Document:

Filed by Avantafile.com - The Parking REIT, Inc. - Exhibit 10.11

 Execution Version

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of August 25, 2021 and effective as of the Employment Effective Date (as defined below), is entered into by and between THE PARKING REIT, INC., a Maryland corporation (the “REIT”), MVP REIT II OPERATING PARTNERSHIP, LP, a Maryland limited partnership (the “OP”, and together with the REIT, the “Company”), and STEPHANIE HOGUE (“Executive”).

 

On January 8, 2021, Color Up, LLC, a Delaware limited liability company (“Buyer”), the REIT, the OP, Michael V. Shustek (“Shustek”), Vestin Realty Mortgage II, Inc., a Maryland corporation (“VRMI”), and Vestin Realty Mortgage I, Inc., a Maryland corporation (“VRMII” and together with VRMI and Shustek, the “Advisor”), entered into that certain Equity Purchase and Contribution Agreement (as amended, restated or otherwise modified from time to time pursuant to the terms thereof, the “Purchase Agreement”) pursuant to which, upon the terms and subject to the conditions set forth therein, Buyer will acquire from the Advisor and the Company, and the Advisor and the Company will sell to Buyer, certain limited partnership interests in the OP and Shares.

 

WHEREAS, in connection with the consummation of the transactions contemplated by the Purchase Agreement, effective as of the date hereof (the “Employment Effective Date”), the Company desires to employ Executive and Executive desires to accept such employment with the Company, subject to the terms and conditions of this Agreement; and

 

WHEREAS, certain capitalized terms used herein are defined in Section 9 below.

 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive, intending to be legally bound, hereby agree as follows:

 

1.                  Employment Period.  Subject to the provisions for earlier termination hereinafter provided, Executive’s employment hereunder shall be for a term (the “Employment Period”) commencing on the Employment Effective Date and ending on the third (3rd) anniversary of the Employment Effective Date (such date, the “Initial Termination Date,” and such initial term, the “Initial Employment Term”).  If not earlier terminated in accordance with this Agreement, the Employment Period shall automatically be extended for an additional one (1) year period on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date, unless either party elects not to so extend the Employment Period by notifying the other party, in writing or by electronic transmission, of such election (a “Non-Renewal”) not less than ninety (90) days prior to the last day of the Initial Termination Date or applicable subsequent anniversary thereof.

 

2.                  Terms of Employment.

 

(a)                Position and Duties.

 

(i)                 Role and Responsibilities.  During the Employment Period, Executive shall serve as President (“President”) of the Company, and shall perform such employment duties as are usual and customary for such position.  Executive shall report directly to the Company’s Chief Executive Officer and Board of Directors (the “Board”).  At the Company’s request, Executive shall serve the Company and/or its subsidiaries and affiliates in other capacities in addition to the foregoing, consistent with Executive’s position as President.  In the event that Executive, during the Employment Period, serves in any one or more of such additional capacities, Executive’s compensation shall not be increased beyond that specified in Section 2(b) hereof.  In addition, in the event Executive’s service in one or more of such additional capacities is terminated, Executive’s compensation, as specified in Section 2(b) hereof, shall not be diminished or reduced in any manner as a result of such termination provided that Executive otherwise remains employed under the terms of this Agreement. 

(ii)               Exclusivity.  During the Employment Period, and excluding any periods of leave to which Executive may be entitled, Executive agrees to devote substantially all of her business time and attention to the business and affairs of the Company.  Notwithstanding the foregoing, during the Employment Period, it shall not be a violation of this Agreement for Executive to:  (A) serve on boards, committees or similar bodies of charitable or nonprofit organizations, (B) fulfill limited teaching, speaking and writing engagements, and (C) manage her personal investments, in each case, so long as such activities do not individually or in the aggregate materially interfere or conflict with the performance of Executive’s duties and responsibilities under this Agreement.  The Company acknowledges that Executive serves in certain officer and other capacities with respect to Buyer and its affiliates.  The Company agrees that, notwithstanding anything contained herein, Executive’s continued involvement as an officer, manager, equityholder, employee, director or other service provider of such entities during her employment with the Company shall not constitute a breach or other violation of this Agreement so long as such activities do not individually or in the aggregate materially interfere or conflict with the performance of Executive’s duties and responsibilities under this Agreement. 

 

(iii)             Principal Location.  During the Employment Period, Executive’s principal place of employment shall be the Cincinnati, Ohio metropolitan area (the “Principal Location”), except for travel to other locations as may be necessary to fulfill the Executive’s duties and responsibilities hereunder. 

 

(iv)             Policies and Procedures.  Executive agrees to be bound by the Company’s policies and procedures, as they may be amended by the Company from time-to-time, appearing in a Company handbook, business practices manual, ethics manual, or other similar documents made available to Executive. 

 

(b)               Compensation, Benefits, Etc. 

 

(i)                 Base Salary.  During the Term, the Executive shall receive an annual base salary (the “Base Salary”) of not less than $450,000 per year, pro-rated for any partial year of service.  The Base Salary shall be reviewed annually by the Compensation Committee of the Board (the “Compensation Committee”) and may be increased, but not decreased, from time to time by the Compensation Committee in its discretion (and, if increased, the term “Base Salary” as utilized in this Agreement shall refer to the Base Salary as so increased).  The Base Salary shall be paid in accordance with the Company’s customary payroll practices for similarly situated executives, as in effect from time to time, but no less frequently than monthly.  Within the thirty (30) day period prior to each calendar year, Executive shall have the right to elect to receive any and all net Base Salary for the calendar year  (after any deductions made pursuant to any employee benefit plans maintained, adopted, sponsored or contributed to by the Company) in the form of fully vested restricted stock in the REIT, the number of shares of which shall be equal to the quotient of (x) the applicable Base Salary amount on the date of payment, minus applicable tax withholdings, divided by (y) the Fair Market Value on the applicable grant date. 

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(ii)               Annual Bonus.  Executive shall be eligible to receive a target annual bonus award of not more than 33.33% of Base Salary (“Target Annual Bonus”) and shall be eligible to participate in any annual bonus or other annual incentive plan or program adopted or maintained by the Company from time to time, on a basis commensurate with Executive’s position as the President of the Company, in each case, as determined by the Compensation Committee.  The Compensation Committee may authorize the payment of an annual bonus amount above or below the Target Annual Bonus, based on such factors as the Compensation Committee deems appropriate, in its sole and absolute discretion.  All payments shall be made within two and a half months after the end of the applicable calendar year in accordance with the Company’s customary payroll practices.  Within the thirty (30) day period prior to each calendar year, Executive shall have the right to elect to receive any and all annual bonus payments in the form of fully vested restricted stock in the REIT, the number of shares of which shall be equal to the quotient of (x) the applicable annual bonus amount on the date of payment, minus applicable tax withholdings, divided by (y) the Fair Market Value on the applicable grant date.

 

(iii)             Annual Equity Compensation.  For each calendar year ending during the Employment Period, commencing with calendar year 2021, Executive shall be eligible to receive an annual award of restricted stock in the REIT (each, an “Award”) with a target value equal to not more than the number of Shares obtained by dividing (x) $600,000 by (y) the Fair Market Value on the applicable grant date.  Each Award, if any, shall be granted no later than thirty (30) days following the end of the applicable calendar year.  The actual amount of each Award, if any, shall be determined by the Compensation Committee and shall be based on such performance objectives as are determined by the Compensation Committee in consultation with Executive.  Subject to Executive’s continued employment with the Company, each Award shall vest in equal annual installments over a period of three (3) years on each of the first, second and third anniversaries of the applicable grant date.  In addition, in the event of a Change in Control of the Company or a termination of Executive’s employment with the Company by the Company without Cause, by Executive for Good Reason or due to Non-Renewal by the Company or Executive’s death or Disability, each Award, to the extent then outstanding and unvested, shall thereupon vest in full.  Each Award shall provide that Executive may elect to satisfy any applicable tax withholding obligations with respect to the Award by having the Company withhold Shares otherwise issuable or vesting under the Award, based on the maximum statutory withholding rates applicable thereto.  The REIT shall take all action necessary to cause the Shares subject to each Award to be registered on a Form S-8, and, consistent with the foregoing, the terms and conditions of each Award shall be set forth in an award agreement which will be provided to Executive for acceptance and as evidence of such Award as soon as administratively possible following the applicable grant date (each, an “Award Agreement”).

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(iv)             Equity Compensation on the Effective Date.  On the Effective Date, the Company will grant Executive a number of unvested shares of restricted stock in the REIT obtained by dividing (x) $1,200,000 by (y) the Fair Market Value of a Share on the grant date.  Such shares will fully vest only upon the occurrence of a Liquidity Event within three (3) years of the Effective Date (the “Liquidity Event Restricted Stock”), provided that the Executive remains continuously employed with the Company on the date of the Liquidity Event, unless the Executive is terminated by the Company without Cause or resigns for Good Reason within one hundred and eighty (180) days of a Liquidity Event, in which case, the Liquidity Event Restricted Stock shall vest in full upon such Liquidity Event .  Except as set forth in this Section 2(b)(iv), the equity interests issuable pursuant to this Section 2(b)(iv) are not eligible to vest under any other scenario, including, for the avoidance of doubt, a Qualifying Termination prior to a Liquidity Event.

 

(v)               Benefits.  During the Employment Period, Executive (and Executive’s spouse and/or eligible dependents to the extent provided in the applicable plans, policies and programs) shall be eligible to participate in the health, welfare, retirement, savings and other employee benefit plans, policies and programs maintained by the Company for the benefit of its senior executive officers as may be in effect from time to time.  Nothing contained in this Section 2(b)(iv) shall create or be deemed to create any obligation on the part of the Company to adopt or maintain any plan, policy or program at any time or to create any limitation on the Company’s right to modify or terminate any such plan, policy or program. 

 

(vi)             Expenses.  During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred by Executive in the performance of Executive’s services hereunder in accordance with the policies, practices and procedures of the Company as in effect from time to time for senior executive officers of the Company. 

 

(vii)           Fringe Benefits.  During the Term, Executive shall be eligible to receive such fringe benefits and perquisites as are provided by the Company to its senior executive officers from time to time, and shall receive such additional fringe benefits and perquisites as the Company may, in its discretion, from time-to- time provide. 

 

(viii)          Vacation.  During the Employment Period, Executive shall be entitled to vacation, sick leave, holidays and other paid time-off benefits provided by the Company from time to time which are applicable to the Company’s senior executive officers, provided that, for each year of the Employment Period, Executive shall be entitled to no less than four (4) weeks paid vacation and six (6) paid sick days. 

 

(ix)             Non-Executive Equity Awards.  The parties acknowledge that it is expected that the Compensation Committee will, on an annual basis, approve a pool of equity-based awards to be granted to employees of the Company.  During the Employment Period, Executive shall have the right to allocate awards within such pool to employees of the Company who are not executive officers of the Company.  Such allocation shall be made by Executive in her discretion after consultation with the Compensation Committee. 

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3.                  Termination of Employment. 

 

(a)                Death or Disability.  The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period.  Either the Company or the Executive may terminate the Executive’s employment hereunder in the event of the Executive’s Disability during the Employment Period. 

 

(b)               Termination by the Company.  The Company may terminate the Executive’s employment hereunder during the Employment Period for Cause or without Cause, or by reason of a Non-Renewal of the Employment Period. 

 

(c)                 Termination by the Executive.  The Executive’s employment hereunder may be terminated by the Executive for any reason, including with Good Reason or by the Executive without Good Reason, or by reason of a Non-Renewal of the Employment Period. 

 

(d)                Notice of Termination.  Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by a Notice of Termination to the other parties hereto given in accordance with Section 10(b) hereof.  The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder or preclude Executive or the Company, respectively, from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder. 

 

(e)                Termination of Offices and Directorships; Return of Property.  Upon termination of Executive’s employment hereunder for any reason, unless otherwise specified in a written agreement between Executive and the Company, Executive shall be deemed to have resigned from all offices, directorships, and other employment positions, if any, then held with the Company and any direct or indirect subsidiary of the Company, and shall take all actions reasonably requested by the Company to effectuate the foregoing.  In addition, upon the termination of Executive’s employment for any reason, Executive agrees to return to the Company all documents of the Company and its affiliates (and all copies thereof) and all other Company or Company affiliate property that Executive has in her possession, custody or control.  Such property includes, without limitation: (i) any materials of any kind that Executive knows contain or embody any proprietary or confidential information of the Company or an affiliate of the Company (and all reproductions thereof), (ii) computers (including, but not limited to, laptop computers, desktop computers and similar devices) and other portable electronic devices (including, but not limited to, tablet computers), cellular phones/smartphones, credit cards, phone cards, entry cards, identification badges and keys, and (iii) any correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the customers, business plans, marketing strategies, products and/or processes of the Company or any of its affiliates and any information received from the Company or any of its affiliates regarding third parties. 

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4.                  Obligations of the Company upon Termination. 

 

(a)                Accrued Obligations.  In the event that Executive’s employment under this Agreement terminates during the Employment Period for any reason, the Company will pay or provide to Executive: (i) any earned but unpaid Base Salary, (ii) reimbursement of any business expenses incurred by Executive prior to the Date of Termination  that are reimbursable in accordance with Section 2(b)(vi) hereof and (iii) any vested amounts due to Executive under any plan, program or policy of the Company (together, the “Accrued Obligations”).  The Accrued Obligations described in clauses (i) and (ii) of the preceding sentence shall be paid within thirty (30) days after the Date of Termination (or such earlier date as may be required by applicable law) and the Accrued Obligations described in clause (iii) of the preceding sentence shall be paid in accordance with the terms of the governing plan or program. 

 

(b)               Qualifying Termination.  Subject to Sections 4(c), 4(d) and 10(c), if Executive’s employment with the Company is terminated during the Employment Period due to a Qualifying Termination, then in addition to the Accrued Obligations:

 

(i)                 Severance.  The Company shall pay to Executive a cash severance payment in an amount equal to the Severance Multiple times the sum of (x) Executive’s annual Base Salary as in effect on the Date of Termination, disregarding any reduction constituting Good Reason plus (y) the Target Bonus Amount for the Company’s most recently completed fiscal year prior to the Date of Termination (the “Severance”) and paid in equal amounts over the one (1) year period following the Date of Termination in accordance with the Company’s regular scheduled payroll practices.  The first Severance payment shall be payable not later than the sixtieth (60th) day following the Date of Termination.

 

(ii)               Equity Awards.  All then-outstanding Company equity-based awards held by Executive, to the extent subject to time-based vesting, shall vest in full as of the Date of Termination. 

 

(iii)             COBRA.  Subject to Executive’s valid election to continue healthcare coverage under Section 4980B of the Code, or if the Company is not subject to Section 4980B of the Code, then under any similar applicable state law, for the eighteen (18) month period following the Date of Termination, the Company shall provide, at the Company’s sole expense (whether through direct payment to the plan, reimbursement of COBRA premiums or otherwise in the Company’s discretion), Executive and Executive’s eligible dependents with continuation coverage under its group health plans at the same levels as would have applied if Executive’s employment had not been terminated, based on Executive’s elections in effect on the Date of Termination; provided, however, that (A) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5), (B) the Company is otherwise unable to continue to cover Executive under its group health plans without incurring penalties (including without limitation, pursuant to Section 2716 of the Public Health Service Act or the Patient Protection and Affordable Care Act), or (C) the Company is neither subject to Section 4980B of the Code nor is required to provide continuation coverage under applicable state law, then, in any case, an amount equal to each remaining Company premium payment shall thereafter be paid to Executive in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof).

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(c)                Release.  Notwithstanding the foregoing, except in the case of a termination of Executive’s employment due to death or Disability, it shall be a condition to Executive’s right to receive the amounts provided for in Section 4(b) hereof that Executive execute and deliver to the Company an effective release of claims in substantially the form attached hereto as Exhibit A (the “Release”) within twenty-one (21) days (or, to the extent required by law, forty-five (45) days) following the Date of Termination and that Executive not revoke such Release during any applicable revocation period. 

 

(d)               Six-Month Delay.  Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation, any severance payments or benefits payable under Section 4 hereof, shall be paid to Executive during the six-month period following Executive’s Separation from Service if the Company determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day of the seventh (7th) month following the date of Separation from Service (or such earlier date upon which such amount can be paid under Section 409A without resulting in a prohibited distribution, including as a result of Executive’s death), the Company shall pay Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such period. 

 

(e)                Exclusive Benefits.  Except as expressly provided in this Section 4 and subject to Section 5 hereof, Executive shall not be entitled to any additional payments or benefits upon or in connection with Executive’s termination of employment hereunder. 

 

5.                  Non-Exclusivity of Rights.  Amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to  the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. 

 

6.                  Excess Parachute Payments; Limitation on Payments. 

 

(a)                Best Pay Cap.  Notwithstanding any other provision of this Agreement, in the event that any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a termination of the Executive’s employment hereunder, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under Section 4 hereof, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, the cash severance payments under this Agreement shall first be reduced, and the noncash severance payments hereunder shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). 

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(b)               Certain Exclusions.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the “Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 

 

7.                  Restrictive Covenants. 

 

(a)                Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company and its subsidiaries and affiliates, which shall have been obtained by Executive in connection with Executive’s employment by the Company and which shall not be or become public knowledge (other than by acts by Executive or representatives of Executive in violation of this Agreement).  After termination of Executive’s employment with the Company, Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data, to anyone other than the Company and those designated by it; provided, however, that if Executive receives actual notice that Executive is or may be required by law or legal process to communicate or divulge any such information, knowledge or data, Executive shall promptly so notify the Company.  Notwithstanding the foregoing, nothing in this Agreement is intended to or shall prevent Executive from communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to, any federal, state or local government regulator (including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice) for the purpose of reporting or investigating a suspected violation of law, or from providing such information to Executive’s attorney or in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

(b)               While employed by the Company and, for a period of two (2) years after the Date of Termination, Executive shall not directly or indirectly solicit, induce, or encourage any employee or consultant of the Company or its subsidiaries or affiliates to terminate their employment or other relationship with the Company or its subsidiaries or affiliates or to cease to render services to the Company or its subsidiaries or affiliates and Executive shall not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.  During her employment with the Company and thereafter, Executive shall not use any trade secret, proprietary or confidential information of the Company or its subsidiaries  or affiliates to solicit, induce, or encourage any customer, client, vendor, or other party doing business with the Company or its subsidiaries or affiliates to terminate its relationship therewith or transfer its business from the Company or its subsidiaries or affiliates and Executive shall not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.  Further, while employed by the Company and, for a period of two (2) years after the Date of Termination, Executive shall not solicit, induce, or encourage any customer, client, vendor, or other party doing business with the Company or its subsidiaries or affiliates to terminate its relationship therewith or transfer its business from the Company or its subsidiaries or affiliates and Executive shall not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. 

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(c)                   Executive agrees, while employed by the Company and following the Date of Termination, to refrain from disparaging the Company, its affiliates, their respective services, technologies or practices, or any of their directors, officers, agents, representatives or stockholders, either orally or in writing. The Company agrees, while Executive is employed by the Company and following the Date of Termination, that the Company’s directors will refrain from disparaging Executive. Nothing in this paragraph shall preclude Executive, the Company or the Company’s directors, officers, employees, agents, representatives or stockholders from making truthful statements that are reasonably necessary to comply with applicable law, regulation or legal process, or to otherwise assert its rights under this Agreement or otherwise against each other.

 

(d)                  Executive shall not, for a period of two (2) years after the Date of Termination, directly or indirectly engage in, have any equity interest in, enter into a discussion of which the primary purpose and intention of Executive is to interview for a potential executive or managerial employment or consulting relationship with, or manage or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that is primarily engaged in the business of acquiring, investing in, owning, operating or leasing parking lots or parking garages in any central business district in the United States (the “Restricted Business”). Notwithstanding anything to the contrary, nothing shall prohibit Executive from (i) retaining any ownership interest in the Company; (ii) being a passive owner of not more than 5% of the outstanding equity interest in any entity that competes with the Company and is publicly traded, so long as Executive has no active participation in the business of such entity; (iii) continuing to own assets, equity interests, indebtedness or other securities in companies engaged in the Restricted Business owned prior to the date of this Agreement; (iv) owning, operating or leasing parking lots, parking garages or other parking facilities, directly or indirectly, as a result of loss mitigation, foreclosure or similar activities in connection with or incidental to investments in mortgage loans, mortgage servicing rights, mortgage-backed securities or other mortgage-related assets; or (v) rendering services with respect to that property located at 25200 E. 68th Ave., Aurora, CO 80019 (the “Denver Property”).

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(e)                In recognition of the fact that irreparable injury will result to the Company in the event of a breach by Executive of her obligations under Sections 7(a), 7(b) and 7(c) hereof, that monetary damages for such breach would not be readily calculable, and that the Company would not have an adequate remedy at law therefor, the Executive acknowledges, consents and agrees that in the event of such breach, or the threat thereof, the Company shall be entitled, in addition to any other legal remedies and damages available, to specific performance thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by Executive. 

 

8.                  Successors. 

 

(a)                This Agreement is personal to Executive and, without the prior written consent of the Company, shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. 

 

(b)               Without the prior written consent of Executive, this Agreement shall not be assignable by the Company; provided, however, that the Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

 

9.                  Certain Definitions. 

 

(a)                “Cause” means the occurrence of any one or more of the following events unless, to the extent capable of correction, Executive fully corrects the circumstances constituting Cause within thirty (30) days after receipt of the Notice of Termination:

 

(i)                 the Executive’s willful failure to substantially perform her duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness or any such actual or anticipated failure after her issuance of a Notice of Termination for Good Reason), after a written demand for performance is delivered to the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not performed her duties;

 

(ii)               the Executive’s commission of an act of fraud or material dishonesty resulting in reputational, economic or financial injury to the Company;

 

(iii)             the Executive’s conviction of, or no contest plea to, a felony (other than a traffic violation); or

 

(iv)             the Executive’s material breach of any of her material obligations under this Agreement. 

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(b)               “Change in Control” means a “change in control” as defined in the MVP REIT II, Inc. 2015 Incentive Plan (as may be amended from time to time), or any successor plan thereto.

 

(c)                “Code” means the Internal Revenue Code of 1986, as amended and the regulations thereunder.

 

(d)               “Common Stock” means the common stock of the REIT, par value $0.0001 per share.

 

(e)                “Date of Termination” means the date on which Executive’s employment hereunder with the Company terminates.

 

(f)                “Disability” means a disability that qualifies or, had Executive been a participant, would qualify, Executive to receive long-term disability payments under the Company’s group long-term disability insurance plan or program, as it may be amended from time to time.

 

(g)               “Fair Market Value” means, as of any given date, the value of a Share, determined as follows:

 

(i)                 If the Common Stock is (x) listed on any established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market; (y) listed on any national market system or (z) listed, quoted or traded on any automated quotation system, its Fair Market Value shall be the closing sales price for a Share as quoted on such exchange or system for such date or, if there is no closing sales price for a Share on the date in question, the closing sales price for a Share on the last preceding date for which such quotation exists; or

 

(ii)               If the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, its Fair Market Value shall be equal to the estimated net asset value per share of Common Stock as most recently approved by the Board prior to such date.

 

(h)               “Good Reason” means the occurrence of any one or more of the following events without Executive’s prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) as provided below:

 

(i)                 a material diminution in Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 2(a) hereof, excluding for this purpose any isolated, insubstantial or inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of notice thereof given by Executive;

 

(ii)               the Company’s material reduction of Executive’s Base Salary, as the same may be increased from time to time;

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(iii)             a material change in the geographic location of the Principal Location which shall, in any event, include only a relocation of the Principal Location by more than thirty (30) miles from its existing location;

 

(iv)             the Company’s material breach of this Agreement.

 

Notwithstanding the foregoing, Executive will not be deemed to have resigned for Good Reason unless (1) Executive provides the Company with written notice setting forth in reasonable detail the facts and circumstances claimed by Executive to constitute Good Reason within ninety (90) days after the date of the occurrence of any event that Executive knows or should reasonably have known to constitute Good Reason, (2) the Company fails to cure such acts or omissions within thirty (30) days following its receipt of such notice, and (3) the effective date of Executive’s termination for Good Reason occurs no later than sixty (60) days after the expiration of the Company’s cure period.

 

(i)                 “Liquidity Event” means an initial public offering and/or listing on a Trading Market of the Common Stock.

 

(j)                 “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice).

 

(k)               “Qualifying Termination” means a termination of Executive’s employment (i) by the Company without Cause, (ii) by reason of a Non-Renewal of the Employment Period by the Company, provided that the Executive is willing and able, at the time of such Non-Renewal, to continue performing services on the terms and conditions set forth herein, (iii) by the Executive for Good Reason, or (iv) by reason of the Executive’s death or Disability.

 

(l)                 “Section 409A” means Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.

 

(m)             “Separation from Service” means a “separation from service” within the meaning of Section 409A. 

 

(n)               “Severance Multiple” means (i) in the event of a Qualifying Termination other than a Change in Control Termination and other than a termination due to Executive’s death or Disability, two (2), (ii) in the event of a Qualifying Termination that occurs in connection with or within twelve (12) months following a Change in Control (a “Change in Control Termination”), three (3), or (iii) in the event of a termination due to Executive’s death or Disability, one (1).

 

(o)               “Share” means a share of Common Stock.

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(p)               “Trading Market” means any of the following markets or exchanges on which the Common Stock may be listed or quoted for trading on the date in question: the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

 

10.              Miscellaneous.

 

(a)                Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without reference to principles of conflict of laws.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 

 

(b)               Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

 

	 	
        If to the Executive:

         

        At the Executive’s most recent address on the records of the Company.

         

        with a copy to:

         

        Keating Muething & Klekamp PLL 

        1 East 4th Street, Suite 1400 

        Cincinnati, Ohio 45202 

        Attn: F. Mark Reuter 

        E-mail: freuter@kmklaw.com

         

        If to the Company:

         

        The Parking REIT, Inc. 

        9130 W. Post Road, Suite 200 

        Las Vegas, NV 89148 

        Attn: Chairman of the Board of Directors

         

        with a copy to:

         

        Venable LLP 

        750 E. Pratt St., Suite 900 

        Baltimore, Maryland 21202 

        Attn: Sharon Kroupa 

        Email: skroupa@venable.com

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee. 

 

(c)                Section 409A of the Code. 

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(i)                 To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A.  Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with the Executive to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the parties determine are necessary or appropriate to avoid the imposition of taxes under Section 409A, including without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A. 

 

(ii)               Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.  To the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A.  Any payments subject to Section 409A that are subject to execution of a waiver and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment) occurs shall commence payment only in the calendar year in which the consideration period or, if applicable, release revocation period ends, as necessary to comply with Section 409A.  To the extent necessary to comply with Section 409A, all payments of nonqualified deferred compensation subject to Section 409A to be made upon a termination of employment under this Agreement may only be made upon the Executive’s Separation from Service. 

 

(iii)             To the extent that any payments or reimbursements provided to the Executive under this Agreement are deemed to constitute compensation to the Executive to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31 of the year following the year in which the expense was incurred.  The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and the Executive’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit. 

 

(d)               Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

 

(e)                Withholding.  The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 

 

(f)                No Waiver.  Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 3(c) hereof, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

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(g)               Effectiveness; Entire Agreement.  This Agreement shall become effective as of the Employment Effective Date.  As of the Employment Effective Date, this Agreement (together with the Award Agreements) constitutes the final, complete and exclusive agreement between the Executive and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, by any member of the Company and its subsidiaries or affiliates, or representative thereof.  

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(h)               Amendment; Survival.  No amendment or other modification of this Agreement shall be effective unless made in writing and signed by the parties hereto.  The respective rights and obligations of the parties under this Agreement shall survive Executive’s termination of employment and the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations. 

 

(i)                 Counterparts.  This Agreement and any agreement referenced herein may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument

 

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

 

	 	
        THE PARKING REIT, INC.

         

        By:                                                                 

        Name:  J. Kevin Bland

         Title:  Chief Financial Officer

         

         

        MVP REIT II OPERATING

        PARTNERSHIP, LP

         

        By: The Parking REIT, Inc., its general

        partner

         

        By:                                                                 

        Name:  J. Kevin Bland

        Title:  Chief Financial Officer

         

         

        “EXECUTIVE”

         

                                                                               

        Stephanie Hogue

[Signature Page to Employment Agreement – Hogue]

-16-

Exhibit A 

 

GENERAL RELEASE

 

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of THE PARKING REIT, INC., a Maryland corporation (the “REIT”), MVP REIT II OPERATING PARTNERSHIP, LP, a Maryland limited partnership (the “OP”, and together with the REIT, the “Company”), and the Company’s partners, subsidiaries, associates, affiliates, predecessors, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them (each in their capacity as such), of and from any and all manner of action or actions, cause or causes of action, in  law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof.  The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any federal, state  or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act.  Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or Claims of the undersigned (i) to payments or benefits under Section 4(b) of that certain Employment Agreement, dated as of July 19, 2021, by and between the Company and the undersigned (the “Employment Agreement”), (ii) to payments or benefits under any equity award agreement between the undersigned and the Company, (iii) with respect to Section 2(b)(v) of the Employment Agreement, (iv) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under any applicable plan, policy, practice, program, contract or agreement with the Company, (v) to any Claims, including claims for indemnification and/or advancement of expenses arising under any indemnification agreement between the undersigned and the Company or under the bylaws, certificate of incorporation or other similar governing document of the Company, (vi) to any Claims under the Contribution Agreement (as defined in the Employment Agreement) or under the Services Agreement (as defined in the Contribution Agreement), (vii) to any Claims which cannot be waived by an employee under applicable law, or (viii) with respect to the undersigned’s right to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator. 

 

THE UNDERSIGNED ACKNOWLEDGES THAT THE EXECUTIVE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

	 	
        “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST  HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
	 

 

A-1

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THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(A)             THE EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(B)              THE EXECUTIVE HAS [TWENTY-ONE (21)] DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

 

(C)              THE EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

 

The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the Executive may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands,  damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity. 

 

Notwithstanding anything herein, the undersigned acknowledges and agrees that, pursuant to 18 USC Section 1833(b), the undersigned will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. 

 

The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned. 

 

IN WITNESS WHEREOF, the undersigned has executed this Release this ____ day of__________. 

 

Stephanie Hogue

A-1Document

Execution Version

AMENDMENT NO. 2 TO
RECEIVABLES FINANCING AGREEMENT

This AMENDMENT NO. 2, dated as of August 31, 2021 (this “Amendment”), is made with respect to that certain Receivables Financing Agreement, dated as of September 17, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), among HERC RECEIVABLES U.S. LLC, a Delaware limited liability company (the “US Borrower”) and THE ADDITIONAL CANADIAN BORROWER TO THE EXTENT ADDED AS A PARTY THERETO, as co-borrowers (each, a “Borrower” and, collectively, the “Borrowers”), HERC RENTALS INC., a Delaware corporation (“Herc”), individually and as initial servicer (in such capacity, together with its successors and permitted assigns in such capacity, the “Servicer”) and as performance guarantor (in such capacity, together with its successors and permitted assigns in such capacity, the “Performance Guarantor”), the LENDERS and MANAGING AGENTS (in each case, as defined therein) from time to time party thereto, and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (“CACIB”), as Administrative Agent (in such capacity, together with its successors and assigns in such capacity, the “Administrative Agent”). Capitalized terms used and not otherwise defined in this Amendment shall have the meanings given to such terms in the Agreement.

PRELIMINARY STATEMENT:

Each of the parties to the Agreement desires to amend the Agreement on the conditions set forth herein.

NOW, THEREFORE, the signatories hereto agree as follows: 

SECTION 1.    Amendments to the Agreement.

(a)    The definition of “Amendment No. 2 Closing Date” is hereby added to Exhibit I of the 
Agreement as follows: 

“Amendment No. 2 Closing Date” means August 31, 2021. 

(b)    The definition of “Commitment” set forth in Exhibit I of the Agreement is hereby 
amended and restated to read as follows:

“Commitment”  means, with respect to any Committed Lender, the amount set forth as such Committed Lender’s “Commitment” on its respective signature page to this Agreement or the Assumption Agreement, Transfer Supplement or other agreement pursuant to which such Committed Lender became a party hereto, as such amount may be modified in connection with any subsequent assignment pursuant to Section 12.3(b) or in connection with a change in the Aggregate Commitment pursuant to Section 2.1(c) or Section 2.1(d), not to exceed the Program Limit.   On the Amendment No. 2 Closing Date, the aggregate Commitments shall be $200,000,000.

(c)    The definition of “Dilution Horizon Ratio” set forth in Exhibit I of the Agreement is 
hereby amended and restated to read as follows:

“Dilution Horizon Ratio” means, at any time, the ratio (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward) computed as of the last 
    
38982592.v4

day of the most recently ended Settlement Period by dividing (a) the sum of (i) the aggregate billed sales made by the Originators during the most recently ended Settlement Period, plus (ii) fifty percent (50%) of the aggregate billed sales made by the Originators during the Settlement period immediately preceding the most recently ended Settlement Period, by (b) the aggregate Outstanding Balance of all Pool Receivables as of the last day of such Settlement Period. Within thirty (30) days of the completion and the receipt by the Administrative Agent of the results of any annual audit or field exam of the Receivables and the servicing and origination practices of the Servicer and the Originators, the numerator of the Dilution Horizon Ratio may be adjusted by the Administrative Agent upon not less than five (5) Business Days’ notice to the Borrowers to reflect such number of Fiscal Months as the Administrative Agent reasonably believes best reflects the business practices of the Servicer and the Originators and the actual amount of dilution and Deemed Collections that occur with respect to Pool Receivables based on the weighted average dilution lag calculation completed as part of such audit or field exam.

(d)     A new definition of “Erroneous Payment” is hereby added to Exhibit I of the 
Agreement as follows:

“Erroneous Payment” has the meaning set forth in Section 11.10(a).

(e)    A new definition of “Erroneous Payment Deficiency Assignment” is hereby added to 
Exhibit I of the Agreement as follows: 

“Erroneous Payment Deficiency Assignment” has the meaning set forth in Section 11.10(d).

(f)    A new definition of “Erroneous Payment Return Deficiency” is hereby added to 
Exhibit I of the Agreement as follows:

“Erroneous Payment Return Deficiency” has the meaning set forth in Section 11.10(d).

(g)    A new definition of “Erroneous Payment Subrogation Rights” is hereby added to 
Exhibit I of the Agreement as follows:

“Erroneous Payment Subrogation Rights” has the meaning set forth in Section 11.10(f).

(h)    The definition of “Facility Maturity Date” set forth in Exhibit I of the Agreement is 
hereby amended and restated to read as follows: 

“Facility Maturity Date” means the earliest to occur of: (a) August 31, 2022; (b) any date designated as the Facility Maturity Date by the Administrative Agent upon the occurrence of an Event of Default pursuant to Section 9.1; (c) the date the Aggregate Commitment is reduced to zero pursuant to Section 2.1(c); and (d) the date, if any, specified by the related Managing Agent upon not less than thirty (30) days’ prior written notice, which may be delivered to the Borrower if a CP Disruption Event shall have occurred with respect to a Conduit Lender and shall have continued for a period of 270 consecutive days, so long as such Managing Agent shall have notified the Borrower of the occurrence of such CP Disruption Event and shall have provided the Borrower confirmation that such CP Disruption Event is continuing promptly following reasonable periodic requests therefor.

    2
38982592.v4

(i)    A new definition of “MUFG Lender Group” is hereby added to Exhibit I of the 
Agreement as follows:

“MUFG Lender Group” means the Lender Group of which MUFG Bank Ltd. is the Managing Agent.

(j)    A new definition of “Payment Recipient” is hereby added to Exhibit I of the 
Agreement as follows:

“Payment Recipient” has the meaning set forth in Section 11.10(a). 

(k)    A new definition of “Uncommitted Allocation” is hereby added to Exhibit I of the 
Agreement as follows:

“Uncommitted Allocation”  means, with respect to any Committed Lender, the amount set forth as such Committed Lender’s “Uncommitted Allocation” on its respective signature page to this Agreement or the Assumption Agreement, Transfer Supplement or other agreement pursuant to which such Committed Lender became a party hereto, which Borrower may request to convert to an increase in a Committed Lender’s Commitment in accordance with Section 2.1(d). Such Uncommitted Allocation shall be reduced on a dollar for dollar basis in connection with any such conversion.  On the Amendment No. 2 Closing Date, the aggregate Uncommitted Allocation shall be $50,000,000.

(l)    Section 2.1(d) of the Agreement is hereby amended and restated to read as follows:

(d)    The Borrowers may, upon at least ten (10) Business Days prior written notice to the Administrative Agent, request an increase in the Aggregate Commitment.  The Managing Agents may, in their sole discretion, approve any such ratable increase, subject to appropriate credit and due diligence reviews; provided, however, that (i) after giving effect to any such increase, the Aggregate Commitment shall not, at any time, exceed the Program Limit, (ii) the Borrowers, the Servicer and the Performance Guarantor are then in compliance with all covenants in this Agreement and the other Transaction Documents and no Event of Default or Unmatured Event of Default shall have occurred and be continuing, (iii) the Borrowers shall not previously have reduced the Aggregate Commitment pursuant to Section 2.1(c), and (iv) the Administrative Agent shall have received, in substantially the form set forth in Annex G hereto, (x) the written acknowledgement of, and agreement by, the Performance Guarantor to such increase and (y) Officer’s Certificates of the Borrowers, the Servicer and the Performance Guarantor (1) in the case of the Borrowers, certifying and attaching resolutions of each Borrower approving or consenting to such increase, (2) certifying as to the matters reflected in clauses (i)-(iii) above, and (3) certifying that, before and after giving effect to such extension, the representations and warranties of the Borrowers, the Servicer and the Performance Guarantor contained in Exhibit III hereof and in the other Transaction Documents are true and correct (subject to any materiality qualifiers contained in such representations and warranties) on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date.  In connection with any such increase in the Aggregate Commitment, the Administrative Agent and/or the Lenders shall be entitled to charge an additional upfront fee on any increased Aggregate Commitment pursuant to this Section 2.1(d), as set forth in the Amended and Restated Fee Agreement dated as of the Amendment No. 2 Closing Date, which fee shall be 
    3
38982592.v4

fully earned, due and payable in full (without reduction, set-off or refund in the event of any early termination of this Agreement) by the Borrowers on the effective date of such increase.

(m)     Section 2.2(a) of the Agreement is hereby amended and restated to read as follows:

(a)    Each Advance hereunder shall be made on the requested date of an Advance upon the Borrowers’ irrevocable written notice in the form of Annex B (the “Borrowing Request”) delivered to the Administrative Agent and each Managing Agent in accordance with Section 12.2 by 2:00 p.m., New York, New York time, at least three (3) Business Days before the requested date of an Advance, which notice shall specify: (i) the amount requested to be paid to the Borrowers (such amount, which shall not be less than $1,000,000 and shall be in integral multiples of $100,000 in excess thereof) with respect to each Lender Group in connection with such Advance, the portion thereof allocated to each Borrower and the bank account for each Borrower to which the funds are to be remitted; (ii) the date of such Advance; and (iii) a pro forma calculation of the Advance Principal Balance of each Lender after giving effect to the increase in Aggregate Advance Principal Balance resulting from such Advance.

(n)    A new Section 11.10 is hereby added to the Agreement as follows:

11.10 Erroneous Payment.

(a) If the Administrative Agent (x) notifies a Lender, or any Person who has received funds on behalf of a Lender (any such Lender or other recipient (and each of their respective successors and assigns), a “Payment Recipient”) that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender or other Payment Recipient on its behalf) (any such funds, whether transmitted or received as a payment, prepayment or repayment of Advances, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent pending its return or repayment as contemplated below in this Section 11.10 and held in trust for the benefit of the Administrative Agent, and such Lender shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

    4
38982592.v4

(b) Without limiting immediately preceding clause (a), each Lender, or any Person who has received funds on behalf of a Lender (and each of their respective successors and assigns), hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of Advances, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such case:

(i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and

(ii) such Lender shall use commercially reasonable efforts to (and shall use commercially reasonable efforts to cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 11.10(b). 

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this Section 11.10(b) shall not have any effect on a Payment Recipient’s obligations pursuant to Section 11.10(a) or on whether or not an Erroneous Payment has been made. 

(c) Each Lender hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender under any Transaction Document, or otherwise payable or distributable by the Administrative Agent to such Lender or under any Transaction Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under immediately preceding clause (a). 

(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with immediately preceding clause (a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Advance Principal Balance (but not its Commitments) with respect to which such Erroneous Payment was made in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Advance Principal Balance (but not Commitments) of such Advances, the “Erroneous Payment Deficiency Assignment”) (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby 
    5
38982592.v4

(together with the Borrowers) deemed to execute and deliver an Assignment and Assumption with respect to such Erroneous Payment Deficiency Assignment, (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender, (D) the Administrative Agent and the Borrowers shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Administrative Agent will reflect in the Register its ownership interest in the Advance subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement. 

(e) The Administrative Agent may, in its discretion, sell any Advance acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Advance (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Advance acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Advances are then owned by the Administrative Agent) and (y) may in the sole discretion of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

(f) The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such Lender, as the case may be) under the Transaction Documents with respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the parties obligations under the Transaction Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such obligations in respect of Advances that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any obligations owed by the Borrowers or Servicer; provided that this Section 11.10 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the obligations of the Borrowers or the Servicer relative to the amount (and/or timing for payment) of the obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; provided, further, that for the avoidance of doubt, the immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrowers or the Servicer for the purpose of making such Erroneous Payment.

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(g) To the extent permitted by applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation, any defense based on “discharge for value” or any similar doctrine.

(h) Each party’s obligations, agreements and waivers under this Section 11.10 shall survive the resignation or replacement of the Administrative Agent, the termination of the Commitments and/or the repayment, satisfaction or discharge of all obligations (or any portion thereof) under any Transaction Document.

(o)    A new Section 12.21 is hereby added to the Agreement as follows:

12.21    Benchmark Replacement Setting.

(a)    Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Transaction Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then, (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, or in connection with an Early Opt-in Election, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of any Benchmark setting at or after 5:00 p.m. (New York time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Borrowers without any amendment to this Agreement or any other Transaction Document, or further action or consent of the Borrowers, any Originator, the Performance Guarantor or the Servicer. 

(b)    Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of the Borrowers, any Originator, the Performance Guarantor or the Servicer. 

(c)    Notices; Standards for Decisions and Determinations. Administrative Agent will promptly notify the Borrowers of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (d) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by Administrative Agent pursuant to this Section 12.21, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its sole 
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discretion and without consent from the Borrowers, any Originator, the Performance Guarantor or the Servicer.

(d)    Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Transaction Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then Administrative Agent may modify the definition of “Interest Calculation Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then Administrative Agent may modify the definition of “Interest Calculation Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.

(e)    Benchmark Unavailability Period. Upon the Borrowers’ receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers may revoke any request for Accrued Interest to be computed by reference to the LIBO Rate during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for Accrued Interest to be computed by reference to the Base Rate. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate. 

(f)    Disclaimer of Liability. Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration of, submission of, calculation of or availability of or any other matter related to the rates in the definition of “LIBO Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof (including, without limitation, (i) any such alternative, successor or replacement rate implemented pursuant to this Agreement, whether upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, and (ii) the effect, implementation or composition of any Benchmark Replacement Conforming Changes), including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the LIBO Rate or have the same volume or liquidity as the LIBO Rate prior to its discontinuance or unavailability.

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As used in this Section 12.21: 

“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Calculation Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Calculation Period” pursuant to clause (d) of this Section 12.21. 

“Benchmark”: means, initially, the LIBO Rate; provided that if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (a) of this Section 12.21. 

“Benchmark Replacement”: means, for any Available Tenor, the first alternative set forth in the order below that can be determined by Administrative Agent for the applicable Benchmark Replacement Date: (1) the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment; (2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment; (3) the sum of: (a) the alternate benchmark rate that has been selected by Administrative Agent as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (b) the related Benchmark Replacement Adjustment; provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by Administrative Agent in its reasonable discretion. If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Transaction Documents. 

“Benchmark Replacement Adjustment”: means, with respect to any replacement of the then current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Calculation Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement: (1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by Administrative Agent: (a) the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Calculation Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor; (b) the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Calculation Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and (2) for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Administrative Agent for the applicable Corresponding Tenor; provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by Administrative Agent in its reasonable discretion. 

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“Benchmark Replacement Conforming Changes”: means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “Interest Calculation Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by Administrative Agent in a manner substantially consistent with market practice (or, if Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents). 

“Benchmark Replacement Date”: means the earliest to occur of the following events with respect to the then-current Benchmark: (1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); (2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein; or (3) in the case of an Early Opt-in Election, the first (1st) Business Day after the date notice of such Early Opt-in Election is provided to the Borrowers (or such later date, if any, as Administrative Agent may specify in such notice). For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). 

“Benchmark Transition Event”: means the occurrence of one or more of the following events with respect to the then-current Benchmark: (1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); (2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available 
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Tenor of such Benchmark (or such component thereof); or (3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative. For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). 

“Benchmark Unavailability Period”: means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this Section 12.21 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this Section 12.21. 

“Corresponding Tenor”: with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor. 

“Daily Simple SOFR”: means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided, that if Administrative Agent decides that any such convention is not administratively feasible for Administrative Agent, then Administrative Agent may establish another convention in its reasonable discretion. 

“Early Opt-in Election”: means, if the then-current Benchmark is LIBOR, the occurrence of: a determination by Administrative Agent that at least five currently outstanding U.S. dollar-denominated syndicated or bilateral credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate, and the election by Administrative Agent to trigger a fallback from LIBOR and the provision by Administrative Agent of written notice of such election to the Borrowers. 

“Floor”: means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to LIBOR; provided that if it is determined pursuant to the foregoing to be below zero, it will be deemed to be zero. 

“ISDA Definitions”: means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto. 

“LIBOR”: means the London interbank offered rates shown on Bloomberg Finance L.P. Screen US0001M.

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“Reference Time”: with respect to any setting of the then-current Benchmark means (1) if such Benchmark is LIBOR, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not LIBOR, the time determined by Administrative Agent in its reasonable discretion. 

“Relevant Governmental Body”: means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto. 

“SOFR”: means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day.  

“SOFR Administrator”: means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). 

“SOFR Administrator’s Website”: means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time. 

“Term SOFR”: means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 

“Unadjusted Benchmark Replacement”: means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

(p)    Schedule V of the Agreement is hereby amended and restated to read as set forth on 
Schedule V hereto.
 
SECTION 2.    Effectiveness of Amendment.  This Amendment shall become effective as of the date hereof at such time that the Administrative Agent and the Managing Agents shall have received (i) executed counterparts of this Amendment, (ii) executed counterparts of the Amended and Restated Lender Group Fee Letter (the “A&R Lender Group Fee Letter”), (iii) the Upfront Fee, in accordance with the terms of, and as such term is defined in, the A&R Lender Group Fee Letter, (iv) an opinion of counsel to the Borrowers and Herc in form and substance satisfactory to the Administrative Agent and the Managing Agents and (v) such other documents as the Administrative Agent and the Managing Agents may reasonably request.

SECTION 3.    Transaction Document.  This Amendment shall be a Transaction Document under the Agreement.

SECTION 4.    Representations and Warranties.  Each of the Borrowers, the Servicer and the Performance Guarantor makes each of the representations and warranties contained in Exhibit III of the Agreement (after giving effect to this Amendment).

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SECTION 5.    Performance Guaranty Ratification.  After giving effect to this Amendment and the transactions contemplated by this Amendment, all of the provisions of that certain Performance Guaranty contained in Article VIII of the Agreement, made by the Performance Guarantor in favor of the Beneficiaries shall remain in full force and effect, and Performance Guarantor hereby ratifies and affirms the Performance Guaranty and acknowledges that the Performance Guaranty has continued and shall continue in full force and effect in accordance with its terms.

SECTION 6.    Confirmation of Agreement; No Other Modifications.  Each reference in the Agreement to “this Agreement” or “the Agreement”, or “hereof,” “hereunder” or words of like import, and each reference in any other Transaction Document to the Agreement, shall mean the Agreement as amended by this Amendment, and as hereafter amended or restated.  Except as herein expressly amended, the Agreement is ratified and confirmed in all respects and shall remain in full force and effect in accordance with its terms.

SECTION 7.    Costs and Expenses.  The Borrowers agree to pay on demand all reasonable costs and expenses in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent, the Managing Agents and the Lenders with respect thereto.

SECTION 8.    GOVERNING LAW.  This Amendment shall be governed by and construed in accordance with the Laws of the State of New York without regard to the principles of conflicts of law thereof (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

SECTION 9.    Execution in Counterparts.  This Amendment may be executed in any number of counterparts, and by the different parties hereto on separate counterparts; each such counterpart shall be deemed an original and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  A facsimile or electronic copy of an executed counterpart of this Amendment shall be effective as an original for all purposes.

[Remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned, duly authorized officers on the date first above written:

HERC RECEIVABLES U.S. LLC, as Borrower

By:        /s/ Mustally Hussain    
Name:    Mustally Hussain    
Title:    Treasurer                                                         

HERC RENTALS INC., individually and as initial Servicer

By:        /s/ Mark Irion    
Name:    Mark Irion    
Title:    Chief Financial Officer    

HERC RENTALS INC., as Performance Guarantor

By:        /s/ Mark Irion    
Name:    Mark Irion    
Title:    Chief Financial Officer    

[Signature Page to Amendment No. 2 to Receivables Financing Agreement]
        
38982592.v4

CREDIT AGRICOLE CORPORATE AND INVESTMENT 
BANK, as Administrative Agent

By:        /s/ Konstantina Kourmpetis    
Name:    Konstantina Kourmpetis    
Title:    Managing Director    

By:        /s/ Michael Regan    
Name:    Michael Regan    
Title: Managing Director    

[Signature Page to Amendment No. 2 to Receivables Financing Agreement]
    
38982592.v4

CACIB LENDER GROUP:

CREDIT AGRICOLE CORPORATE AND INVESTMENT 
BANK, as Managing Agent 

By:        /s/ Konstantina Kourmpetis    
Name:    Konstantina Kourmpetis    
Title:    Managing Director    

By:        /s/ Michael Regan    
Name:    Michael Regan    
Title: Managing Director    

CREDIT AGRICOLE CORPORATE AND INVESTMENT 
BANK, as Committed Lender 

By:        /s/ Konstantina Kourmpetis    
Name:    Konstantina Kourmpetis    
Title:    Managing Director    

By:        /s/ Michael Regan    
Name:    Michael Regan    
Title: Managing Director    

Commitment: $175,000,000
Uncommitted Allocation: $40,000,000

ATLANTIC ASSET SECURITIZATION LLC, 
as Conduit Lender

By:        /s/ Konstantina Kourmpetis    
Name:    Konstantina Kourmpetis    
Title:    Managing Director    

By:        /s/ Michael Regan    
Name:    Michael Regan    
Title: Managing Director    

[Signature Page to Amendment No. 2 to Receivables Financing Agreement]
    
38982592.v4

LA FAYETTE ASSET SECURITIZATION LLC, 
as Conduit Lender

By:        /s/ Konstantina Kourmpetis    
Name:    Konstantina Kourmpetis    
Title:    Managing Director    

By:        /s/ Michael Regan    
Name:    Michael Regan    
Title: Managing Director    

[Signature Page to Amendment No. 2 to Receivables Financing Agreement]
    
38982592.v4

MUFG LENDER GROUP:

MUFG BANK, LTD., as Managing Agent 

By:        /s/ Eric Williams       
Name:     Eric Williams    
Title:  Managing Director    

MUFG BANK, LTD., as Committed Lender 

By:        /s/ Eric Williams       
Name:     Eric Williams    
Title:  Managing Director    

Commitment: $25,000,000
Uncommitted Allocation: $10,000,000

[Signature Page to Amendment No. 2 to Receivables Financing Agreement]
    
38982592.v4

SCHEDULE V 
ADDRESSES FOR NOTICE

If to HERC RECEIVABLES U.S. LLC:

HERC RECEIVABLES U.S. LLC 
27500 Riverview Center Blvd., Suite 300
Bonita Springs, FL 34134
Attention: Treasurer
Telephone:  (239) 301-1090
Email:  Mustally.Hussain@hercrentals.com

With a copy to each of:

K&L Gates LLP
70 West Madison Street, Suite 3100
Chicago, IL  60602-4207
Attention: Donald E. Bingham
Telephone:  (312) 807-4235 
Email: Don.Bingham@klgates.com

              and

HERC RECEIVABLES U.S. LLC 
27500 Riverview Center Blvd., Suite 300
Bonita Springs, FL 34134
Attention: S. Wade Sheek, Secretary
Telephone:  (239) 301-1183
Email:  Wade.Sheek@hercrentals.com

If to the Servicer:

Herc Rentals Inc.
27500 Riverview Center Blvd.
Bonita Springs,   FL  34134
Attention: Controller
Telephone:  (239) 301-1373
Email:  Mark.Humphrey@hercrentals.com

With a copy to each of:

K&L Gates LLP
70 West Madison Street, Suite 3100
Chicago, IL  60602-4207
Attention: Donald E. Bingham
Telephone:  (312) 807-4235 
Email: Don.Bingham@klgates.com

and

Herc Rentals Inc. 
27500 Riverview Center Blvd.
Bonita Springs, FL  34134
Attention: Chief Legal Officer
Telephone:  (239) 301-1125
Email:  Wade.Sheek@hercrentals.com

If to the Performance Guarantor:

Herc Rentals Inc.
27500 Riverview Center Blvd.
Bonita Springs, FL 34134
Attention: Controller
Telephone:  (239) 301-1373
Email:  Mark.Humphrey@hercrentals.com

With a copy to each of:

K&L Gates LLP
70 West Madison Street, Suite 3100
Chicago, IL  60602-4207
Attention: Donald E. Bingham
Telephone:  (312) 807-4235 
Email: Don.Bingham@klgates.com

and

Herc Rentals Inc. 
27500 Riverview Center Blvd.
Bonita Springs, FL  34134
Attention: Chief Legal Officer
Telephone:  (239) 301-1125
Email:  Wade.Sheek@hercrentals.com

If to the Administrative Agent:

Credit Agricole Corporate and Investment Bank
1301 Avenue of the Americas
New York, NY 10019
Attention: David R Núñez / GMD Securitization
Telephone:  (212) 261-7814
Facsimile:  (917) 849-5584
Email: david.nunez@ca-cib.com / transaction.management@ca-cib.com

With a copy to:

King & Spalding LLP
1185 Avenue of the Americas
34th Floor
New York, NY 10036
Attention: Jonathan Arkins, Esq.
Telephone:  (212) 556-2300  
Email: jarkins@kslaw.com

CACIB Lender Group: If to any member of the CACIB Lender Group:

Credit Agricole Corporate and Investment Bank, as Managing Agent
1301 Avenue of the Americas
New York, NY 10019
Attention: David R Núñez / GMD Securitization
Telephone:  (212) 261-7814
Facsimile:  (917) 849-5584
Email: david.nunez@ca-cib.com / transaction.management@ca-cib.com

With a copy to:

King & Spalding LLP
1185 Avenue of the Americas
34th Floor
New York, NY 10036
Attention: Jonathan Arkins, Esq.
Telephone:  (212) 556-2300  
Email: jarkins@kslaw.com  

MUFG Lender Group: If to any member of the MUFG Lender Group:

MUFG Bank, Ltd., as Managing Agent
1221 Avenue of the Americas
New York, NY 10020
Attention: Eric Williams
Telephone:  212-405-6654
Email: eric.williams@mufgsecurities.com; securitization_reporting@us.mufg.jp 

With a copy to:

King & Spalding LLP
1185 Avenue of the Americas
34th Floor
New York, NY 10036
Attention: Jonathan Arkins, Esq.
Telephone:  (212) 556-2300  
Email: jarkins@kslaw.com

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