Document:

SunOpta Inc.: Exhibit 10.8 - Filed by newsfilecorp.com

    

    Exhibit 10.8
Execution Version

    FOURTH SUPPLEMENTAL INDENTURE

    This SUPPLEMENTAL INDENTURE, dated as of April 23, 2020, is by and among SunOpta Foods Inc., a Delaware corporation (the "Issuer"), SunOpta Inc., a Canadian corporation and the direct parent company of the Issuer (the "Company"), the other guarantors party hereto (together with the Company, the "Guarantors") and U.S. Bank National Association, as Trustee (in such capacity, the "Trustee") and as Notes Collateral Agent (in such capacity, the "Notes Collateral Agent").

    RECITALS

    WHEREAS, the Issuer, the Company and the other guarantors party thereto have heretofore executed and delivered to the Trustee and the Notes Collateral Agent the Indenture, dated as of October 20, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the "Indenture"), providing for the issuance of an unlimited aggregate principal amount of 9.5% Senior Secured Second Lien Notes due 2022 (the "Notes");

    WHEREAS, there is currently outstanding under the Indenture $223,500,000 aggregate principal amount of the Notes;

    WHEREAS, Section 9.02 of the Indenture provides that the Trustee and the Notes Collateral Agent may amend or supplement the Indenture with the consent of the Holders of at least a majority in principal amount of the Notes then outstanding;

    WHEREAS, Holders of $184,576,000 aggregate principal amount of the Notes have consented to the entry into this Supplemental Indenture pursuant to, and as evidenced by, Consents of Holders to Action dated March 24, 2020, March 25, 2020, March 26, 2020, March 31, 2020 and April 1, 2020, copies of which are attached to the Officer's Certificate, dated as of the date hereof and delivered to the Trustee and the Notes Collateral Agent;

    WHEREAS, the Issuer has provided to the Trustee and the Notes Collateral Agent the Officer's Certificate and Opinion of Counsel required by Section 9.06 of the Indenture with respect to the execution of this Supplemental Indenture;

    WHEREAS, the Issuer and the Guarantors desire to execute this Supplemental Indenture embodying the modifications of the Indenture approved as aforesaid and has requested that the Trustee and the Notes Collateral Agent execute this Supplemental Indenture pursuant to Sections 9.02 and 9.06 of the Indenture; and

    NOW, THEREFORE, in compliance with the provisions of the Indenture and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and proportionate benefit of the respective Holders of the Notes as follows:

    (1) Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

    (2) Amendments.  The definition of "PIPE Securities" in Section 1.01 of the Indenture is hereby amended and restated as follows:

    "PIPE Securities" shall mean (i) up to US$85.0 million of Series A exchangeable preferred shares or other Preferred Stock issued or to be issued by the Issuer and exchangeable for Capital Stock, the net proceeds of which PIPE Securities are applied to repay or prepay Senior Interim Loans, Senior Term Loans, Senior Notes or Senior Take-out Notes and (ii) up to US$60.0 million of Series B exchangeable preferred shares or other Preferred Stock issued or to be issued by the Issuer and exchangeable for Capital Stock.

    (3) Effectiveness.  This Supplemental Indenture shall be effective and operative as of the date first set forth above.

    

    (4) Supplemental Indenture Part of Indenture.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

    (5) Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

    (6) Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to this Supplemental Indenture or any document to be signed in connection with this Supplemental Indenture shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.

    (7) Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

    (8) The Trustee and the Notes Collateral Agent.  Each of the Trustee and the Notes Collateral Agent shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer and the Guarantors.

    (9) Successors.  All agreements of the parties in this Supplemental Indenture shall bind their respective successors.

    

    IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

    SUNOPTA FOODS INC.

    By:      /s/ Scott Huckins             
Name:  Scott Huckins
Title:    Vice President

    SUNOPTA INC.

    By:      /s/ Scott Huckins              
Name:  Scott Huckins
Title:    Chief Financial Officer

    SUNOPTA GRAINS AND FOODS INC.

    CITRUSOURCE LLC

    SUNOPTA COMPANIES INC.

    SUNOPTA GLOBAL INGREDIENTS, INC.

    SUNOPTA INVESTMENTS LTD.
SUNRISE HOLDINGS (DELAWARE), INC.

    SUNRISE GROWERS, INC.

    FARM CAPITAL INCORPORATED

    PACIFIC RIDGE FARMS, LLC

    TRADIN ORGANICS USA LLC

    By:      /s/ Scott Huckins                                            
Name:  Scott Huckins
Title:    Vice President

    SUNOPTA FINANCING CANADA ULC

    SUNOPTA FINANCING 2017 LLC

    SUNOPTA HOLDINGS LLC

    By:      /s/ Scott Huckins                                            
Name:  Scott Huckins
Title:    Authorized Signatory

    

    COÖPERATIE SUNOPTA U.A.

    THE ORGANIC CORPORATION B.V.

    CROWN OF HOLLAND B.V.

    TRADIN ORGANIC AGRICULTURE B.V.
TRABOCCA B.V.
TRADIN ORGANIC COCOA B.V.

    By:      /s/ Gerard Versteegh
Name:  Gerard Versteegh
Title:    Authorized Signatory

    By:      /s/ Bob Kouw 
Name:  Bob Kouw
Title:    Authorized Signatory

     

    [Signature Page to Supplemental Indenture]

    

    U.S. BANK NATIONAL ASSOCIATION, as Trustee

    By:      /s/ Kathy L. Mitchell 
Name:  Kathy L. Mitchell
Title:    Vice President

    U.S. BANK NATIONAL ASSOCIATION, as Notes Collateral Agent

    By:      /s/ Kathy L. Mitchell
Name:  Kathy L. Mitchell
Title:    Vice President

     

    
        [Signature Page to Supplemental Indenture]Exhibit 10.1

 

	
        Healthcare 

        Facility Note

        Section 232

         
	
        U.S. Department of Housing 

        and Urban Development

        Office of Residential

        Care Facilities

        
	
        OMB Approval No. 2502-0605

        (exp. 06/30/2022)

 

 

Public reporting burden for this
collection of information is estimated to average 1 hour. This includes the time for collecting, reviewing, and reporting the data.
The information is being collected to obtain the supportive documentation which must be submitted to HUD for approval, and is necessary
to ensure that viable projects are developed and maintained. The Department will use this information to determine if properties
meet HUD requirements with respect to development, operation and/or asset management, as well as ensuring the continued marketability
of the properties. This agency may not collect this information, and you are not required to complete this form, unless it displays
a currently valid OMB control number.

 

Warning: Any person who knowingly
presents a false, fictitious, or fraudulent statement or claim in a matter within the jurisdiction of the U.S. Department of Housing
and Urban Development is subject to criminal penalties, civil liability, and administrative sanctions. 

 

 

HEALTHCARE FACILITY NOTE

(MULTISTATE)

 

	 	 	FHA Project No.: XXX
	 	 	FHA
Project Name: Friendship Haven
	 	 	Healthcare
and Rehabilitation Center

 

 

	US $11,863,400.00	April 1, 2020

 

FOR VALUE RECEIVED,
the undersigned (“Borrower”) jointly and severally (if more than one) promises to pay to the order of ORIX
REAL ESTATE CAPITAL, LLC, a limited liability company organized and existing under the laws of Delaware, the principal sum
of Eleven Million Eight Hundred Sixty-three Thousand Four Hundred and 00/100 Dollars (US $11,863,400.00) (the “Loan”),
with interest on the unpaid principal balance at the Interest Rate.

 

As used herein, “Interest Rate”
means the annual rate of Two and 79/100 per centum (2.79%).

 

1.                 
Defined Terms. As used in this Note, (a) the term “Lender” means the holder of this Note, (b) the
term “Indebtedness” means the principal of, interest on, and all other amounts due at any time under this Note,
the Borrower Security Instrument or any of the other Loan Documents, including prepayment premiums, late charges, default interest,
and advances under Section 13 of the Borrower Security Instrument to protect the security of the Borrower Security Instrument;
(c) the term “Borrower Security Instrument” has the meaning set forth in Section 4 of this Note; and (d) the
term “Program Obligations” means (1) all applicable statutes and any regulations issued by the U.S. Department
of Housing and Urban Development (“HUD”) pursuant thereto that apply to the Project, including all amendments
to such statutes and regulations, as they become effective, except that changes subject to notice and comment rulemaking shall
become effective only upon completion of the rulemaking process, and (2) all current requirements in HUD handbooks and guides,
notices, and mortgagee letters that apply to the Project, and all future updates, changes and amendments thereto, as they become
effective, except that changes subject to notice and comment rulemaking shall become effective only upon completion of the rulemaking
process, and provided that such future updates, changes and amendments shall be applicable to the Project only to the extent that
they interpret, clarify and implement terms in this Note rather than add or delete provisions from such document. Handbooks, guides,
notices, and mortgagee letters are available on HUD’s official website: http://www.hud.gov/offices/adm/hudclips/index.cfm
or a successor location to that site.

 

 

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The definition of any capitalized term
or word used herein can be found in this Note and, if not found in this Note, then found in the Healthcare Regulatory Agreement
 – Borrower between Borrower and HUD (the “Borrower Regulatory Agreement”) and/or the Borrower Security
Instrument.

 

2.         Address for Payment. All payments due under this Note shall be payable in immediately available funds at 10 West
Broad Street, 8th Floor, Columbus, Ohio 43215, or such other place as may be designated by written notice to Borrower from
or on behalf of Lender.

 

3.         Payment of Principal and Interest. Principal and interest shall be paid as follows:

 

(a)        Interest only at the Interest Rate on the principal outstanding for the period beginning on the date of disbursement and
ending on and including the last day of the month in which such disbursement is made shall be payable on May 1, 2020. Thereafter,
consecutive monthly installments of principal and interest, each in the amount of Forty-four Thousand Two Hundred Seventy-seven
and 37/100 Dollars (US $44,277.37), shall be payable on the first day of each month beginning on June 1, 2020,
until the entire unpaid principal balance evidenced by this Note is fully paid. Any remaining principal and interest shall be due
and payable on May 1, 2055 or on any earlier date on which the unpaid principal balance of this Note becomes due and payable,
by acceleration or otherwise (the “Maturity Date”).

 

(b)        Any regularly scheduled monthly installment of principal and interest that is received by Lender before the date it is due
shall be deemed to have been received on the due date solely for the purpose of calculating interest due.

 

4.          Security. The Indebtedness is secured by, among other things, that certain Healthcare Deed of Trust, Assignment of Leases,
Rents and Revenue and Security Agreement (Texas), dated as of the date of this Note (the “Borrower Security Instrument”),
and reference is made to the Borrower Security Instrument for other rights of Lender as to collateral for the Indebtedness.

 

5.          Application of Payments. If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness
that is less than all amounts due and payable at such time, Lender shall apply that payment to amounts then due and payable in
the manner and in the order set forth in Section 7(a)(3) of the Borrower Security Instrument. Neither Lender’s acceptance
of an amount that is less than all amounts then due and payable nor Lender’s application of such payment in the manner authorized
shall constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding
the application of any such amount to the Indebtedness, Borrower’s obligations under this Note shall remain unchanged.

 

 

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6.          Acceleration. If a Monetary Event of Default occurs and is continuing, for a period of thirty (30) days, the entire
unpaid principal balance, any accrued interest and all other amounts payable to Lender under this Note and any of the other Loan
Documents shall at once become due and payable, at the option of Lender, without any prior notice to Borrower. If a Covenant Event
of Default occurs and the Indebtedness is accelerated as set forth in the Borrower Security Instrument, the entire unpaid principal
balance, any accrued interest, and all other amounts payable to Lender under this Note and any of the other Loan Documents shall
at once become due and payable. Lender may exercise this option to accelerate regardless of any prior forbearance. Upon Lender’s
exercise of any right of acceleration under this Note, Borrower shall pay to Lender, in addition to the entire unpaid principal
balance of this Note outstanding at the time of the acceleration, all accrued interest and all other sums due Lender under the
Loan Documents.

 

7.          Late Charge. If any monthly amount payable under this Note or under the Borrower Security Instrument or any of the other
Loan Documents is not received by Lender within fifteen (15) days after the amount is due, Borrower shall pay to Lender, immediately
and without demand by Lender, a late charge equal to two percent (2%) of such monthly amount. Borrower acknowledges
that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the Loan, and
that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late charge payable
pursuant to this Section represents a fair and reasonable estimate, taking into account all circumstances existing on the date
of this Note, of the additional expenses Lender will incur by reason of such late monthly payment.

 

8.          Exculpation; Remedies.

 

(a)         Except for personal liability expressly provided for in this Note or in the Borrower Security Instrument or in the Borrower
Regulatory Agreement, the execution of this Note shall impose no personal liability upon Borrower and those parties listed in the
Section 38 Addendum attached to the Borrower Regulatory Agreement for payment of the Indebtedness evidenced thereby and in the
Event of Default, the holder of this Note shall look solely to the Mortgaged Property in satisfaction of the Indebtedness and will
not seek or obtain any deficiency or personal judgment against Borrower and those parties listed in the Section 38 Addendum attached
to the Borrower Regulatory Agreement, except such judgment or decree as may be necessary to foreclose or bar its interest in the
Mortgaged Property and all other property mortgaged, pledged, conveyed or assigned to secure payment of the Indebtedness; provided,
that nothing in this Section 8 and no action so taken shall operate to impair any obligation of Borrower under the Borrower Regulatory
Agreement.

 

 

 

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(b)         Notwithstanding Section 8(a) above, Borrower shall be liable to Lender for any loss or damage suffered by Lender as a result
of (1) failure of Borrower to apply all insurance proceeds and condemnation proceeds as required by Sections 19 and 20 of the Borrower
Security Instrument; (2) failure of Borrower to comply with Section 15 of the Borrower Security Instrument relating to the delivery
of books and records, statements, schedules and reports; (3) Borrower’s acquisition of any property or operation of any business
not permitted by Section 33 of the Borrower Security Instrument; (4) a transfer or the granting of a lien or encumbrance that
is an Event of Default under Sections 17 and 21 of the Borrower Security Instrument, other than a transfer consisting solely of
the involuntary removal or involuntary withdrawal of a general partner in a limited partnership or a manager in a limited liability
company; or (5) fraud or written material misrepresentation by Borrower or any officer, director, general partner, member,
manager or employee of Borrower in connection with the Loan Application for or creation of the Indebtedness or any request for
any action or consent by Lender. These damages shall be paid only from the available proceeds of an appropriate insurance policy
or from Surplus Cash or other escrow accounts.

 

(c)         Notwithstanding Section 8(a) above, Borrower shall provide complete redress as set forth in Section 45(c) of the Borrower
Security Instrument and shall indemnify and hold harmless the Indemnitees as set forth in Section 48 of the Borrower Security Instrument.

 

9.          Voluntary and Involuntary Prepayments.

 

(a)         This Note contains a prepayment restriction and prepayment premium charge acceptable to HUD as to term, amount, and conditions,
which are set forth in the attached Rider 1. In the event of a default, pursuant to Program Obligations, HUD may override
any lockout or any prepayment premium, or combination thereof, in Rider 1 on the last day of any calendar month during any year
in which the prepayment premium is greater than one percent (1.00%) in order to facilitate a partial or full refinancing of the
Mortgaged Property and avoid a mortgage insurance claim.

 

(b)        Any application by Lender of any collateral or other security to the repayment of any portion of the unpaid principal balance of
this Note prior to the Maturity Date and in the absence of acceleration shall be deemed to be a partial prepayment by Borrower,
requiring the payment to Lender by Borrower of a prepayment premium in the amount provided for in Section 9(a) or in Rider 1, as
applicable.

 

(c)        Notwithstanding the provisions of subsections (a) and (b) above, no prepayment premium shall be payable with respect to (1) any
prepayment made, other than as a result of acceleration, no more than thirty (30) days before the Maturity Date, (2) any
prepayment occurring as a result of the application of any insurance proceeds or condemnation award under the Borrower Security
Instrument, or (3) any reduction in the original principal amount of the Loan, or any prepayment, resulting from any cost certification
or other report required by HUD pursuant to Program Obligations.

 

(d)        Any permitted or required prepayment of less than the unpaid principal balance of this Note shall not extend or postpone the due
date of any subsequent monthly installments or change the amount of such installments, unless Lender agrees otherwise in writing.

 

 

 

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(e)        Borrower acknowledges that the provisions of this Note relating to prepayment restrictions and prepayment premiums are a material
part of the consideration for the Loan, and acknowledges that the terms of this Note are in other respects more favorable to Borrower
as a result of Borrower’s voluntary agreement to such provisions.

 

(f)         If the Indebtedness is paid in full while insured under the provisions of the National Housing Act, as amended, Borrower shall
pay to Lender such adjusted mortgage insurance premium as may be required by Program Obligations.

 

(g)        All payments to reduce the principal balance hereunder, other than regularly scheduled payments of principal, shall be made to
Lender in immediately available funds. Payments received after 3:00 p.m. Eastern Time will be deemed to have been received
on the next Business Day.

 

(h)       Notwithstanding
anything to the contrary in this Note, Lender shall not be obligated to accept any payment of the Indebtedness prior to (i) receiving
any HUD consent thereto required under Program Obligations, and (ii) if applicable, satisfaction of all conditions, if any, imposed
by HUD in granting such consent.

 

10.       Costs and Expenses. Borrower shall pay all expenses and costs, including reasonable fees and out-of-pocket expenses
of attorneys and expert witnesses and costs of investigation and litigation (including appellate litigation), incurred by Lender
as a result of any default under this Note or in connection with efforts to collect any amount due under this Note, or to enforce
the provisions of any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy
proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure
proceeding.

 

11.       Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note, the Borrower Security Instrument,
or any of the other Loan Documents, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise
of any other right or remedy. The acceptance by Lender of payment of all or any part of the Indebtedness after the due date of
such payment, or in an amount that is less than the required payment, shall not be a waiver of Lender’s right to require
prompt payment when due of all other payments on account of the Indebtedness or to exercise any right or remedy for any failure
to make prompt payment. Enforcement by Lender of any security for the Indebtedness shall not constitute an election by Lender of
remedies so as to preclude the exercise of any other right or remedy available to Lender.

 

12.       Waivers. Presentment, demand, notice of dishonor, protest, notice of acceleration, notice of intent to demand or accelerate
payment or maturity, presentment for payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness are waived
by Borrower.

 

 

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13.       Loan Charges. If any applicable law limiting the amount of interest or other charges permitted to be collected from
Borrower in connection with the Loan is interpreted so that any interest or other charge provided for in any of the Loan Documents,
whether considered separately or together with other charges provided for in any of the Loan Documents, violates that law, and
Borrower is entitled to the benefit of that law, then such interest or charge is hereby reduced to the extent necessary to eliminate
such violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts shall be applied by Lender to
reduce the Indebtedness. For the purpose of determining whether any applicable law limiting the amount of interest or other charges
permitted to be collected from Borrower has been violated, all of the Indebtedness that constitutes interest, as well as all other
charges made in connection with the Indebtedness that constitute interest, shall be deemed to be allocated and spread ratably over
the stated term of this Note. Unless otherwise required by applicable law, such allocation and spreading shall be affected in such
a manner that the rate of interest so computed is uniform throughout the stated term of this Note.

 

14.       Commercial Purpose. Borrower represents that the Indebtedness is being incurred by Borrower solely for the purpose of
carrying on a business or commercial enterprise, and not for personal, family or household purposes.

 

15.       Counting of Days. Except where otherwise specifically provided, any reference in this Note to a period of “days”
means calendar days, not Business Days.

 

16.       Governing Law; Consent to Jurisdiction and Venue.

 

(a)        This Note and the Borrower Security Instrument, if it does not itself expressly identify the law that is to apply to it,
shall be governed by the laws of the jurisdiction in which the Land is located (the “Property Jurisdiction”),
except so long as the Loan is insured or held by HUD, federal law will apply to HUD’s rights and remedies where state or
local laws are preempted by federal law.

 

(b)        Borrower agrees that any controversy arising under or in relation to this Note or the Borrower Security Instrument shall
be litigated exclusively in the Property Jurisdiction except as, so long as the Loan is insured or held by HUD and solely as to
rights and remedies of HUD, federal jurisdiction may be appropriate pursuant to any federal requirements. The state courts, and
with respect to HUD’s rights and remedies, federal courts and Governmental Authorities in the Property Jurisdiction, shall
have exclusive jurisdiction over all controversies which shall arise under or in relation to this Note, any security for the Indebtedness,
or the Borrower Security Instrument. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such
litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.

 

17.       Rules
of Construction.  The captions and headings of the Sections of this Note are for convenience only and shall be disregarded
in construing this Note. Any reference in this Note to a “Section” shall, unless otherwise explicitly provided,
be construed as referring, respectively, to a Section of this Note. Use of the singular in this Note includes the plural
and use of the plural includes the singular. As used in this Note, the term “including” means “including,
but not limited to.” 

 

 

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18.       Notices.  All notices, demands and other communications required or permitted to be given by Lender to Borrower or Borrower
to Lender pursuant to this Note shall be given in accordance with Section 31 of the Borrower Security Instrument.

 

19.       Federal Remedies. In addition to any rights and remedies set forth in the Borrower Regulatory Agreement, HUD has rights
and remedies under federal law so long as HUD is the insurer or holder of the Loan, including but not limited to the right to foreclose
pursuant to the Multifamily Mortgage Foreclosure Act of 1981, as amended, 12 U.S.C. § 3701, et seq., as amended, when
HUD is the holder of this Note.

 

20.       Termination of HUD Rights and Remedies. At such time as HUD no longer insures or holds this Note, (a) all rights and
responsibilities of HUD shall conclude, all mortgage insurance and references to mortgage insurance premiums, all references to
HUD, Ginnie Mae and Program Obligations and related terms and provisions shall cease, and all rights and obligations of HUD shall
terminate; (b) all obligations and responsibilities of Borrower to HUD shall likewise terminate; and (c) all obligations and responsibilities
of Lender to HUD shall likewise terminate; provided, however, nothing contained in this Section 20 shall in any fashion discharge
Borrower from any obligations to HUD under the Borrower Regulatory Agreement or Program Obligations or Lender from any obligations
to HUD under Program Obligations, which occurred prior to termination of the Contract of Insurance. The provisions of this Section
20 shall be given effect automatically upon the termination of the Contract of Insurance or the transfer of this Note or the Borrower
Security Instrument by HUD to another party, provided that upon the request of Borrower, Lender or the party to whom this Note
or the Borrower Security Instrument has been transferred, at no cost to HUD, HUD shall execute such documents as may be reasonably
requested to confirm the provisions of this Section 20.

 

21.       WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH (a) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE
ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND
(b) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE.
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT
LEGAL COUNSEL.

 

See Attached Rider
1 TO HEALTHCARE FACILITY NOTE

 

[continued on following page]

 

 

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IN WITNESS WHEREOF, Borrower has
signed and delivered this Note or has caused this Note to be signed and delivered by its duly authorized representative as of the
date first above written.

 

	 	CHP FRIENDSWOOD SNF, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Summit Healthcare REIT, Inc.,
	 	 	a Maryland corporation
	 	Its: 	Manager
	 	 	 
	 	 	 
	 	 	By:                                                              
	 	 	Name: Elizabeth A. Pagliarini
	 	 	Title:   Chief Operating Officer and

                    Chief Financial Officer

 

 

 

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        State of Texas Healthcare Facility Note
        [Multistate]

         

        CHP FRIENDSWOOD SNF, LLC,

        a Delaware limited liability company

        to

        ORIX REAL ESTATE CAPITAL, LLC,

        a Delaware limited liability company

         

        FHA Project No.: XXX

         

        Insured under §232 pursuant to
        223(f) of the National Housing Act, as amended, and regulations published thereunder in effect on December 20, 2019

         

        A total sum of $11,863,400.00 has
        been approved for insurance hereunder by HUD.

         

         

        By: Date: , 2020

         

        Name:________________________________

         

        Title:_________________________________

         

         

 

 

 

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RIDER 1

TO 

HEALTHCARE FACILITY NOTE

 

THIS RIDER 1 TO HEALTHCARE FACILITY NOTE
(this “Rider”) is attached to and made a part of the Healthcare Facility Note (this “Note”)
from CHP FRIENDSWOOD SNF, LLC, a Delaware limited liability company (“Maker”), to ORIX REAL
ESTATE CAPITAL, LLC, a Delaware limited liability company, dated as of April 1, 2020.

 

Maker shall not have the right to prepay
the indebtedness evidenced hereby, in whole or in part, at any time prior to June 1, 2020. On or after June 1, 2020,
Maker shall have the right to prepay the indebtedness evidenced hereby, in whole or in part, subject to the terms hereof. Such
prepayment only may be made on the last business day of any calendar month and upon at least thirty (30) days prior written notice
to the holder of this Note, which notice shall specify the date on which the prepayment is to be made, the principal amount of
such prepayment and the total amount to be paid. In the event of any prepayment of principal at any time on or after June 1,
2020, Maker shall concurrently pay to the holder of this Note (i) interest on the amount prepaid through and including the
last day of the month in which the prepayment is made and (ii) a prepayment premium equal to the following designated percentages
of the amount of the principal of this Note to be so prepaid with respect to any prepayment which occurs during the following indicated
time periods:

 

	Time of Prepayment	 	Prepayment	 
	 	 	   Premium	 
	from June 1, 2020 through May 31, 2021	 	 	10	%
	from June 1, 2021 through May 31, 2022	 	 	9	%
	from June 1, 2022 through May 31, 2023	 	 	8	%
	from June 1, 2023 through May 31, 2024	 	 	7	%
	from June 1, 2024 through May 31, 2025	 	 	6	%
	from June 1, 2025 through May 31, 2026	 	 	5	%
	from June 1, 2026 through May 31, 2027	 	 	4	%
	from June 1, 2027 through May 31, 2028	 	 	3	%
	from June 1, 2028 through May 31, 2029	 	 	2	%
	from June 1, 2029 through May 31, 2030	 	 	1	%
	from June 1, 2030 and thereafter       	 	 	0	%

 

 

 

 

[continued on following page]

    

Rider 1 to Healthcare Facility Note

     

    

 

IN WITNESS WHEREOF,
the undersigned Maker has executed this Rider as of the date first above written.

 

	 	MAKER:
	 	 	 
	 	CHP FRIENDSWOOD SNF, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Summit Healthcare REIT, Inc.,
	 	 	a Maryland corporation
	 	Its: 	Manager
	 	 	 
	 	 	 
	 	 	By: ______________________________
	 	 	Name: Elizabeth A. Pagliarini
	 	 	Title:   Chief Operating Officer and

                    Chief Financial Officer

 

 

    

Rider 1 to Healthcare Facility Note

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