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Document

TAX PROTECTION AGREEMENT
This TAX PROTECTION AGREEMENT (this “Agreement”) is entered into as of [●], 2021, by and among Investors Real Estate Trust, a North Dakota real estate investment trust (the “REIT”), Centerspace, LP, a North Dakota Limited Partnership (the “Operating Partnership”), [●], [a/an] [●] [●] (“Seller”) and each Protected Partner identified as a signatory, as amended from time to time.
RECITALS
WHEREAS, the REIT is a real estate investment trust within the meaning of Section 856 of the Code;
WHEREAS, the REIT is the sole shareholder of Centerspace, Inc., a North Dakota corporation, which is the general partner of the Operating Partnership;
WHEREAS, the Operating Partnership has on even date herewith entered into a Contribution Agreement with Seller, pursuant to which Seller will contribute property commonly referred to as [●] to the Operating Partnership in exchange for the issuance to Seller of POP Units in the Operating Partnership (the “Contribution Agreement”);
WHEREAS, capitalized terms not defined herein shall have the meanings set forth in the Contribution Agreement; and
WHEREAS, as a condition to closing the transactions described in the Contribution Agreement, and as an inducement to do so, the parties hereto are entering into this Agreement;
NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I.

DEFINED TERMS
For purposes of this Agreement the following terms shall apply:
Section i.“Allocation Shortfall” has the meaning set forth in Section 2.3(b). 
Section ii.“After-Tax Basis” means, with respect to any payment to be received by a Protected Partner, the amount of the payment supplemented by one or more further payment or payments so that, after deducting from the aggregate amount of such payments (both the original payment and the supplemental payment or payments) the amount of all income or franchise taxes thenimposed on such Protected Partner by any governmental agency or other taxing authority with respect to such payments, the balance of such payments will equal the amount of the original payment to have been received.
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Section iii.“Agreement” has the meaning set forth in the preamble.
Section iv.“Closing Date” has the meaning assigned to it in the Contribution Agreement.
Section v.“Code” means the Internal Revenue Code of 1986, as amended.
Section vi.“Existing Mortgage Loan” means [if applicable – “, individually and collectively,”] the mortgage loan[s] made by [●], [a/an] [●] [●] to Seller, pursuant to that certain [Promissory Note] dated [●], [●], in the original principal amount[s] of $[●].
Section vii.[Intentionally Omitted]
Section viii.[Intentionally Omitted]
Section ix.“Make Whole Amount” means, on an After-Tax Basis:
(1)with respect to any Protected Partner that recognizes income or gain under Section 704(c) of the Code as a result of a Tax Protection Period Transfer, the product of (i) the amount of income or gain recognized by such Protected Partner under Section 704(c) of the Code in respect of such Tax Protection Period Transfer (taking into account any adjustments under Section 743 of the Code to which such Protected Partner (including any individual partner) is entitled or is subject) multiplied by (ii) the Make Whole Tax Rate; and
(2)with respect to any Protected Partner that recognizes income or gain as a result of a breach by the Operating Partnership of the provisions of Section 2.3 hereof, the product of (i) the amount of income or gain recognized by such Protected Partner by reason of such breach, multiplied by (ii) the Make Whole Tax Rate.
Section x.“Make Whole Tax Rate” means, with respect to a Protected Partner who is entitled to receive a payment under Section 2.2 or Section 2.3(c), the highest combined statutory U.S. federal, state, and local tax rate applicable to such Protected Partner in respect of the income or gain that gave rise to such payment, after taking into account the character of the income and gain in the hands of such Protected Partner, for the taxable year in which such gain or income is recognized.
Section xi.“OP Agreement” means the Agreement of Limited Partnership of Centerspace, LP, a North Dakota limited partnership dated January 31, 1997, as amended.
Section xii.“Pass Through Entity” means an entity treated as a partnership, trust, estate or S corporation for U.S. federal income tax purposes.
Section xiii.“Permitted Disposition” means a sale, exchange or other disposition of POP Units by a Protected Partner: (i) to such Protected Partner’s spouse, any ancestors, any descendants, or estate; (ii) to a trust solely for the benefit of (A) such Protected Partner, (B) such Protected Partner’s spouse, any ancestors or any descendants, and/or (C) a spouse of any of such Protected Partner’s descendants; (iii) in the case of a trust or an estate which is a Protected Partner, solely to its beneficiaries, or any of them, whether current or remainder beneficiaries, or to any person 
        

that is named pursuant to a power of appointment pursuant to the trust agreement or the will (or other governing document); (iv) to an inter vivos or testamentary trust of which such Protected Partner and/or the spouse, an ancestor or any descendant of such Protected Partner is a beneficiary or the trustee; (v) in the case of any partnership or limited liability company which is a Protected Partner, solely to its direct partners or members, or any of them; and/or (vi) in the case of any corporation which is a Protected Partner, to its shareholders, or any of them.
Section xiv.“Permitted Transfer” has the meaning set forth in Section 2.1(b).
Section xv.“Person” means an individual or a corporation, partnership, trust, estate, unincorporated organization, association, limited liability company or other entity.
Section xvi.“Protected Partner” means: (a) a Partner of the Operating Partnership that owns POP Units and is signatory hereto; (b) any Person who holds POP Units and who acquired such POP Units from another Protected Partner in a Permitted Disposition in which such Person’s adjusted basis in such POP Units, as determined for U.S. federal income tax purposes, is determined, in whole or in part, by reference to either (i) the adjusted basis of the other Protected Partner in such POP Units or by reference to the adjusted basis of the Person in the Person’s interest in the other Protected Partner or (ii) the fair market value as of the date of death of a Protected Partner from whom the Person, directly or indirectly, acquired such POP Units; and (c) with respect to a Protected Partner that is a Pass Through Entity, and solely for purposes of computing the amount to be paid under Section 2.2, or Section 2.3(c), as applicable, with respect to such Protected Partner, any Person who (i) holds an interest in such Protected Partner, either directly or through one or more Pass Through Entities, and (ii) is required to include all or a portion of the income of such Protected Partner in the Person’s own gross income.
Section xvii.“Protected Property” means each of: (a) the Property, (b) any direct or indirect interest in any entity through which the Operating Partnership owns an interest in any Protected Property, (c) any property acquired by the Operating Partnership, or any entity in which the Operating Partnership owns a direct or indirect interest, in exchange for a Protected Property in a Section 1031 exchange, (d) any property, assets, or interests in any entity if the disposition of such properties, assets or interest would result in the recognition of any income or gain under Section 704(c) of the Code with respect to the Protected Property by a Protected Partner; and (e) any other property that the Operating Partnership directly or indirectly receives that is in whole or in part a “substituted basis property” as defined in Section 7701(a)(42) of the Code with respect to the Protected Property.
Section xviii.“Qualified Borrowing” means either: (a) any secured loan to the Operating Partnership that satisfies all of the following criteria: (i) it is nonrecourse indebtedness (as defined in Treasury Regulation Section 1.752-1(a)(2), ignoring for such purpose any guarantee provided by a Protected Partner with respect to such indebtedness) that is the most senior debt with respect to an income-producing real property; and (ii) the portion of such loan being guaranteed by a Protected Partner is not directly or indirectly otherwise guaranteed (as determined for purposes of Section 752 of the Code and the Treasury Regulations thereunder), exclusive of customary nonrecourse carve out guarantees (i.e. bad-boy guarantees); or (b) any unsecured recourse loan to the Operating Partnership that satisfies all of the following criteria: (i) all or substantially all of 
        

the assets of the Operating Partnership are available for the repayment of such loan, subject to rights of other secured and unsecured creditors; and (ii) the portion of such loan being guaranteed by a Protected Partner is not directly or indirectly otherwise guaranteed (as determined for purposes of Section 752 of the Code and the Treasury Regulations thereunder), other than a guarantee by the general partner of the Operating Partnership of customary nonrecourse carve out guarantees (i.e. bad-boy guarantees), or by any limited partner of the Operating Partnership to the extent of such limited partner’s capital account deficit restoration obligation to the Operating Partnership and, if applicable, to any other person which is wholly owned by the Operating Partnership, or to any wholly-owned subsidiary of the Operating Partnership.
Section xix.“REIT” has the meaning set forth in the preamble.
Section xx.“Required Liability Amount” means with respect to each Protected Partner, an amount equal to such Protected Partner’s actual negative tax capital account determined as of the Closing Date, after taking into account the amount of the Consideration paid in cash; provided, however, that the aggregate Required Liability Amount for all Protected Partners shall not exceed $[●]. A current estimate of the Required Liability Amount for the Seller is set forth on Schedule I.
Section xxi.“Tax Protection Period” means the period commencing on the Closing Date and ending on the seventh (7th) anniversary of the Closing Date.
Section xxii.“Tax Protection Period Transfer” has the meaning set forth in Section 2.1(a).
Section xxiii.“Treasury Regulations” means the income tax regulations under the Code.
ARTICLE II.

TAX MATTERS
Section i.Taxable Transfers.
(1)Prior to the termination of the Tax Protection Period with respect to the Protected Property, and other than in a Permitted Transfer that complies with Section 2.1(b), neither the Operating Partnership, nor any entity in which Operating Partnership holds a direct or indirect interest, will consummate a sale, transfer, exchange or other direct or indirect disposition of any Protected Property or any indirect interest therein, in a transaction (including, without limitation, pursuant to a merger, consolidation, foreclosure proceeding, deed in lieu of foreclosure, or bankruptcy proceeding), whether voluntary or involuntary, that results in the recognition by any Protected Partner, for income tax purposes, of any income or gain under, or by reference to, Section 704(c) of the Code with respect to the Protected Property, nor shall the Operating Partnership make any distribution to any Protected Partner that is subject to Section 737 of the Code and Treasury Regulations thereunder (collectively, a “Tax Protection Period Transfer”). Notwithstanding anything to the contrary herein, this covenant shall not apply to any Protected Partner whose tax basis in the POP Units has been determined under Sections 1012 of the Code.
        

(2)For purposes of this Agreement, the term “Permitted Transfer” shall mean: (i) any transaction to the extent that such transaction does not result in the recognition and allocation of any built-in gain to any Protected Partner, including, without limitation, to the extent a transaction which qualifies as a tax-free like-kind exchange under Code Section 1031, a tax-free reinvestment of proceeds under Code Section 1033, a tax-free contribution under Code Section 721 or Code Section 351 or a tax-free merger or consolidation of Operating Partnership (or any subsidiary) with or into another entity that qualifies for taxation as a partnership for federal income tax purposes, or (ii) the taking of all or any portion of any Protected Property by a governmental entity or authority in eminent domain proceedings. In the case of a Permitted Transfer, the Operating Partnership shall use its good faith commercially reasonable efforts to structure such disposition as either a tax-free like-kind exchange under Code Section 1031 or other tax-free contribution or tax-free reinvestment of proceeds under Code Section 1033; provided, that, commercially reasonable efforts shall not require the Operating Partnership to pay additional amounts to purchase replacement property over and above the sum of the proceeds of the Permitted Transfer and the amount of debt that applied to the Protected Property as of the Permitted Transfer. Notwithstanding the foregoing, in the case of a like-kind exchange under Code Section 1031, if such exchange is with a “related party” within the meaning of Code Section 1031(f)(3), any direct or indirect disposition by such related party of the Protected Property or any other transaction prior to the expiration of the two (2) year period following such exchange that would cause Code Section 1031(f)(1) to apply with respect to such Protected Property (including by reason of the application of Code Section 1031(f)(4)) shall be considered a transfer of the Protected Property that is not a Permitted Transfer.
(3)The Operating Partnership shall use the traditional method (without curative allocations) as set forth in Treasury Regulations Section 1.704-3(b) with respect to the Protected Property. A good faith estimate of the initial amount of Section 704(c) gain allocable to the Protected Property as of the Closing Date, after taking into account the amount of the Consideration paid in cash, is set forth on Schedule II hereto. The parties acknowledge that the initial amount of such Section 704(c) gain may be adjusted over time, including as required by Section 704(c) of the Code and the Treasury Regulations promulgated thereunder.
Section ii.Indemnification for Taxable Transfers.
In the event that the Operating Partnership breaches Section 2.1, the Operating Partnership shall pay to each Protected Partner an amount of cash equal to such Partner’s estimated Make Whole Amount no later than the thirteenth (13th) day after the end of the quarter in which such Tax Protection Period Transfer took place. If it is later determined that the actual Make Whole Amount applicable to a Protected Partner exceeds the estimated Make Whole Amount for such Protected Partner, then the Operating Partnership shall pay such excess to such Protected Partner within ten (10) business days after the date of such determination, and if such estimated Make Whole Amount exceeds the actual Make Whole Amount for a Protected Partner, then such Protected Partner shall pay such excess to the Operating Partnership within ten (10) business days after the date of such determination, but only to the extent such excess was actually received by such Protected Partner. The parties shall cooperate in confirming the 
        

determinations referenced in the prior sentence by providing copies of tax returns and certifications from certified public accountants at the request of either party.
Section iii.Nonrecourse Liability Maintenance.
(1)If the Existing Mortgage Loan is satisfied (in full or in part) during the Tax Protection Period, the Existing Mortgage Loan will be satisfied in a fashion that permits the Operating Partnership to treat an amount not less than the Required Liability Amount as qualified nonrecourse indebtedness, within the meaning of Code Section 465(b)(6), and properly allocable to the Protected Partners under Treasury Regulations Section 1.752-3 and to treat the proceeds of refinancing indebtedness as properly allocable under the rules of Treasury Regulations Sections 1.707-5(c) and 1.163-8T to the amount of the Existing Mortgage Loan that is satisfied. In addition to the requirements of the preceding sentence, if the Existing Mortgage Loan is satisfied (in full or in part) on the Closing Date or during the two- (2-) year period following the Closing Date, the satisfaction must occur solely pursuant to proceeds from a refinancing indebtedness that the Operating Partnership incurs, and the principal amount of the refinancing indebtedness must be an amount that at least equals the principal amount of the Existing Mortgage Loan that is then-being satisfied.  During the Tax Protection Period, the Operating Partnership shall: (i) maintain on a continuous basis an amount of qualified nonrecourse indebtedness that is properly allocated to the Protected Partners under Treasury Regulations Section 1.752-3 and for purposes of Section 465(b)(6) of the Code at least equal to the Required Liability Amount of such Protected Partner and (ii) allocate excess nonrecourse liabilities (within the meaning of Treasury Regulations Section 1.752-3(a)(3)) using the additional method and, to the extent (if any) the excess nonrecourse liabilities are not allocated pursuant to the additional method, using either the significant item method or the alternative method as to any remaining, unallocated amount of excess nonrecourse liabilities.  This Section 2.3(a) also applies to the satisfaction (in full or in part) of any indebtedness that directly or indirectly satisfied (in full or in part) the Existing Mortgage Loan.  
(2)  [Intentionally Omitted]
(3)If the Operating Partnership fails to comply with any provision of this Section 2.3, the Operating Partnership shall pay an amount of cash to each Protected Partner equal to the estimated Make Whole Amount of each Protected Partner no later than the thirteenth (13th) day after the end of the tax year in which in which such failure took place; provided, however, if the failure is with respect to the second sentence of Section 2.3(a), the Operating Partnership shall make such payment no later than the thirteenth (13th) day after the end of the quarter in which such failure took place. If it is later determined that the actual Make Whole Amount applicable to a Protected Partner exceeds the estimated Make Whole Amount for such Protected Partner, then the Operating Partnership shall pay such excess to such Protected Partner within ten (10) business days after the date of such determination, and if such estimated Make Whole Amount exceeds the actual Make Whole Amount for a Protected Partner, then such Protected Partner shall pay such excess to the Operating Partnership within ten (10) business days after the date of such determination, but only to the extent such excess was actually received by such Protected Partner.
        

ARTICLE III.

GENERAL PROVISIONS
Section i.Changes in Law; Voluntary Redemptions.  
(1)Notwithstanding any provision of this Agreement to the contrary, the Operating Partnership shall not be required to make a payment to a Protected Partner pursuant to this Agreement if such obligation arises solely as a result of a change in any provision of the Code, the Treasury Regulations or any other applicable tax law or any administrative or judicial interpretation thereof (and not, for example, as a result of any Tax Protection Period Transfer, or any change with respect to Operating Partnership liabilities allocated to any Protected Partner if such change is attributable to any act or omission by the Operating Partnership).
(2)For the avoidance of doubt, a Protected Partner shall not be entitled to the protections set forth in ARTICLE II in the event of a full or partial redemption of the Protected Partner’s interest in the Operating Partnership with the Partner’s consent.
Section ii.Cooperation. The Operating Partnership, the Seller and the Protected Partners agree to furnish or cause to be furnished to the other, upon request, as promptly as practicable, such information and assistance as is reasonably necessary to effectuate the provisions of this Agreement. In the event any change in any applicable provision of the Code, the Treasury Regulations or any other applicable tax law or any administrative or judicial interpretation thereof would result in the recognition of taxable income or gain by any Protected Partner, the parties shall reasonably cooperate to minimize or avoid any resulting tax on such Protected Partner. Prior to any anticipated change (or as soon as reasonably possible following any unanticipated change) in any applicable provision of the Code, the Treasury Regulations or any other applicable tax law or any administrative or judicial interpretation thereof that would affect the Operating Partnership and the Protected Partners, the parties shall cooperate to amend this Agreement to preserve the intent and effect of this Agreement.
Section iii.Dispute Resolution. Any controversy, dispute, or claim of any nature arising out of, in connection with, or in relation to the interpretation, performance, enforcement or breach of this Agreement (and any closing document executed in connection herewith) shall be governed by the dispute resolution provisions set forth in the Contribution Agreement.   For the avoidance of doubt, the prevailing party in any dispute shall be entitled to recover its reasonable attorneys’ fees.
Section iv.Notices. All notices, demands, declarations, consents, directions, approvals, instructions, requests and other communications required or permitted by the terms of this Agreement shall be given in the same manner as in the Contribution Agreement.
Section v.Titles and Captions. All Article or Section titles or captions in this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to “Articles” and “Sections” are to Articles and Sections of this Agreement.
        

Section vi.Pronouns and Plurals. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.
Section vii.Further Action. The parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.
Section viii.Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns.
Section ix.Creditors. Other than as expressly set forth herein, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Operating Partnership.
Section x.Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach or any covenant, duty, agreement or condition.
Section xi.Counterparts. This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all of the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing its signature hereto.
Section xii.Applicable Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Minnesota, without regard to the principles of conflicts of law.
Section xiii.Invalidity of Provisions. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of other remaining provisions contained herein shall not be affected thereby.
Section xiv.Entire Agreement; Coordination with OP Agreement. This Agreement contains the entire understanding and agreement among the Partners with respect to the subject matter hereof and amends, restates and supersedes the OP Agreement and any other prior written or oral understandings or agreements among them with respect thereto. The parties hereto agree that, to the extent of any conflict between the provisions of the OP Agreement and the provisions of this Agreement with respect to the rights, obligations or remedies of any such party under this Agreement, the provisions of this Agreement shall control.
Section xv.No Rights as Stockholders. Nothing contained in this Agreement shall be construed as conferring upon the holders of the POP Units any rights whatsoever as stockholders of the REIT, including, without limitation, any right to receive dividends or other distributions made to 
        

stockholders of the REIT or to vote or to consent or to receive notice as stockholders in respect of any meeting of stockholders for the election of directors of the REIT or any other matter.

[Remainder of Page Left Blank Intentionally]
        

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
REIT:

Investors Real Estate Trust, a North Dakota real estate investment trust

By:    
      Name:    
      Title:    

OPERATING PARTNERSHIP:

Centerspace, LP, a North Dakota limited partnership

By: Centerspace, Inc., a North Dakota corporation, its general partner

By:    
Name:    
Title:    

and

By:    
Name:    
Title:    

SELLER:

[●], [a/an] [●] [●]

By:    
Name:    
Title:    

[Signature Page to Tax Protection Agreement]

PROTECTED PARTNER(S)

    
[●]

    
[●]

[Signature Page to Tax Protection Agreement]

SCHEDULE I

Estimated Schedule of Required Liability Amount

$[●]

SCHEDULE II

Estimated Schedule of Section 704(c) Gain

$[●]

21816134v1Document

EXECUTION VERSION

FIRST AMENDMENT TO FOURTH LENDER FORBEARANCE AGREEMENT 

This First Amendment to Fourth Lender Forbearance Agreement (this “Amendment”) is entered into as of June 2, 2021, by and among GTT Communications, Inc., a Delaware corporation (the “U.S. Borrower”), GTT Communications, B.V., a company organized under the laws of the Netherlands (the “EMEA Borrower” and, together with the U.S. Borrower, the “Borrowers”), the guarantors party hereto, each of the undersigned Secured Creditors (which constitute the Required Revolving Lenders, the Required Lenders and the Existing Secured Hedge Providers (as defined below)) (collectively, the “Consenting Lenders”) and KeyBank National Association, as Administrative Agent under the Credit Agreement (together with the Borrowers and the Consenting Lenders, the “Parties”). 
RECITALS
A.    The U.S. Borrower, the EMEA Borrower, the lenders party thereto, KeyBank National Association, as administrative agent (in such capacity, the “Administrative Agent”), and certain other financial institutions party thereto, are parties to that certain Credit Agreement, dated as of May 31, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), under which the U.S. Borrower entered into the Revolving Commitments and incurred the U.S. Term Loans and the EMEA Borrower incurred the EMEA Term Loans.  Capitalized terms used herein shall, unless otherwise indicated, have the respective meanings set forth in the Credit Agreement or the Forbearance Agreement (as defined below), as applicable.
B.    The U.S. Borrower is a party to Secured Hedge Agreements with each of the Secured Hedge Providers party hereto (collectively, the “Existing Secured Hedge Providers”) and the obligations of the U.S. Borrower thereunder constitute U.S. Obligations that are secured by the U.S. Collateral pursuant to the terms of the U.S. Security Documents.
C.    The Borrowers and certain of the Guarantors entered into that certain Fourth Lender Forbearance Agreement and Amendment No. 6, dated as of May 10, 2021 (the “Forbearance Agreement”) with the Administrative Agent, the Forbearing Lenders (as defined therein) and the Existing Secured Hedge Providers.
D.    On May 17, 2021, the Forbearing Lenders and certain of the Existing Secured Hedge Providers consented to an extension of the date and time “5:00 p.m., New York City time, on May 17, 2021” in clause (2) of the definition of “Termination Event” in Section 2(a) of the Forbearance Agreement to the date and time “5:00 p.m., New York City time, on June 3, 2021”.
E.     Subject to the terms and conditions set forth in the Forbearance Agreement, the Forbearing Lenders have agreed to forbear, solely during the Lender Forbearance Period, from exercising their default-related rights and remedies against the Credit Parties with respect to the Lender Specified Defaults.
F.    The Borrowers and the Consenting Lenders (which constitute the Requisite Forbearing Lenders) desire to amend the Forbearance Agreement as set forth in this Amendment.
        NOW, THEREFORE, in consideration of the foregoing, the terms, covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

SECTION 1.    Amendments to Forbearance Agreement.
(a)        The date “June 3, 2021” in clause (2) of the definition of Termination Event in Section 2(a) of the Forbearance Agreement is hereby replaced with “June 17, 2021”.
(b)        Clause (C) of the definition of Forbearance Default in Section 2(a) of the Forbearance Agreement is hereby amended and restated as follows:
“the occurrence of the Completion (as defined in the Existing Infrastructure Sale Agreement) on any date earlier than the date that is twenty (20) Business Days after the date on which the last Condition (as defined in the Existing Infrastructure Sale Agreement) is satisfied or waived, in accordance with Section 7.1(a)(i) of the Existing Infrastructure Sale Agreement without the prior written consent of the Requisite Forbearing Lenders;”
(c)         Section 5 of the Forbearance Agreement is hereby amended as follows:
(i)     the word “and” at the end of sub-clause (c) is hereby deleted in its entirety;
(ii)    the date “May 17, 2021” in sub-clause (d) is hereby replaced with “June 17, 2021”;
(iii)    the period at the end of sub-clause (d) is hereby replaced with “;”; 
(iv)    the following sub-clauses (e), (f) and (g) are hereby added immediately after sub-clause (d):
“(e)    As soon as reasonably practicable, the U.S. Borrower shall notify in advance the Administrative Agent and the Private-Side Lenders of the material terms of any amendment, waiver, supplement or other modification to the Existing Infrastructure Sale Agreement or any Replacement Infrastructure Sale Agreement, which for the avoidance of doubt, shall include any waiver of any Condition under the Existing Infrastructure Sale Agreement. The U.S. Borrower shall deliver written notice to the Administrative Agent and the Private-Side Lenders confirming that the Conditions (as defined in the Existing Infrastructure Sale Agreement) have been satisfied or waived on the date that the last Condition has been satisfied or waived; 
(f)    Within two (2) Business Days of receiving from the Ad Hoc Lender Group Advisors (as defined in the Priming Facility Credit Agreement) any objection to an Updated Budget (as defined in the Priming Facility Credit Agreement) pursuant to Section 6.01(d) of the Priming Facility Credit Agreement or any notice (including any notice of default or event of default), letter or other written communications from the Ad Hoc Lender Group (as defined in the Priming Facility Credit Agreement) or the Ad Hoc Lender Group Advisors to the Borrower or its advisors, the Borrower shall provide such objection, notice, letter or other formal written communication to the Administrative Agent; and
(g)    Within two (2) Business Days of receiving any notice (including any notice of default or event of default), letter or other written communication from the Ad Hoc Noteholder Group or the Ad Hoc Noteholder Group Advisors to the Borrower or its 
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advisors, the Borrower shall provide such notice, letter or other formal written communication to the Ad Hoc Lender Group Advisors.”
SECTION 2.    Effectiveness.  
The Forbearance Agreement is and shall remain in full force and effect as of the date hereof except as modified by this Amendment.  This Amendment will be effective as of the date when the following conditions have been satisfied (such date, the “Amendment Effective Date”): 
(a)    Amendment.  Each of the Parties shall have executed and delivered counterpart signature pages of this Amendment to counsel to each of the other Parties (which signature pages may be delivered by counsel and in electronic form).
(b)    No Default or Event of Default.  As of the date of this Amendment, no Default or Event of Default shall have occurred and be continuing, other than the Lender Specified Defaults that have occurred and are continuing as of the date hereof.
(c)    Noteholder Forbearance Agreement.  The Requisite Forbearing Noteholders (as defined in the Noteholder Forbearance Agreement) shall have provided written consent (which may be evidenced by email from counsel) to the extension of the date “June 3, 2021” in clause (2) of the definition of Termination Event in Section 2(a) of the Noteholder Forbearance Agreement to “June 17, 2021”.
(d)    Priming Facility Credit Agreement.  The Required Lenders (as defined in the Priming Facility Credit Agreement) shall have provided written consent (which may be evidenced by email from counsel) to the extension of the date “June 3, 2021” in each of Section 6.01(a) and (b) of the Priming Facility Credit Agreement to “June 17, 2021”.
(e)    Fees and Expenses.  To the extent invoiced at least two (2) Business Days prior to the date of this Agreement, the Credit Parties shall have paid the reasonable and documented fees, charges and disbursements of (i) Jones Day, counsel to the Administrative Agent, and one local counsel to the Administrative Agent in each relevant jurisdiction, (ii) Milbank LLP, counsel to certain Term Lenders, (iii) Houlihan Lokey Capital, Inc., financial advisor to certain Term Lenders and (iv) Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to certain Term Lenders, in each case, incurred in connection with this Agreement or in connection with any other Loan Documents entered into prior to the Forbearance Effective Date.  
SECTION 4.    General Release.  
(a)    As of the date of this Amendment, each Credit Party that is a party hereto and the U.S. Borrower, on behalf of each other Credit Party and each of their respective Subsidiaries (collectively, the “Releasors”), to the fullest extent permitted by law, hereby releases, and forever discharges the Administrative Agent, each Lender and each of its or their respective trustees, officers, directors, participants, beneficiaries, agents, attorneys, affiliates and employees, and the successors and assigns of the foregoing (collectively, the “Released Parties”), from any and all claims, actions, causes of action, suits, defenses, set-offs against the Obligations, and liabilities of any kind or character whatsoever, known or unknown, contingent or matured, suspected or unsuspected, anticipated or unanticipated, liquidated or unliquidated, claimed or unclaimed, in contract or in tort, at law or in equity, or otherwise, including, without limitation, claims or defenses relating to allegations of usury, which relate, in whole or in part, directly or indirectly, to the Loans, the Loan Documents, the Obligations, the Collateral or this 
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Amendment, in each case, which existed, arose or occurred at any time prior to the date of this Amendment, including, without limitation, the negotiation, execution, performance or enforcement of the Loan Documents and this Amendment, any claims, causes of action or defenses based on the negligence of any of the Released Parties or on any “lender liability” theories of, among others, unfair dealing, control, misrepresentation, omissions, misconduct, overreaching, unconscionability, disparate bargaining position, reliance, equitable subordination, or otherwise, and any claim based upon illegality or usury (collectively, the “Released Claims”). No Releasor shall intentionally, willfully or knowingly commence, join in, prosecute, or participate in any suit or other proceeding in a position which is adverse to any of the Released Parties, arising directly or indirectly from any of the Released Claims. The Released Claims include, but are not limited to, any and all unknown, unanticipated, unsuspected or misunderstood claims and defenses which existed, arose or occurred at any time prior to the date of this Amendment, all of which are released by the provisions hereof in favor of the Released Parties.
(b)    Each Releasor acknowledges and agrees that it has no defenses, counterclaims, offsets, cross-complaints, causes of action, rights, claims or demands of any kind or nature whatsoever, including, without limitation, any usury or lender liability claims or defenses, arising out of the Loan Documents or this Amendment, that can be asserted either to reduce or eliminate all or any part of any of the Releasors’ liability to the Administrative Agent and the Lenders under the Loan Documents, or to seek affirmative relief or damages of any kind or nature from the Administrative Agent or the Lenders, for or in connection with the Loans or any of the Loan Documents. Each Releasor further acknowledges that, to the extent that any such claim does in fact exist, it is being fully, finally and irrevocably released by them as provided in this Amendment.
(c)    Each Releasor hereby waives the provisions of any applicable laws restricting the release of claims which the releasing parties do not know or suspect to exist as of the date of this Amendment, which, if known, would have materially affected the decision to agree to these releases. Accordingly, each Releasor hereby agrees, represents and warrants to the Administrative Agent and each Lender that it understands and acknowledges that factual matters now unknown may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and each Releasor further agrees, represents and warrants that the releases provided herein have been negotiated and agreed upon, and in light of, that realization and that each Releasor nevertheless hereby intends to release, discharge and acquit the parties set forth hereinabove from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are in any manner set forth in or related to the Released Claims and all dealings in connection therewith.
(d)    In making the releases set forth in this Amendment, each Releasor acknowledges that it has not relied upon any representation of any kind made by any Released Party.
(e)    It is understood and agreed by the Releasors and the Released Parties that the acceptance of delivery of the releases set forth in this Amendment shall not be deemed or construed as an admission of liability by any of the Released Parties and the Administrative Agent, on behalf of itself and the other Released Parties, hereby expressly denies liability of any nature whatsoever arising from or related to the subject of such releases.
SECTION 5.    Reaffirmation and Acknowledgement. 
(a)    Each U.S. Credit Party, by its signature below, hereby (i) consents to the terms hereof and hereby acknowledges and agrees that any Loan Document, including the Forbearance Agreement, to which it is a party or otherwise bound shall continue in full force and effect (including, 
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without limitation, the pledge and security interest in any Collateral granted by it pursuant to the Loan Documents), (ii) acknowledges and agrees that the Obligations under the Loan Documents, including the Forbearance Agreement, are in all respects continuing, (iii) reaffirms all of its obligations under each of the Loan Documents, including the Forbearance Agreement, to which it is a party, and (iv) reaffirms its guarantee of the Obligations and the pledge of and/or grant of a security interest in its assets constituting Collateral to secure the Obligations and acknowledges and agrees that such guarantee, pledge and/or grant continue in full force and effect in respect of, and to secure, the Obligations.
(b)    The EMEA Borrower, by its signature below, hereby (i) consents to the terms hereof and hereby acknowledges and agrees that any Loan Document, including the Forbearance Agreement, to which it is a party or otherwise bound shall continue in full force and effect (including, without limitation, the pledge and security interest in any Collateral granted by it pursuant to the Loan Documents), (ii) acknowledges and agrees that the Non-U.S. EMEA Credit Party Obligations under the Loan Documents, including the Forbearance Agreement, are in all respects continuing, (iii) reaffirms all of its obligations under each of the Loan Documents, including the Forbearance Agreement, to which it is a party, and (iv) reaffirms pledge of and/or grant of a security interest in its assets constituting Collateral under the Non-U.S. Security Agreements to secure the Non-U.S. EMEA Credit Party Obligations and acknowledges and agrees that such pledge and/or grant continue in full force and effect in respect of, and to secure, the Non-U.S. EMEA Credit Party Obligations.
SECTION 6.    Representations and Warranties of the Borrowers.  To induce the Consenting Lenders to execute and deliver this Amendment, each of the Borrowers represents and warrants that:
(a)    the execution, delivery and performance by such Borrower of this Amendment and all documents and instruments delivered in connection herewith have been duly authorized by such Borrower, this Amendment has been duly executed and delivered by such Borrower, and this Amendment and all documents and instruments delivered in connection herewith are legal, valid and binding obligations of such Borrower enforceable against it in accordance with their terms, except as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law); and
(b) neither the execution, delivery and performance of this Amendment and all documents and instruments delivered in connection herewith nor the consummation of the transactions contemplated hereby or thereby does or shall contravene, result in a breach of, or violate (i) any provision of such Borrower’s organizational documents or (ii) any applicable laws.
SECTION 7.    Amendments. This Amendment may be modified, amended or supplemented only by an instrument in writing signed by the Borrowers and the Requisite Forbearing Lenders.  Any provision in this Amendment may be waived by an instrument in writing signed by the Party against whom such waiver is to be effective, and any date or deadline set forth herein may be extended by written consent of the Requisite Forbearing Lenders (which may be evidenced by email from counsel); provided that the extension of the Lender Forbearance Period with respect to any of the Existing Secured Hedge Providers shall require the written consent of such Existing Secured Hedge Provider (which may be evidenced by email from Jones Day, counsel to the Existing Secured Hedge Providers) to the extent set forth in clause (2) of the definition of “Termination Event” in the Forbearance Agreement. 
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SECTION 8.    GOVERNING LAW; CONSENT TO JURISDICTION.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THE PROVISIONS OF SECTION 11.08 OF THE CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.
SECTION 9.    Construction.  This Amendment and all other agreements and documents executed and/or delivered in connection herewith have been prepared through the joint efforts of all of the Parties.  Neither the provisions of this Amendment or any such other agreements and documents nor any alleged ambiguity therein shall be interpreted or resolved against any party on the ground that such party or its counsel drafted this Amendment or such other agreements and documents, or based on any other rule of strict construction.  Each of the Parties represents and declares that such party has carefully read this Amendment and all other agreements and documents executed in connection therewith, and that such party knows the contents thereof and signs the same freely and voluntarily.  The Parties acknowledge that they have been represented by legal counsel of their own choosing in negotiations for and preparation of this Amendment and all other agreements and documents executed in connection herewith and that each of them has read the same and had their contents fully explained by such counsel and is fully aware of their contents and legal effect.  Without limiting the generality of the foregoing, “option” and “discretion” shall be implied by the use of the words “if” and “may.”
SECTION 10.    Counterparts.  This Amendment may be executed in counterparts (and by different Parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means (including “.pdf”) shall be effective as delivery of a manually executed counterpart of this Amendment. The words “execution,” “signed,” “signature,” and words of like import in this Amendment shall be deemed to include electronic signatures or the keeping of electronic records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
SECTION 11.    Severability.  If any provision of this Amendment or the Credit Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment and the Credit Agreement shall not be affected or impaired thereby and (b) the Parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
SECTION 12.    Time of Essence.  Time is of the essence in the performance of the obligations of the Parties hereunder and with respect to all conditions to be satisfied by such Parties.
SECTION 13.    Further Assurances.  Each of the Borrowers agrees to take all further actions and execute all further documents as the Required Lenders or Required Revolving Lenders may from time to time reasonably request to carry out the transactions contemplated by this Amendment and all other agreements executed and delivered in connection herewith.
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SECTION 14.    Section Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute part of this Amendment for any other purpose.
SECTION 15.    Notices.  Except as set forth herein, all notices, requests, and demands to or upon the respective Parties shall be given in accordance with the Credit Agreement or in such other manner and to such persons as agreed upon by the Parties.
SECTION 16.    Assignments.  This Amendment shall be binding upon and inure to the benefit of the Borrowers, the Forbearing Lenders and their respective successors and assigns.
SECTION 17.    Relationship of Parties; No Third Party Beneficiaries.  Nothing in this Amendment shall be construed to alter the existing debtor-creditor relationship between the Borrowers and the Forbearing Lenders.  This Amendment is not intended, nor shall it be construed, to create a partnership or joint venture relationship between or among any of the Parties.  No person other than a Party hereto is intended to be a beneficiary hereof and no person other than a Party hereto shall be authorized to rely upon or enforce the contents of this Amendment.
SECTION 18.    Final Agreement.  THIS AMENDMENT, THE FORBEARANCE AGREEMENT, THE CREDIT AGREEMENT AND ANY APPLICABLE SECURED HEDGE AGREEMENT REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES (AS APPLICABLE) AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
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IN WITNESS WHEREOF, this Amendment has been executed by the Parties hereto as of the date first written above.
                        
                        GTT COMMUNICATIONS, INC.

By:        /s/ Donna Granato                                     Name: Donna Granato
        Title:   Interim Chief Financial Officer

                        GTT COMMUNICATIONS B.V.

By:        /s/ Donna Granato                                Name: Donna Granato
        Title:   Director
                    
GTT AMERICAS, LLC
GTT GLOBAL TELECOM GOVERNMENT SERVICES, LLC
ELECTRA LTD.
CORE180, LLC
COMMUNICATION DECISIONS – SNVC, LLC
GC PIVOTAL, LLC 
GTT REMAINCO, LLC
GTT APOLLO, LLC
GTT APOLLO HOLDINGS, LLC
INTEROUTE US LLC

By:        /s/ Donna Granato                                Name: Donna Granato
Title:   Vice President, Treasurer, Secretary and Chief Financial Officer
GTT – First Amendment to Fourth Lender Forbearance Agreement
 

    KEYBANK NATIONAL ASSOCIATION, as Administrative Agent

By:        /s/ Eric W. Domin                                Name: Eric W. Domin
        Title:   Vice President

GTT – First Amendment to Fourth Lender Forbearance Agreement

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