements of Law including (A) staffing requirements, (B) health and fire safety codes, including
quality and safety standards, (C) accepted professional standards and principles that apply to professionals providing services
at the Project; (D) federal, state or local laws, rules, regulations or published interpretations or policies relating to
the prevention of fraud and abuse, (E) insurance, reimbursement and cost reporting requirements, (F) government payment
program requirements and disclosure of ownership and related information requirements, (G) requirements of applicable Governmental
Authorities, including those relating to the Project’s physical structure and environment, licensing, quality and adequacy
of medical care, distributions of pharmaceuticals, rate setting, equipment, personnel, operating policies and services and fee
splitting, and (H) any other applicable laws, regulations or agreements for reimbursement for the type of care or services
provided by Operators with respect to the Project.

 

(b)              
The Third Party Payor Programs to which Borrower or any Operator may presently be subject with
respect to the Project are listed in Part A of Schedule 5.22. There
is no threatened in writing, existing or pending revocation, suspension, termination, probation, restriction, limitation, or nonrenewal
proceeding by any third-party payor under a Third Party Payor Program. With respect to the Project, there are no current, pending
or outstanding Third-Party Payor Programs reimbursement audits, appeals or recoupment efforts actually pending at the Project,
and there are no years that are subject to an open audit in respect of any Third-Party Payor Program that would, in each case,
adversely affect any Operator, other than customary audit rights pursuant to Medicare/Medicaid/TRICARE programs or other Approved
Insurer’s programs that would materially adversely affect Operators or Borrower.

 

(c)              
All Primary Licenses necessary for using and operating the Project for the uses described in
clause (a), above are listed in Part B of Schedule 5.22, are either held
by, or will be held by Borrower or Operator, as required under Healthcare Laws, and are in full force and effect.

 

(d)              
Except as set forth in Part C of Schedule 5.22
hereof, with respect to the Project, there are no inquiries, investigations, probes, audits or proceedings by any Governmental
Authority or notices thereof, or any other third party or any patient, employee or resident (including, but not limited to, whistleblower
suits, or suits brought pursuant to federal or state “false claims acts” and Medicaid, Medicare or state fraud and/or
abuse laws) that are reasonably likely directly or indirectly, or with the passage of time (i) to have a material adverse
impact on Operators’ ability to accept and/or retain patients or residents or operate the Project for its current use or
result in the imposition of a fine, a sanction, a lower rate certification or a lower reimbursement rate for services rendered
to eligible patients or residents, (ii) to modify, limit or result in the transfer, suspension, revocation or imposition of
probationary use of any of the Primary Licenses, (iii) to affect any Operator’s continued participation in the Medicaid
or Medicare programs or any other Third-Party Payor Programs, or any successor programs thereto at then current rate certifications,
or (iv) result in any other civil or criminal penalty or remedy, or which could result in the appointment of a receiver.

 

(e)              
With respect to the Project, except as set forth in Part C of Schedule
5.22, the Project has not received a notice of violation at a level that under applicable Law requires the immediate
or accelerated filing of a plan of corrections, and no statement of charges or deficiencies

 

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has been made or penalty enforcement action
has been undertaken against the Project, no Operator currently has outstanding any violation, and no statement of charges or deficiencies
has been made or penalty enforcement action has been undertaken each that remain outstanding against the Project, any Operator
or against any officer, director, partner, member or stockholder of any Operator, by any Governmental Authority, and there have
been no violations threatened against the Project’s, or any Operator’s certification for participation in Medicare
or Medicaid or the other Third-Party Payor Programs that remain open or unanswered.

 

(f)               
Borrower nor, to Borrower’s Knowledge, Operator has received federal funds authorized under
the Hill-Burton Act (42 U.S.C. 291, et seq.), as it may be amended.

 

(g)              
With respect to the Project, substantially all of the patient and resident care agreements conform
in all material respects with the form patient or resident care agreements that have been delivered to Administrative Agent and
all such agreements are in compliance with Healthcare Laws.

 

(h)              
Borrower’s and each Operator’s private payor, Medicaid, Medicare, and/or managed
care company, insurance company or other third party insurance accounts receivable with respect to the Project are free of any
Liens and neither Borrower nor Operators have pledged any of its receivables as collateral security for any loan or indebtedness.

 

(i)                
Borrower nor Operator is a party to any collective bargaining agreement or other labor contract
applicable to persons employed by it at the Project and there are no threatened or pending labor disputes at the Project.

 

(j)                
There exist no Healthcare Investigations affecting the Project.

 

(k)              
Borrower nor Operator (with respect to its operations at the Project) is a “covered”
entity within the meaning of HIPAA or submits claims or disbursement requests to Third Party Payor Programs “electronically”
(within the meaning of HIPAA).

 

ARTICLE
6

FINANCIAL REPORTING

 

Section 6.1          
Financial Statements. Borrower shall furnish to Administrative Agent and shall
cause each Borrower Party to furnish to Administrative Agent such financial statements and other financial information as may be
required pursuant to this Article 6 and such other financial information as Administrative Agent may require pursuant to this Article
6 and such other financial information as Administrative Agent may reasonably request from time to time. All such financial statements
shall be in Excel format, shall reflect all material contingent liabilities in accordance with GAAP and shall accurately and fairly
present the results of operations and the financial condition of Borrower at the dates and for the period indicated and shall be
sufficient to permit Administrative Agent and Lenders to calculate and/or verify Borrower’s calculation of Debt Service Coverage
Ratio, Project Yield and Adjusted Net Operating Income.

 

(a)              
Financial Information. In furtherance of the foregoing, Borrower shall furnish to Administrative Agent (or cause
to be furnished to Administrative Agent) the following financial information and reports with respect to Borrower, the Project
and/or each Operator (as

 

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applicable), in each case in form and format
and providing information satisfactory to Administrative Agent in its discretion:

 

(i)          
within forty-five (45) days after the end of each calendar month, (A) internally prepared monthly financial statements
(including income statements and balance sheets) prepared for Borrower, Operating Tenant and the Project (which may be on a consolidated
basis with respect to Operating Tenant), which fairly present the financial condition for Borrower and the Project for such period
and year-to-date and (B) a current Census Report for the Project;

 

(ii)       
within sixty (60) days after the end of each fiscal year, internally prepared annual financial statements (including income
statements and balance sheets) prepared for Borrower and the Project in accordance with GAAP (except for the absence of footnotes
and year-end adjustments) and based on an accrual basis of accounting consistent with industry standards;

 

(iii)     
within one hundred twenty (120) days after the end of each fiscal year, annual consolidated audited financial statements
for Borrower and the Project (which may be on a consolidated basis with respect to Operating Tenant), prepared in accordance with
GAAP on an accrual basis and prepared by a firm of independent public accountants reasonably satisfactory to Administrative Agent;

 

(iv)      
copies of state and local health inspection and regulatory surveys (including complaint surveys), to be provided within
twenty-five (25) days after the completion of such surveys;

 

(v)        
within forty-five (45) days after the end of each fiscal quarter, internally prepared monthly financial statements (including
income statements and balance sheets) prepared for Guarantor which fairly present the financial condition of Guarantor for such
period;

 

(vi)      
within one hundred twenty (120) days after the end of each fiscal year, annual consolidated audited financial statements
prepared for Guarantor in accordance with GAAP and prepared by a firm of independent public accountants reasonably satisfactory
to Administrative Agent; and

 

(vii)   
such additional information, reports or statements regarding the Borrower, the Project, Guarantor or Operator as Administrative
Agent may from time to time reasonably request.

 

(b)              
Certification of Financial Statements. Each financial statement provided hereunder shall be in scope and detail
reasonably satisfactory to Administrative Agent and certified by the chief financial representative of Borrower or its manager.
Borrower will maintain a system of accounting established and administered in accordance with sound business practices to (i) permit
preparation of financial statements on an accrual basis consistent with industry standards and substantially in accordance with
GAAP, and (ii) provide the information required to be delivered to Administrative Agent hereunder

 

          

 

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Section 6.2           Additional Reports. Borrower shall
deliver to Administrative Agent the following additional reports:

 

(a)              
Within thirty (30) days following the request of Administrative Agent, a description of the type and amount of all
capital expenditures at the Project during the prior calendar year;

 

(b)              
Within thirty (30) days following the request by Administrative Agent, evidence satisfactory to Administrative Agent
that all federal and state taxes, including payroll taxes, that are due have been paid in full by Borrower, and each other Borrower
Party, to be delivered to Administrative Agent (A) with respect to federal and state taxes (other than payroll taxes), within
ten (10) days after the required filing date of the applicable tax return and (B) with respect to payroll taxes, within
thirty-five (35) days following the end of each calendar month;

 

(c)              
Upon the request of Administrative Agent, a copy of Borrower’s or Guarantor’s income tax filings for the prior
calendar year within thirty (30) days after the filing thereof.

 

(d)              
Within forty-five (45) days after Administrative Agent’s request therefor, including, if requested by Administrative
Agent, (A) cash flow statements for Borrower and (B) an accounts receivable and accounts payable aging report for Project;

 

(e)              
From time to time, if any Lender determines that obtaining appraisals is necessary in order for such Lender to comply with
applicable Requirements of Law (including any appraisals required to comply with FIRREA), Borrower shall furnish to Administrative
Agent appraisal reports in form and substance and from appraisers reasonably satisfactory to Administrative Agent stating the then
current fair market value of the Project; provided, however, that such report shall not be required during the term
of the Loan unless (A) a Potential Default or Event of Default exists, (B) any Lender is required to obtain such report under applicable
Law more frequently than once during the term of the Loan or (C) Administrative Agent or any Lender elects to obtain such report
at its cost and expense.

 

Section 6.3          
Compliance Certificate. Within forty-five (45) days after the end of each
calendar quarter, Borrower shall deliver and shall cause Guarantor to deliver such financial reports and information as Administrative
Agent shall require evidencing compliance with the applicable financial covenants, together with a fully completed Compliance Certificate
executed by an officer of the manager of Borrower and/or Guarantor, and, if requested by Administrative Agent, back-up documentation
as Administrative Agent shall reasonably require evidencing compliance.

 

Section 6.4          
Accounting Principles. All financial statements shall be prepared in accordance
with GAAP (or such other accounting basis reasonably acceptable to Administrative Agent). Notwithstanding the foregoing, all financial
statements delivered hereunder shall be prepared, and all financial covenants contained herein shall be calculated, without giving
effect to any election under Statement of Financial Accounting Standards 159 (or any similar accounting principle) permitting
a Person to value its financial liabilities at the fair value thereof.

 

Section 6.5          
Other Information; Access. Borrower shall deliver to Administrative Agent such additional
information regarding Borrower, its business, any Borrower Party,

 

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and the Project within thirty (30)
days after Administrative Agent’s request therefor, including, if requested by Administrative Agent, (a) copies of the regular
monthly bank statements provided to Borrower and Operator and such other information relating to the Borrower’s operating
accounts as shall reasonably be requested by Administrative Agent, in each case, to the extent such bank has the operational ability
to do so, by providing Administrative Agent with internet access to such statements or information, (b) cash flow statements for
each Operator and (c) an accounts receivable and accounts payable aging report. Borrower shall permit Administrative Agent to examine
such records, books and papers of Borrower that reflect upon its financial condition and the income and expenses of the Project.
If Borrower fails to forward the financial statements required in this Article 6 within thirty (30) days after written request,
Administrative Agent shall have the right to audit such records, books and papers at Borrower’s expense.

 

Section 6.6          
Annual Budget. At least thirty (30) days prior to the commencement of each
fiscal year, Borrower will provide to Administrative Agent the Operator’s proposed annual operating and capital improvements
budget for the Project for such fiscal year for review by Administrative Agent.

 

Section 6.7          
Books and Records/Audits. Borrower shall keep and maintain or cause to be kept
and maintained at all times at the Project, or such other place as Administrative Agent may approve in writing, complete and accurate
books of accounts and records adequate to reflect the results of the operation of the Project and to provide the financial statements
required to be provided to Administrative Agent pursuant to Section 6.1 above and copies of all written contracts,
material correspondence, and other material documents affecting the Project. Administrative Agent and its designated agents shall
have the right to inspect and copy any of the foregoing, subject to compliance with Healthcare Laws. Additionally, if a Potential
Default or Event of Default exists or if Administrative Agent or any Lender has a reasonable basis to believe that Borrower’s
records are materially inaccurate, Administrative Agent and each Lender may, subject to compliance with Healthcare Laws, conduct
a joint audit, at Borrower’s expense, and determine, in such Person’s reasonable discretion, the accuracy of Borrower’s
records and computations.

 

ARTICLE
7

COVENANTS

 

Borrower covenants
and agrees with each Lender and Administrative Agent as follows:

 

Section 7.1          
Transfers or Encumbrance of Project.

 

(a)              
Borrower shall not cause or permit a Transfer (in each case, a “Prohibited Transfer”) without
the prior written consent of Administrative Agent, other than (i) pursuant to Leases of space in the Improvements to Tenants
in accordance with the provisions of Article 4 and (ii) pursuant to the Operating Lease.

 

(b)              
A Prohibited Transfer shall include, but not be limited to, (i) an installment sale agreement wherein Borrower agrees
to sell the Project or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all
or a substantial part of the Project for other than pursuant to the Operating Lease, actual occupancy by a space tenant thereunder
or

 

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a sale, assignment or other transfer of,
or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any rents; (iii) if
a Restricted Party is a corporation, any merger, consolidation or Transfer of such corporation’s stock or the creation or
issuance of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general partnership or
joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Transfer
of the partnership interest of any general or limited partner or any profits or proceeds relating to such partnership interests
or the creation or issuance of new partnership interests; (v) if a Restricted Party is a limited liability company, any merger
or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (or if no managing
member, any member) or the Transfer of the membership interest of any member or any profits or proceeds relating to such membership
interest; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Transfer of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests; and (vii) the
removal or the resignation of the Property Manager (including an Affiliated Manager) other than in accordance with Section 7.3.

 

(c)              
Notwithstanding the provisions of Section 7.1(b), any of the following Transfers shall not be deemed
to be a Prohibited Transfer: (i) a transfer by devise or descent or by operation of law upon the death of a member, partner
or shareholder of a Restricted Party; or (ii) the Transfer, in one or a series of transactions after the date hereof, of not
more than forty-nine percent (49%) of the limited partnership interests or non-managing membership interests (as the case
may be) in a Restricted Party; provided, however, any such transfer shall be subject to the following additional conditions:
(A) no such transfers shall result in a change in Control in the Restricted Party or change in Control of the Project, (B) no
transfer shall be made to any Person that is not in compliance with Section 5.18, (C) Administrative Agent shall
receive not less than thirty (30) days prior written notice of such proposed transfer; or (iii) any Transfer of the stock
in any publicly traded company whose shares are listed on the New York Stock Exchange or such other nationally recognized stock
exchange.

 

(d)              
All expenses incurred by Administrative Agent and Lenders in connection with a Permitted Transfer or a request for a consent
to a Prohibited Transfer, whether or not the Required Lenders consent to the Prohibited Transfer, shall be payable by Borrower.
Neither Administrative Agent nor any Lender shall be required to demonstrate any actual impairment of its security or any increased
risk of default hereunder in order to declare the Indebtedness immediately due and payable upon a Prohibited Transfer made without
the Required Lenders’ consent. This provision shall apply to each and every Prohibited Transfer, whether or not the Required
Lenders have consented to any previous Prohibited Transfer.

 

Section 7.2          
Taxes Utility Charges. Except to the extent sums sufficient to pay all Taxes
(defined herein) have been previously deposited with Administrative Agent as part of the Tax Impound and subject to Borrower’s
right to contest in accordance with Section 11.14 hereof, Borrower shall pay before any fine, penalty, interest or
cost may be added thereto, and shall not enter into any agreement to defer, any real estate taxes and assessments, franchise taxes
and charges, and other governmental charges (the “Taxes”) that may become a Lien upon the Project
or become payable during the term of the Loan. Borrower’s compliance with Section 2.5 of this Agreement relating
to impounds for Taxes shall, with respect to payment of such Taxes, be deemed compliance with this Section 7.2. Borrower
shall not suffer or permit the joint assessment of the

 

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Project with any other real property constituting
a separate tax lot or with any other real or personal property. Borrower shall promptly pay for all utility services provided to
the Project.

 

Section 7.3          
Management.

 

(a)              
Borrower acknowledges that the Lenders are making the Loan, in part, based upon the operational expertise of the Property
Manager. Borrower shall not surrender, terminate, cancel, modify in any material respect, renew, amend, or extend the Management
Agreement, or enter into any other agreement relating to the management or operation of the Project with Property Manager or any
other Person, or consent to the assignment by the Property Manager of its interest under the Management Agreement, in each case
without the express written consent of Administrative Agent, which consent shall not be unreasonably withheld, conditioned or delayed
and shall be based upon Administrative Agent’s evaluation of the proposed substitute manager’s and operator’s
financial condition, credit history and credit worthiness, experience in operating and managing properties similar to the Project,
performance and compliance history in connection with healthcare facilities, reputation for honesty and integrity and prior experience
with Administrative Agent and the Lenders. If at any time Administrative Agent consents to the appointment of a new manager, the
Management Agreement to which such manager is party shall be in form and substance acceptable to Administrative Agent, and such
new manager and Borrower shall, as a condition of Administrative Agent’s consent, execute a Collateral Assignment in form
and substance similar to the Collateral Assignment executed by the Property Manager as of the Closing Date. Any change in ownership
or control of the Property Manager shall be cause for Administrative Agent to re-approve such Property Manager and Management Agreement.
Each Property Manager shall hold and maintain all necessary licenses, certifications and permits under Requirements of Law to operate
and manage the Project for which it is providing management services.

 

(b)              
Borrower shall cause Operating Tenant to enforce the obligations of Property Manager to manage the Project in accordance
with the Management Agreement. Borrower shall cause Operating Tenant (i) diligently perform and observe all of the terms,
covenants and conditions of the Management Agreement on the part of Operating Tenant to be performed and observed, (ii) promptly
notify Borrower (and Borrower shall promptly notify Administrative Agent) of any notice received by Operating Tenant of any default
by Operating Tenant in the performance or observance of any of the material terms, covenants or conditions of the Management Agreement
on the part of Operating Tenant to be performed and observed, and (iii) promptly deliver to Administrative Agent a copy of
each financial statement, business plan, capital expenditures plan, report and estimate received by it under the Management Agreement.
The management fee payable under the Management Agreement shall not exceed five percent (5.0%) of rental collections.

 

(c)              
In accordance with the terms and conditions of the Collateral Assignment, Administrative Agent shall have the right to require
Operating Tenant to replace the Property Manager with a Person which is not an Affiliate of, but is chosen by, Operating Tenant
and Borrower and approved by Administrative Agent, such approval not to be unreasonably withheld or delayed, upon the occurrence
of any one or more of the following events: (a) at any time following the occurrence and continuance of an Event of Default,
and/or (b) if Property Manager shall be in default under the Management Agreement beyond any applicable notice and cure period

 

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or if at any time the Property Manager
has engaged in gross negligence, fraud or willful misconduct or if at any time the Property Manager is insolvent or a debtor in
a bankruptcy proceeding.

 

Section 7.4          
Operation; Maintenance; Inspection. Borrower shall observe and comply with
all Requirements of Law applicable to the ownership, use and operation of the Project. Borrower shall maintain the Project in good
condition and promptly repair any damage or casualty, normal wear and tear excepted. Borrower shall permit Administrative Agent
and its agents, representatives and employees, upon reasonable prior notice to Borrower, to inspect the Project and conduct such
environmental and engineering studies as Administrative Agent may require, provided such inspections and studies do not materially
interfere with the use and operation of the Project.

 

Section 7.5          
Taxes on Security. Borrower shall pay all taxes, charges, filing, registration
and recording fees, excises and levies payable with respect to the Note or the Liens created or secured by the Loan Documents,
other than income, franchise and doing business taxes imposed on Administrative Agent or any Lender. If there shall be enacted
any law (a) deducting the Loan from the value of the Project for the purpose of taxation, or (b) changing existing laws
of taxation of mortgages, deeds of trust, security deeds, or debts secured by real property, or changing the manner of collecting
any such taxes, Borrower shall promptly pay to Administrative Agent, on demand, all taxes, costs and charges for which Administrative
Agent or any Lender is or may be liable as a result thereof; however, if such payment would be prohibited by law or would render
the Loan usurious, then instead of collecting such payment, Administrative Agent may declare all amounts owing under the Loan Documents
to be due and payable within ninety (90) days following receipt of such notice by Borrower.

 

Section 7.6          
Legal Existence, Name, Etc. Borrower shall preserve and keep in full force
and effect its existence as, and at all times operate as, a Single Purpose Entity, and shall preserve and keep in full force and
effect its entity status, franchises, rights and privileges under the laws of the state of its formation, and all qualifications,
licenses and permits applicable to the ownership, use and operation of the Project. Neither Borrower nor any general partner or
managing member of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into any Person, or permit
any subsidiary or Affiliate of Borrower to do so. Without limiting the foregoing, Borrower shall not reincorporate nor reorganize
itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the Closing
Date. Borrower and each general partner or managing member in Borrower shall conduct business only in its own name and shall not
change its name, identity, state of formation, or organizational structure, or the location of its chief executive office or principal
place of business unless Borrower (a) shall have obtained the prior written consent of Administrative Agent to such change,
and (b) shall have taken all actions necessary or requested by Administrative Agent to file or amend any financing statement
or continuation statement to assure perfection and continuation of perfection of security interests under the Loan Documents.

 

Section 7.7          
Further Assurances. Borrower shall promptly (a) cure any defects in the
execution and delivery of the Loan Documents and the Environmental Indemnity Agreement, (b) provide, and cause each other
Borrower Party to provide, Administrative Agent such additional information and documentation on each Borrower Party’s legal
or beneficial ownership, policies, procedures, and sources of funds as Administrative Agent deems necessary or prudent to enable

 

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Administrative Agent and each Lender to
comply with Anti-Money Laundering Laws as now in existence or hereafter amended, and (c) execute and deliver, or cause to
be executed and delivered, all such other documents, agreements and instruments as Administrative Agent may reasonably request
to further evidence and more fully describe the Collateral for the Loan, to correct any omissions in the Loan Documents or the
Environmental Indemnity Agreement, to perfect, protect or preserve any liens created under any of the Loan Documents and the Environmental
Indemnity Agreement, or to make any recordings, file any notices, or obtain any consents, as may be necessary or appropriate in
connection therewith. From time to time upon the written request of Administrative Agent, Borrower shall deliver to Administrative
Agent a schedule of the name, legal domicile address and jurisdiction of organization, if applicable, for each Borrower Party and
each holder of a legal interest in Borrower.

 

Section 7.8          
Estoppel Certificates Regarding Loan. Borrower, within ten (10) days after
request, shall furnish to Administrative Agent a written statement, duly acknowledged, setting forth the amount due on the Loan,
the terms of payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist against the Loan
and, if any are alleged to exist, the nature thereof in detail, and such other matters as Administrative Agent reasonably may request.

 

Section 7.9          
Notice of Certain Events. Borrower shall promptly notify Administrative Agent
of (a) any Potential Default or Event of Default, together with a detailed statement of the steps being taken to cure such
Potential Default or Event of Default; (b) any notice of default received by Borrower under other obligations relating to
the Project or otherwise material to Borrower’s business, including any notices of violations of any laws, regulations, codes
or ordinances which could reasonably be expected to have a Material Adverse Effect; (c) any threatened or pending legal, judicial
or regulatory proceedings, including any dispute between Borrower and any Governmental Authority materially adversely affecting
any Borrower Party or the Project; (d) a copy of each notice of default or termination given or made to Operating Tenant by
Borrower or received by Borrower from Operating Tenant; and (e) a copy of each notice of default or termination under any
license or permit necessary for the operation of the Project in the manner required by this Agreement; and (f) any
threatened or actual ban on admissions as to the Project; and in the case of clauses (b), (d) or (e), promptly provide Administrative
Agent with copies of such notices referred to therein.

 

Section 7.10      
Payment For Labor and Materials. Subject to Borrower’s right to contest
in accordance with Section 11.14 hereof, Borrower will promptly pay when due all bills and costs for labor, materials,
and specifically fabricated materials incurred in connection with the Project and never permit to exist beyond the due date thereof
in respect of the Project or any part thereof any Lien, even though inferior to the Liens hereof, and in any event never permit
to be created or exist in respect of the Project or any part thereof any other or additional Lien other than the Liens hereof,
except for the Permitted Exceptions.

 

Section 7.11      
Use of Proceeds and Revenues. No portion of the proceeds of the Loan shall
be used by Borrower in any manner that might cause the borrowing or the application of such proceeds to violate Regulation D, Regulation
T or Regulation X or any other regulation of the Board of Governors of the Federal Reserve System or to violate the Securities
Act of 1933 or the Securities Exchange Act of 1934. Revenues and other proceeds from the Project received by

 

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Borrower shall be applied to the Obligations
due under the Loan Documents, actual operating expenses relating to the Project of the type included in the definition of “Adjusted
Expenses”, or other budgeted capital improvements, repairs or replacements for the Project before distribution by Borrower
to members, partners or shareholders, as applicable, or to any other Borrower Party. For the avoidance of doubt, no distribution
may be made by Borrower to its members, partners or shareholders, as applicable, or to any other Borrower Party during any period
in which an Event of Default is in existence.

 

Section 7.12      
Compliance with Laws and Contractual Obligations.

 

(a)              
Borrower will comply with and will cause Operators to comply with (i) the Requirements of Law (including all Healthcare
Laws) as are now in effect and which may be imposed upon Borrower or Operators or the maintenance, use or operation of the Project
or the provision of services to the occupants of the Project and (ii) the obligations, covenants and conditions contained
in all other material contractual obligations of Borrower, and as they relate to the Project. Without limitation of the foregoing,
Borrower shall cooperate with Administrative Agent in connection with compliance with laws governing the National Flood Insurance
Program, including by providing any information reasonably required by Administrative Agent in order to confirm compliance with
such laws.

 

(b)              
Borrower will obtain and maintain and will cause Operators to obtain and maintain, all licenses, qualifications and permits
now held or hereafter required to be held by Borrower or Operators for which the loss, suspension, revocation or failure to obtain
or renew, could reasonably be expected to have a Material Adverse Effect.

 

Section 7.13      
Operating and Financial Covenants. Commencing with the calendar quarter ending
September 30, 2017, the Project shall satisfy each of the following covenants as of the end of each calendar quarter (the “Determination
Date”):

 

(a)              
[Reserved]

 

(b)              
Debt Service Coverage. The Debt Service Coverage Ratio as of each Determination
Date shall be equal to or greater than 1.25 to 1.00 based upon the trailing twelve (12) full calendar months prior to the
Determination Date; provided, however, that, if a Determination Date is less than twelve (12) months from the date on which Borrower
acquired the Project, Adjusted Net Operating Income for the Project may be annualized based upon the period of Borrower’s
ownership of the Project to determine compliance with this Section 7.13(b).

 

(c)              
Project Yield. The Project Yield as of each Determination Date shall be equal to
or greater than 9.50% for each Determination Date based upon the trailing twelve (12) full calendar months prior to the Determination
Date; provided that if a Determination Date is less than twelve (12) months from the date on which Borrower acquired the Project,
Adjusted Net Operating Income for the Project may be annualized based upon the period of Borrower’s ownership of the Project
to determine compliance with this Section 7.13(c).

 

Section 7.14      
Healthcare Covenants.

 

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(a)              
Without limiting the generality of any other provision of this Agreement, Borrower and Operators and their employees and
contractors (other than contracted agencies) in the exercise of their duties on behalf of Borrower or any Operator (with respect
to its operation of the Project) shall be in compliance in all material respects with all applicable Healthcare Laws. Borrower
and each Operator shall maintain in all material respects all records required to be maintained by any Governmental Authority or
otherwise under the Healthcare Laws.

 

(b)              
If Borrower or Operator is or at any time becomes a “covered entity” or subject to the “Administrative
Simplification” provisions of HIPAA, then such Persons (x) will promptly undertake all necessary surveys, audits, inventories,
reviews, analyses and/or assessments (including any necessary risk assessments) of all areas of its business and operations
required by HIPAA and/or that could be adversely affected by the failure of such Person(s) to be HIPAA Compliant (as defined
below); (y) will promptly develop a detailed plan and time line for becoming HIPAA Compliant (a “HIPAA Compliance
Plan”); and (z) will implement those provisions of such HIPAA Compliance Plan in all material respects necessary
to ensure that such Person(s) are or become HIPAA Compliant. For purposes hereof, “HIPAA Compliant”
shall mean that Borrower and each Operator, as applicable (A) is or will be in material compliance with each of the applicable
requirements of HIPAA on and as of each date that any party thereof, or any final rule or regulation thereunder, becomes effective
in accordance with its or their terms, as the case may be (each such date, a “HIPAA Compliance Date”),
and (B) is not and could not reasonably be expected to become, as of any date following any such HIPAA Compliance Date, the
subject of any civil or criminal penalty, process, claim, action or proceeding, or any administrative or other regulatory review,
survey, process or proceeding (other than routine surveys or reviews conducted by any government health plan or other accreditation
entity) that could result in any of the foregoing or that could reasonably be expected to adversely affect Borrower’s
or any Operator’s business, operations, assets, properties or condition (financial or otherwise), in connection with any
actual or potential violation by Borrower or any Operator of the then effective provisions of HIPAA.

 

(c)              
If and to the extent required under applicable Requirements of Law, each Operator and Borrower shall maintain in full force
and effect throughout the term of the Loan (i) all Primary Licenses, Permits and other Governmental Approvals necessary to
own and operate the Project for the requisite number of Residential Units in the Project, free from restrictions or known conflicts,
and such Primary License shall not be provisional, probationary or restricted in any manner, and (ii) a provider agreement
or other required documentation of approved provider status for each Third-Party Payor Programs, if applicable. The Project shall
be operated in a manner such that the Primary Licenses shall remain in full force and effect.

 

(d)              
Neither Borrower nor any Operator shall do (or suffer to be done) any of the following with respect to the Project
without the prior written consent of Administrative Agent:

 

(i)          
Transfer the Primary Licenses to any location other than the Project;

 

(ii)       
Rescind, withdraw or revoke the Primary Licenses, or otherwise amend the Primary Licenses in such a manner that results
in a material adverse effect on the rates charged or otherwise diminish or impair the nature, tenor or scope of the Primary Licenses
without Administrative Agent’s consent;

 

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(iii)     
Amend or otherwise change the Project’s authorized units/beds capacity and/or the number of Residential Units permitted
under the Primary Licenses or otherwise approved by the State Regulator, if applicable;

 

(iv)      
Replace or transfer all or any part of the Project’s units or beds to another site or location other than to another
Project; or

 

(v)        
Voluntarily transfer or encourage the transfer of any resident of the Project to any other facility (other than to another
Project), unless such transfer is (A) at the request of the resident, (B) for reasons relating to the health, required
level of medical care or safety of the resident to be transferred or the residents remaining at the facility or (C) as a result
of the disruptive behavior of the transferred resident that is detrimental to the facility.

 

(e)              
If Borrower or Operators participate in any Medicare or Medicaid or other Third-Party Payor Programs with respect to the
Project, the Project will remain in (i) compliance with all requirements necessary for participation in Medicare and Medicaid,
including the Medicare and Medicaid Patient Protection Act of 1987, as it may be amended, and such other Third-Party Payor Programs
and (ii) conformance in all material respects with all insurance, reimbursement and cost reporting requirements under Medicare
and Medicaid.

 

(f)               
If there occurs any Healthcare Investigation after the Closing Date, Borrower will promptly provide to Administrative Agent
the following information with respect thereto: (i) number of records requested, (ii) dates of service, (iii) dollars
at risk, (iv) date records submitted, (v) determinations, findings, results and denials (including number, percentage
and dollar amount of claims denied, (vi) additional remedies proposed or imposed, (vii) status update, including appeals,
and (viii) any other pertinent information related thereto. In addition, Borrower will provide notice to Administrative Agent
of the imposition of any type of restriction or suspension on any Primary License or the evacuation of residents from the Project
for a period of twenty-four (24) hours or more, in each case within five (5) Business Days following the date upon which Borrower
becomes aware of such restriction, suspension or evacuation.

 

Section 7.15      
Cooperation Regarding Licenses and Permits. From time to time, upon the request
of Administrative Agent, if a Potential Default or Event of Default exists hereunder, Borrower shall, and shall cause Operators
to, complete, execute and deliver to Administrative Agent any applications, notices, documentation, and other information necessary,
in Administrative Agent’s judgment, to permit Administrative Agent or its designee (including a receiver) to obtain,
maintain or renew any one or more of the Primary Licenses for the Project (or to become the owner of the existing Primary Licenses
for the Project) and to the extent permitted by applicable Requirements of Law, to obtain any other provider agreements or
Governmental Approvals then necessary or desirable for the operation of the Project by Administrative Agent or its designee for
their current use (including any applications for change of ownership of the existing Primary Licenses or change of control of
the owner of the existing Primary Licenses). To the extent permitted by applicable Requirements of Law, (i) Administrative
Agent is hereby authorized (without the consent of Borrower) to submit any such applications, notices, documentation or other information
which Borrower caused to be delivered to Administrative Agent in accordance with the above provisions to the applicable Governmental
Authorities, or to take such other steps as Administrative Agent may deem advisable to obtain, maintain or renew

 

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any Primary License or Permits or other
Governmental Approvals in connection with the operation of the Project for its current use, and Borrower agrees to cooperate and
to cause Operators to cooperate with Administrative Agent in connection with the same and (ii) Borrower, upon demand by Administrative
Agent, shall take any action and cause Operators to take any action necessary or desirable, in Administrative Agent’s sole
judgment, to permit Administrative Agent or its designee (including a receiver) to use, operate and maintain the Project for
its current use. If Borrower fails to comply with the provisions of this Section 7.15 for any reason whatsoever, Borrower
hereby irrevocably appoints Administrative Agent and its designee as Borrower’s attorney-in-fact, with full power of substitution,
to take any action and execute any documents and instruments necessary or desirable in Administrative Agent’s sole judgment
to permit Administrative Agent or its designee to undertake Borrower’s obligations under this Section 7.15, including
obtaining any Primary Licenses or Governmental Approvals then required for the operation of the Project by Administrative Agent
or its designee for their current uses. The foregoing power of attorney is coupled with an interest and is irrevocable and Administrative
Agent may exercise its rights thereunder in addition to any other remedies which Administrative Agent may have against Borrower
or any other Borrower Party as a result of Borrower’s breach of the obligations contained in this Section 7.15.

 

Section 7.16      
Transactions With Affiliates. Without the prior written consent of Administrative
Agent, Borrower shall not engage in any transaction affecting the Project with an Affiliate of Borrower, except as expressly contemplated
by this Agreement or otherwise on arm’s-length market terms.

 

Section 7.17      
Alterations. Without the prior consent of Administrative Agent, Borrower shall
make no alteration to the Project (except tenant improvements under any Lease approved by Administrative Agent or for which such
approval is not required) (a) that affect the structural components of the Project, utilities, HVAC or the exterior of the
Project, (b) that are reasonably likely to cause a Material Adverse Change or (c) the cost of which (including any related
alteration, improvement or replacement) is reasonably anticipated to exceed the Restoration Threshold, which approval may
be granted or withheld in Administrative Agent’s reasonable discretion.

 

Section 7.18      
Business and Operations. Borrower will continue to engage only in the businesses
currently conducted by them on the date hereof, as and to the extent the same are necessary for the ownership and leasing of the
Project. Borrower shall at all times cause the Project to be maintained in accordance with the Project’s use as a senior
housing and healthcare facility.

 

Section 7.19      
Severability of Covenants. Any representations, warranties or covenants made
by Borrower regarding such entities or their Affiliates (as contrasted with the Project) shall be deemed to have been made
solely on behalf of such entity, and Borrower shall not be deemed to be making such representations or covenants or warranties
regarding any other entity.

 

Section 7.20      
Forfeiture. Borrower hereby covenants and agrees not to commit, permit or suffer
to exist any act or omission affording any Person Forfeiture Rights with respect to the Project.

 

      

 

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Section 7.21         Patriot Act Compliance. Borrower
shall comply with the Patriot Act and all applicable requirements of Governmental Authorities having jurisdiction over the Borrower
Parties and the Project, including those relating to money laundering and terrorism. 

 

ARTICLE
8

EVENTS OF DEFAULT

 

Each of the following
shall constitute an Event of Default hereunder and under the Loan:

 

Section 8.1          
Payments. Failure of Borrower to pay any regularly scheduled installment of
principal, interest or other amount due under the Loan Documents within five (5) days of (and including) the date when
due, or failure of Borrower to pay the Loan at the Maturity Date, whether by acceleration or otherwise.

 

Section 8.2          
Insurance. Borrower’s failure to maintain insurance as required under
Section 3.1 of this Agreement.

 

Section 8.3          
Prohibited Transfer. A Prohibited Transfer occurs in violation of Section 7.1
of this Agreement.

 

Section 8.4          
Covenants. Borrower’s failure to perform, observe or comply with any
of the agreements, covenants or provisions contained in this Agreement or in any of the other Loan Documents or Environmental Indemnity
Agreement (other than those agreements, covenants and provisions referred to elsewhere in this Article 8), and the continuance
of such failure for ten (10) days (or such shorter period as may be specified for such failure in any of the other Loan Documents
or Environmental Indemnity Agreement) after notice by Administrative Agent to Borrower, provided, however, that Borrower shall
have an additional sixty (60) days to cure such failure if (a) such failure does not involve the failure to make payments
on a monetary obligation; (b) such failure is susceptible of cure but cannot reasonably be cured within ten (10) days;
and (c) Borrower is diligently undertaking to cure such default. The notice and cure provisions of this Section 8.4
do not apply to the other Events of Default described in this Article 8 or to Borrower’s failure to perform, observe or comply
with any of the agreements, covenants or provisions referenced elsewhere in this Article 8 (for which no notice and cure period
shall apply).

 

Section 8.5          
Representations and Warranties. Any representation or warranty made in any
Loan Document, the Environmental Indemnity Agreement or the Compliance Certificate proves to be untrue in any material respect
when made or deemed made.

 

Section 8.6          
Other Encumbrances. Any default by Borrower under any document or instrument,
other than the Loan Documents, evidencing or creating a Lien on the Project or any part thereof, is not cured within any applicable
grace or cure period therein.

 

Section 8.7          
Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary
case or other proceeding against Borrower or any other Borrower Party (each, a “Bankruptcy Party”) which
seeks liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any bankruptcy, insolvency
or other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any of its property, and such involuntary case or other proceeding shall remain

 

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undismissed or unstayed for a period of
sixty (60) days; or an order for relief against a Bankruptcy Party shall be entered in any such case under the Federal Bankruptcy
Code.

 

Section 8.8          
Voluntary Petitions, etc. Commencement by a Bankruptcy Party of a voluntary
case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its Debts or other liabilities
under any bankruptcy, insolvency or other similar law or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official for it or any of its property, or consent by a Bankruptcy Party to any such relief or to the appointment
of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or the making by
a Bankruptcy Party of a general assignment for the benefit of creditors, or the failure by a Bankruptcy Party, or the admission
by a Bankruptcy Party in writing of its inability, to pay its debts generally as they become due, or any action by a Bankruptcy
Party to authorize or effect any of the foregoing.

 

Section 8.9          
[Reserved]

 

Section 8.10      
Certain Covenants. Borrower’s failure to (a) maintain its status
as a Single Purpose Entity; (b) comply with the provisions of Section 7.13; (c) comply with any other provision
of this Agreement or the other Loan Documents if such failure is not susceptible of cure; or (d) provide Administrative Agent
with ten (10) days subsequent written notice of changes of the state of Borrower’s formation or Borrower’s name.

 

Section 8.11      
Financial Information. Borrower’s failure to deliver financial statements,
the Compliance Certificate and the other reports when and as required by Article 6 and the continuance of such failure (a)
in connection with the first such failure, for a period of ten (10) days after delivery of written notice to Borrower by Administrative
Agent of such failure and (b) thereafter, for ten (10) days after the required delivery date of such financial statement or report.

 

Section 8.12      
Default Under Guaranty. The occurrence of a default under the Recourse Guaranty
Agreement and such default is not cured within any grace or cure periods provided therein.

 

Section 8.13      
Criminal Act. Any Borrower Party is indicted of a felony involving fraud, embezzlement
or other crime involving moral turpitude and the individual convicted in connection therewith is not terminated within five (5)
days of such conviction/indictment as an officer, employee or director of Borrower.

 

Section 8.14      
Operating Lease. The occurrence of a material default under the Operating Lease
which continues uncured beyond any applicable notice and grace period provided thereunder.

 

Section 8.15      
[Reserved]

 

Section 8.16      
Environmental Indemnity Agreement. There shall have occurred any default under
the Environmental Indemnity Agreement which remains uncured beyond any applicable grace or cure periods available under the Environmental
Indemnity Agreement.

 

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Section 8.17           Post-Closing Requirements. The failure
to satisfy the Post Closing Obligations within the time periods set forth on Schedule 11.36.

 

Section 8.18      
[Reserved]

 

Section 8.19      
Secured Hedge Agreement. The occurrence of a default under any Secured Hedge
Agreement which remains uncured beyond any applicable grace of cure periods provided therein.

 

Section 8.20      
Cash Management Agreement. The occurrence of a default under a Cash Management
Agreement which remains uncured beyond any applicable grace or cure periods provided therein.

 

Section 8.21      
Admission Restrictions.
Any Governmental Authority ceases to permit new residents or tenants to be admitted to the Project or causes the Operator to discharge
any residents or tenants from the Project.

 

Section 8.22      
Healthcare Investigation. Subject to Section 9.4, the occurrence
of a Healthcare Investigation affecting the Project that results in a deficiency finding by the relevant authority.

 

ARTICLE
9

REMEDIES

 

Section 9.1          
Remedies - Insolvency Events. Upon the occurrence of any Event of Default described
in Sections 8.7 or 8.8, all amounts due under the Loan Documents immediately and automatically shall become
due and payable, all without written notice and without presentment, demand, protest, notice of protest or dishonor, notice of
intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or any other notice of default of any
kind, all of which are hereby expressly waived by Borrower; however, if the Bankruptcy Party under Sections 8.7 or
8.8 is other than Borrower, then all amounts due under the Loan Documents shall become immediately due and payable at Administrative
Agent’s election, in Administrative Agent’s sole discretion.

 

Section 9.2          
Remedies - Other Events. Except as set forth in Section 9.1 above,
while any Event of Default exists, Administrative Agent may and at the direction of the Required Lenders shall (a) by written
notice to Borrower, declare the entire Loan to be immediately due and payable without presentment, demand, protest, notice of protest
or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice
of default of any kind, all of which are hereby expressly waived by Borrower, and (b) exercise all rights and remedies therefor
under the Loan Documents and at law or in equity. Notwithstanding anything to the contrary contained in the Loan Documents or the
Environmental Indemnity Agreement, the enforcement of the obligations of Borrower and the other Borrower Parties under the Loan
Documents and the Environmental Indemnity Agreement and the exercise of rights and remedies thereunder shall be undertaken solely
by Administrative Agent in its capacity as agent for the Lenders.

 

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Section 9.3         Administrative Agent’s Right
to Perform the Obligations. If Borrower shall fail, refuse or neglect to make any payment or perform any act required by the Loan
Documents or the Environmental Indemnity Agreement, then while any Event of Default exists, and without notice to or demand upon
Borrower and without waiving or releasing any other right, remedy or recourse Administrative Agent may have because of such Event
of Default, Administrative Agent may (but shall not be obligated to) make such payment or perform such act for the account
of and at the expense of Borrower, and shall have the right to enter upon the Project for such purpose and to take all such action
thereon and with respect to the Project as it may deem necessary or appropriate. If Administrative Agent shall elect to pay any
sum due with reference to the Project, Administrative Agent may do so in reliance on any bill, statement or assessment procured
from the appropriate Governmental Authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly,
in making any payments to protect the security intended to be created by the Loan Documents, Administrative Agent shall not be
bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making
an advance for the purpose of preventing or removing the same. All sums expended by Administrative Agent to which it shall be entitled
to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure until paid,
shall constitute additions to the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Administrative
Agent upon demand.

 

Section 9.4          
Special Right to Cure with Respect to Operational Defaults.

 

(a)              
Notwithstanding the foregoing, if an event that would otherwise constitute an Event of Default under Section 8.22
occurs solely as a result of an act or omission of an Operator (and such act, omission or failure is outside Borrower’s control
and not otherwise caused by Borrower) (each such failure, an “Operational Default”), such Operational
Default shall not constitute an “Event of Default” under Article 8 if (and only if) all of the following conditions
are satisfied, as determined by Administrative Agent in its reasonable discretion:

 

(i)          
There exists no other Event of Default hereunder.

 

(ii)       
Borrower sends written notice to Administrative Agent describing in reasonable detail such breach within three (3) Business
Days following the date upon which Borrower becomes aware of such Operational Default.

 

(iii)     
All debt service payments and all other amounts due under the Loan Documents are paid current at all times (regardless of
whether or not there is available revenue from the Project or rent from the Operating Lease to make such payments).

 

(iv)      
Neither the value of the Collateral nor the ability to operate the Project is materially impaired as a result of the act
or omission that caused the Operational Default.

 

(v)        
Borrower diligently pursues all rights and remedies available to Borrower under the Operating Lease and under Requirements
of Law to cause Operating Tenant to cure (or cause the Property Manager to cure) such Operational Default, and if Borrower elects
to cure (or cause Operating Tenant to cure) such Operational Default, such Operational Default

 

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is actually cured within ninety
(90) days of the occurrence of such Operational Default (such ninety (90) day period from the occurrence of the Operational Default
is referred to as the “Operational Default Forbearance Period”).

 

(vi)      
Borrower take commercially reasonable steps to cause the Primary Licenses required to operate the Project as an assisted
living and memory care facility and the reimbursement agreements with respect to the Project to remain in full force and effect
under the Requirements of Law.

 

(vii)   
Borrower pays all of Administrative Agent’s and each Lender's reasonable costs and expenses (including reasonable
attorneys' fees) in connection with the matters set forth in this Section 9.4.

 

(viii) 
On a bi-weekly basis during the pendency of the Operational Default Forbearance Period, Borrower furnishes to Administrative
Agent a detailed written statement summarizing the then current status of Borrower’s attempts to cure such Operational Default.

 

(ix)      
Borrower at all times during the Operational Default Forbearance Period takes such additional action and/or executes such
additional documents (and/or causes Operator to take such additional action and/or execute such additional documents) as Administrative
Agent may reasonably require in connection with the matters set forth in this Section 9.4.

 

Anything
herein to the contrary notwithstanding, Administrative Agent and Lenders shall have no obligation to forbear from exercising remedies
by reason of an Operational Default of any type as to which Borrower elects to cure more than twice in the aggregate during the
term of the Loan or more than once in any twelve (12) month period during the term of the Loan. For the avoidance
of doubt, Administrative Agent and Lenders shall have no obligation to forbear from submitting any pleadings in any bankruptcy
or other proceeding to the extent that a failure to do so could result in any prejudice to Lenders, a rejection or termination
of the Operating Lease or otherwise adversely affect the Collateral securing the Loan.

 

For the avoidance of
doubt, Administrative Agent and Lenders shall have no obligation to forbear from submitting any pleadings in any bankruptcy or
other proceeding to the extent that a failure to do so could result in any prejudice to Lenders or a rejection or termination of
the Management Agreement or could otherwise adversely affect the Collateral securing the Loan.

 

ARTICLE
10

ADMINISTRATIVE AGENT

 

Section 10.1      
Appointment and Duties.

 

(a)              
Each Lender hereby appoints CONA (together with any successor Administrative Agent pursuant to Section 10.9)
as Administrative Agent hereunder and authorizes Administrative Agent to (i) execute and deliver the Loan Documents and the Environmental
Indemnity Agreement and accept delivery thereof on its behalf from Borrower or any other Borrower Party, (ii) take such action
on its behalf and to exercise all rights, powers and remedies and perform the duties as are expressly delegated to Administrative
Agent under such Loan

 

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Documents and the Environmental Indemnity
Agreement, and (iii) exercise such powers as are reasonably incidental thereto.

 

(b)              
Without limiting the generality of clause (a) above, Administrative Agent shall have the sole and exclusive right
and authority (to the exclusion of the Lenders), and is hereby authorized, to (i) act as the disbursing and collecting agent
for the Lenders with respect to all payments and collections arising in connection with the Loan Documents and the Environmental
Indemnity Agreement (including in any proceeding described in Section 8.7 or Section 8.8 or any other bankruptcy,
insolvency or similar proceeding), and each Person making any payment in connection with any Loan Document and the Environmental
Indemnity Agreement to any Secured Party is hereby authorized to make such payment to Administrative Agent, (ii) file and prove
claims and file other documents necessary or desirable to allow the claims of the Secured Parties with respect to any Obligation
in any proceeding described in Section 8.7 or Section 8.8 or any other bankruptcy, insolvency or similar proceeding
(but not to vote, consent or otherwise act on behalf of such Secured Party), (iii) act as collateral agent for each Secured Party
for purposes of the perfection of all Liens created by such agreements and all other purposes stated therein, (iv) manage, supervise
and otherwise deal with the Collateral, (v) take such other action as is necessary or desirable to maintain the perfection and
priority of the Liens created or purported to be created by the Loan Documents, (vi) except as may be otherwise specified in any
Loan Document or the Environmental Indemnity Agreement, exercise all remedies given to Administrative Agent and the other Secured
Parties with respect to the Collateral, whether under the Loan Documents or the Environmental Indemnity Agreement, applicable law
or otherwise, (vii) execute any amendment, consent or waiver under the Loan Documents and the Environmental Indemnity Agreement
on behalf of any Lender that has consented in writing to such amendment, consent or waiver; provided, however, that
Administrative Agent hereby appoints, authorizes and directs each Lender to act as collateral sub-agent for Administrative Agent
and the Lenders for purposes of the perfection of all Liens with respect to the Collateral, including any deposit account maintained
by Borrower or any other Borrower Party with, and cash and cash equivalents held by, such Lender, and may further authorize and
direct the Lenders to take further actions as collateral sub-agents for purposes of enforcing such Liens or otherwise to transfer
the Collateral subject thereto to Administrative Agent, and each Lender hereby agrees to take such further actions to the extent,
and only to the extent, so authorized and directed and (viii) provide each Lender within ten (10) Business Days following receipt,
copies of the reports and financial information received from Borrower under Article 6 and notices of default delivered
by or received by Administrative Agent under this Agreement.

 

(c)              
Under the Loan Documents and the Environmental Indemnity Agreement, Administrative Agent (i) is acting solely on behalf
of the Lenders (except to the limited extent provided in Section 2.12(b) with respect to the Register), with duties
that are entirely administrative in nature, notwithstanding the use of the defined term “Administrative Agent”, the
terms “agent”, “administrative agent” and “collateral agent” and similar terms in any Loan
Document and the Environmental Indemnity Agreement to refer to Administrative Agent, which terms are used for title purposes only,
(ii) is not assuming any obligation under any Loan Document or the Environmental Indemnity Agreement other than as expressly set
forth therein or any role as agent, fiduciary or trustee of or for any Lender or any other Secured Party and (iii) shall have no
implied functions, responsibilities, duties, obligations or other liabilities under any Loan Document or the Environmental Indemnity
Agreement, and each Lender hereby waives and agrees

 

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not to assert any claim against Administrative
Agent based on the roles, duties and legal relationships expressly disclaimed in clauses (i) through (iii) above.

 

Section 10.2      
Binding Effect. Each Lender agrees that (i) any action taken by Administrative
Agent or the Required Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with the provisions
of the Loan Documents or the Environmental Indemnity Agreement, (ii) any action taken by Administrative Agent in reliance upon
the instructions of Required Lenders (or, where so required, such greater proportion) and (iii) the exercise by Administrative
Agent or the Required Lenders (or, where so required, such greater proportion) of the powers set forth herein or therein, together
with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties.

 

Section 10.3      
Use of Discretion.

 

(a)              
Administrative Agent shall not be required to exercise any discretion or take, or to omit to take, any action, including
with respect to enforcement or collection, except any action it is required to take or omit to take (i) under any Loan Document
or the Environmental Indemnity Agreement, or (ii) pursuant to instructions from the Required Lenders (or, where expressly required
by the terms of this Agreement, a greater proportion of the Lenders).

 

(b)              
Notwithstanding clause (a) of this Section 10.3, Administrative Agent shall not be required to take, or to
omit to take, any action (i) unless, upon demand, Administrative Agent receives an indemnification satisfactory to it from
the Lenders (or, to the extent applicable and acceptable to Administrative Agent, any other Secured Party) against all Liabilities
that, by reason of such action or omission, may be imposed on, incurred by or asserted against Administrative Agent or any Related
Person thereof or (ii) that is, in the opinion of Administrative Agent or its counsel, contrary to any Loan Document or the Environmental
Indemnity Agreement or applicable Requirement of Law.

 

Section 10.4      
Delegation of Rights and Duties. Administrative Agent may, upon any term or
condition it specifies, delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties
or any other action with respect to, any Loan Document or the Environmental Indemnity Agreement by or through any trustee, co-agent,
employee, attorney-in-fact and any other Person (including any Secured Party). Any such Person shall benefit from this Article 11
to the extent provided by Administrative Agent.

 

Section 10.5      
Liability. None of Administrative Agent and its Related Persons shall be liable
for any action taken or omitted to be taken by any of them under or in connection with any Loan Document or the Environmental Indemnity
Agreement, and each Lender and Borrower (on its own behalf and on behalf of the other the Borrower Parties) hereby waive and
shall not assert any right, claim or cause of action based thereon, except to the extent of liabilities resulting primarily from
the gross negligence or willful misconduct of Administrative Agent or, as the case may be, such Related Person (each as determined
in a final, non-appealable judgment by a court of competent jurisdiction) in connection with the duties expressly set forth
herein. Without limiting the foregoing, Administrative Agent:

 

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(a)              
shall have no duties or responsibilities except those expressly set forth in this Agreement and in the other Loan Documents
and the Environmental Indemnity Agreement, and shall not by reason of this Agreement or any other Loan Document or the Environmental
Indemnity Agreement be a trustee for any Lender;

 

(b)              
shall not be responsible or otherwise incur liability for any action or omission taken in reliance upon the instructions
of the Required Lenders or for the actions or omissions of any of its Related Persons selected with reasonable care (other than
employees, officers and directors of Administrative Agent, when acting on behalf of Administrative Agent);

 

(c)              
shall not be responsible to any Secured Party for the due execution, legality, validity, enforceability, effectiveness,
genuineness, sufficiency or value of, or the attachment, perfection or priority of any Lien created or purported to be created
under or in connection with, any Loan Document or the Environmental Indemnity Agreement;

 

(d)              
makes no warranty or representation, and shall not be responsible, to any Secured Party for any statement, document, information,
representation or warranty made or furnished by or on behalf of any Related Person or any Borrower Party in connection with any
Loan Document, the Environmental Indemnity Agreement or any transaction contemplated therein or any other document or information
with respect to any Borrower Party, whether or not transmitted or (except for documents expressly required under any Loan Document
or the Environmental Indemnity Agreement to be transmitted to the Lenders) omitted to be transmitted by Administrative Agent,
including as to completeness, accuracy, scope or adequacy thereof, or for the scope, nature or results of any due diligence performed
by Administrative Agent in connection with the Loan Documents; and

 

(e)              
shall not have any duty to ascertain or to inquire as to the performance or observance of any provision of any Loan Document
or the Environmental Indemnity Agreement, whether any condition set forth in any Loan Document or the Environmental Indemnity Agreement
is satisfied or waived, as to the financial condition of any Borrower Party or as to the existence or continuation or possible
occurrence or continuation of any Potential Default or Event of Default and shall not be deemed to have notice or knowledge of
such occurrence or continuation unless it has received a notice from Borrower, any Lender describing such Potential Default or
Event of Default clearly labeled “notice of default” (in which case Administrative Agent shall promptly give notice
of such receipt to all Lenders);

 

and, for each of the
items set forth in clauses (a) through (e) above, each Lender and Borrower (on behalf of itself and each of the other
Borrower Parties) hereby waives and agrees not to assert any right, claim or cause of action it might have against Administrative
Agent based thereon.

 

Section 10.6      
Administrative Agent Individually. Administrative Agent and its Affiliates
may make loans and other extensions of credit to, acquire stock and stock equivalents of, engage in any kind of business with,
Borrower or any other Borrower Party or Affiliate thereof as though it were not acting as Administrative Agent and may receive
separate fees and other payments therefor. To the extent Administrative Agent or any of its Affiliates makes any Loan or otherwise
becomes a Lender hereunder, it shall have and may exercise the same rights and powers hereunder and shall be subject to the same
obligations and liabilities as any other Lender and the

 

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terms “Lender,” and “Required
Lender,” and any similar terms shall, except where otherwise expressly provided in any Loan Document or the Environmental
Indemnity Agreement, include Administrative Agent or such Affiliate, as the case may be, in its individual capacity as Lender or
as one of the Required Lenders, respectively.

 

Section 10.7      
Lender Credit Decision. Each Lender acknowledges that it shall, independently
and without reliance upon Administrative Agent, any other Lender or any of their Related Persons or upon any document solely or
in part because such document was transmitted by Administrative Agent or any of its Related Persons, conduct its own independent
investigation of the financial condition and affairs of Borrower and each other Borrower Party and make and continue to make its
own credit decisions in connection with entering into, and taking or not taking any action under, any Loan Document or the Environmental
Indemnity Agreement or with respect to any transaction contemplated in any Loan Document or the Environmental Indemnity Agreement,
in each case based on such documents and information as it shall deem appropriate. Except for documents expressly required by any
Loan Document or the Environmental Indemnity Agreement to be transmitted by Administrative Agent to the Lenders, Administrative
Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or creditworthiness of Borrower or any other Borrower Party or any
Affiliate of Borrower or any other Borrower Party that may come into the possession of Administrative Agent or any of its Related
Persons.

 

Section 10.8      
Resignation of Administrative Agent.

 

(a)              
Administrative Agent may resign at any time by delivering notice of such resignation to the Lenders and Borrower, effective
on the date set forth in such notice or, if no such date is set forth therein, upon the date such notice shall be effective. If
Administrative Agent delivers any such notice, the Required Lenders shall have the right to appoint a successor Administrative
Agent. If, within 30 days after the retiring Administrative Agent having given notice of resignation, no successor Administrative
Agent has been appointed by the Required Lenders that has accepted such appointment, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent from among the Lenders.

 

(b)              
Effective immediately upon its resignation, (i) the retiring Administrative Agent shall be discharged from its duties
and obligations under the Loan Documents and the Environmental Indemnity Agreement, (ii) the Lenders shall assume and perform
all of the duties of Administrative Agent until a successor Administrative Agent shall have accepted a valid appointment hereunder,
(iii) the retiring Administrative Agent and its Related Persons shall no longer have the benefit of any provision of any Loan
Document or the Environmental Indemnity Agreement other than with respect to any actions taken or omitted to be taken while such
retiring Administrative Agent was, or because such Administrative Agent had been, validly acting as Administrative Agent under
the Loan Documents and (iv) subject to its rights under Section 9.3, the retiring Administrative Agent shall take
such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under
the Loan Documents and the Environmental Indemnity Agreement. Effective immediately upon its acceptance of a valid appointment
as Administrative Agent, a successor Administrative Agent

 

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shall succeed to, and become vested with,
all the rights, powers, privileges and duties of the retiring Administrative Agent under the Loan Documents and the Environmental
Indemnity Agreement.

 

(c)              
Administrative Agent may be removed as Administrative Agent upon the request of all Lenders (other than Affiliates of Administrative
Agent) upon the determination by a court of competent jurisdiction that Administrative Agent has committed actions constituting
gross negligence or willful misconduct under this Agreement. The provisions of subsection (b) above shall apply upon such
removal.

 

Section 10.9      
Additional Secured Parties. The benefit of the provisions of the Loan Documents
and the Environmental Indemnity Agreement directly relating to the Collateral or any Lien granted thereunder shall extend to and
be available to any Secured Party that is not a Lender as long as, by accepting such benefits, such Secured Party agrees, as among
Administrative Agent and all other Secured Parties, that such Secured Party is bound by (and, if requested by Administrative Agent,
shall confirm such agreement in a writing in form and substance acceptable to Administrative Agent) this Article 10,
Section 11.7 (Right of Setoff), Section 2.14(b) (Sharing of Payments, Etc.) and Section 11.35
(Non-Public Information; Disclosure) and the decisions and actions of Administrative Agent and the Required Lenders (or, where
expressly required by the terms of this Agreement, a greater proportion of the Lenders) to the same extent a Lender is bound; provided,
however, that, notwithstanding the foregoing, (a) such Secured Party shall be bound by Section 10.12 only to the extent
of Liabilities, costs and expenses with respect to or otherwise relating to the Collateral held for the benefit of such Secured
Party, in which case the obligations of such Secured Party thereunder shall not be limited by any concept of Pro Rata Share or
similar concept, (b) except as set forth specifically herein, each of Administrative Agent and each Lender shall be entitled to
act at its sole discretion, without regard to the interest of such Secured Party, regardless of whether any Obligation to such
Secured Party thereafter remains outstanding, is deprived of the benefit of the Collateral, becomes unsecured or is otherwise affected
or put in jeopardy thereby, and without any duty or liability to such Secured Party or any such Obligation and (c) except as set
forth specifically herein, such Secured Party shall not have any right to be notified of, consent to, direct, require or be heard
with respect to, any action taken or omitted in respect of the Collateral or under any Loan Document or the Environmental Indemnity
Agreement.

 

Section 10.10  
Reliance by Administrative Agent. Administrative Agent shall be entitled to
rely and act upon any certification, notice or other communication (including any thereof by telephone, facsimile, telegram or
cable) reasonably believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper Person
or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by Administrative
Agent. As to any matters not expressly provided for by this Agreement or any other Loan Document or the Environmental Indemnity
Agreement, Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder
in accordance with instructions given by the Required Lenders, and any action taken or failure to act pursuant thereto shall be
binding on all of the Lenders

 

Section 10.11  
Rights as a Lender. With respect to CONA’s Loan Commitment, if any, and
the advances of the Loan made by it, CONA (and any successor acting as Administrative Agent) in its capacity as a Lender hereunder
shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as Administrative
Agent,

 

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and the term “Lender” or “Lenders”
shall, unless the context otherwise indicates, include Administrative Agent in its individual capacity. CONA (and any successor
acting as Administrative Agent) and its Affiliates may (without having to account therefor to any Lender) lend money
to, make investments in and generally engage in any kind of lending, trust or other business with Borrower (and any of its Affiliates) as
if it were not acting as Administrative Agent, and CONA and its Affiliates may accept fees and other consideration from Borrower
for services in connection with this Agreement or otherwise without having to account for the same to the Lenders.

 

Section 10.12  
Standard of Care; Indemnification. In performing its duties under the Loan
Documents and the Environmental Indemnity Agreement, Administrative Agent will exercise the same degree of care as Administrative
Agent normally exercises in connection with similar loans held for its own account, but Administrative Agent shall have no further
responsibility to any Lender except as expressly provided herein and except for its own gross negligence or willful misconduct
which resulted in actual loss to such Lender, and, except to such extent, Administrative Agent shall have no responsibility to
any Lender for the failure by Administrative Agent to comply with any of Administrative Agent’s obligations to Borrower under
the Loan Documents, the Environmental Indemnity Agreement or otherwise. The Lenders agree to indemnify Administrative Agent (to
the extent not reimbursed under Sections 11.5 or 11.11, but without limiting the obligations of Borrower under
Sections 11.5 or 11.11) ratably in accordance with each Lender’s Pro Rata Share, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever that may be imposed on, incurred by or asserted against Administrative Agent (including by any Lender) arising
out of or by reason of any investigation in or in any way relating to or arising out of this Agreement or any other Loan Document,
the Environmental Indemnity Agreement or any other documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including the costs and expenses that Borrower is obligated to pay under Section 11.11,
but excluding, unless an Event of Default has occurred and is continuing, normal administrative costs and expenses incident to
the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or thereof or of any such other
documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from Administrative Agent’s
breach of its standard of care set forth in the first sentence of this Section.

 

Section 10.13  
Failure to Act. Except for actions expressly required of Administrative Agent
hereunder, and under the other Loan Documents and the Environmental Indemnity Agreement, Administrative Agent shall in all cases
be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction
from the Lenders of their indemnification obligations under Section 10.12 against any and all liability and expense
that may be incurred by it by reason of taking or continuing to take any such action.

 

Section 10.14  
The Platform.
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT
THE ACCURACY OR COMPLETENESS OF ANY MATERIALS OR INFORMATION PROVIDED BY OR ON BEHALF OF BORROWER OR THE ADEQUACY OF THE PLATFORM,
AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM ANY MATERIALS OR INFORMATION PROVIDED BY OR ON BEHALF OF BORROWER.
NO

 

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WARRANTY OF ANY KIND, EXPRESS, IMPLIED
OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS
OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH ANY MATERIALS OR INFORMATION PROVIDED
BY OR ON BEHALF OF BORROWER OR THE PLATFORM. In no event shall Administrative Agent or any of its Related Persons (collectively,
the “Agent Parties”) have any liability to Borrower, any Lender,
or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising
out of Borrower’s or Administrative Agent’s transmission of any materials or information provided by or on behalf of
Borrower through the internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by
a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to Borrower, any Lender or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

ARTICLE
11

MISCELLANEOUS

 

Section 11.1      
Notices. Any notice required or permitted to be given under this Agreement
shall be in writing and either shall be mailed by registered or certified mail, postage prepaid, return receipt requested, or sent
by overnight air courier service, or personally delivered to a representative of the receiving party, or sent by facsimile (provided
an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise provided in this
Section 11.1). All such communications shall be mailed, sent or delivered, addressed to the party for whom it is intended
at its address set forth below.

 

	If to Borrower:	c/o Summit Healthcare REIT, Inc.
	 	2 South Pointe Drive, Suite 1400
	 	Lake Forest, California 92630
	 	Attention:  Chief Financial Officer
	 	Facsimile: (949) 535-2054
	 	 
	If  to Administrative Agent:	Capital One, National Association 
	 	77 W. Wacker Drive, 10th Floor
	 	Chicago, Illinois  60601
	 	Attention:  Jeffrey Muchmore,
	 	Credit Executive
	 	Facsimile:  (855) 332-1699
	 	Reference:  Summit Pennington
	 	 
	with a copy to:	Capital One, National Association
	 	77 W. Wacker Drive, 10th Floor
	 	Chicago, Illinois  60601
	 	Attention:  Dan Eppley, Senior Director
	 	Facsimile:  (855) 544-4044
	 	Reference:  Summit Pennington

 

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	with a copy to:	Capital One, National Association
	 	5804 Trailridge Drive
	 	Austin, Texas 78731
	 	Attention: Diana Pennington, Senior Director, Associate General Counsel
	 	Facsimile: (855) 438-1132
	 	Reference:  Summit Pennington
	 	 
	If to a Lender:	To the address set forth on Exhibit B attached hereto

 

Any notice or request
so addressed and sent by United States registered or certified mail or overnight courier shall be deemed to be given on the earliest
of (1) when actually delivered, (2) on the first Business Day after deposit with an overnight air courier service, or
(3) on the third Business Day after deposit in the United States mail, postage prepaid, in each case to the address of the
intended addressee (except as otherwise provided in the Mortgage). Any notice or request so delivered in person shall be deemed
to be given when receipted for by, or actually received by Administrative Agent, a Lender, or Borrower, as the case may be. If
given by facsimile, a notice or request shall be deemed given and received when the facsimile is transmitted to the party’s
facsimile number specified above and confirmation of complete receipt is received by the transmitting party during normal business
hours or on the next Business Day if not confirmed during normal business hours, and an identical notice is also sent simultaneously
by mail, overnight courier, or personal delivery as otherwise provided in this Section 11.1. If given by electronic
mail, a notice shall be deemed given and received when the electronic mail is transmitted to the recipient’s electronic mail
address specified above and electronic confirmation of receipt (either by reply from the recipient or by automated response to
a request for delivery receipt) is received by the sending party during normal business hours or on the next Business Day
if not confirmed during normal business hours, and an identical notice is also sent simultaneously by mail, overnight courier or
personal delivery as otherwise provided in this Section 11.1. Except for facsimile and electronic mail notices sent
as expressly described above, no notice hereunder shall be effective if sent or delivered by Electronic Transmission. Any party
may designate a change of address by written notice to the other by giving at least ten (10) days prior written notice of
such change of address.

 

Section 11.2      
Amendments and Waivers.

 

(a)              
No amendment or waiver of any provision of the Environmental Indemnity Agreement or any Loan Document or the Environmental
Indemnity Agreement and no consent to any departure by Borrower or any other Borrower Party therefrom shall be effective unless
the same shall be in writing and signed (1) in the case of an amendment, consent or waiver to cure any ambiguity, omission, defect
or inconsistency or granting a new Lien for the benefit of the Lenders or extending an existing Lien over additional property,
by Administrative Agent and Borrower, (2) in the case of any other waiver or consent, by the Required Lenders (or by Administrative
Agent with the consent of the Required Lenders) and (3) in the case of any other amendment, by the Required Lenders (or by Administrative
Agent with the consent of the Required Lenders) and Borrower; provided, however, that no amendment, consent or waiver described
in clause (2) or (3)

 

    	LOAN AGREEMENT – Page 80
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above shall be effective, unless in writing
and signed by each Lender (or by Administrative Agent with the consent of the Lenders), in addition to any other Person the signature
of which is otherwise required pursuant to any Loan Document, and such amendment, consent or waiver does any of the following:

 

(i)          
waives any condition precedent to the effectiveness of this Agreement, except any condition referring to any other provision
of any Loan Document;

 

(ii)       
increases the Loan Commitment of any Lender or subjects any Lender to any additional obligation or otherwise increases the
principal amount of the Loan;

 

(iii)     
reduces (including through release, forgiveness, assignment or otherwise) (A) the principal amount of, the interest rate
on, or any obligation of Borrower to repay (whether or not on a fixed date), any outstanding amount under the Loan owing to Lenders
or (B) any fee or accrued interest payable to any Lender; provided, however, that this clause (iii) does not
apply to (x) any change to any provision increasing any interest rate or fee during the continuance of an Event of Default
or to any payment of any such increase or (y) any modification to any financial covenant set forth in Article 6 or the Recourse
Guaranty Agreement or in any definition set forth therein or principally used therein;

 

(iv)      
waives or postpones any scheduled Maturity Date or other scheduled date fixed for the payment, in whole or in part, of principal
of or interest on the Loan (including any agreement to forbear that would have the same effect) or fee owing to such Lender or
for the reduction of such Lender’s Loan Commitment; provided, however, that this clause (iv) does not
apply to any change to mandatory prepayments, including those required under his Agreement, or to the application of any payment,
including as set forth in Section 2.6;

 

(v)        
releases all or substantially all of the Collateral or any Guarantor or Principal from its guaranty of any Obligation of
Borrower;

 

(vi)      
reduces or increases the proportion of Lenders required for the Lenders (or any subset thereof) to take any action hereunder
or change the definition of the terms “Required Lenders,” “Pro Rata Share,” or “Pro Rata Outstandings”;
or

 

(vii)   
amends Section 2.14(b) (Sharing of Payments, Etc.) or this Section 11.2;

 

(b)              
Anything herein to the contrary notwithstanding, (A) any waiver of any payment applied pursuant to Section 2.6
(Application of Payments) to, and any modification of the application of any such payment to the Loan shall require the consent
of the Required Lenders, (B) no amendment, waiver or consent shall affect the rights or duties under any Loan Document or the Environmental
Indemnity Agreement of, or any payment to, Administrative Agent (or otherwise modify any provision of Article 10 or
the application thereof), and (C) (1) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver
or consent hereunder, except that (x) the Loan Commitment or of such Lender may not be increased or extended without the consent
of such Lender, (y) the outstanding balance of such Lender’s Pro Rata Share of the Loan may not be forgiven without the consent
of such Lender, and (z) the interest rate on the Loan cannot be reduced unless the Defaulting Lender is treated the same as all
other Lenders; (2) each

 

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Lender is entitled to vote as such Lender
sees fit on any bankruptcy or insolvency reorganization plan that affects the Loan; (3) each Lender acknowledges that the provisions
of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions set forth herein; and (4) the Required
Lenders may consent to allow Borrower to use cash collateral in the context of a bankruptcy or insolvency proceeding.

 

(c)              
Each waiver or consent under any Loan Document (including the Recourse Guaranty Agreement) or the Environmental Indemnity
Agreement shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or
demand on Borrower or any other Borrower Party shall entitle such Person to any notice or demand in the same, similar or other
circumstances. No failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right preclude any other or further exercise thereof
or the exercise of any other right. To the extent the consent of
any Lender is required with respect to any amendment or waiver of any Loan Document or the Environmental Indemnity Agreement under
the terms of this Section 11.2, each Lender will respond
to any such request in a commercially reasonable manner and timeframe.

 

(d)              
This Agreement and the other Loan Documents and the Environmental Indemnity Agreement shall not be executed, entered into,
altered, amended, or modified by Electronic Transmission. Without limiting the generality of the foregoing, Borrower, Administrative
Agent, and each Lender hereby agree that the transactions contemplated by this Agreement shall not be conducted by Electronic Transmission,
except as specifically set forth in Section 11.1 regarding notices. Any reference to a Loan Document or the Environmental
Indemnity Agreement, whether in this Agreement or in any other Loan Document or the Environmental Indemnity Agreement, shall be
deemed to be a reference to such Loan Document or the Environmental Indemnity Agreement as it may hereafter from time to time be
amended, modified, supplemented and restated in accordance with the terms hereof.

 

(e)              
Unless also consented to in writing by such Secured Hedge Provider or, in the case of a Secured Hedge Agreement provided
or arranged by CONA or an Affiliate of CONA, no such amendment, waiver or consent with respect to this Credit Agreement or any
other Loan Document shall (i) alter the ratable treatment of Obligations arising under Secured Hedge Agreements such that such
Obligations become junior in right of payment to principal on the Loan or (ii) result in Obligations owing to any Secured Hedge
Provider becoming unsecured (other than releases of Liens applicable to all Lenders and otherwise permitted in accordance with
the terms hereof), in each case in a manner adverse to such Secured Hedge Provider.

 

Section 11.3      
Assignments and Participations; Binding Effect.

 

(a)              
Binding Effect. Subject to the provisions of this Section 11.3, this Agreement
shall be binding upon and inure to the benefit of Administrative Agent, the Lenders and Borrower and their respective successors
and permitted assigns, provided that neither Borrower nor any other Borrower Party shall, without the prior written consent of
Administrative Agent and Lenders, assign any of its rights, duties or obligations hereunder to any other Person.

 

    	LOAN AGREEMENT – Page 82
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(b)              
Assignments by the Lenders. Each Lender (other than a Defaulting Lender) may sell,
transfer, negotiate or assign all or a portion of its rights and obligations hereunder (including all or a portion of its Loan
Commitment and its rights and obligations with respect to the Loan) to (i) any existing Lender (other than a Defaulting Lender),
(ii) any Affiliate or Approved Fund of any existing Lender (so long as such Person would not, upon acceptance of such rights and
obligations hereunder, constitute a Defaulting Lender) or (iii) any other Person acceptable (which acceptance shall not be unreasonably
withheld or delayed) to Administrative Agent (each such transferee, assignee or purchaser herein called a “Lender Transferee”);
provided, however, that the aggregate outstanding principal amount (determined as of the effective date of the applicable
Assignment) of the Loan subject to any such sale shall be in a minimum amount of $1,000,000, unless such sale is made to an existing
Lender or an Affiliate or Approved Fund of any existing Lender, is of the assignor’s (together with its Affiliates and Approved
Funds) entire interest in the Loan or is made with the prior consent Administrative Agent. A Defaulting Lender may not sell, transfer,
negotiate or assign all or a portion of its rights and obligations hereunder except with Administrative Agent’s consent or
at Administrative Agent’s direction in accordance with Section 2.14(c) hereof. A Defaulting Lender (or Person that
would constitute a Defaulting Lender upon acceptance of rights and obligations hereunder) may not be the recipient of the sale,
transfer, negotiation or assignment of any rights or obligations hereunder except with the consent of Administrative Agent.

 

(c)              
Assignment Procedures. The parties to each transfer or sale made in reliance on
clause (b) above shall execute and deliver to Administrative Agent an Assignment and Assumption via an electronic settlement system
designated by Administrative Agent (or if previously agreed with Administrative Agent, via a manual execution and delivery of the
Assignment and Assumption) evidencing such transfer or sale, together with any existing Note subject to such transfer or sale (or
any affidavit of loss therefor acceptable to Administrative Agent), any tax forms or other forms required to be delivered by Administrative
Agent, and payment of an assignment fee in the amount of $3,500, provided that (1) if a transfer or sale by a Lender is made to
an Affiliate or an Approved Fund of such assigning Lender, then no assignment fee shall be due in connection with such transfer
or sale, and (2) if a transfer or sale by a Lender is made to an assignee that is not an Affiliate or Approved Fund of such assignor
Lender, and concurrently to one or more Affiliates or Approved Funds of such assignee, then only one assignment fee of $3,500 shall
be due in connection with such transfer or sale. Upon receipt of all the foregoing, and conditioned upon such receipt and, if such
assignment is made in accordance with Section 11.3(b)(iii), upon Administrative Agent consenting to such assignment, from
and after the effective date specified in such Assignment and Assumption, Administrative Agent shall record or cause to be recorded
in the Register the information contained in such Assignment and Assumption.

 

(d)              
Participations.

 

(i)          
A Lender may sell or agree to sell to one or more other Persons (each a “Participant”) a
participation in all or any part of the Pro Rata Share of the Loan held by it, or in its Loan Commitment, provided that such Participant
shall not have any rights or obligations under this Agreement or any Note or any other Loan Document (the Participant’s rights
against such Lender in respect of such participation to be those set forth in the agreements executed by such Lender and the applicable
Participant). All amounts payable by Borrower to any Lender

 

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under Section 2.6 in
respect of its Pro Rata Share and its Loan Commitment shall be determined as if such Lender had not sold or agreed to sell any
participations in the Loan and its Loan Commitment, and as if such Lender were funding its Pro Rata Share of the Loan (if applicable) and
its Loan Commitment in the same way that it is funding its Pro Rata Share of the Loan and its Loan Commitment in which no participations
have been sold.

 

(ii)       
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in clauses (i) through (vi) of Section 11.2(a) that affects
such Participant.

 

(iii)     
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain
a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each
Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity
of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its
other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that
such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States
Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall
treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this
Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Administrative Agent (in its capacity as Administrative
Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)              
Effect of Assignment. Subject to the recording of an Assignment and Assumption
by Administrative Agent in the Register pursuant to Section 2.12(b), (i) the assignee thereunder shall become a party hereto
and, to the extent that rights and obligations under the Loan Documents and the Environmental Indemnity Agreement have been assigned
to such assignee pursuant to such Assignment and Assumption, shall have the rights and obligations of a Lender, (ii) any applicable
Note shall be transferred to such assignee through such entry and (iii) the assignor thereunder shall, to the extent that rights
and obligations under this Agreement have been assigned by it pursuant to such Assignment and Assumption, relinquish its rights
(except for those surviving the termination of the Loan Commitments and the payment in full of the Obligations) and be released
from its obligations under the Loan Documents and the Environmental Indemnity Agreement, other than those relating to events or
circumstances occurring prior to such assignment (and, in the case of an Assignment and Assumption covering all or the remaining
portion of an assigning Lender’s rights and obligations under the Loan Documents and the Environmental Indemnity Agreement,
such Lender shall cease to be a party hereto except that each Lender agrees to remain bound by Article 10, Section 11.7
(Right of Setoff; Sharing of Payments) and Section 11.35 (Non-Public Information; Confidentiality).

 

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(f)               
Certain Pledges. In addition to the assignments and participations permitted under
the foregoing provisions of this Section 11.3 (but without being subject thereto):

 

(i)          
Any Lender may (without notice to Borrower, Administrative Agent or any other Lender and without payment of any fee) assign
and pledge all or any portion of its Pro Rata Share of the Loan and its Note to any Federal Reserve Bank as collateral security
pursuant to Regulation A and any operating circular issued by such Federal Reserve Bank, and such Pro Rata Share of the Loan and
Note shall be fully transferable as provided therein. No such assignment shall release the assigning Lender from its obligations
hereunder.

 

(ii)       
Any Lender may pledge its Pro Rata Share of the Loan and its Note to any Person that has provided a credit facility or source
of liquidity to such Lender. No such pledge shall release the assigning Lender from its obligations hereunder. Any subsequent assignment
upon the exercise of pledge remedies shall be subject to the terms of Section 11.3(b).

 

(g)              
Provision of Information to Assignees and Participants. A Lender may furnish any
information concerning Borrower or any of their Affiliates in the possession of such Lender from time to time to Lender Transferees
and Participants (including prospective Lender Transferees and Participants).

 

(h)              
No Assignments to Borrower or Affiliates. Anything in this Section 11.3
to the contrary notwithstanding, no Lender may assign or participate any interest in any Loan held by it hereunder to Borrower
or any of their Affiliates without the prior written consent of each Lender.

 

Section 11.4      
Renewal, Extension or Rearrangement. Subject to Section 11.9, all
provisions of the Loan Documents shall apply with equal effect to each and all promissory notes and amendments thereof hereinafter
executed which in whole or in part represent a renewal, extension, increase or rearrangement of the Loan.

 

Section 11.5      
Indemnities.

 

(a)              
Borrower shall protect, defend, indemnify and save harmless Administrative Agent and each Lender, their respective shareholders,
directors, officers, employees and agents (each, an “Indemnified Person”) from and against all Liabilities,
imposed upon or incurred by or asserted against any Indemnified Person, whether brought by a third party or any Borrower Party,
by reason of (i) credit having been extended, suspended or terminated under this Agreement and the other Loan Documents and
the administration of such credit, and in connection with or arising out of the transactions contemplated hereunder and thereunder
and any actions or failures to act in connection therewith; (ii) ownership of the Mortgage, the Project or any interest therein
or receipt of any rents and the exercise of rights and remedies thereunder; (iii) any accident, injury to or death of persons
or loss of or damage to property occurring in, on or about the Project or any part thereof or on the adjoining sidewalks, curbs,
adjacent property or adjacent parking areas, streets or ways; (iv) any use, nonuse or condition in, on or about the Project
or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (v) performance
of any labor or services or the furnishing of any materials or other property in respect of the Project or any part thereof; (vi) the
failure of any Person to file

 

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timely with the Internal Revenue Service
an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which
may be required in connection with this Agreement, or to supply a copy thereof in a timely fashion to the recipient of the proceeds
of the transaction in connection with which this Agreement is made; (vii) any securities filing of, or with respect to, Borrower,
any other Borrower Party or the Project; (viii) any commitment letter, proposal letter or term sheet with any Person and any
contractual obligation entered into in connection with any E-Systems or other Electronic Transmissions; (ix) any actual or
prospective investigation, litigation or other proceeding, whether or not brought by any such Indemnified Person or any of its
Related Persons, any holders of securities or creditors, whether or not any such Indemnified Person, Related Person, holder or
creditor is a party thereto, and whether or not based on any securities or commercial law or regulation or any other Requirements
of Law or theory thereof, including common law, equity, contract, tort or otherwise; (x) all sums paid by Administrative Agent
pursuant to Section 9.3, or (xi) any other act, event or transaction related, contemplated in or attendant to
any of the foregoing (individually and collectively, the “Indemnified Matter”); provided, however, that
Borrower shall have no liability under this Section 11.5 to any Indemnified Person with respect to any Indemnified
Matter, and no Indemnified Person shall have any liability with respect to any Indemnified Matter other than (to the extent otherwise
liable), to the extent such liability has resulted from the gross negligence or willful misconduct of such Indemnified Person,
as determined by a court of competent jurisdiction in a final non-appealable judgment or order. Furthermore, Borrower (on its own
behalf and on behalf of each other Borrower Party) waives and agrees not to assert against any Indemnified Person any right
of contribution with respect to any Liabilities that may be imposed on, incurred by or asserted against any Related Person.

 

(b)              
Any indemnification or other protection provided to any Indemnified Person pursuant to any Loan Document and the Environmental
Indemnity Agreement and all representations and warranties made in any Loan Document and the Environmental Indemnity Agreement
shall (i) survive the termination of the Loan Commitment and the payment in full of other Obligations and (ii) inure
to the benefit of any Person that at any time held a right thereunder (as an Indemnified Person or otherwise) and, thereafter,
its successors and permitted assigns.

 

(c)              
In no event shall any Indemnified Person be liable on any theory of liability for any special, indirect, consequential or
punitive damages (including any loss of profits, business or anticipated savings). Borrower (on its own behalf and on behalf of
the other Borrower Parties) hereby waives, releases and agrees not to sue upon any such claim for any special, indirect, consequential
or punitive damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

Section 11.6      
Debtor-Creditor Relationship. The relationship between the Lenders and Administrative
Agent, on the one hand, and Borrower, on the other hand, is solely that of debtor and creditor. No Secured Party has any fiduciary
relationship or duty to any Borrower Party arising out of or in connection with, and there is no agency, tenancy or joint venture
relationship between the Secured Parties and the Borrower and any other of the Borrower Parties by virtue of, any Loan Document,
the Environmental Indemnity Agreement or any transaction contemplated therein.

 

Section 11.7      
Right of Setoff; Sharing of Payments.

 

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(a)              
Each of Administrative Agent, each Lender, and each Affiliate (including each branch office thereof) of any of them
is hereby authorized, without notice or demand (each of which is hereby waived by Borrower), at any time and from time to time
during the continuance of any Event of Default and to the fullest extent permitted by applicable Requirements of Law, to set off
and apply any and all deposits (whether general or special, time or demand, provisional or final) at any time held and other
indebtedness, claims or other obligations at any time owing by Administrative Agent, such Lender, or any of their respective Affiliates
to or for the credit or the account of Borrower against any Obligation of any Borrower Party now or hereafter existing, whether
or not any demand was made under any Loan Document or the Environmental Indemnity Agreement with respect to such Obligation and
even though such Obligation may be unmatured. Each of Administrative Agent and each Lender agrees promptly to notify Borrower and
Administrative Agent after any such setoff and application made by such Lender or its Affiliates; provided, however, that the failure
to give such notice shall not affect the validity of such setoff and application. The rights under this Section 11.7
are in addition to any other rights and remedies (including other rights of setoff) that Administrative Agent, the Lenders,
and their Affiliates and other Secured Parties may have.

 

(b)              
If any Lender, directly or through an affiliate or branch office thereof, obtains any payment of any Obligation of Borrower
or any other Borrower Party (whether voluntary, involuntary or through the exercise of any right of setoff or the receipt of any
Collateral or “proceeds” (as defined under the applicable UCC) of Collateral) other than pursuant to Sections 2.8
(Capital Adequacy; Increased Costs; Illegality), 2.9 (Interest Rate Protection), and 2.10 (Libor Breakage Amount)
and such payment exceeds the amount such Lender would have been entitled to receive if all payments had gone to, and been distributed
by, Administrative Agent in accordance with the provisions of the Loan Documents, such Lender shall purchase for cash from other
Secured Parties such participations in their Obligations as necessary for such Lender to share such excess payment with such Secured
Parties to ensure such payment is applied as though it had been received by Administrative Agent and applied in accordance with
this Agreement (or, if such application would then be at the discretion of Borrower, applied to repay the Obligations in accordance
herewith); provided, however, that (a) if such payment is rescinded or otherwise recovered from such Lender in whole or in part,
such purchase shall be rescinded and the purchase price therefor shall be returned to such Lender without interest and (b) such
Lender shall, to the fullest extent permitted by applicable Requirements of Law, be able to exercise all its rights of payment
(including the right of setoff) with respect to such participation as fully as if such Lender were the direct creditor of Borrower
in the amount of such participation.

 

Section 11.8      
Marshaling; Payments Set Aside. No Secured Party shall be under any obligation
to marshal any property in favor of Borrower or any other party or against or in payment of any Obligation. To the extent that
any Secured Party receives a payment from any Borrower Party, from the proceeds of the Collateral, from the exercise of its rights
of setoff, any enforcement action or otherwise, and such payment is subsequently, in whole or in part, invalidated, declared to
be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent
of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor,
shall be revived and continued in full force and effect as if such payment had not occurred.

 

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Section 11.9        Limitation on Interest. It is the
intention of the parties hereto to conform strictly to applicable usury laws. Accordingly, all agreements between Borrower, Administrative
Agent and Lenders with respect to the Loan are hereby expressly limited so that in no event, whether by reason of acceleration
of maturity or otherwise, shall the amount paid or agreed to be paid to Administrative Agent and any Lender or charged by Administrative
Agent or any Lender for the use, forbearance or detention of the money to be lent hereunder or otherwise, exceed the maximum amount
allowed by law. If the Loan would be usurious under applicable law (including the laws of the State of Illinois and the laws of
the United States of America), then, notwithstanding anything to the contrary in the Loan Documents: (a) the aggregate of
all consideration which constitutes interest under applicable law that is contracted for, taken, reserved, charged or received
under the Loan Documents and the Environmental Indemnity Agreement shall under no circumstances exceed the maximum amount of interest
allowed by applicable law, and any excess shall be credited on the Note by the holder thereof (or, if the Note has been paid in
full, refunded to Borrower); and (b) if maturity is accelerated by reason of an election by Administrative Agent, or in the
event of any prepayment, then any consideration which constitutes interest may never include more than the maximum amount allowed
by applicable law. In such case, excess interest, if any, provided for in the Loan Documents and the Environmental Indemnity Agreement
or otherwise, to the extent permitted by applicable law, shall be amortized, prorated, allocated and spread from the date of advance
until payment in full so that the actual rate of interest is uniform through the term hereof. If such amortization, proration,
allocation and spreading is not permitted under applicable law, then such excess interest shall be canceled automatically as of
the date of such acceleration or prepayment and, if theretofore paid, shall be credited on the Note (or, if the Note has been paid
in full, refunded to Borrower). The terms and provisions of this Section 11.9 shall control and supersede every other provision
of the Loan Documents and the Environmental Indemnity Agreement. The Loan Documents and the Environmental Indemnity Agreement are
contracts made under and shall be construed in accordance with and governed by the laws of the State of Illinois, except that if
at any time the laws of the United States of America permit Administrative Agent or the Lenders to contract for, take, reserve,
charge or receive a higher rate of interest than is allowed by the laws of the State of Illinois (whether such federal laws directly
so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the rate of interest which
Administrative Agent or the Lenders may contract for, take, reserve, charge or receive under the Loan Documents and the Environmental
Indemnity Agreement.

 

Section 11.10  
Invalid Provisions. If any provision of any Loan Document or the Environmental
Indemnity Agreement is held to be illegal, invalid or unenforceable, such provision shall be fully severable; the Environmental
Indemnity Agreement and the Loan Documents shall be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected by the
illegal, invalid, or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or unenforceable
provision there shall be added automatically as a part of such Environmental Indemnity Agreement and/or such Loan Document a provision
as similar in terms to such illegal, invalid or unenforceable provision as may be possible to be legal, valid and enforceable.

 

Section
11.11   Reimbursement
of Expenses.

 

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(a)              
Any action taken by any Borrower Party under or with respect to any Loan Document, the Environmental Indemnity Agreement,
even if required under any Loan Document or the Environmental Indemnity Agreement or at the request of any Secured Party, shall
be at the expense of such Borrower Party, and no Secured Party shall be required under any Loan Document or the Environmental Indemnity
Agreement to reimburse any Borrower Party therefor except as expressly provided therein. In addition, Borrower agrees to pay or
reimburse upon demand (i) Administrative Agent for all reasonable out-of-pocket costs and expenses incurred by it or any of
its Related Persons in connection with the investigation, development, preparation, negotiation, syndication, execution, interpretation
or administration of, any modification of any term of or termination of, any Loan Document or the Environmental Indemnity Agreement,
any commitment or proposal letter therefor, any other document prepared in connection therewith or the consummation and administration
of any transaction contemplated therein (including periodic audits
in connection therewith and environmental audits and assessments), in each case including the reasonable fees, charges and
disbursements of legal counsel to Administrative Agent or such Related Persons, fees, costs and expenses incurred in connection
with Intralinks® or any other E-System and allocated to the Loan
by Administrative Agent in its sole discretion and fees, charges and disbursements of the auditors, appraisers, printers and other
of their Related Persons retained by or on behalf of any of them or any of their Related Persons, charges
for wire transfers and check processing charges, charges for security delivery fees, charges for overnight delivery, recording
fees, treasury, management and other service fees and overdraft charges, (ii) Administrative Agent and each Lender
for all reasonable costs and expenses incurred by them or any of their Related Persons in connection with internal audit reviews,
field examinations, financial investigation, and Collateral examinations, including any tax service company (which
shall be reimbursed, in addition to the out-of-pocket costs and expenses of such examiners, at the per diem rate per individual
charged by Administrative Agent for its examiners), (iii) each of Administrative Agent, its Related Persons, and each
Lender for all costs and expenses incurred in connection with (A) any refinancing or restructuring of the credit arrangements provided
hereunder in the nature of a “work-out”, (B) the enforcement or preservation of any right or remedy with respect to
any Obligation, the Collateral or under any Loan Document or
the Environmental Indemnity Agreement, or any other related right or remedy or (C) the commencement, defense, conduct of, intervention
in, or the taking of any other action with respect to, any proceeding (including any bankruptcy or insolvency proceeding) related
to any Borrower Party, any Loan Document, the Environmental Indemnity Agreement, any Obligation or related transaction (or the
response to and preparation for any subpoena or request for document production relating thereto), including fees and disbursements
of counsel (including allocated costs of internal counsel), (iv) costs incurred in connection with settlement of condemnation and
casualty awards, premiums for title insurance and endorsements thereto, and (v) fees and costs for Uniform Commercial Code and
litigation searches and background checks.

 

(b)              
Borrower shall also pay to Administrative Agent on each Payment Date during the term of the Loan, in addition to all other
amounts due under the Loan Documents, the sum of One Hundred Fifty and No/100 Dollars ($150.00), which Administrative Agent shall
apply against the cost and expenses incurred in connection with the annual on-site audit and inspection of the Project.

 

Section 11.12  
Approvals; Third Parties; Conditions. All approval rights retained or exercised
by Administrative Agent or the Lenders with respect to Leases, contracts, plans, studies

 

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and other matters are solely to facilitate
Administrative Agent’s and the Lenders’ credit underwriting, and shall not be deemed or construed as a determination
that Administrative Agent or the Lenders have passed on the adequacy thereof for any other purpose and may not be relied upon by
Borrower or any other Person. This Agreement is for the sole and exclusive use of Administrative Agent (and its successors and
permitted assigns), the Lenders (and their successors and permitted assigns and participants), and Borrower and may not be enforced,
nor relied upon, by any Person other than Administrative Agent (and its successors and permitted assigns), the Lenders (and their
successors and permitted assigns and participants), and Borrower. All conditions of the obligations of Administrative Agent and
the Lenders hereunder, including the obligation to make advances, are imposed solely and exclusively for the benefit of Administrative
Agent and the Lenders, their successors and assigns, and no other Person shall have standing to require satisfaction of such conditions
or be entitled to assume that any Lender will refuse to make advances in the absence of strict compliance with any or all of such
conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of
which may be freely waived in whole or in part by any Lender at any time in such Lender’s sole discretion.

 

Section 11.13  
Administrative Agent and Lenders Not in Control; No Partnership. None of the
covenants or other provisions contained in this Agreement shall, or shall be deemed to, give Administrative Agent or the Lenders
the right or power to exercise control over the affairs or management of Borrower, the power of Administrative Agent and the Lenders
being limited to the rights to exercise the remedies referred to in the Environmental Indemnity Agreement or the Loan Documents.
No covenant or provision of the Environmental Indemnity Agreement or the Loan Documents is intended, nor shall it be deemed or
construed to and Administrative Agent, Lenders and Borrower disclaims any intention to, create a partnership, joint venture, agency
or common interest in profits or income among Administrative Agent and the Lenders or any of them, on the one hand, and Borrower,
on the other hand, or to create an equity interest in the Project in Administrative Agent or any Lender. None of Administrative
Agent nor any Lender undertakes or assumes any responsibility or duty to Borrower or to any other Person with respect to the Project
or the Loan, except as expressly provided in the Environmental Indemnity Agreement and the Loan Documents; and notwithstanding
any other provision of the Environmental Indemnity Agreement or the Loan Documents: (a) none of Administrative Agent or any
Lender are, and shall not be construed as, a partner, joint venturer, alter ego, manager, controlling person or other business
associate or participant of any kind of Borrower or Borrower’s stockholders, members, or partners and Administrative Agent
and the Lenders do not intend to ever assume such status; (b) Administrative Agent and the Lenders shall in no event be liable
for any Debts, expenses or losses incurred or sustained by Borrower; and (c) Administrative Agent and the Lenders shall not
be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or Borrower’s stockholders, members,
or partners.

 

Section 11.14  
Contest of Certain Claims. Borrower may contest the validity of Taxes or any
mechanic’s or materialman’s lien asserted against the Project so long as (a) Borrower notifies Administrative
Agent that they intend to contest such Taxes or liens, as applicable, (b) Borrower provides Administrative Agent with an indemnity,
bond or other security reasonably satisfactory to Administrative Agent assuring the discharge of Borrower’s obligations for
such Taxes or liens, as applicable, including interest and penalties, (c) Borrower is diligently contesting the same by appropriate
legal proceedings in good faith and at its own expense and conclude such contest prior

 

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to the tenth (10th) day preceding
the earlier to occur of the Maturity Date or the date on which the Project is scheduled to be sold for non-payment and (d) Borrower
promptly upon final determination thereof pays the amount of any such Taxes or liens, as applicable, together with all costs, interest
and penalties which may be payable in connection therewith. Notwithstanding the foregoing, Borrower shall immediately upon request
of Administrative Agent pay any such Taxes or liens, as applicable, notwithstanding such contest if, in the opinion of Administrative
Agent, the Project or any part thereof or interest therein may be in danger of being sold, forfeited, foreclosed, terminated, canceled
or lost.

 

Section 11.15  
Time of the Essence. Time is of the essence with respect to this Agreement.

 

Section 11.16  
Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of Administrative Agent, the Lenders, and Borrower and their respective successors and assigns, provided that neither Borrower
nor any other Borrower Party shall, without the prior written consent of the Lenders, assign any of its rights, duties or obligations
hereunder.

 

Section 11.17  
Waivers.

 

(a)              
No course of dealing on the part of Administrative Agent or the Lenders or their respective officers, employees, consultants
or agents, nor any failure or delay by Administrative Agent or any Lender with respect to exercising any right, power or privilege
of Administrative Agent or the Lenders under the Environmental Indemnity Agreement and any of the Loan Documents, shall operate
as a waiver thereof.

 

(b)              
Borrower hereby waives any right under the UCC or any other applicable law to receive notice and/or copies of any filed
or recorded financing statements, amendments thereto, continuations thereof or termination statements and releases and excuses
Administrative Agent and each Lender from any obligation under the UCC or any other applicable law to provide notice or a copy
of any such filed or recorded documents.

 

Section 11.18  
Cumulative Rights. Rights and remedies of Administrative Agent (on behalf of
the Lenders) under the Environmental Indemnity Agreement and the Loan Documents shall be cumulative, and the exercise or partial
exercise of any such right or remedy shall not preclude the exercise of any other right or remedy.

 

Section 11.19  
[Intentionally Deleted].

 

Section 11.20  
Singular and Plural. Words used in this Agreement, the other Loan Documents
and the Environmental Indemnity Agreement, in the singular, where the context so permits, shall be deemed to include the plural
and vice versa. The definitions of words in the singular in this Agreement, the other Loan Documents, and the Environmental Indemnity
Agreement shall apply to such words when used in the plural where the context so permits and vice versa.

 

Section 11.21  
Exhibits and Schedules. The exhibits and schedules attached to this Agreement
are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein.

 

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Section 11.22        Titles of Articles, Sections and
Subsections. All titles or headings to articles, sections, subsections or other divisions of this Agreement, the other Loan Documents,
and the Environmental Indemnity Agreement or the exhibits hereto and thereto are only for the convenience of the parties and shall
not be construed to have any effect or meaning with respect to the other content of such articles, sections, subsections or other
divisions, such other content being controlling as to the agreement between the parties hereto.

 

Section 11.23  
Promotional Material. Borrower authorizes Administrative Agent and any Lender
to issue press releases, advertisements and other promotional materials in connection with Administrative Agent’s or such
Lender’s own promotional and marketing activities and such materials may describe the Loan in general terms or in detail
and Administrative Agent’s and such Lender’s participation therein in the Loan, provided that, if such promotional
materials reference Borrower or Guarantor by name, such promotional materials shall have been approved by Borrower, in its reasonable
discretion, prior to the publication thereof. All references to Administrative Agent or any Lender contained in any press release,
advertisement or promotional material issued by Borrower shall be approved in writing by Administrative Agent in advance of issuance.

 

Section 11.24  
Survival. All of the representations, warranties, covenants, and indemnities
hereunder, under the indemnification provisions of the other Loan Documents and under the Environmental Indemnity Agreement, shall
survive the repayment in full of the Loan and the release of the liens evidencing or securing the Loan, and shall survive the transfer
(by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the
Project to any party, whether or not an Affiliate of Borrower.

 

Section 11.25  
WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER, ADMINISTRATIVE
AGENT, AND EACH LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE ENVIRONMENTAL INDEMNITY
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF ANY PARTY OR ANY
EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS AND THE ENVIRONMENTAL INDEMNITY AGREEMENT OR IN ANY WAY
RELATING TO THE LOAN OR THE PROJECT (INCLUDING ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY CLAIM OR DEFENSE ASSERTING
THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR ADMINISTRATIVE
AGENT AND EACH LENDER TO ENTER INTO THIS AGREEMENT.

 

(a)              
JUDICIAL REFERENCE. IN THE EVENT ANY LEGAL PROCEEDING IS FILED IN A COURT OF THE STATE OF CALIFORNIA (THE “COURT”)
BY OR AGAINST BORROWER, ADMINISTRATIVE AGENT OR ANY LENDER IN CONNECTION WITH ANY CONTROVERSY, DISPUTE OR CLAIM DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,

 

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TORT OR ANY OTHER THEORY) (EACH, A “CLAIM”)
AND THE WAIVER SET FORTH IN THE PRECEDING PARAGRAPH IS NOT ENFORCEABLE IN SUCH ACTION OR PROCEEDING, BORROWER, ADMINISTRATIVE AGENT
AND EACH LENDER AGREE AS FOLLOWS:

 

(i)                
WITH THE EXCEPTION OF THE MATTERS SPECIFIED IN PARAGRAPH (ii) BELOW, ANY CLAIM WILL BE DETERMINED BY A GENERAL REFERENCE
PROCEEDING IN ACCORDANCE WITH THE PROVISIONS OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 THROUGH 645.2, INCLUDING ANY REVISION
OR REPLACEMENT OF SUCH STATUTES OR RULES HEREAFTER ENACTED. BORROWER, ADMINISTRATIVE AGENT AND THE LENDERS INTEND THIS GENERAL
REFERENCE AGREEMENT TO BE SPECIFICALLY ENFORCEABLE IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, INCLUDING
ANY REVISION OR REPLACEMENT OF SUCH STATUTE OR RULE HEREAFTER ENACTED. EXCEPT AS OTHERWISE PROVIDED IN THIS AND THE OTHER RELATED
DOCUMENTS, VENUE FOR THE REFERENCE PROCEEDING WILL BE IN THE STATE OR FEDERAL COURT IN THE COUNTY OR DISTRICT WHERE VENUE IS OTHERWISE
APPROPRIATE UNDER APPLICABLE LAW.

 

(ii)             
THE FOLLOWING MATTERS SHALL NOT BE SUBJECT TO A GENERAL REFERENCE PROCEEDING: (A) NON-JUDICIAL FORECLOSURE OF ANY SECURITY
INTERESTS IN REAL OR PERSONAL PROPERTY; (B) EXERCISE OF SELF-HELP REMEDIES (INCLUDING SET-OFF); (C) APPOINTMENT OF A RECEIVER;
AND (D) TEMPORARY, PROVISIONAL OR ANCILLARY REMEDIES (INCLUDING WRITS OF ATTACHMENT, WRITS OF POSSESSION, TEMPORARY RESTRAINING
ORDERS OR PRELIMINARY INJUNCTIONS). THIS DOCUMENT DOES NOT LIMIT THE RIGHT OF BORROWER, ADMINISTRATIVE AGENT OR THE LENDERS TO
EXERCISE OR OPPOSE ANY OF THE RIGHTS AND REMEDIES DESCRIBED IN CLAUSES (A) - (D) AND ANY SUCH EXERCISE OR OPPOSITION DOES NOT WAIVE
THE RIGHT OF BORROWER, ADMINISTRATIVE AGENT OR ANY LENDER TO A REFERENCE PROCEEDING PURSUANT TO THIS AGREEMENT.

 

(iii)           
UPON THE WRITTEN REQUEST OF BORROWER, ADMINISTRATIVE AGENT OR ANY LENDER, BORROWER AND ADMINISTRATIVE AGENT SHALL SELECT
A SINGLE REFEREE, WHO SHALL BE A RETIRED JUDGE OR JUSTICE. IF BORROWER AND ADMINISTRATIVE AGENT ARE UNABLE TO AGREE UPON A REFEREE
WITHIN TEN (10) DAYS OF SUCH WRITTEN REQUEST, THEN BORROWER OR ADMINISTRATIVE AGENT MAY REQUEST THE COURT TO APPOINT A REFEREE
PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 640(B), INCLUDING ANY REVISION OR REPLACEMENT OF SUCH STATUTE OR RULE HEREAFTER
ENACTED.

 

(iv)            
ALL PROCEEDINGS AND HEARINGS CONDUCTED BEFORE THE REFEREE, EXCEPT FOR TRIAL, SHALL BE CONDUCTED WITHOUT A

 

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COURT REPORTER, EXCEPT WHEN BORROWER,
ADMINISTRATIVE AGENT OR A LENDERS SO REQUESTS, A COURT REPORTER WILL BE USED AND THE REFEREE WILL BE PROVIDED A COURTESY COPY OF
THE TRANSCRIPT. THE PARTY MAKING SUCH REQUEST SHALL HAVE THE OBLIGATION TO ARRANGE FOR AND PAY COSTS OF THE COURT REPORTER, PROVIDED
THAT SUCH COSTS, ALONG WITH THE REFEREE’S FEES, SHALL ULTIMATELY BE BORNE BY THE PARTY WHO DOES NOT PREVAIL, AS DETERMINED
BY THE REFEREE.

 

(v)              
THE REFEREE MAY REQUIRE ONE OR MORE PREHEARING CONFERENCES. BORROWER, ADMINISTRATIVE AGENT AND LENDERS SHALL BE ENTITLED
TO DISCOVERY, AND THE REFEREE SHALL OVERSEE DISCOVERY IN ACCORDANCE WITH THE RULES OF DISCOVERY, AND MAY ENFORCE ALL DISCOVERY
ORDERS IN THE SAME MANNER AS ANY TRIAL COURT JUDGE IN PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA. THE REFEREE SHALL APPLY THE
RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA AND SHALL DETERMINE ALL ISSUES IN ACCORDANCE WITH
APPLICABLE STATE AND FEDERAL LAW. THE REFEREE SHALL BE EMPOWERED TO ENTER EQUITABLE AS WELL AS LEGAL RELIEF AND RULE ON ANY MOTION
WHICH WOULD BE AUTHORIZED IN A TRIAL, INCLUDING MOTIONS FOR DEFAULT JUDGMENT OR SUMMARY JUDGMENT. THE REFEREE SHALL REPORT THE
REFEREE’S DECISION, WHICH REPORT SHALL ALSO INCLUDE FINDINGS OF FACT AND CONCLUSIONS OF LAW.

 

(vi)            
BORROWER, ADMINISTRATIVE AGENT AND LENDERS RECOGNIZE AND AGREE THAT ALL CLAIMS RESOLVED IN A GENERAL REFERENCE PROCEEDING
PURSUANT HERETO WILL BE DECIDED BY A REFEREE AND NOT BY A JURY.

 

Section 11.26  
Waiver of Punitive or Consequential Damages. None of Administrative Agent,
any Lender, nor Borrower shall be responsible or liable to the other or to any other Person for any punitive, exemplary or consequential
damages which may be alleged as a result of the Loan or the transaction contemplated hereby, including any breach or other default
by any party hereto. Borrower represents and warrants to Administrative Agent and each Lender that, as of the Closing Date, neither
Borrower nor any other Borrower Party has any claims against Administrative Agent or any Lender in connection with the Loan.

 

Section 11.27  
Governing Law. UNLESS OTHERWISE NOTED THEREIN TO THE CONTRARY, THE LOAN DOCUMENTS
AND THE ENVIRONMENTAL INDEMNITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES THEREUNDER SHALL IN ALL RESPECTS BE GOVERNED
BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS (WITHOUT GIVING EFFECT TO ILLINOIS’
PRINCIPLES OF CONFLICTS OF LAW) AND APPLICABLE UNITED STATES FEDERAL LAW, EXCEPT FOR THOSE PROVISIONS IN THE LOAN DOCUMENTS
AND THE ENVIRONMENTAL INDEMNITY AGREEMENT PERTAINING TO THE CREATION, PERFECTION OR VALIDITY OF OR EXECUTION ON LIENS OR

 

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SECURITY INTERESTS ON PROPERTY LOCATED
IN THE STATE WHERE THE PROJECT IS LOCATED, WHICH PROVISIONS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATES WHERE THE PROJECT IS LOCATED AND APPLICABLE UNITED STATES FEDERAL LAW.

 

Section 11.28  
Entire Agreement. This Agreement, the other Loan Documents and the Environmental
Indemnity Agreement embody the entire agreement and understanding between Administrative Agent, each Lender and Borrower and supersede
all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. Accordingly, the
Loan Documents and the Environmental Indemnity Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties. If any conflict or inconsistency exists
between the Term Sheet and this Agreement, any of the other Loan Documents, or the Environmental Indemnity Agreement, the terms
of this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement, as applicable, shall control.

 

Section 11.29  
Counterparts. This Agreement may be executed in multiple counterparts, each
of which shall constitute an original, but all of which shall constitute one document.

 

Section 11.30  
Consents and Approvals. To the extent that Administrative Agent, Lenders and/or
Required Lenders provide any consent or approval as provided for in this Agreement, such consent shall be limited to the specific
matter approved and shall NOT be construed to (a) relieve Borrower from compliance with all of the other terms and obligations
of this Agreement, or (b) constitute a consent to any further similar action (as to which a prospective consent or approval
shall be required and may not necessarily be granted), or (c) constitute a consent to any other obligation to which any Lender
may be a party.

 

Section 11.31  
Effectiveness of Facsimile Documents and Signatures. The Loan Documents and
Environmental Indemnity Agreement may be transmitted and/or signed by facsimile or by Electronic Transmission. The effectiveness
of any such documents and signatures shall, subject to applicable law, have the same force and effect as manually signed originals
and shall be binding on all parties to the Loan Documents and Environmental Indemnity Agreement, as applicable. Administrative
Agent may also require that any such documents and signatures be confirmed by a manually signed original thereof; provided, however,
that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature.

 

Section 11.32  
Venue. EACH PARTY HERETO HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR
FEDERAL COURT LOCATED WITHIN THE COUNTY OF COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO ADMINISTRATIVE AGENT’S
ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED
IN SUCH COURTS. EACH PARTY HERETO EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE
OF FORUM NON CONVENIENS. BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS. BORROWER AGREES THAT ALL SUCH SERVICE
OF PROCESS MAY BE MADE UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO

 

    	LOAN AGREEMENT – Page 95
[Summit Pennington]

     

    

BORROWER, AT THE ADDRESS SET FORTH IN THIS
AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

 

Section 11.33  
Important Information Regarding Procedures for Requesting Credit. Each of Administrative
Agent and Lenders hereby notifies the Borrower Parties that in order to help the government fight the funding of terrorism and
money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies
each individual or business that requests credit. Accordingly, in connection with the Loan or any other request for credit, Administrative
Agent and the Lenders will ask for the business name, business address, Employer Identification Number, and other information which
allows them to identify each Borrower Party, and may ask for other identifying documents showing existence of each Borrower Party.

 

Section 11.34  
Method of Payment. All amounts payable under this Agreement and the other Loan
Documents must be paid by Borrower in accordance with Section 2.6(c). Payments in the form of cash, money order, third
party payment, cashier’s check, a check drawn on a foreign bank or non-bank financial institution, or any form of payment
other than those provided in the preceding sentence will not be accepted.

 

Section 11.35  
Non-Public Information; Confidentiality; Disclosure. Borrower authorizes Administrative
Agent and each Lender to disclose information about Borrower and any other Borrower Party that Administrative Agent or such Lender
may at any time possess to any Affiliate of a Lender or Administrative Agent, whether such information was supplied by Borrower
or otherwise obtained by Administrative Agent or the Lender; provided to the extent Administrative Agent or any Lender receives
material non-public information hereunder concerning Borrower, the other Borrower Parties and their Affiliates, Administrative
Agent and each Lender agrees to use such information in compliance with all relevant policies, procedures and contractual obligations
and applicable Requirements of Laws (including United States federal and state security laws and regulations).

 

Section 11.36  
Post-Closing Obligations of Borrower. Notwithstanding the fact that Borrower
has not satisfied certain of the conditions to the advance of the Loan proceeds as of the Closing Date, Lenders have agreed to
advance the proceeds of the Loan to Borrower, subject to the satisfaction of the other conditions to funding contained herein and
each of the requirements set forth in Schedule 11.36 attached hereto (the “Post-Closing Obligations”).
Borrower shall provide evidence reasonably satisfactory to Administrative Agent of the completion of the Post-Closing Obligations,
all of which shall be performed in a manner satisfactory to Administrative Agent.

 

Section 11.37  
Release and Waiver Regarding Special Audits. Borrower and Lenders acknowledge
that from time to time during the term of the Loan, one or more Lenders and/or Borrower may request that CONA provide Borrower
and/or the Lenders (collectively, the “Recipient”) with certain internally generated reports (whether
oral and/or written, the “Reports”), which Reports may include oral and/or written information, assessments,
notes, memoranda and analyses prepared by employees of CONA for the limited purpose of preparing an audit of the progress one or
more of the Project has made with respect to a plan of correction

 

    	LOAN AGREEMENT – Page 96
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(or similar remedial obligation of Borrower
or any Operator under any Healthcare Laws) that may be issued from time to time with respect to one or more Project. With
respect to any Reports that may be provided to the Recipient from time to time during the term of the Loan, Lenders and Borrower
hereby acknowledge and agree as follows: (a) the Reports may be prepared based on procedures that may not include all procedures
deemed necessary for the Recipient’s own purposes; (b) CONA will not be able or willing to make any recommendations
based on the Reports and CONA shall not in any way be deemed a consultant, agent or other representative to the Recipient in any
manner; (c) the Recipient does not acquire any rights as a result of the disclosure of the Reports and its access thereto,
and CONA assumes no duties or obligations in connection with, or as a result of, such access; (d) the Recipient is not entitled
to rely on the Report; (e) the Recipient will not distribute or disclose the Reports or the information contained therein
to any third party, except if compelled by legal process, and it will, to the extent permitted by applicable Law, indemnify and
hold harmless CONA, together with its employees, officers, advisors and Affiliates from and against any and all claims, losses
or expenses (including attorneys’ fees) arising as a result of CONA having disclosed the Reports to the Recipient; (f) the
Recipient waives its right to recover from, and releases and discharges any legal action against, CONA with respect to any and
all suits, actions, proceedings, investigations, demands, claims, liabilities, fines, penalties, liens, judgments, losses, injuries,
damages, settlement expenses or costs of whatever kind or nature, whether direct or indirect, known or unknown, contingent or otherwise,
including attorneys’ and experts’ fees and expenses, and investigation and remediation costs that may arise on account
of or in any way be connected with the Report; and (g) and with respect to the Reports, CONA is not acting as an agent, fiduciary
or representative for the Recipient, and the Recipient will (i) make its own independent investigation of the subject matter
of the Reports and (ii) be solely responsible for its own review, assessments, conclusions and decisions with respect to the
Loan, the Project and the Borrower and/or Operators.

 

Section 11.38  
Component Notes. Administrative Agent, without in any way limiting Administrative
Agent’s other rights hereunder, in its sole and absolute discretion, shall have the right at any time to require Borrower
to execute and deliver “component” notes (including senior and junior notes) in replacement of the Note as evidence
of the Loan, which notes may be paid in such order of priority as may be designated by Administrative Agent, provided that (i) the
aggregate principal amount of such “component” notes shall equal the outstanding principal balance of the Loan immediately
prior to the creation of such “component” notes, plus any Loan Commitments of each Lender not yet funded, (ii) the
weighted average interest rate of all such “component” notes shall on the date created equal the interest rate which
was applicable to the Loan immediately prior to the creation of such “component” notes, (iii) the Debt Service
on all such “component” notes shall on the date created equal the Debt Service which was due under the Loan immediately
prior to the creation of such component notes and (iv) the other terms and provisions of each of the “component”
notes shall be identical in substance and substantially similar in form to the Loan Documents. Borrower, at its cost and expense,
shall cooperate with all reasonable requests of Administrative Agent in order to establish the “component” notes and
shall execute and deliver such documents as shall reasonably be required by Administrative Agent in connection therewith, all in
form and substance reasonably satisfactory to Administrative Agent, including the severance of security documents if requested.
If Borrower fails to execute and deliver such documents to Administrative Agent within five (5) Business Days following such
request by Administrative Agent, Borrower hereby absolutely and irrevocably appoints Administrative Agent as their true and lawful
attorney, coupled with an interest, in its name and

 

    	LOAN AGREEMENT – Page 97
[Summit Pennington]

     

    

stead to make and execute all documents
necessary or desirable to effect such transactions, Borrower ratifying all that such attorney shall do by virtue thereof.

 

Section 11.39  
Waivers. No waiver of any provision of the Loan Documents shall be effective
unless in writing and signed by the party against whom enforcement is sought, provided that a written waiver signed by Administrative
Agent on behalf of the Lenders shall be deemed to have been signed by the Lenders.

 

Section 11.40  
HUD Engagement; Eligibility. Throughout the term of the Loan, CONA Agency Lender
shall have an exclusive right, but not an obligation, to represent Borrower in the application to HUD for an FHA mortgage insurance
commitment for a HUD Loan Financing, offered on market terms and conditions for similarly situated projects owned by similar borrowers
as a permanent take-out for the Loan. Borrower agrees to close on such HUD Loan Financing provided that it is offered on market
terms and conditions substantially similar to then current market terms and conditions for HUD mortgage loan transactions for similarly
situated projects owned by similar borrowers. Within thirty (30) days following the Closing Date, Borrowers shall execute an engagement
letter authorizing CONA Agency Lender to prepare a HUD application for submission to the Secretary of HUD for HUD Permanent Financing
for the Project (the “Application”). No later than the date that is six (6) months prior to the Initial
Maturity Date, Borrower shall fund all fees necessary for preparation, processing and submission of the Application, as reasonably
determined by CONA Agency Lender.

 

ARTICLE
12

LIMITATIONS ON LIABILITY

 

Section 12.1      
Limitation on Liability.

 

(a)              
Subject to the qualifications below, neither Administrative Agent nor any Lender shall enforce the liability and obligation
of Borrower to perform and observe the Obligations by any action or proceeding wherein a money judgment shall be sought against
Borrower, except that Administrative Agent and the Lenders may bring a foreclosure action, an action for specific performance or
any other appropriate action or proceeding to enable Administrative Agent and the Lenders to enforce and realize upon its interest
under the Note, this Agreement, the Mortgage and the other Loan Documents, or in the Project, or any other Collateral given to
Administrative Agent and the Lenders pursuant to the Loan Documents; provided, however, that, except as specifically provided herein,
any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest
in the Project and in any other collateral given to Administrative Agent and the Lenders to secure the Obligations, and Administrative
Agent and each Lender, as applicable, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, shall not
sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding under or by reason of or under
or in connection with the Note, this Agreement, the Mortgage or the other Loan Documents.

 

(b)              
The provisions of this Section 12.1 shall not, however, (i) constitute a waiver, release or impairment
of any Obligation evidenced or secured by any of the Loan Documents; (ii) impair the right of Administrative Agent or any
Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage; (iii) affect
the

 

    	LOAN AGREEMENT – Page 98
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validity or enforceability of any guaranty
made in connection with the Loan or any of the rights and remedies of Administrative Agent or any Lender thereunder; (iv) impair
the right of Administrative Agent or any Lender to obtain the appointment of a receiver; (v) constitute a prohibition against
Administrative Agent or any Lender to commence any appropriate action or proceeding in order for Administrative Agent or any Lender
to exercise its remedies against the Project; or (vi) constitute a waiver of the right of Administrative Agent or any Lender
to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any Liability, which may
be imposed upon, incurred by or awarded against Administrative Agent or any Lender or any Affiliate thereof as a result of, arising
out of or in connection with (and Borrower shall be personally liable and shall indemnify Administrative Agent and such Lender
for) the following:

 

(i)          
any failure by Borrower or Guarantor after the occurrence and during the continuance of any Event of Default to apply any
portion of the gross income from the Project at any time received by or payable to Borrower or any Guarantor or any of their Affiliates
to amounts due under the Loan or to amounts due under the Loan or to customary operating expenses of the Project;

 

(ii)       
commission of a criminal act by Borrower or Guarantor (or any Affiliate or agent of Borrower or Guarantor, which agent is
under the control of Borrower or Guarantor) which results in the exercise by any Person of Forfeiture Rights with respect
to the Project;

 

(iii)     
the failure by Borrower or any other Borrower Party to apply any insurance proceeds and condemnation awards in accordance
with the terms of the Loan Documents;

 

(iv)      
any intentional misrepresentation by Borrower or any other Borrower Party made in or in connection with the Loan Documents
or the Loan;

 

(v)        
Borrower’s collection of rents more than one month in advance or otherwise in violation of this Agreement or any of
the other Loan Documents;

 

(vi)      
Borrower, any Guarantor or any Affiliate of any of them contesting or in any way interfering with, directly or indirectly
(collectively, a “Contest”), any foreclosure action or sale commenced by Administrative Agent or any
Lender or with any other enforcement of Administrative Agent’s or any Lender’s rights, powers or remedies under any
of the Loan Documents or under any document evidencing, securing or otherwise relating to any of the Security (whether by making
any motion, bringing any counterclaim, claiming any defense, seeking any injunction or other restraint, commencing any action seeking
to consolidate any such foreclosure or other enforcement with any other action, or otherwise);

 

(vii)   
Borrower’s failure to turn over to Administrative Agent all Security Deposits upon Administrative Agent’s demand
following an Event of Default, except to the extent any such Security Deposits were applied in accordance with the terms and conditions
of the Operating Lease prior to the occurrence of such Event of Default;

 

    	LOAN AGREEMENT – Page 99
[Summit Pennington]

     

    

(viii) 
any amendment or modification of the Operating Lease, or any guaranty thereof, or any termination or surrender of the Operating
Lease or any guaranty thereof (except only to the extent expressly permitted under this Agreement), without the prior written consent
of Administrative Agent in each instance;

 

(ix)      
Borrower’s failure to maintain insurance as required by this Agreement or to pay any Taxes or assessments affecting
the Project, in each case (A) to the extent that Borrower failed to apply cash flow from the Project to do so and (B) less
any funds deposited by or on behalf of Borrower on account of the Tax Impound or the Insurance Impound, as applicable, which have
not been used to pay such taxes or insurance premiums, provided that no Borrower Party has made
a claim against such escrowed amounts or otherwise taken action to restrict Administrative Agent from applying such sums for the
purpose of paying such items;

 

(x)        
damage or destruction to the Project caused by the negligent or intentional acts or omissions of any Borrower Party;

 

(xi)      
Borrower’s failure to perform its obligations under the Environmental Indemnity Agreement;

 

(xii)   
any physical waste of the Project (excluding alterations made in good faith);

 

(xiii) 
the removal or disposal of any personal property from the Project by Borrower in which Administrative Agent or the Lenders
have a security interest in violation of the terms and conditions of the Loan Documents;

 

(xiv)  
the payment of any distributions to Borrower or any Guarantor or any of their Affiliates, employees, managers or contractors,
other than as permitted in this Agreement; or

 

(xv)    
any fees paid by Borrower to any Guarantor or any of their Affiliates, employees, managers or contractors after the occurrence
and during the continuation of an Event of Default under the Loan Documents.

 

(c)              
Notwithstanding anything to the contrary in this Agreement, the Note or any of the Loan Documents, all of the Obligations
shall be fully recourse to Borrower and Borrower shall be personally liable therefor in the event of: (i) any Transfer of
the Project or any interest in Borrower in breach of any of the covenants in this Agreement or the Mortgage, (ii) Borrower’s
failure to comply with the covenants in Section 5.17 hereof and such failure results in a substantive consolidation
in whole or in part of Borrower’s assets with the assets of another Person in any bankruptcy or insolvency proceeding; (iii) the
commission of fraud by Borrower or any other Borrower Party in connection with the Loan; or (iv) the filing by Borrower or
any Borrower Party or the filing against Borrower or any Borrower Party by Borrower, any Borrower Party or any Affiliate of Borrower
of any proceeding for relief under any federal or state bankruptcy, insolvency or receivership laws or any assignment for the benefit
of creditors made by Borrower or any Borrower Party or the consenting to, acquiescing in or joining in any such proceeding by Borrower
or Borrower Party. Borrower also shall be personally liable to Administrative Agent and the Lenders for any and all attorneys’
fees and expenses and court costs

 

    	LOAN AGREEMENT – Page 100
[Summit Pennington]

     

    

incurred by Administrative Agent and the
Lenders in enforcing this Section 12.1 or otherwise incurred by Administrative Agent or any Lender in connection with
any of the foregoing matters, regardless whether such matters are legal or equitable in nature or arise under tort or contract
law. The limitation on the personal liability of Borrower in this Section 12.1 shall not modify, diminish or discharge
the personal liability of any Guarantor. Nothing herein shall be deemed to be a waiver of any right which Administrative Agent
or any Lender may have under Sections 506(a), 506(b), 1111(b) or any other provision of the United States Bankruptcy
Code, as such sections may be amended, or corresponding or superseding sections of the Bankruptcy Amendments and Federal Judgeship
Act of 1984, to file a claim for the full amount due to Administrative Agent and the Lenders under the Loan Documents or to require
that all collateral shall continue to secure the amounts due under the Loan Documents.

 

Section 12.2      
Limitation on Liability of Lender’s Officers, Employees, etc. Any obligation
or liability whatsoever of Administrative Agent or any Lender which may arise at any time under this Agreement, any other Loan
Document, or the Environmental Indemnity Agreement shall be satisfied, if at all, out of Administrative Agent’s or such Lender’s
assets only. No such obligation or liability shall be personally binding upon, nor shall resort for the enforcement thereof be
had to, the property of any of Administrative Agent’s or such Lender’s shareholders, directors, officers, employees
or agents, regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.

 

[Remainder of Page Blank; Signature Pages
Follow]

 

    	LOAN AGREEMENT – Page 101
[Summit Pennington]

     

    

EXECUTED as of the
date first written above.

 

	ADMINISTRATIVE AGENT AND LENDER:	CAPITAL ONE, NATIONAL ASSOCIATION

	 	 
	 	 	 
	 	By:	/s/ Jason LaGrippe
	 	 	Name: Jason LaGrippe

Title: Duly Authorized Signatory

 

 

[Signatures Continued on Following
Page]

 

    	LOAN AGREEMENT – Signature Page
[Summit Pennington]

     

    

 

 

 

	BORROWER:	SUMMIT CHANDLER, LLC, 
 a Delaware limited liability company
	 	 	 	 
	 	By:	Summit Healthcare REIT, Inc., a Maryland corporation, its Manager

	 	 	 	 
	 	 	 	 
	 	 	By:	/s/ Elizabeth Pagliarini
	 	 	 	Name: Elizabeth Pagliarini

Title: Chief Financial Officer

 

 

 

    	LOAN AGREEMENT – Signature Page
[Summit Pennington]

     

    

EXHIBIT A

 

Description of Project

 

 

	Borrower:	
        Summit Chandler, LLC

	 	 
	Name of Project	
        Pennington Gardens

	 	 
	Address of Project:	
        977 S. Pennington Drive, Chandler, Arizona 85224

	 	 
	Number of Residential Units:	
        60 assisted living

        26 memory care

	 	 
	Parking Spaces:	
        45 (43 regular; 2 handicapped)

 

Legal Description of Land:

 

That portion of the Southeast quarter of
the Southwest quarter of Section 32, Township 1 South, Range 5 East of the Gila and Salt River Base and Meridian, Maricopa County,
Arizona, described as follows:

 

Beginning at the Southwest corner of the
Southeast quarter of the Southwest quarter of said Section 32;

 

Thence North 00 degrees 01 minutes 28 seconds
West along the West line of the Southeast quarter of the Southwest quarter of said Section 32, a distance of 453.00 feet;

 

Thence North 89 degrees 47 minutes 21 seconds
East, along a line parallel to the South line of the Southwest quarter of said Section 32, a distance of 32.00 feet to the True
Point of Beginning;

 

Thence continuing along said line bearing
North 89 degrees 47 minutes 21 seconds East, a distance of 283.00 feet;

 

Thence South 00 degrees 01 minutes 28 seconds
East, along a line parallel with the West line of the Southeast quarter of the Southwest quarter of said Section 32, a distance
of 382.00 feet to a point on a line parallel and 71.00 feet North of the South line of said Section 32;

 

Thence South 89 degrees 47 minutes 21 seconds
West along said parallel line, a distance of 253.00 feet;

 

Thence North 45 degrees 07 minutes 04 seconds
West, a distance of 42.36 feet to a point on a line parallel to and 32.00 feet East of the West line of the Southeast quarter of
the Southwest quarter of said Section 32;

 

Thence continuing along said line bearing
North 00 degrees 01 minutes 28 seconds West, a distance of 352.00 feet to the True Point of Beginning.

    	LOAN AGREEMENT – Exhibit A – Page 1
[Summit Pennington]

     

    

EXHIBIT B

 

Loan Commitments

 

	Lender’s Name	Lender’s Address for Notices	Lender’s Loan Commitment	Lender’s Pro Rata Share
	Capital One, National Association	See Section 11.1	$10,050,000.00	100%

    	LOAN AGREEMENT – Exhibit B – Page 1
[Summit Pennington]

     

    

EXHIBIT C

 

Form Of Assignment and Assumption

 

This Assignment and Assumption (this “Assignment
and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]1
Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights
and obligations of [the Assignors] [and] [the Assignees]3
hereunder are several and not joint.]4 Capitalized
terms used but not defined herein shall have the meanings given to them in the Loan Agreement identified below (the “Loan
Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] 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][each]
Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably
purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions
and the Loan Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the
respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Loan 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][the respective Assignors] under the
respective facilities identified below 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)][the respective Assignors (in their respective
capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Loan 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, but not limited to, 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 by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being
referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and assignment is without
recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or
warranty by [the][any] Assignor.

 

	1.	Assignor[s]:	 	 
	 	 	 	 
	 	 	 	 
	2.	Assignee[s]:	 	 

 

 

 

1 For bracketed
language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the
first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

2 For bracketed
language here and elsewhere in this form relating to the Assignee(s), if the assignment is from a single Assignee, choose the
first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

3 Select as
appropriate.

4 Include bracketed
language if there are multiple Assignors or multiple Assignees.

    	LOAN AGREEMENT – Exhibit C – Page 1
[Summit Pennington]

     

    

 

	 	 	 	 
	 	 	[for each Assignee, indicate [Affiliate] 

[Approved Fund] of [identify Lender]]	 
	 	 	 	 
	3.	Borrower:	 	 
	 	 	 	 
	4.	Administrative Agent:	 	 
	 	 	 	 
	5.	Credit Agreement:	Loan Agreement, dated as of _____ __, 201_, among the Borrower, the lending institutions party thereto from time to time, and _____________________, as Administrative Agent.	 
	 	 	 	 
	6.	Assigned Interest:	 	 

 

	Assignor[s]	Assignee[s]	Aggregate 

Amount of 

Commitment / 

Loans 

for all Lenders5	Amount of 

Commitment / 

Loans Assigned	Percentage 

Assigned of 

Commitment / 

Loans6	CUSIP 

Number
	 	 	$	$	%	 
	 	 	$	$	%	 
	 	 	$	$	%	 

 

	7.	Trade Date:	__________________]7	 

 

 

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:

 

 

 

 

 

 

5 Amounts in
this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments
or prepayments made between the Trade Date and the Effective Date.

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

7 To be completed
if the relevant Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

 

    	LOAN AGREEMENT – Exhibit C – Page 2
[Summit Pennington]

     

    

ASSIGNOR

 

 

[NAME OF ASSIGNOR]

By:_______________________________________

Title:

 

 

ASSIGNEE

 

 

[NAME OF ASSIGNEE]

By:_______________________________________

Title:

    	LOAN AGREEMENT – Exhibit C – Page 3
[Summit Pennington]

     

    

 

[Consented to and]8
Accepted:

CAPITAL ONE, NATIONAL ASSOCIATION,

as Administrative Agent

 

 

By: _________________________________

Title:

 

 

 

8 To be added
only if the consent of the Administrative Agent is required by the terms of the Loan Agreement.

 

    	LOAN AGREEMENT – Exhibit C – Page 4
[Summit Pennington]

     

    

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.          Representations and Warranties.

 

1.1.       Assignor.
[The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned
Interest, (ii) [the][such] 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 Loan Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Credit
Parties or their Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance
by the Credit Parties or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.       Assignee.
[The] [Each] 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 Loan Agreement, (ii) meets all the requirements to be an assignee under Sections 11.3(b)(i), (ii) and (iii)
of the Loan Agreement (subject to such consents, if any, as may be required under Section 11.3(b)(iii) of the Loan Agreement),
(iii) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreement as a Lender thereunder and,
to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated
with respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such
type, (v) it has received a copy of the Loan Agreement, and has received or has been accorded the opportunity to receive copies
of the most recent financial statements referred to in Section 5.3 thereof or delivered pursuant to Section 6.1 thereof,
as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without
reliance upon the Administrative Agent, [the][any] Assignor 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 Assignment and Assumption and to purchase
[the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered
by it pursuant to the terms of the Loan Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i)
it will, independently and without reliance upon the Administrative Agent, [the][any] Assignor or any other Lender, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which
by the terms of the Loan Documents are required to be performed by it as a Lender.

 

    	LOAN AGREEMENT – Exhibit C – Page 5
[Summit Pennington]

     

    

2.           Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each]
Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts
which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from
and after the Effective Date.

 

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 WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

 

    	LOAN AGREEMENT – Exhibit C – Page 6
[Summit Pennington]

     

    

SCHEDULE 2.1

 

CONDITIONS TO ADVANCE OF LOAN PROCEEDS

 

The advance of the
Loan proceeds shall be subject to the terms of the Loan Documents, and Administrative Agent’s receipt, review, approval and/or
confirmation of the following items set forth in this Schedule 2.1 and any other items or conditions specified
in the Term Sheet, at Borrower’s cost and expense, each in form and content satisfactory to Administrative Agent in its sole
discretion:

 

		1.	Loan Documents. The Loan Documents and Environmental Indemnity Agreement executed
by Borrower, any other Borrower Party and/or Operators, as applicable.

 

		2.	Title Insurance Policy. An ALTA (or equivalent) mortgagee policy or policies of title
insurance in the maximum amount of the Loan, with reinsurance and endorsements as Administrative Agent may require, containing
no exceptions to title (printed or otherwise) which are unacceptable to Administrative Agent, and insuring that the Mortgage creates
a first-priority Lien on the Project and related collateral (the “Title Policy”).

 

		3.	Organizational and Authority Documents. Certified copies of all documents evidencing
the formation, organization, valid existence, good standing, and due authorization of and for Borrower and each other Borrower
Party for the execution, delivery, and performance of the Loan Documents and the Environmental Indemnity Agreement by Borrower
and each other Borrower Party, as applicable.

 

		4.	Legal Opinions. Legal opinions issued by counsel for Borrower and each other Borrower
Party, opining as to the due organization, valid existence and good standing of Borrower and each other Borrower Party, and the
due authorization, execution, delivery, enforceability and validity of the Loan Documents and Environmental Indemnity Agreement
with respect to Borrower and each other Borrower Party; that the Loan, as reflected in the Loan Documents, is not usurious; and
as to such other matters as Administrative Agent and Administrative Agent’s counsel reasonably may specify, including, without
limitation, non-consolidation opinions.

 

		5.	Searches. Current Uniform Commercial Code, tax, judgment lien and litigation searches
for Borrower and each other Borrower Party, and the immediately preceding owners of the Project.

 

		6.	Insurance. Evidence of insurance as required by this Agreement, and conforming in
all respects to the requirements of Administrative Agent.

 

		7.	Survey. Three (3) originals of a current “as built” survey of the Project,
dated or updated to a date not earlier than forty-five (45) days prior to the Closing Date, prepared by a registered land surveyor
in accordance with the American Land Title Association American Congress on Surveying and Mapping Standards and containing Administrative
Agent’s approved form of certification in favor of Administrative Agent (on behalf of itself and the Lenders) and the title
insurer (collectively, the “Survey”). Each Survey shall

 

    	LOAN AGREEMENT – Schedule 2.1 – Page 1
[Summit Pennington]

     

    

conform to Administrative Agent’s
current survey requirements and shall be sufficient for the title insurer to remove the general survey exception.

 

		8.	Property Condition Report. A current engineering report
or architect’s certificate with respect to the Project, covering, among other matters, inspection of heating and cooling
systems, roof and structural details and showing no failure of compliance with building plans and specifications, applicable Requirements
of Law (including requirements of the Americans with Disabilities Act) and fire, safety and health
standards (the “Property Condition Report,” whether one or more). As requested by Administrative Agent,
the Property Condition Report shall also include an assessment of the Project’s tolerance for earthquake and seismic activity.

 

		9.	Environmental Reports. A current Site Assessment (as defined in the Environmental
Indemnity Agreement) for the Project.

 

		10.	Rent Roll. A current rent roll or Census Report for the Project, certified by Borrower
or the current owner of the Project. Such rent roll and/or Census Report shall include such information as reasonably required
by Administrative Agent.

 

		11.	Operating Agreements. A copy of each fully executed Operating Agreement in form and
substance satisfactory to Administrative Agent, certified by Borrower as being true, correct and complete.

 

		12.	Tax and Insurance Impounds. Borrower’s deposit with Administrative Agent of
the amount required under this Agreement to impound for taxes and assessments, insurance premiums and to fund any other required
escrows or reserves.

 

		13.	Compliance With Laws. Evidence that the Project and the operation thereof comply
with all Requirements of Law, including that all requisite certificates of occupancy, building permits, and other licenses, certificates,
approvals or consents required of any Governmental Authority have been issued without variance or condition and that there is no
litigation, action, citation, injunctive proceedings, or like matter pending or threatened with respect to the validity of such
matters. If title insurance with respect to the Project described in item 2 above does not include a Zoning 3.1 (with parking)
endorsement because such an endorsement is not available in the state where the Project is located, then Borrower shall furnish
to Administrative Agent a zoning letter from the applicable municipal agency with respect to the Project or a zoning report that
verifies the zoning classification of the Project and the Project’s compliance with such zoning classification (the “Zoning
Report”).

 

		14.	No Casualty or Condemnation. No condemnation or adverse zoning or usage change proceeding
shall have occurred or shall have been threatened against the Project; the Project shall not have suffered any significant damage
by fire or other casualty which has not been repaired; no law, regulation, ordinance, moratorium, injunctive proceeding, restriction,
litigation, action, citation or similar proceeding or matter shall have been enacted, adopted, or threatened by any Governmental
Authority, which would have, in

 

    	LOAN AGREEMENT – Schedule 2.1 – Page 2
[Summit Pennington]

     

    

Administrative Agent’s
judgment, a material adverse effect on Borrower, any other Borrower Party or the Project.

 

		15.	Broker’s Fees. All fees and commissions payable to real estate brokers, mortgage
brokers, or any other brokers or lenders in connection with the Loan or the acquisition of the Project have been paid, such evidence
to be accompanied by any waivers or indemnifications deemed necessary by Administrative Agent.

 

		16.	Costs and Expenses. Payment of Administrative Agent’s and each Lender’s
costs and expenses in underwriting, documenting, and closing the transaction, including fees and expenses of Administrative Agent’s
and such Lender’s inspecting engineers, consultants and counsel.

 

		17.	Representations and Warranties. The representations and warranties contained in this
Agreement and in all other Loan Documents and Environmental Indemnity Agreement are true and correct.

 

		18.	No Defaults. No Potential Default or Event of Default or default shall have occurred
or exist.

 

		19.	Appraisal. Administrative Agent shall obtain an appraisal report for the Project,
in form and content acceptable to Administrative Agent, prepared by an independent MAI appraiser in accordance with the Financial
Institutions Reform, Recovery and Enforcement Act (“FIRREA”) and the regulations promulgated pursuant
to such act.

 

		20.	Management. The Operators and any Operator Agreement for the Project shall be satisfactory
to Administrative Agent in its sole discretion.

 

		21.	Other Items. Administrative Agent and Lenders shall have received such other items
as Administrative Agent and the Lenders may reasonably require.

 

    	LOAN AGREEMENT – Schedule 2.1 – Page 3
[Summit Pennington]

     

    

SCHEDULE 2.7

 

SOURCES AND USES

 

    	LOAN AGREEMENT – Schedule 2.7 – Page 1
[Summit Pennington]

     

    

SCHEDULE 5.1

 

ORGANIZATION; FORMATION

 

		A.	Borrower’s Organizational
Structure. See attached chart.

 

		B.	Organizational Information. (Borrower and each entity
comprising any other Borrower Party).

 

	Legal Name	State of Formation	Type of Entity	State Organization ID No.	Federal Tax ID No.
	Summit Chandler, LLC	Delaware	Limited liability company	6400862	82-1687251
	Summit Healthcare Operating Partnership, LP	Delaware	Limited partnership	3888683	90-1111165
	Summit Healthcare REIT, Inc.	Maryland	Corporation	D10272573	73-1721791

 

		C.	Location Information.

 

	1.	 	Borrower:	 
	 	a.	Chief Executive Office:	
        2 South Pointe Drive, Suite 1400

        Lake Forest, California 92630

         

         

	 	b.	Location of any prior Chief Executive Office (during last 5 years):	
        1920 Main Street, Suite 400

        Irvine, California 92614

         

	 	c.	Other Office Location:	N/A
	 	d.	Location of Collateral:	At the Project
	2.	 	Borrower Parties:	 
	 	a.	Chief Executive Office:	
        2 South Pointe Drive, Suite 1400

        Lake Forest, California 92630

	 	b.	Location of any prior Chief Executive Office (during last 5 years):	N/A
	 	c.	Other Office Location:	N/A

 

 

 

 

 

    	LOAN AGREEMENT – Schedule 5.1 – Page 1
[Summit Pennington]

     

    

ORGANIZATIONAL CHART

 

[See Attached]

 

    	LOAN AGREEMENT – Schedule 5.1 – Page 2
[Summit Pennington]

     

    

SCHEDULE 5.22

 

DISCLOSURES REGARDING HEALTHCARE
MATTERS

 

Part A (Third
Party Payor Programs): None. 

 

Part B (Primary
Licenses):

 

The Primary License will be issued by the Arizona Department
of Health Services to Compass Senior Living, LLC on the Closing Date.

 

Part C (Disclosures
Regarding Inquiries, Investigations, and Violations of Healthcare Laws): None. 

 

 

 

    	LOAN AGREEMENT – Schedule 5.22 – Page 1
[Summit Pennington]

     

    

SCHEDULE 6.2

 

COMPLIANCE CERTIFICATE

 

Compliance Certificate

 

Date: ________________, ______

Capital One, National Association,

as Administrative Agent

77 W. Wacker Drive, 10th Floor

Chicago, Illinois  60601

Attention: Dan Eppley, Senior Director

 

		Re:	Compliance Certificate: Summit Pennington

 

Ladies and Gentlemen:

 

This certificate is given in accordance
with Section 6.2 and Section 8.10 of the Loan Agreement dated July 17, 2017 (as amended from time to time, the “Loan
Agreement”), among Summit Chandler, LLC (“Borrower”) and Capital One, National Association,
as collateral agent and Administrative Agent on behalf of the financial institutions from time to time party to the Loan Agreement
(in such capacity, the “Administrative Agent”). Capitalized terms used but not otherwise defined herein
shall have the meanings assigned to them in the Loan Agreement.

I hereby certify that:

 

		1.	I am an officer of the manager Borrower, and

 

		2.	Based on my review of the financial statements delivered with this certificate in accordance with
the Section 6.1 of the Loan Agreement, such (a) financial statements fairly present the financial condition of Borrower
as the dates of such financial statements in all material respects and (b) have been prepared in accordance with GAAP consistently
applied. There have been no material changes in accounting policies or financial reporting practices of any Borrower Party since
____________, 200_ [insert date of last year-end financial statement provided by Borrower], or, if any such change has occurred,
I have attached a description of such changes.

 

		3.	I have reviewed the terms of the Loan Agreement and have made, or caused to be made under my supervision,
a review in reasonable detail of the transactions and condition of Borrower during the accounting period covered by such financial
statements.

 

		4.	Such review has not disclosed the existence during or at the end of such accounting period, and
I have no knowledge whether arising out of such review or otherwise, of the existence during or at the end of such accounting period
or as of the date hereof, of any condition or event that constitutes a Potential Default or an Event of Default, or if any Potential
Default or Event or Default existed or exists, attached as Schedule 1 hereto is a description of the nature and period
of existence thereof and what action Borrower has taken or proposes to take with respect thereto.

 

    	LOAN AGREEMENT – Schedule 6.2 – Page 1
[Summit Pennington]

     

    

		5.	Guarantor is in compliance with the covenants contained in the Recourse Guaranty Agreement constituting
a part of the Loan Documents, except as set forth in Schedule 4 attached hereto.

 

		6.	Except as noted on Schedule 2 attached hereto, the undersigned has no knowledge of
any federal or state tax liens having been filed against Borrower, Guarantor, any Operator or all or any portion of the Project.

 

		7.	Except as noted on Schedule 2 attached hereto, the undersigned has no knowledge of
any failure of Borrower, Guarantor or any Operator to make required payments of withholding or other tax obligations of Borrower,
Guarantor or such Operator during the accounting period to which the attached statements pertain or any subsequent period.

 

		8.	If the Loan Agreement contemplates a lien on the deposit accounts of Borrower in favor of Administrative
Agent, Schedule 3 attached hereto contains a complete and accurate statement of all deposit or investment accounts
maintained by Borrower.

 

		9.	With respect to Project:

 

		(a)	there are no current, pending or threatened proceedings relating to a condemnation or other public
taking of the Project;

 

		(b)	the Project has suffered no casualty or other damage or loss of the type typically covered by hazard
insurance;

 

		(c)	all insurance required to be maintained by Borrower, Guarantor or any Operator under the Loan Agreement
is in force;

 

		(d)	all real estate taxes or other assessments pertaining to the Project have been paid as and when
due;

 

		(e)	the undersigned has no knowledge of any current, pending or threatened changes to the zoning classification
or permitted uses of the Project; and

 

		10.	All of the other covenants (i.e., those not specifically described in the prior paragraphs above)
set forth in the Loan Agreement and Loan Documents are fully performed and the representations and warranties set forth in the
Loan Agreement and Loan Documents are and remain true, correct, and complete (except as set forth on Schedule 4 attached
hereto).

 

		11.	Except as set forth in the Loan Agreement or on Schedule 5 attached hereto, Borrower
has not received (a) any notice of default under other obligations relating to the Project or otherwise material to Borrower’s
business, including any notices of violations of any laws, regulations, codes or ordinances; (b) any notice of threatened or pending
legal, judicial or regulatory proceedings, including any dispute between Borrower and any Governmental Authority, materially adversely
affecting Borrower, any other Borrower Party or the Project; (c) Healthcare Investigations; (d) any notice of default or termination
given or made to Operating Tenant by Borrower or received from Operating Tenant or Property Manager; and (e) any notice of default
or termination under any license or permit necessary

 

    	LOAN AGREEMENT – Schedule 6.2 – Page 2
[Summit Pennington]

     

    

for the operation of the Project
in the manner required by the Loan Agreement. If any such notices or Healthcare Investigations have been received or commenced,
they are listed on Schedule 5 and Borrower has provided (or are providing concurrently with this Certificate) Administrative
Agent with copies of such notices and relevant materials referred to herein. With respect to any such notices or Healthcare Investigations,
Borrower is providing the following information: (a) number of records requested, (b) dates of service, (c) dollars at risk, (d)
date records submitted, (e) determinations, findings, results and denials (including number, percentage and dollar amount of claims
denied, (f) additional remedies proposed or imposed, (g) status update, including appeals, and (h) any other pertinent information
related thereto.

 

		12.	The calculations set forth on Schedule 6 have been made to determine Borrower’s compliance
with Section 7.13 of the Loan Agreement.

 

    	LOAN AGREEMENT – Schedule 6.2 – Page 3
[Summit Pennington]

     

    

The forgoing certification and computations are made as of _____________,
20___ and delivered this _____day of _____________, 20___.

 

Sincerely,

 

 

___________________________________

in his capacity as _____________________ of Summit Healthcare
REIT, Inc., the manager of Summit Chandler, LLC

 

 

 

 

    	LOAN AGREEMENT – Schedule 6.2 – Page 4
[Summit Pennington]

     

    

SCHEDULE 1

 

Description of Defaults or Potential

Defaults and Cures Being Undertaken

 

    	LOAN AGREEMENT – Schedule 1 – Page 1
[Summit Pennington]

     

    

SCHEDULE 2

 

Tax Liens or Withholding Obligations

 

    	LOAN AGREEMENT – Schedule 2 – Page 1
[Summit Pennington]

     

    

SCHEDULE 3

 

List of all Deposit Accounts

 

 

    	LOAN AGREEMENT – Schedule 3 – Page 1
[Summit Pennington]

     

    

SCHEDULE 4

 

Exceptions to Covenant Compliance

 

    	LOAN AGREEMENT – Schedule 4 – Page 1
[Summit Pennington]

     

    

SCHEDULE 5

 

Schedule of Notices of Default, Litigation,
etc.

 

    	LOAN AGREEMENT – Schedule 5 – Page 1
[Summit Pennington]

     

    

SCHEDULE 6

 

Financial Covenant Analysis

 

As of: ____________ __, 20__

	A.	ADJUSTED NET OPERATING INCOME (“ANOI”):

 

	(1)	Name
of Borrower:

	(1)	Summit Chandler, LLC
	 	 	 	 	 
	 	(a)	
        Calculation Period:
	 	(a)	Trailing 12 months
	 	 	 	 	 	 
	 	(b)	
        Adjusted Revenue:
	 	(b)	$ ___________
	 	 	 	 	 	 
	 	(c)	
        Less
        Adjusted Expenses:

        (including real estate tax, management fee
equal to 5% of effective gross income regardless of whether paid) & replacement reserve of $350 per licensed bed/unit)
	 	(c)	$ ___________
	 	 	 	 	 	 
	 	(d)	
        Adjusted
        Net Operating Income:

         
	 	(d)	$ ___________
	 	 	 	 	 	 
	B.	DEBT SERVICE OF BORROWER:

 

	(1)	Calculation
Period:

	(1)	Trailing 12 months
	 	 	 	 	 
	(2)	Debt
Service Calculation:

	(2)	 	 
	 	 	 	 	 
	 	(a)	
        Interest
Expense
	 	(a)	$ ___________
	 	 	 	 	 	 
	 	(b)	
        Scheduled
amortization of principal
	 	(b)	$ ___________
	 	 	 	 	 	 
	 	(c)	
        Other
Payments on Permitted Debt
	 	(c)	$ ___________
	 	 	 	 	 	 
	 	(d)	
        Total
Debt Service
	 	(d)	$ ___________
	 	 	 	 	 	 
	(3)	Debt
Service Coverage Ratio (ANOI/Debt Service):

	(3)	                   :1.00
	 	 	 	 	 
	(4)	Required
minimum Debt Service Coverage pursuant to Section 7.13:

	(4)	                   :1.00
	 	 	 	 	 
	(5)	In
Compliance:

	(5)	 ̈ Yes    ̈ No
	 	 	 	 	 
	C.	PROJECT
YIELD:

                     

	(1)	Calculation
Period:

	(2)	Trailing 12 months
	 	 	 	 	 

    	LOAN AGREEMENT – Schedule 6 – Page 1
[Summit Pennington]

     

    

 

	(2)	ANOI:

	(2)	$ ___________
	 	 	 	 	 	 
	(3)	Outstanding principal balance of Loan:

	(3)	$ ___________
	 	 	 	 	 	 
	(4)	Project Yield for Calculation Period (ANOI  ̧ Principal Balance of Loan:

	(4)	$ ___________
	 	 	 	 	 	 
	(5)	Required Project Yield:

	(5)	___________%
	 	 	 	 	 	 
	(6)	In Compliance:

	(6)	 ̈ Yes    ̈ No

 

    	LOAN AGREEMENT – Schedule 6 – Page 2
[Summit Pennington]

     

    

SCHEDULE 11.36

 

POST-CLOSING OBLIGATIONS

 

		1.	Within five (5) Business Days following receipt, provide a copy of the Primary License issued to Property Manager.

 

 

    	LOAN AGREEMENT – Schedule 11.36 – Page 1
[Summit Pennington]

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