Document:

Exhibit 4.1

 

Execution Version

 

ARBOR REALTY SR, INC.,

as the Company

 

ARBOR REALTY TRUST, INC.,

as the Parent

 

8.50% Senior Notes due 2027

 

 

 

Indenture

 

Dated as of October 11, 2022

 

 

 

UMB BANK, N.A.

 

as Trustee

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE One
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 
	Section 101.	Rules of Construction	1
	Section 102.	Definitions	2
	Section 103.	Compliance Certificates and Opinions	14
	Section 104.	Form of Documents Delivered to Trustee	14
	Section 105.	Acts of Holders	15
	Section 106.	Notices, Etc. to Trustee and Company	16
	Section 107.	Notice to Holders; Waiver	17
	Section 108.	Effect of Headings and Table of Contents	17
	Section 109.	Successors and Assigns	17
	Section 110.	Separability Clause	17
	Section 111.	Benefits of Indenture	17
	Section 112.	Governing Law; Jury Trial Waiver	18
	Section 113.	Legal Holidays	18
	Section 114.	No Personal Liability of Directors, Officers, Employees and Stockholders	18
	Section 115.	Counterparts	18
	Section 116.	Force Majeure	19
	Section 117.	U.S.A. Patriot Act	19
	 	 	 
	ARTICLE Two
	NOTE FORMS
	 
	Section 201.	Form and Dating	19
	Section 202.	Execution, Authentication, Delivery and Dating	19
	 	 	 
	ARTICLE Three
	THE NOTES
	 
	Section 301.	Title and Terms	20
	Section 302.	Denominations	23
	Section 303.	Temporary Notes	23
	Section 304.	Note Registrar; Paying Agent; Registration of Transfer and Exchange	23
	Section 305.	Mutilated, Destroyed, Lost and Stolen Notes	24
	Section 306.	Payment of Interest; Interest Rights Preserved	25
	Section 307.	Persons Deemed Owners	26
	Section 308.	Cancellation	26
	Section 309.	Computation of Interest	26
	Section 310.	Transfer and Exchange	26
	Section 311.	CUSIP Numbers	27
	Section 312.	Issuance of Additional Notes	27

 

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	ARTICLE Four
	SATISFACTION AND DISCHARGE
	 
	Section 401.	Satisfaction and Discharge of Indenture	27
	Section 402.	Application of Trust Money	28
	 	 	 
	ARTICLE Five
	REMEDIES
	 
	Section 501.	Events of Default	29
	Section 502.	Acceleration of Maturity; Rescission and Annulment	30
	Section 503.	Collection of Indebtedness and Suits for Enforcement by Trustee	32
	Section 504.	Trustee May File Proofs of Claim	32
	Section 505.	Trustee May Enforce Claims Without Possession of Notes	33
	Section 506.	Application of Money Collected	33
	Section 507.	Limitation on Suits	33
	Section 508.	Unconditional Right of Holders to Receive Principal, Premium and Interest	34
	Section 509.	Restoration of Rights and Remedies	34
	Section 510.	Rights and Remedies Cumulative	34
	Section 511.	Delay or Omission Not Waiver	34
	Section 512.	Control by Holders	35
	Section 513.	Waiver of Default	35
	Section 514.	Waiver of Stay or Extension Laws	35
	Section 515.	Undertaking for Costs	35
	 	 	 
	ARTICLE Six
	THE TRUSTEE
	 
	Section 601.	Duties of the Trustee	36
	Section 602.	Notice of Defaults	37
	Section 603.	Certain Rights of Trustee	37
	Section 604.	Trustee Not Responsible for Recitals or Issuance of Notes	39
	Section 605.	May Hold Notes	39
	Section 606.	Money Held in Trust	39
	Section 607.	Compensation and Reimbursement	39
	Section 608.	Corporate Trustee Required; Eligibility	40
	Section 609.	Resignation and Removal; Appointment of Successor	40
	Section 610.	Acceptance of Appointment by Successor	41
	Section 611.	Merger, Conversion, Consolidation or Succession to Business	42
	Section 612.	Appointment of Co-Trustee	42
	Section 613.	Appointment of Authenticating Agent	43
	 	 	 
	ARTICLE Seven
	HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
	Section 701.	Holder Lists	44

 

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	Section 702.	Disclosure of Names and Addresses of Holders	45
	 	 	 
	ARTICLE Eight
	MERGER, CONSOLIDATION OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS
	 
	Section 801.	The Parent, the Company and the Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms	45
	Section 802.	Successor Substituted	46
	 	 	 
	ARTICLE Nine
	AMENDMENT, SUPPLEMENT AND WAIVER
	 
	Section 901.	Amendments or Supplements Without Consent of Holders	47
	Section 902.	Amendments or Supplements with Consent of Holders	48
	Section 903.	Execution of Supplemental Indentures	48
	Section 904.	Effect of Supplemental Indentures	48
	Section 905.	Reference in Notes to Supplemental Indentures	48
	 	 	 
	ARTICLE Ten
	COVENANTS
	 
	Section 1001.	Payment of Principal, Premium, if Any, and Interest	49
	Section 1002.	Maintenance of Office or Agency	49
	Section 1003.	Paying Agent to Hold Money in Trust	49
	Section 1004.	Corporate Existence	50
	Section 1005.	Payment of Taxes and Other Claims	50
	Section 1006.	Compliance Certificates; SEC Reports	51
	Section 1007.	Delivery of Rule 144A Information	52
	Section 1008.	Subsidiary Guarantors	52
	Section 1009.	Change of Control Offer	53
	Section 1010.	Maintenance of Minimum Net Asset Value	55
	Section 1011.	Maintenance of Consolidated Unencumbered Assets	55
	Section 1012.	Limitation on Debt	56
	Section 1013.	Rating	56
	Section 1014.	Conditional Waiver by Holders of Securities	56
	 	 	 
	ARTICLE Eleven
	REDEMPTION OF NOTES
	 
	Section 1101.	Right of Redemption	57
	Section 1102.	Mandatory Redemption; Open Market Purchases	57
	Section 1103.	Applicability of Article	57
	Section 1104.	Election to Redeem; Notice to Trustee	57
	Section 1105.	Selection by Depository or the Trustee of Notes to Be Redeemed	58
	Section 1106.	Notice of Redemption	58
	Section 1107.	Effect of Notice of Redemption	59
	Section 1108.	Deposit of Redemption Price	60
	Section 1109.	Notes Payable on Redemption Date	60

 

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	Section 1110.	Notes Redeemed in Part	60
	 	 	 
	ARTICLE Twelve
	Note GUARANTee
	 
	Section 1201.	Guarantee	61
	Section 1202.	Limitation on Guarantor Liability	62
	Section 1203.	Issuance and Delivery of Note Guarantee	62
	 	 	 
	ARTICLE Thirteen
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	Section 1301.	Company’s Option to Effect Legal Defeasance or Covenant Defeasance	62
	Section 1302.	Legal Defeasance and Discharge	63
	Section 1303.	Covenant Defeasance	63
	Section 1304.	Conditions to Legal Defeasance or Covenant Defeasance	63
	Section 1305.	Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions	64
	Section 1306.	Reinstatement	65
	Section 1307.	Repayment to Company	65

 

	Appendix A	Provisions Relating to Initial Notes 	A-1
	Appendix B	Form of Supplemental Indenture to Be Delivered by Subsequent Subsidiary Guarantors	B-1

 

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THIS INDENTURE, dated as of
October 11, 2022, is between Arbor Realty SR, Inc., a Maryland corporation (the “Company”), Arbor Realty Trust, Inc.,
a Maryland corporation (the “Parent”), the other Guarantors from time to time party hereto, and UMB Bank, N.A., a national
banking association organized under the laws of the United States, as trustee.

 

RECITALS

 

The Company has duly authorized
the creation of its 8.50% Senior Notes due 2027 to be issued on the date hereof, and to provide therefor the Company has duly authorized
the execution and delivery of this Indenture.

 

All things necessary have
been done to make the Notes (as defined herein), when executed by the Company and authenticated and delivered hereunder and duly issued
by the Company, the valid and legally binding obligations of the Company and to make this Indenture a valid and legally binding agreement
of the Company, in accordance with their and its terms.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of
the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and ratable benefit
of all Holders, as follows:

 

ARTICLE One

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 101.           Rules of
Construction. For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(1)            the
terms defined in this Article One have the meanings assigned to them in this Article One, and words in the singular include
the plural and words in the plural include the singular;

 

(2)            the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision;

 

(3)            all
references to Articles, Sections, Exhibits and Appendices shall be construed to refer to Articles and Sections of, and Exhibits and Appendices
to, this Indenture;

 

(4)            “including”
means including without limitation;

 

(5)            references
to the date the Initial Notes were originally issued shall refer to the Issue Date;

 

(6)            the
phrase “in writing” as used herein shall be deemed to include pdf attachments and other electronic means of transmission.

 

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Section 102.           Definitions.

 

“Act,”
when used with respect to any Holder, has the meaning specified in Section 105 of this Indenture.

 

“Additional Notes”
means any Notes issued by the Company pursuant to Section 312 of this Indenture.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, the
terms “controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise.

 

“Agency Business”
means, the Parent’s Agency Loan Origination and Servicing Business which originates, sells and services a range of multifamily finance
products through government- sponsored enterprises, the Government National Mortgage Association, Federal Housing Authority, the U.S.
Department of Housing and Urban Development and conduit/commercial mortgage- backed securities programs.

 

“Appendix”
has the meaning specified in Section 201 of this Indenture.

 

“Applicable Procedures”
has the meaning specified in the Appendix.

 

“Authenticating Agent”
has the meaning specified in Section 613 of this Indenture.

 

“Board of Directors”
means:

 

(1)            with
respect to a corporation, the board of directors of the corporation;

 

(2)            with
respect to a partnership, the board of directors of the general partner of the partnership; and

 

(3)            with
respect to any other Person, the board or committee of such Person serving a similar function.

 

“Board Resolution”
means, with respect to the Company, a duly adopted resolution of the Board of Directors of the Company or any committee thereof.

 

“Business Day”
means each day that is not a Legal Holiday.

 

“Capitalized Lease
Obligation” means the obligations under a lease that are required to be capitalized for financial reporting purposes in accordance
with GAAP. The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected
on the balance sheet prepared in accordance with GAAP of the applicable Person as of the applicable date.

 

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“Certificated Notes”
has the meaning specified in the Appendix.

 

“Change of Control”
has the meaning specified in Section 1009.

 

“Change of Control
Offer” has the meaning specified in Section 1009.

 

“Change of Control
Payment Date” has the meaning specified in Section 1009.

 

“Change of Control
Triggering Event” has the meaning specified in Section 1009.

 

“Company”
means the Person named as the “Company” in the first paragraph of this Indenture, until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Company” shall mean such successor Person.

 

“Company Request”
or “Company Order” means a written request or order signed in the name of the Company by any Officer, and delivered
to the Trustee or Paying Agent, as applicable.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by the Independent Investment Banker as having an actual or interpolated
maturity comparable to the remaining term of the Notes to be redeemed, determined as if the Notes matured on the Par Call Date (the “Remaining
Life”), that would be utilized at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes.

 

“Comparable Treasury
Price” means, with respect to any Redemption Date for the Notes, (i) the arithmetic average of five Reference Treasury
Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if
the Company obtains fewer than five such Reference Treasury Dealer Quotations, the arithmetic average of all such quotations for such
Redemption Date.

 

“Consolidated Unencumbered
Assets” as of any date means all of the assets (excluding intangibles) of the Parent and its Subsidiaries that are not subject
to a Lien (other than a Permitted Lien) securing Debt of the Parent and its Subsidiaries, all on a consolidated basis for the Parent and
its Subsidiaries in accordance with GAAP, plus equity in the Parent and its Subsidiaries’ CLO securitizations that is not subject
to a Lien (other than a Permitted Lien).

 

“Corporate Trust
Office” means the principal corporate trust office of the Trustee, at which at any particular time its corporate trust business
relating to this Indenture shall be principally administered, which office at the date of execution of this Indenture is located at UMB
Bank, N.A., 5555 San Felipe, Suite 870, Houston, TX  77056 Attn:
Corporate Trust and Escrow Services.

 

“corporation”
includes, unless the context indicates otherwise, corporations, associations, partnerships, limited liability companies, companies and
business trusts.

 

“Covenant Defeasance”
has the meaning specified in Section 1303 of this Indenture.

 

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“Debt”
means, for any Person, (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance
and sale of debt securities or the sale of property to another Person subject to agreement, contingent or otherwise, to repurchase such
property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of property or services,
other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business
so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or the respective services
are rendered; (c) Debt of others secured by a lien on the property of such Person, whether or not the respective Debt so secured
has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar
instruments issued or accepted by banks and other financial institutions for account of such Person; (e) obligations of such Person
under repurchase agreements, sale/buy-back agreements or like arrangements; (f) Debt of others guaranteed by such Person; (g) all
obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (h) Recourse
Debt of such Person; (i) Debt of general partnerships of which such Person is secondarily or contingently liable (other than by
endorsement of instruments in the course of collection), whether by reason of any agreement to acquire such indebtedness to supply or
advance sums or otherwise; (j) Capitalized Lease Obligations of such Person; (k) all net liabilities or obligations under any
interest rate, interest rate swap, interest rate cap, interest rate floor, interest rate collar, or other hedging instrument or agreement;
and (l) all obligations of such Person under Financing Leases.

 

“Debt to Equity Ratio”
means, with respect to the Parent on any date, on a consolidated basis, the ratio of (i) (a) Total Liabilities, plus (b) letters
of credit issued for the account of the Parent or any Subsidiary of the Parent and outstanding on such date, minus (c) the TRUPs
Indebtedness and any other Subordinated Debt, minus (d) indebtedness related to the Agency Business, minus (e) allowance for
loss sharing obligations relating to the Agency Business, to (ii) Tangible Capital Base.

 

“Default”
means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Defaulted Interest”
has the meaning specified in Section 306(b) of this Indenture.

 

“Depository”
means The Depository Trust Company, its nominees and their respective successors.

 

“Designated NRSRO”
has the meaning specified in Section 301.

 

“Egan-Jones”
means Egan-Jones Ratings Company and any successor to the credit rating business thereof.

 

“Equity Interests”
means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust
or other equity ownership interests or equivalents (however designated, including any instrument treated as equity for U.S. federal income
tax purposes) in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity
interest.

 

“Event of Default”
has the meaning specified in Section 501 of this Indenture.

 

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“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder from time to time in
effect.

 

“Financing Lease”
means any lease of property, real or personal, the obligations of the lessee in respect of which are required in accordance with GAAP
to be capitalized on a balance sheet of the lessee.

 

“GAAP”
means generally accepted accounting principles set forth in opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and in statements and pronouncements of the Financial Accounting Standards Board, or in opinions,
statements or pronouncements of any other entity approved by a significant segment of the accounting profession, which are applicable
to the circumstances as of the date of determination.

 

“Global Notes”
has the meaning specified in the Appendix.

 

“Government Obligations”
means securities that are either:

 

(a) direct obligations
of the United States for the timely payment of which its full faith and credit is pledged; or

 

(b) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States,

 

which, in either case, are not callable or redeemable
at the option of the issuers thereof, and shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act), as custodian with respect to any such Government Obligations, or a specific payment of principal of or interest on
any such Government Obligations held by such custodian for the account of the holder of such depository receipt; provided that (except
as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the Government Obligations or the specific payment of principal of or interest
on the Government Obligations evidenced by such depository receipt.

 

“guarantee”
means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments
for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any
other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise,
by such Person:

 

(a) to purchase such
indebtedness or obligation or any property constituting security therefor;

 

(b) to advance or supply
funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance
sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase
or payment of such indebtedness or obligation;

 

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(c) to lease properties
or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability
of any other Person to make payment of the indebtedness or obligation; or

 

(d) otherwise to assure
the owner of such indebtedness or obligation against loss in respect thereof.

 

In any computation of the
indebtedness or other liabilities of the obligor under any guarantee, the indebtedness or other obligations that are the subject of such
guarantee shall be assumed to be direct obligations of such obligor.

 

“Guarantors”
means the Parent and the Subsidiary Guarantors.

 

“Holder”
means the Person in whose name a Note is registered on the books of the Note Registrar.

 

“Indenture”
means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof.

 

“Independent Investment
Banker” means, with respect to any Redemption Date for the Notes, one of the Reference Treasury Dealers selected by the Company
or, if such firms or any such successors, as the case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent
investment banking institution of national standing selected by the Company.

 

“Initial Notes”
has the meaning stated in the first recital of this Indenture.

 

“Initial Purchasers”
has the meaning specified in the Appendix.

 

“Insolvency Laws”
means Title 11 of the United States Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, suspension of payments and similar debtor relief laws from time to time in effect affecting
the rights of creditors generally.

 

“Interest Payment
Date” means April 15 and October 15, commencing on April 15, 2023.

 

“Issue Date”
means October 11, 2022.

 

“Legal Defeasance”
has the meaning specified in Section 1302 of this Indenture.

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which the Corporate Trust Office, the office of the Paying Agent or banking institutions in New
York City are authorized or required by law, regulation or executive order to close.

 

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional sale
or other title retention agreement, any lease in the nature thereof and any agreement to give any security interest).

 

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“Material Debt”
means, indebtedness pursuant to each of the following agreements, in each case, as amended, restated, modified, renewed, refunded, replaced
in any manner (whether upon or after termination or otherwise) or refinanced in whole or in part from time to time:

 

(a) the Indenture, dated
as of March 13, 2018, between Parent and U.S. Bank National Association, as trustee;

 

(b) the Indenture, dated
as of July 3, 2018, between the Parent and U.S. Bank National Association, as trustee;

 

(c) the Indenture, dated
as of July 20, 2018, between the Parent and U.S. Bank National Association, as trustee;

 

(d) the Note Purchase
Agreement, dated as of March 22, 2019, between the Parent and each of the purchasers party thereto;

 

(e) the Note Purchase
Agreement, dated as of October 15, 2019, between the Parent and each of the purchasers party thereto;

 

(f) the Indenture, dated
as of November 12, 2019, between the Parent and U.S. Bank National Association, as trustee;

 

(g) the Note Purchase
Agreement, dated as of March 4, 2020, between the Parent and each of the purchasers party thereto;

 

(h) the Amended and Restated
Note Purchase Agreement, dated as of June 25, 2020, between the Parent and each of the purchasers party thereto;

 

(i) the Indenture, dated
as of April 30, 2021, between the Parent and UMB Bank, N.A., as trustee;

 

(j) the Note Purchase
Agreement, dated as of August 31, 2021, between the Parent and each of the purchasers party thereto;

 

(k) the Indenture, dated
as of August 5, 2022, between the Parent and U.S. Bank Trust Company, National Association, as trustee; and

 

(l) any other (i) indenture
between Parent or a Subsidiary of Parent (and in respect of which Parent is an obligor) and a trustee which is generally comparable to
the indentures described in the foregoing clauses (a), (b), (c), (f), (i) and (k) of this definition or (ii) note purchase
agreement between Parent or a Subsidiary of Parent (and in respect of which Parent is an obligor) and the purchasers party thereto, which
is generally comparable to the note purchase agreements described in the foregoing clauses (d), (e), (g), (h) and (j) of this
definition.

 

“Maturity,”
when used with respect to any Note, means the date on which the principal of such Note or an installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, notice of redemption or otherwise.

 

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“Net Asset Value”
means, as of the date of determination, the total value of the assets of the Parent and its Subsidiaries less the total value of the liabilities
the Parent and its Subsidiaries shown on the Parent’s consolidated statement of assets, liabilities and equity on such date, as
calculated and determined in accordance with GAAP.

 

“Net Cash Proceeds”
means with respect to any issuance or sale of Equity Interests, the cash proceeds of such issuance, sale or incurrence, as the case may
be, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts and commissions
and brokerage, consultant and other fees and expenses incurred in connection with such issuance, sale or incurrence, as the case may be,
and net of taxes paid or payable as a result thereof.

 

“Net Equity Capital
Activity” means, as of any date of determination, the aggregate Net Cash Proceeds from the sale by the Parent of its Equity
Interests at any time after the date of this Indenture less (i) the aggregate amount paid by the Parent after the date of this Indenture
to repurchase its Equity Interests and (ii) the aggregate amount of cash distributions made by the Parent to the holders of its Equity
Interests at any time after the date of this Indenture.

 

“Non-IG Rating”
has the meaning specified in Section 301.

 

“Note Guarantee”
means the guarantee by each Guarantor of the obligations of the Company under this Indenture and the Notes.

 

“Note Register”
and “Note Registrar” have the respective meanings specified in Section 304.

 

“Notes”
means any 8.50% Senior Notes due 2027 of the Company authenticated and delivered under this Indenture. The Initial Notes and any Additional
Notes shall be treated as a single series for all purposes of this Indenture, including waivers, amendments, redemptions and offers to
purchase, and shall vote and consent together as one class on all matters with respect to the Notes (except that any series of Notes that
is not fungible with the Initial Notes for U.S. Federal income tax purposes shall be treated for purposes of provisions of this Indenture
relating to transfer and exchange as a separate class that does not trade fungibly with Notes that have differing treatment under U.S.
Federal income tax law and shall be assigned a different CUSIP or other identification number), and unless the context otherwise requires,
all references to the Notes shall include the Initial Notes and any Additional Notes.

 

“Offering Memorandum”
means the final offering memorandum of the Company dated October 6, 2022 respecting the offering of the Initial Notes.

 

“Officer”
means any of the Chief Executive Officer, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, the Secretary and
the General Counsel of the Company.

 

“Officer’s
Certificate” means a certificate signed on behalf of the Company by an Officer of the Company that meets the requirements set
forth in this Indenture.

 

“Operating Cash Flow”
means, for any period of determination, with respect to the Parent and its Subsidiaries, on a consolidated basis, net cash provided by
operating activities, exclusive of the effects from changes in operating assets and liabilities, plus cash paid for income taxes and interest
payments, determined in accordance with GAAP applied in a manner consistent with the Parent’s most recent audited financial statements.

 

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“Opinion of Counsel”
means a written opinion from legal counsel. The counsel may be an employee of or counsel to the Company. Opinions of Counsel required
to be delivered under this Indenture may have qualifications customary for opinions of the type required and counsel delivering such Opinions
of Counsel may rely on certificates of the Company or government or other officials customary for opinions of the type required, including
certificates certifying as to matters of fact, including that various covenants have been complied with.

 

“Outstanding,”
when used with respect to Notes, means, as of the date of determination, all Notes theretofore authenticated and delivered under this
Indenture, except:

 

(1)            Notes
theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(2)            Notes,
or portions thereof, for whose payment or redemption funds in the necessary amount have been theretofore deposited with the Trustee or
any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its
own Paying Agent) for the Holders of such Notes; provided that, if such Notes are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;

 

(3)            Notes,
except to the extent provided in Sections 1302 and 1303, with respect to which the Company has effected Legal Defeasance or Covenant Defeasance
as provided in Article Thirteen; and

 

(4)            Notes
which have been paid pursuant to this Indenture or in exchange for or in lieu of which other Notes have been authenticated and delivered
pursuant to Section 305 of this Indenture, other than any such Notes in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Notes are held by a Protected Purchaser in whose hands the Notes are valid obligations of the Company;

 

provided, however, that in determining whether
the Holders of the requisite principal amount of Outstanding Notes have given any request, demand, authorization, direction, consent,
notice or waiver hereunder, Notes owned by the Company or any other obligor upon the Notes or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making
such calculation or in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.

 

“Par Call Date”
means July 15, 2027.

 

“Parent”
means the Person named as the “Parent” in the first paragraph of this Indenture, until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Parent” shall mean such successor Person.

 

    9 

     

    

 

“Paying Agent”
means any Person (including the Company if acting as Paying Agent) authorized by the Company to pay the principal of (and premium, if
any) or interest on, or any Redemption Price of, any Notes on behalf of the Company. The initial Paying Agent is the Trustee.

 

“Permitted Liens”
means:

 

(1)            Liens
securing the Company’s or the Parent’s obligations under the Notes;

 

(2)            Liens
for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate
proceedings, provided any reserve or other appropriate provision as is required by GAAP has been made therefor; and

 

(3)            Liens
of a depository institution or broker-dealer arising solely by virtue of any contractual, statutory or common law provisions relating
to broker’s Liens, banker’s Liens, rights of set-off or similar rights and remedies as to deposit or brokerage accounts or
other funds maintained with such depository institution or broker-dealer.

 

“Person”
means any individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity
or governmental authority.

 

“Place of Payment,”
with respect to any Note, means the place or places where the principal of, or any premium or interest on, such Note are payable as provided
in or pursuant to this Indenture or such Note.

 

“Predecessor Note”
of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note;
and, for the purposes of this definition, any Note authenticated and delivered under Section 305 in exchange for a mutilated Note
or in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“Primary Treasury
Dealer” means a primary U.S. government securities dealer in the United States.

 

“Protected Purchaser”
has the meaning specified in Section 305 of this Indenture.

 

“Qualifying Trustee”
has the meaning specified in Section 1305 of this Indenture.

 

“Recourse Debt”
means, for any Person on any date, without duplication, the indebtedness of such Person (and its consolidated Subsidiaries) for which
such Person (and its consolidated Subsidiaries) is directly responsible or liable as obligor or guarantor (excluding obligations arising
by reason of customary recourse carve-outs under a non-recourse instrument, including, but not limited to, fraud, misappropriation and
environmental indemnities).

 

“Redemption Date,”
when used with respect to any Note to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this
Indenture.

 

    10 

     

    

 

“Redemption Price,”
when used with respect to any Note to be redeemed, means the price at which such Note is to be redeemed pursuant to this Indenture.

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the arithmetic average of
the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in
writing to the Company (and provided to the Trustee) by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
Business Day preceding such Redemption Date.

 

“Reference Treasury
Dealers” means, with respect to any Redemption Date for the Notes, five Primary Treasury Dealers selected by the Company; provided,
however, that if any of the foregoing ceases to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury
Dealer selected by the Company.

 

“Regular Record Date”
has the meaning specified in Section 301 of this Indenture.

 

“Responsible Officer,”
means, (a) when used with respect to the Parent or any of its Subsidiaries, any Senior Financial Officer and any other Officer with
responsibility for the administration of the relevant portion of this Indenture; and (b) when used with respect to the Trustee, any
officer of the Trustee assigned by the Trustee to administer this Indenture, and also means, with respect to a particular corporate trust
matter relating to this Indenture, any other officer to whom such matter is referred because of his knowledge of and familiarity with
the particular subject, and who in each case shall have direct responsibility for the administration of this Indenture.

 

“SEC” means
the Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder from time to time in effect.

 

“Senior Debt Service”
means, for the Testing Period, the sum of: (a) the interest paid in cash or required to be paid in cash by the Parent and its Subsidiaries,
on a consolidated basis, for the Testing Period with respect to all Debt of Parent and its Subsidiaries, together with all fees and expenses
paid on account of or with respect thereto, minus the interest paid in cash or required to be paid in cash by the Parent and its
Subsidiaries, on a consolidated basis, for the Testing Period with respect to all Subordinated Debt together with all fees and expenses
paid on account of or with respect thereto, in each case, determined in accordance with GAAP; plus (b) regularly scheduled
principal amortization payments made or required to be made on account of Debt of the Parent and its Subsidiaries for the Testing Period
(exclusive of pay-offs or pay-downs on account of such Debt), in each case determined in accordance with GAAP.

 

“Senior Debt Service
Coverage Ratio” means, with respect to the Parent, at any date of determination, the ratio of Operating Cash Flow during the
Testing Period to Senior Debt Service for the Testing Period.

 

“Senior Financial
Officer” means the principal executive officer, Chief Financial Officer, principal accounting officer, treasurer or comptroller
of the Parent or any of its Subsidiaries.

 

    11 

     

    

 

“Significant Subsidiary”
means at any time, any Subsidiary of Parent that would constitute a “significant subsidiary” as such term is defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as in effect on the original date of issuance of the Notes.

 

“Single-A Rating”
has the meaning specified in Section 301.

 

“Six-Month Interest
Period” has the meaning specified in Section 301.

 

“Special Record Date”
for the payment of any Defaulted Interest means a date fixed by the Company pursuant to Section 306.

 

“Stated Maturity”
means, with respect to any security, the date specified in the agreement governing or certificate relating to such indebtedness as the
fixed date on which the final payment of principal of such security is due and payable, including pursuant to any mandatory redemption
provision, but not including any contingent obligations to repay, redeem or repurchase any such principal prior to the date originally
scheduled for the payment thereof.

 

“Subordinated Debt”
means all Debt of the Parent and its Subsidiaries that is effectively subordinated in right of payment to the Notes.

 

“Subsidiary”
or “Subsidiaries” means, as to any Person, a corporation, partnership or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries,
or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of Parent.

 

“Subsidiary Guarantor”
means each Subsidiary that has executed and delivered a Note Guarantee. On the Issue Date, no Subsidiaries of the Parent are Subsidiary
Guarantors.

 

“Tangible Capital
Base” means, with respect to the Parent on any date, Total Assets less Total Liabilities plus the TRUPs Indebtedness plus any
other Subordinated Debt.

 

“Testing Period”
means, with respect to the Parent, at any date of determination, the four consecutive fiscal quarters of the Parent most recently ended
immediately prior to such determination date.

 

“Total Assets”
means, with respect to the Parent on any date, all amounts that would be included under total assets on a balance sheet of the Parent
and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP less intangible assets of the Parent and
its Subsidiaries at such date, determined in accordance with GAAP.

 

“Total Liabilities”
means, with respect to the Parent on any date, all amounts that would be included under total liabilities on a balance sheet of the Parent
and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP.

 

    12 

     

    

 

“Treasury Rate”
means, with respect to any Redemption Date for the Notes, (1) the yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently published statistical release designated “H.15 (519)” or any successor
publication which is published weekly by the Federal Reserve and which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable
Treasury Issue (if no maturity is within three months before or after the Par Call Date, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated
from those yields on a straight line basis, rounding to the nearest month) or (2) if the release referred to in clause (1) (or
any successor release) is not published during the week preceding the calculation date or does not contain the yields referred to above,
the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for
the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption
Date. The Company shall calculate the Treasury Rate on the third Business Day preceding the Redemption Date.

 

“Triple-B Rating”
has the meaning specified in Section 301.

 

“TRUPs Indebtedness”
means, with respect to the Parent, as of any date, all amounts that would be included under junior subordinated notes on the balance sheet
of the Parent and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP, consistent with the Parent’s
past practices.

 

“Trust Indenture
Act” or “TIA” means the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was
executed, except as provided in Section 905.

 

“Trustee”
means UMB Bank, N.A., until a successor replaces it and, thereafter, means the successor.

 

“Uniform Commercial
Code” means the New York Uniform Commercial Code as in effect from time to time.

 

“Voting Stock,”
as applied to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of, or to appoint or to approve the appointment of the directors (or the
equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the
occurrence of a contingency.

 

“Wholly-Owned Subsidiary”
means, at any time, any Subsidiary all of the Equity Interests (except directors’ qualifying shares) and voting interests of which
are owned by any one or more of the Parent or the Parent’s other Wholly-Owned Subsidiaries at such time.

 

    13 

     

    

 

Section 103.           Compliance
Certificates and Opinions. Upon any application or request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee:

 

(a)  an Officer’s
Certificate (which must include the statements set forth below) stating that, in the opinion of the signer, all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)  an Opinion of Counsel
(which must include the statements set forth below) stating that, in the opinion of such counsel, all such conditions precedent have been
complied with.

 

Every Officer’s Certificate
or Opinion of Counsel with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(1)            a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating
thereto;

 

(2)            a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such
certificate or opinion are based;

 

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

 

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

 

Section 104.           Form of
Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one
or several documents.

 

Any certificate or opinion
of an Officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such Officer knows that the certificate or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any such certificate or opinion may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an Officer or Officers of the Company stating that the information with respect
to such factual matters is in the possession of the Company, unless such counsel knows that the certificate or opinion or representations
with respect to such matters are erroneous.

 

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

 

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Section 105.           Acts
of Holders. Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders may be embodied in and evidenced by (i) one or more instruments of substantially similar tenor signed
by such Holders in person or by agents duly appointed in writing or (ii) in the case of Notes represented by a Global Note, by any
electronic transmission or other message, whether or not in written format, that complies with the Depository’s Applicable Procedures;
and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or the certification
of such electronic transmissions or other messages, as the case may be, is delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments or such electronic transmissions or other messages (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument
or instruments or sending such electronic transmissions or other messages. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section.

 

The fact and date of the execution
by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof, or in any other manner which is reasonably satisfactory to the Trustee. Where such
execution is by a signer acting in a capacity other than his or her individual capacity, such certificate or affidavit shall also constitute
sufficient proof of authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other manner that the Trustee deems sufficient.

 

The principal amount and serial
numbers of Notes held by any Person, and the date of holding the same, shall be proved by the Note Register.

 

If the Company shall solicit
from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option,
fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do so. Unless otherwise specified, if not set by the Company
prior to the first solicitation from Holders of such action, such record date shall be the later of 30 days prior to the first solicitation
of such action or the date of the most recent list of Holders furnished to the Trustee prior to such solicitation. If such a record date
is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record
date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Outstanding Notes have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Notes shall be computed as of such record date.
Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Note shall bind every future
Holder of the same Note and the Holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Note.

 

    15 

     

    

 

Without limiting the foregoing,
a Holder entitled to take any action hereunder with regard to any particular Note may do so with regard to all or any part of the principal
amount of such Note or by one or more duly appointed agents, each of which may do so pursuant to such appointment with regard to all
or any part of such principal amount. Any notice given or action taken by a Holder or its agents with regard to different parts of such
principal amount pursuant to this paragraph shall have the same effect as if given or taken by separate Holders of each such different
part.

 

Without limiting the generality
of the foregoing, a Holder, including the Depository that is the Holder of a Global Note, may make, give or take, by a proxy or proxies
duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other Act provided in this Indenture
to be made, given or taken by Holders, and the Depository that is the Holder of a Global Note may provide its proxy or proxies to the
beneficial owners of interests in any such Global Note through such Depository’s standing instructions and customary practices.

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the Persons who are beneficial owners of interests in any Global
Note held by the Depository entitled under the procedures of such Depository to make, give or take, by a proxy or proxies duly appointed
in writing, any request, demand, authorization, direction, notice, consent, waiver or other Act provided in this Indenture to be made,
given or taken by Holders.

 

Section 106.           Notices,
Etc. to Trustee and Company. Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document
provided or permitted by this Indenture to be made upon, given or furnished to, or filed with:

 

(1)            the
Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, emailed, furnished or filed in
writing to or with the Trustee at the Corporate Trust Office, or

 

(2)            the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and sent, first-class postage prepaid, or delivered by recognized overnight courier, to the Company addressed to it at
Arbor Realty Trust, Inc., 333 Earle Ovington Boulevard, Suite 900, Uniondale, New York; Attention Chief Financial Officer,
or at any other address previously furnished in writing to the Trustee by the Company.

 

The Company or the Trustee
by written notice to the other may designate additional or different addresses for subsequent notices or communications.

 

The Trustee agrees to accept
and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, pdf transmission or other similar unsecured
electronic methods, provided, however, that the Trustee shall have received an incumbency certificate listing persons designated to give
such instructions or directions and containing specimen signatures of such designated persons, as may be amended from time to time to
reflect additions or deletions from the listing if the Company elects to give the Trustee e-mail instructions (or instructions by a similar
electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such
instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly
from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent
with a subsequent written instruction. The Company agrees to assume all risks arising out of the use of such electronic methods to submit
instructions and directions to the Trustee, including the risk of the Trustee acting on unauthorized instructions and the risk of interception
and misuse by third parties.

 

    16 

     

    

 

Section 107.           Notice
to Holders; Waiver. Where this Indenture provides for notice of any event to Holders by the Company or the Trustee, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in writing and sent, first-class postage prepaid, to each Holder
affected by such event, at its address as it appears in the Note Register, within the time prescribed for the giving of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so sent,
to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Notices given by publication shall
be deemed given on the first date on which publication is made; notices given by first-class mail, postage prepaid, shall be deemed given
five calendar days after mailing; and notices given electronically shall be deemed given when sent.

 

Where this Indenture provides
for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

Notwithstanding any other
provision of this Indenture or any Note, where this Indenture or any Note provides for notice of any event (including any notice of redemption)
to any Holder of a Global Note or beneficial owner of an interest therein (whether by mail or otherwise), such notice shall be sufficiently
given if given to the Depository for such Global Note (or its designee) according to the Applicable Procedures of the Depository.

 

Section 108.           Effect
of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience
of reference only, are not intended to be considered a part hereof and shall in no way affect the construction of, or modify or restrict,
any of the terms or provisions hereof.

 

Section 109.           Successors
and Assigns. All agreements of the Company in this Indenture and the Notes shall bind its successors. All agreements of the Trustee
in this Indenture shall bind its successors.

 

Section 110.           Separability
Clause. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 111.           Benefits
of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto,
any Paying Agent, any Note Registrar and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

 

    17 

     

    

 

Section 112.           Governing
Law; Jury Trial Waiver. This Indenture and the Notes shall be governed by and construed in accordance with the laws of the State
of New York. The Company and the Guarantors agree that any suit, action or proceeding against the Company or the Guarantors, as applicable,
brought by any Holder or the Trustee arising out of or based upon this Indenture or the Notes may be instituted in any state or Federal
court in the Borough of Manhattan, New York, New York, and any appellate court from any thereof, and each of them irrevocably submits
to the non-exclusive jurisdiction of such courts in any suit, action or proceeding. The Company and the Guarantors irrevocably waive,
to the fullest extent permitted by law, any objection to any suit, action or proceeding that may be brought in connection with this Indenture
or the Notes, including such actions, suits or proceedings relating to securities laws of the United States of America or any state thereof,
in such courts whether on the grounds of venue, residence or domicile or on the ground that any such suit, action or proceeding has been
brought in an inconvenient forum. The Company and the Guarantors agree that final judgment in any such suit, action or proceeding brought
in such court shall be conclusive and binding upon the Company and the Guarantors as the case may be, and may be enforced in any court
to the jurisdiction of which the Company and the Guarantors, as the case may be, is subject by a suit upon such judgment.

 

EACH OF THE COMPANY, THE
GUARANTORS, THE HOLDERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 113.           Legal
Holidays. In any case where any Interest Payment Date, Redemption Date, Change of Control Payment Date or Stated Maturity or other
Maturity of any Note shall be a Legal Holiday, then (notwithstanding any other provision of this Indenture or of the Notes) payment of
principal (or premium, if any) or interest need not be made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the Interest Payment Date, Redemption Date, Change of Control Payment Date or at the Stated Maturity
or other Maturity; provided that no interest shall accrue for purposes of such payment for the period from and after such Interest Payment
Date, Redemption Date, Change of Control Payment Date, Stated Maturity or other Maturity, as the case may be.

 

Section 114.           No
Personal Liability of Directors, Officers, Employees and Stockholders. No past, present or future director, officer, manager, employee,
incorporator or equity holder of the Parent shall have any liability for any obligations of the Company or the Guarantors under the Notes
or this Indenture, or for any claim based on, in respect of, or by reason of such obligations or their creation or by reason of his or
her status as such director, officer, manager, employee, incorporator or equity holder. Each Holder by accepting a Note waives and releases
all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

Section 115.           Counterparts.
This Indenture may be executed in any number of counterparts, each of which shall be original, but such counterparts shall together constitute
but one and the same instrument. One signed copy is enough to prove this Indenture. The exchange of copies of this Indenture and of signature
pages by pdf transmission or other electronic means shall constitute effective execution and delivery of this Indenture for all
purposes. Signatures of the parties hereto transmitted by pdf transmission or other electronic means shall be deemed to be their original
signatures for all purposes.

 

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Section 116.           Force
Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder
arising out of or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, accidents, acts of
war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions
of utilities, communications or computer (software and hardware) services.

 

Section 117.           U.S.A.
Patriot Act. The Company acknowledges that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee is required
to obtain, verify and record information that identifies each person or legal entity that establishes a relationship or opens an account
with the Trustee. The Company agrees that it will provide the Trustee with such information as it may request in order for the Trustee
to satisfy the requirements of the U.S.A. Patriot Act.

 

ARTICLE Two

NOTE FORMS

 

Section 201.           Form and
Dating. Provisions relating to the Initial Notes and any Additional Notes are set forth in Appendix A attached hereto (the “Appendix”),
which is hereby incorporated in, and expressly made part of, this Indenture. The Initial Notes and any Additional Notes issued in a transaction
exempt from the registration requirements of the Securities Act and the Trustee’s certificate of authentication shall be substantially
in the form of Exhibit 1 to Appendix A, which is hereby incorporated in, and expressly made a part of, this Indenture. The Notes
may have notations, legends or endorsements required by law, stock exchange rule, agreements to which the Company is subject, if any,
or usage (provided that any such notation, legend or endorsement is in a form reasonably acceptable to the Company). Each Note shall
be dated the date of its authentication. The respective terms of the Notes set forth in Appendix A are part of the terms of this Indenture.

 

Section 202.           Execution,
Authentication, Delivery and Dating. The Notes shall be executed on behalf of the Company by any Officer. The signature of an Officer
on the Notes may be manual or via pdf transmission or other electronic means of the present or any future such authorized Officer and
may be imprinted or otherwise reproduced on the Notes.

 

Notes bearing the signature
of an individual who was at any time a proper Officer of the Company shall bind the Company, notwithstanding that such individual ceased
to hold such office prior to the authentication and delivery of such Notes or did not hold such office at the date of such Notes.

 

At any time and from time
to time after the execution and delivery of this Indenture, the Company may deliver Notes executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such Notes, and the Trustee in accordance with such Company Order
shall authenticate and deliver such Notes.

 

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On the Issue Date, the Company
shall deliver the Initial Notes executed by the Company in the aggregate principal amount of $150,000,000 to the Trustee for authentication,
together with a Company Order directing the Trustee to authenticate the Notes, and the Trustee in accordance with such Company Order shall
authenticate and deliver such Initial Notes. At any time and from time to time after the Issue Date, the Company may deliver Additional
Notes executed by the Company to the Trustee for authentication, together with (i) a Company Order for the authentication and delivery
of such Additional Notes, directing the Trustee to authenticate the Additional Notes and certifying that all conditions precedent to the
issuance of Notes contained herein have been fully complied with, and (ii) an Opinion of Counsel which shall state that such Additional
Notes, when authenticated and delivered by the Trustee and issued by the Company, will constitute valid and legally binding obligations
of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Thereafter,
the Trustee in accordance with such Company Order shall authenticate and deliver such Additional Notes.

 

Each Note shall be dated the
date of its authentication.

 

No Note shall be entitled
to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication
substantially in the form provided for in Exhibit 1 to Appendix A, duly executed by the Trustee by manual signature of an authorized
signatory, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated
and delivered hereunder and is entitled to the benefits of this Indenture.

 

In case the Company, pursuant
to Article Eight of this Indenture, shall be consolidated or merged with or into any other Person or shall sell, assign, transfer,
lease or otherwise convey all or substantially all its properties and assets to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have been merged, or the Person which shall have received a sale,
assignment, transfer, lease or other conveyance as aforesaid, shall have expressly assumed the obligations of the Company pursuant to
Article Eight of this Indenture, any of the Notes authenticated or delivered prior to such consolidation, merger, sale, assignment,
transfer, lease or other conveyance may, from time to time, at the request of the successor Person, be exchanged for other Notes executed
in the name of the successor Person with such changes in phraseology and form as may be appropriate, but otherwise in substance of like
tenor as the Notes surrendered for such exchange and of like principal amount; and the Trustee, upon Company Request of the successor
Person, shall authenticate and deliver Notes as specified in such request for the purpose of such exchange. If Notes shall at any time
be authenticated and delivered in any new name of a successor Person pursuant to this Section in exchange or substitution for or
upon registration of transfer of any Notes, such successor Person, at the option of the Holders but without expense to them, shall provide
for the exchange of all Notes at the time Outstanding for Notes authenticated and delivered in such new name.

 

ARTICLE Three

THE NOTES

 

Section 301.           Title
and Terms. The aggregate principal amount of Notes which may be authenticated and issued under this Indenture is not limited; provided,
however that any Additional Notes issued under this Indenture shall rank pari passu with the Initial Notes, shall be issued in accordance
with Sections 202 and 312 hereof, shall form a single series with the Initial Notes and (except as set forth in Section 312) shall
have the same terms as to status, redemption or otherwise as the Initial Notes.

 

    20 

     

    

 

The Notes shall be known and
designated as the “8.50% Senior Notes due 2027” of the Company. The Stated Maturity of the Notes shall be October 15,
2027, and the Notes shall bear interest at the rate set forth below from October 11, 2022, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, payable on April 15, 2023 and semi-annually thereafter on April 15
and October 15 in each year and at said Stated Maturity, until the principal thereof is paid or duly provided for and to the Person
in whose name the Note (or any Predecessor Note) is registered at the close of business on the April 1 and October 1 immediately
preceding such Interest Payment Date (each, a “Regular Record Date”).

 

The initial annual interest
rate of 8.50% per annum is subject to adjustment from time to time based on changes to the ratings of the Notes by one or more “nationally
recognized statistical rating organizations” within the meaning of Section 3(a)(62) of the Exchange Act that is designated
as a “Credit Rating Provider” (or other similar designation) by the National Association of Insurance Commissioners (each,
a “Designated NRSRO”).

 

The annual interest rate on
the Notes will increase by 0.25% beginning on the first day of any Six-Month Interest Period if the Notes have a Triple-B Rating as of
the last day of the immediately preceding Six-Month Interest Period, and likewise it will increase by 0.50% in excess of the initial rate
beginning on the first day of any Six-Month Interest Period if as of the last day of the immediately preceding Six-Month Interest Period
the Notes have either a Non-IG Rating (as defined below) or no rating from any Designated NRSRO. In the event that the annual interest
rate on the Notes increases due to one or more downgrades, the rate will revert to the initial interest rate beginning on the first day
of any Six-Month Interest Period if as of the last day of the immediately preceding Six-Month Interest Period the Notes have a Single-A
Rating, and it will revert to 0.25% over the initial interest rate beginning on the first day of any Six-Month Interest Period if as of
the last day of the immediately preceding Six-Month Interest Period the Notes have been upgraded from a Non-IG Rating to a Triple-B Rating.

 

The Company will notify the
Trustee and Depository in writing within five Business Days of any change in the ratings of the Notes and any resulting change in annual
interest rate and the effective dates thereof, and in no event will the Trustee be responsible for monitoring such changes. Further, in
no circumstances will the annual interest rate exceed the initial rate by more than 0.50% due to changes in ratings of the Notes, and
in no event will it ever be less than the initial rate.

 

For purposes of this Indenture,
the following terms are defined thus:

 

“Six-Month Interest
Period” means the period beginning on each Interest Payment Date for the Notes and ending on the day immediately preceding the
commencement of the next following Interest Payment Date for the Notes. The initial Six-Month Interest Period will begin on the first
Interest Payment Date for the Notes.

 

    21 

     

    

 

A “Triple-B Rating”
will occur if, as of any date of determination:

 

(1)            assuming
the Notes are rated by only one Designated NRSRO, the then most recent rating from such Designated NRSRO is no lower than a BBB- and no
higher than a BBB+;

 

(2)            assuming
the Notes are rated by only two Designated NRSROs, the then lower of the most recent ratings from such Designated NRSROs is no lower than
a BBB- and no higher than a BBB+; or

 

(3)            assuming
the Notes are rated by three or more Designated NRSROs, the then second lowest of the most recent ratings from such Designated NRSROs
is no lower than a BBB- and no higher than a BBB+.

 

A “Non-IG Rating”
will occur if, as of any date of determination:

 

(1)            assuming
the Notes are rated by only one Designated NRSRO, the then most recent rating from such Designated NRSRO is a BB+ or lower;

 

(2)            assuming
the Notes are rated by only two Designated NRSROs, the then lower of the most recent ratings from such Designated NRSROs is a BB+ or lower;
or

 

(3)            assuming
the Notes are rated by three or more Designated NRSROs, the then second lowest of the most recent ratings from such Designated NRSROs
is a BB+ or lower.

 

A “Single-A Rating”
will occur if, as of any date of determination:

 

(1)            assuming
the Notes are rated by only one Designated NRSRO, the then most recent rating from such Designated NRSRO is at least an A-;

 

(2)            assuming
the Notes are rated by only two Designated NRSROs, the then lower of the most recent ratings from such Designated NRSROs is at least an
A-; or

 

(3)            assuming
the Notes are rated by three or more Designated NRSROs, the then second lowest of the most recent ratings from such Designated NRSROs
is at least an A-.

 

The ratings categories referred
to in the preceding definitions are those used by Egan-Jones but are deemed to refer also to the equivalent ratings of any other Designated
NRSRO.

 

The principal of (and premium,
if any), and interest on the Notes shall be payable at the office or agency of the Company maintained for such purpose or, at the option
of the Company, payment of interest may be made by check sent to the Holders at their respective addresses set forth in the Note Register;
provided that all payments of principal, premium, if any, and interest with respect to Notes represented by one or more permanent Global
Notes registered in the name of or held by the Depository or its nominee shall be made by wire transfer of immediately available funds
to the accounts specified by the Holder or Holders thereof, and all payments of principal, premium, if any, and interest with respect
to one or more Certificated Notes at Stated Maturity shall be made against presentation of such Certificated Note at the office or agency
of the Company maintained for such purpose.

 

    22 

     

    

 

Section 302.           Denominations.
The Notes shall be issuable only in registered form without coupons and only in minimum denominations of $1,000 and any integral multiple
of $1,000 in excess thereof.

 

Section 303.           Temporary
Notes. Pending the preparation of definitive Notes, the Company may execute, and upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Notes which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Notes in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the Officer executing such Notes may determine, as conclusively evidenced by their execution
of such Notes.

 

If temporary Notes are issued,
the Company shall cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary
Notes shall be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Company designated
for such purpose pursuant to Section 1002 without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Notes, the Company shall execute and upon receipt of a Company Order the Trustee shall authenticate and deliver in exchange therefor
a like principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all respects
be entitled to the same benefits under this Indenture as definitive Notes.

 

Section 304.           Note
Registrar; Paying Agent; Registration of Transfer and Exchange. The Company shall cause to be kept at the Corporate Trust Office
of the Trustee a register (the register maintained in such office and in any other office or agency designated pursuant to Section 1002
being herein sometimes referred to as the “Note Register”) in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. The Note Register shall be in written
form or any other form capable of being converted into written form within a reasonable time. At all reasonable times, the Note Register
shall be open to inspection by the Trustee. The Trustee is hereby initially appointed as note registrar (the “Note Registrar”)
for the purpose of registering Notes and transfers of Notes as herein provided. The Trustee is hereby initially appointed to act as the
Paying Agent and to act as custodian with respect to the Global Notes.

 

Upon surrender for registration
of transfer of any Note at the office or agency of the Company designated pursuant to Section 1002, the Company shall execute, and
the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized
denomination or denominations or a like aggregate principal amount.

 

At the option of the Holder,
Notes may be exchanged for other Notes of any authorized denomination and of a like aggregate principal amount, upon surrender of the
Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Company shall execute, and upon
receipt of a Company Order the Trustee shall authenticate and deliver, the Notes which the Holder making the exchange is entitled to receive.

 

    23 

     

    

 

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

 

Every Note presented or surrendered
for registration of transfer or for exchange shall (if so required by the Company or the Note Registrar) be duly endorsed, or be accompanied
by written instruments of transfer, in form satisfactory to the Company and the Note Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing.

 

No service charge shall be
made for any registration of transfer or exchange or redemption of Notes, but the Company may require payment of a sum sufficient to
cover any transfer tax or other similar governmental charge that may be imposed in connection with any registration of transfer or exchange
of Notes, other than exchanges pursuant to Sections 202, 303, 906 or 1110 not involving any transfer.

 

Section 305.           Mutilated,
Destroyed, Lost and Stolen Notes. If (1) any mutilated Note is surrendered to the Trustee, or (2) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Note, and there is delivered to the Company and the Trustee
such security or indemnity as may be required to protect the Company, the Trustee and any Authenticating Agent or other agent of the
Company or the Trustee from any loss that any of them may suffer if a Note is replaced, then, in the absence of notice to the Company
or the Trustee that such Note has been acquired by a protected purchaser (as defined in Section 8-303 of the Uniform Commercial
Code) (a “Protected Purchaser”), the Company shall execute and upon its receipt of a Company Order the Trustee shall
authenticate and deliver, in exchange for any such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a new Note of
like tenor and principal amount, bearing a number not contemporaneously Outstanding.

 

In case any such mutilated,
destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing
a new Note, pay such Note.

 

Upon the issuance of any new
Note under this Section, the Company may require the payment of a sum sufficient to cover any transfer tax or other similar governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Company and its counsel
and the fees and expenses of the Trustee and its counsel) in replacing a Note.

 

Every new Note issued pursuant
to this Section in lieu of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

 

The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes.

 

    24 

     

    

 

Section 306.           Payment
of Interest; Interest Rights Preserved.

 

(a)            Interest
on any Note which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name such Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest
at the office or agency of the Company maintained for such purpose pursuant to Section 1002; provided, however, that, subject to
Section 301 hereof, each installment of interest may at the Company’s option be paid by (1) sending a check for such
interest, payable to or upon the written order of the Person entitled thereto pursuant to Section 307, to the address of such Person
as it appears in the Note Register or (2) transfer to an account located in the United States maintained by the payee.

 

(b)            Any
interest on any Note which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease
to be payable to the Holder on the Regular Record Date by virtue of having been such Holder, and such defaulted interest and (to the extent
lawful) interest on such defaulted interest at the rate borne by the Notes (such defaulted interest and interest thereon herein collectively
called “Defaulted Interest”) may be paid by the Company, at its election in each case, as provided in clause (1) or
(2) below:

 

(1)            The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes)
are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Company shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the Trustee of such Special
Record Date, and cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be given in the
manner provided for in Section 107, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so given, such Defaulted Interest shall be paid to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (2).

 

(2)            The
Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company
to The Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

    25 

     

    

 

(c)            Subject
to the foregoing provisions of this Section, each Note delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other
Note.

 

Section 307.           Persons
Deemed Owners. Prior to the due presentment of a Note for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee shall treat the Person in whose name such Note is registered as the owner of such Note for the purpose of receiving
payment of principal of (and premium, if any) and (subject to Sections 304 and 306) interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.

 

Section 308.           Cancellation.
All Notes surrendered for payment, redemption, registration of transfer or exchange shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation
any Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Notes previously authenticated hereunder which
the Company has not issued and sold, and all Notes so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire
any of the Notes, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such
Notes unless and until the same are surrendered to the Trustee for cancellation. No Notes shall be authenticated in lieu of or in exchange
for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Notes held by the
Trustee shall be disposed of by the Trustee in accordance with its customary procedures (subject to the record retention requirements
of the Exchange Act). Evidence of the cancellation of such Notes shall be delivered to the Company by the Trustee upon a Company Request.
The Trustee shall maintain a record of all cancelled Notes. The Trustee shall provide the Company a list of all Notes that have been
cancelled from time to time as requested by the Company.

 

Section 309.           Computation
of Interest. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

Section 310.           Transfer
and Exchange. The Notes shall be issued in registered form and shall be transferable only upon the surrender of a Note for registration
of transfer. When a Note is presented to the Note Registrar or a co-registrar with a request to register a transfer, the Note Registrar
shall register the transfer as requested if the requirements of this Indenture and Section 8-401(a) of the Uniform Commercial
Code are met. When Notes are presented to the Note Registrar or a co-registrar with a request to exchange them for an equal principal
amount of Notes of other denominations, the Note Registrar shall make the exchange as requested if the same requirements are met.

 

The Company shall not be
required, and without the prior written consent of the Company, the Note Registrar shall not be required, to register the transfer of
or exchange of any Note (i) during a period beginning at the opening of business 15 days before provision of a notice of redemption
of Notes and ending at the close of business on the day of such provision, (ii) selected for redemption in whole or in part and
(iii) beginning at the opening of business on any record date and ending on the close of business on the related Interest Payment
Date.

 

    26 

     

    

 

Neither the Note Registrar
nor the Trustee shall have the obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer
imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note other than to require delivery
of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by
the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

Section 311.           CUSIP
Numbers. The Company in issuing the Notes may use “CUSIP” numbers, ISINs and “Common Code” numbers (in
each case, if then generally in use) in addition to serial numbers, and, if so, the Trustee shall use such “CUSIP” numbers, ISINs
and “Common Code” numbers in addition to serial numbers in notices of redemption, repurchase or other notices to Holders
as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such “CUSIP”
numbers, ISINs and “Common Code” numbers either as printed on the Notes or as contained in any notice of a redemption
or repurchase and that reliance may be placed only on the serial or other identification numbers printed on the Notes, and any such redemption
or repurchase shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee in writing
of any change in the “CUSIP” numbers, ISINs and “Common Code” numbers applicable to the Notes.

 

Section 312.           Issuance
of Additional Notes. From time to time the Company may, without notice to or the consent of the Holders, create and issue additional
Notes having identical terms to the Initial Notes (other than the issue date, the issue price or the first payment of interest following
the issue date of such additional Notes) (the “Additional Notes”). Such Additional Notes may be consolidated and form
a single series with, and will vote together as one class on all matters with, the Initial Notes, provided that such Additional Notes
shall be either fungible with the Initial Notes for U.S. Federal income tax purposes or issued under a different CUSIP or other identification
number.

 

ARTICLE Four

SATISFACTION AND DISCHARGE

 

Section 401.           Satisfaction
and Discharge of Indenture. Upon the direction of the Company to the Trustee by a Company Order, this Indenture shall cease to be
of further effect, and the Trustee, on receipt of a Company Order, at the expense of the Company, shall execute such instruments reasonably
requested by the Company acknowledging satisfaction and discharge of this Indenture as to such Notes, when

 

(1)            either

 

(a)            all
Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 305 and (ii) Notes for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or

 

    27 

     

    

 

(b)            all
Notes not theretofore delivered to the Trustee for cancellation:

 

(i) have become
due and payable, or

 

(ii) will become
due and payable at their Stated Maturity within one year, or

 

(iii) are to
be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company,

 

and the Company, in the case of clause
(i), (ii) or (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose,
money in an amount sufficient to pay and discharge the entire indebtedness on all Notes not theretofore delivered to the Trustee for cancellation,
including the principal of, and any premium and interest on, such Notes, to the date of such deposit (in the case of Notes which have
become due and payable) or to the Stated Maturity or Redemption Date thereof, as the case may be;

 

(2)            the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(3) the Company
has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein
relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction
and discharge of this Indenture, if money shall have been deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 1003 shall survive such satisfaction
and discharge. In addition, nothing in this Section 401 shall be deemed to discharge the obligations of the Company to the Trustee
under Section 607 and the obligations of the Company to any Authenticating Agent under Section 613 that, by their terms, survive
the satisfaction and discharge of this Indenture.

 

Section 402.           Application
of Trust Money. Subject to the provisions of the last paragraph of Section 1003, all money deposited with the Trustee pursuant
to Section 401 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company to the extent it is acting as its own Paying Agent), to the
Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the
Trustee, but such money need not be segregated from other funds except to the extent required by law. The Company may direct by a Company
Request the investment of any money deposited with the Trustee pursuant to Section 401 in Government Obligations with a maturity
of one year or less. In the absence of any such Company Request, such funds will be held in cash.

 

    28 

     

    

 

If the Trustee or Paying
Agent is unable to apply any money in accordance with Section 401 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 401
until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 401; provided that
if the Company has made any payment of principal of, premium, if any, or interest on any Notes because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee
or Paying Agent.

 

ARTICLE Five

REMEDIES

 

Section 501.           Events
of Default. “Event of Default,” wherever used herein, means any one of the following events (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(1)            default
in the payment of any principal of, or premium, if any, on the Notes issued under this Indenture when due;

 

(2)            default
in the payment of any interest on any Note when such interest becomes due and payable, and continuance of such default for a period of
30 days;

 

(3)            default
in the performance, or breach, of any other covenant or warranty of the Parent, the Company or any Subsidiary Guarantor in this Indenture
or any Note (other than a covenant or warranty for which the consequences of breach or nonperformance are addressed elsewhere in this
Section 501), and continuance of such default or breach for a period of 60 days after the Company receives from the Trustee or the
Company and the Trustee receives from the Holders of at least 25% in aggregate principal amount of the Outstanding Notes a written notice
specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder;

 

(4)            default
in the payment of principal when due on, or any other default resulting in the acceleration of, other indebtedness of the Parent, the
Company or any Significant Subsidiary for borrowed money where the aggregate principal amount with respect to which the default or acceleration
has occurred exceeds $50,000,000 or which constitutes a failure to pay when due (after expiration of any applicable grace period) such
indebtedness for borrowed money in an aggregate principal amount exceeding $50,000,000, but only if such indebtedness for borrowed money
is not discharged or such acceleration is not rescinded or annulled within 30 days after written notice, given in accordance with Section 106,
to the Company or the Parent by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount
of the Outstanding Notes;

 

    29 

     

    

 

(5)            the
entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Parent, the Company or
any Significant Subsidiary in an involuntary case or proceeding under any applicable Insolvency Laws or (ii) a decree or order adjudging
the Parent, the Company or any Significant Subsidiary a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Parent, the Company or any Significant Subsidiary under any applicable
Federal or State law, or appointing a custodian, receiver, conservator, liquidator, assignee, trustee, sequestrator or other similar official
of the Parent, the Company or any Significant Subsidiary or of any substantial part of the property of the Parent, the Company or any
Significant Subsidiary, or ordering the winding up or liquidation of the affairs of the Parent, the Company or any Significant Subsidiary,
and the continuance of any such decree or order for relief unstayed and in effect for a period of 90 consecutive days;

 

(6)            the
commencement by the Parent, the Company or any Significant Subsidiary of a voluntary case or proceeding under any applicable Insolvency
Laws or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Parent, the Company or any Significant
Subsidiary to the entry of a decree or order for relief in respect of the Parent, the Company or any Significant Subsidiary in an involuntary
case or proceeding under any applicable Insolvency Laws or to the commencement of any bankruptcy or insolvency case or proceeding against
the Parent, the Company or any Significant Subsidiary, or the filing by the Parent, the Company or any Significant Subsidiary of a petition
or answer or consent seeking reorganization or relief under any applicable Insolvency Laws, or the consent by the Parent, the Company
or any Significant Subsidiary to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, conservator,
liquidator, assignee, trustee, sequestrator or similar official of the Parent, the Company or any Significant Subsidiary or of any substantial
part of the property of the Parent, the Company or any Significant Subsidiary, or the making by the Parent, the Company or any Significant
Subsidiary of an assignment for the benefit of creditors, or the taking of corporate action by the Parent, the Company or any Significant
Subsidiary in furtherance of any such action; or

 

(7)            (i) any
Note Guarantee ceases to be in full force and effect, other than in accordance with the terms of this Indenture; or (ii) any Guarantor
denies or disaffirms in writing its obligations under any Note Guarantee other than in accordance with the terms thereof or upon release
of such Note Guarantee in accordance with this Indenture; or (iii) any Note Guarantee is declared null and void.

 

Section 502.           Acceleration
of Maturity; Rescission and Annulment. If an Event of Default with respect to the Notes occurs and is continuing (other than an Event
of Default specified in Section 501(5) or (6)), then either the Trustee or the Holders of not less than 25% of the aggregate
principal amount of the Outstanding Notes may declare the principal of all the Notes, and accrued and unpaid interest, if any, thereon
to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and the Trustee
at the written direction of such Holders shall declare the principal of, premium, and accrued and unpaid interest, if any, on the Notes
to be immediately due and payable. Upon any such declaration of acceleration, such principal and such accrued and unpaid interest shall
become immediately due and payable. If an Event of Default under Section 501(5) or (6) occurs and is continuing, then
the principal of all the Notes, and accrued and unpaid interest, if any, thereon shall be automatically due and payable. Upon payment
of such amount, all obligations of the Company in respect of the payment of principal and interest of the Notes shall terminate.

 

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If a Default occurs with respect
to any of the covenants set forth in Sections 1010, 1011, 1012 and 1013, such Default and all consequences thereof will be annulled, waived
and rescinded automatically, without any action by the Trustee or the Holders and without giving rise to an Event of Default, if within
the 60-day cure period provided for in Section 501(3) following the giving of a Notice of Default to the Company respecting
such Default, the Company delivers an Officer’s Certificate to the Trustee stating that, as of a specified date subsequent to the
end of the applicable fiscal quarter, such Default has been cured.

 

At any time after the Notes
have been accelerated and before a judgment or decree for payment of the money due based on such acceleration has been obtained by the
Trustee as hereinafter in this Article Five provided, the Holders of a majority of the aggregate principal amount of the Outstanding
Notes, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:

 

(1)            the
Company has paid or deposited with the Trustee a sum of money sufficient to pay:

 

(a)            all
overdue installments of any interest on any Notes which have become due otherwise than by such declaration of acceleration;

 

(b)            the
principal of and any premium on any Notes which have become due otherwise than by such declaration of acceleration and, to the extent
permitted by applicable law, interest thereon at the rate or respective rates, as the case may be, provided for in or with respect to
such Notes, or, if no such rate or rates are so provided, at the rate or respective rates, as the case may be, of interest borne by such
Notes;

 

(c)            to
the extent permitted by applicable law, interest upon installments of any interest, if any, which have become due otherwise than by such
declaration of acceleration at the rate or respective rates, as the case may be, provided for in or with respect to such Notes, or, if
no such rate or rates are so provided, at the rate or respective rates, as the case may be, of interest borne by such Notes, and

 

(d)            all
sums paid or advanced by the Trustee hereunder and the compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and all other amounts due the Trustee under Section 607; and

 

(2)            all
Events of Default, other than the non-payment of the principal of, any premium and interest on, Notes which shall have become due solely
by such declaration of acceleration, shall have been cured or waived as provided in Section 513.

 

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

 

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Section 503.           Collection
of Indebtedness and Suits for Enforcement by Trustee. If an Event of Default specified in Section 501(1) or (2) occurs
and is continuing, the Trustee, in its own name as trustee of an express trust, may institute a judicial proceeding for the collection
of the sums due hereunder pursuant to this Article Five and unpaid, and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel. The Trustee may prosecute such proceeding to judgment or final decree and may enforce the same against the Company
or any other obligor upon the Notes and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon the Notes, wherever situated.

 

If an Event of Default specified
in Section 501(1) or (2) occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders under this Indenture by the judicial proceedings discussed above as the Trustee shall deem necessary
to protect and enforce any such rights.

 

Section 504.           Trustee
May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor, upon the Notes or the
property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Notes
shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal, premium, if any, or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise.

 

(1)            to
file and prove a claim for the whole amount of principal (and premium, if any) and interest owing and unpaid in respect of the Notes
and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders
allowed in such judicial proceeding, and

 

(2)            to
collect, receive and distribute any moneys or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee
any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 607.

 

Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

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Section 505.           Trustee
May Enforce Claims Without Possession of Notes. All rights of action and claims under this Indenture, the Note Guarantees or
the Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name and as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, be for the ratable benefit of the Holders in respect of which such judgment has been recovered.

 

Section 506.           Application
of Money Collected. Any money or property collected by the Trustee pursuant to this Article Five shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium,
if any) or interest, upon presentation of the Notes and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

FIRST: To
the payment of all amounts due the Trustee under Section 607;

 

SECOND:
To the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest on the Notes in respect of which
or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts
due and payable on such Notes for principal (and premium, if any) and interest, respectively; and

 

THIRD: The
balance, if any, to the Company.

 

The Trustee may fix a record
date and payment date for any payment to Holders pursuant to this Section 506.

 

Section 507.           Limitation
on Suits. Subject to Section 508, no Holder of any Notes shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, the Note Guarantees or the Notes, or for the appointment of a receiver or Trustee, or for any other remedy
hereunder, unless:

 

(1)            such
Holder has previously given the Trustee written notice that an Event of Default is continuing:

 

(2)            Holders
of at least 25% in principal amount of the Outstanding Notes have made written request to the Trustee to pursue the remedy, and offered
to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities incurred in compliance
with such request;

 

(3)            the
Trustee has not complied with such request within 60 days after the receipt thereof and such offer of security or indemnity; and

 

(4)            Holders
of a majority in aggregate principal amount of the Outstanding Notes have not given the Trustee a direction inconsistent with such request
within such 60-day period,

 

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it being understood and intended that no one
or more Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all the Holders
(it being further understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances
are unduly prejudicial to such Holders).

 

Section 508.           Unconditional
Right of Holders to Receive Principal, Premium and Interest. Notwithstanding any other provision in this Indenture, the Holder of
any Note shall have the contractual right, which is absolute and unconditional, to institute suit for the enforcement of any payment
of the principal of (and premium, if any) and interest on, the Notes on the respective Stated Maturities expressed in such Note (or,
in the case of redemption or repurchase, on the Redemption Date or Change of Control Payment Date, respectively) on or after such respective
dates, and such rights shall not be changed without the consent of such Holder.

 

Section 509.           Restoration
of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture
and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder,
then and in every such case, subject to any determination in such proceeding, the Company, the Guarantors, any other obligor of the Notes,
the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 510.           Rights
and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Notes in the last paragraph of Section 305, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

 

Section 511.           Delay
or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Note to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article Five or by law to the Trustee or to the Holders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

    34 

     

    

 

Section 512.           Control
by Holders. The Holders of a majority in aggregate principal amount of the Outstanding Notes shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, provided that:

 

(1)            such
direction shall not be in conflict with any rule of law or with this Indenture;

 

(2)            the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and

 

(3)            the
Trustee need not take any action which might involve it in personal liability or be unduly prejudicial to the Holder’s not consenting.

 

Section 513.           Waiver
of Default. Subject to Sections 508 and 902, the Holders of a majority in aggregate principal amount of the Outstanding Notes by
written notice to the Trustee may on behalf of the Holders of all such Notes waive any Default or Event of Default hereunder and its
consequences and may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration.
Notwithstanding the foregoing, the Holders may not waive a continuing Default or Event of Default (1) in respect of the payment
of interest on, premium, if any, or the principal of any such Note held by a non-consenting Holder, or (2) in respect of a covenant
or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding
Note affected.

 

Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this
Indenture, but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

The consent of the Holders
is not necessary under this Indenture to approve the particular form of any proposed waiver. It is sufficient if such consent approves
the substance of the proposed waiver.

 

Section 514.           Waiver
of Stay or Extension Laws. Each of the Company, the Guarantors, and any other obligor on the Notes covenants (to the extent that
it may lawfully do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force that would prohibit or forgive the Company
or the Guarantors from paying any portion of the principal of, and premium, if any, and interest on the Notes.

 

Section 515.           Undertaking
for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an
undertaking to pay the reasonable costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit having due regard to the merits and good faith of the claims
or defenses made by the party litigant. This Section 515 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant
to Section 508 hereof, or a suit by Holders of more than 10% in principal amount of the then Outstanding Notes.

 

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ARTICLE Six

THE TRUSTEE

 

Section 601.           Duties
of the Trustee.

 

(a)            Except
during the continuance of an Event of Default,

 

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

 

(2)            in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such certificates or opinions specifically required by any provision hereof to be provided to it, the Trustee
shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture,
but not to verify the contents thereof including, but not limited to, the accuracy of mathematical calculations.

 

(b)            If
an Event of Default has occurred and is continuing of which a Responsible Officer of the Trustee has actual knowledge or of which written
notice in accordance with Section 106 of such Event of Default has been delivered to the Trustee, the Trustee shall exercise such
of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person’s own affairs. The Trustee shall not be deemed to have
knowledge of, or be required to act (including the sending of any notice) based on, any event unless a Responsible Officer of the Trustee
receives written notice of such an event or has obtained actual knowledge of such an event.

 

(c)            No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent or bad faith action, its own
negligent or bad faith failure to act, or its own willful misconduct, except that

 

(1)            this
paragraph (c) shall not be construed to limit the effect of paragraph (a) of this Section;

 

(2)            the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts;

 

(3)            the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction
of the Holders of a majority in aggregate principal amount of the Outstanding Notes relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(4)            no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity or security against such risk or liability is not reasonably assured to it;

 

    36 

     

    

 

(5)            the
permissive right of the Trustee to take any action enumerated in this Indenture shall not be construed as a duty; and

 

(6)            under
no circumstances shall the Trustee be liable in its individual capacity for the obligations evidenced by the Notes.

 

(d)            Whether
or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.

 

Section 602.           Notice
of Defaults. If a Default or Event of Default occurs and is continuing and if it is actually known to a Responsible Officer of the
Trustee, the Trustee shall transmit notice of such Default or Event of Default within 90 days after it occurs unless such Default or
Event of Default shall have been cured or waived. Except in the case of a Default or Event of Default in the payment of the principal
of (or premium, if any, on) or interest on any Note, the Trustee shall be protected in withholding such notice if it determines that
the withholding of such notice is in the interest of the Holders. In addition, the Trustee shall have no obligation to accelerate the
Notes if in the best judgment of the Trustee acceleration is not in the best interest of the Holders of such Notes. Notice to Holders
under this Section will be given in the manner and to the extent provided in Trust Indenture Act Section 313(c).

 

Section 603.           Certain
Rights of Trustee. Subject to Section 601:

 

(1)            the
Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document (whether in original or pdf form) believed by it to be genuine and to have been signed or presented by the proper party
or parties;

 

(2)            any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution
of the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

(3)            whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officer’s Certificate and/or an Opinion of Counsel;

 

(4)            the
Trustee may consult with counsel of its own selection and the advice of such counsel or any opinion of counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with
the advice or opinion of such counsel;

 

    37 

     

    

 

(5)            the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory
to it against the costs, expenses, losses and liabilities which might be incurred by it in compliance with such request or direction;

 

(6)            the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and,
if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises
of the Company during ordinary business hours, personally or by agent or attorney at the expense of the Company and shall incur no liability
of any kind by reason of such inquiry or investigation;

 

(7)            the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys
and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care
by it hereunder;

 

(8)            the
Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Indenture;

 

(9)            the
rights, privileges, protections, immunities and benefits given to the Trustee pursuant to this Indenture, including its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person
employed to act hereunder;

 

(10)          in
no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action;

 

(11)          the
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder;

 

(12)          the
Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions pursuant to this Indenture;

 

(13)          the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office
of the Trustee, and such notice references this Indenture and the Notes;

 

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(14)          the
Trustee shall have the right to decline to take any action if the Trustee, being advised by counsel, determines that such action may not
lawfully be taken; and

 

(15)          the
Trustee shall have no responsibility or liability for the acts or omissions of any other party, including the Paying Agent, Authenticating
Agent or Depository (provided, however, that this protection shall not limit the responsibility or liability of UMB Bank, N.A., in its
capacity as the initial Paying Agent).

 

Section 604.           Trustee
Not Responsible for Recitals or Issuance of Notes. The recitals contained herein and in the Notes, except for the Trustee’s
certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes, except that the
Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Notes and perform its obligations
hereunder. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds thereof.

 

Section 605.           May Hold
Notes. The Trustee, any Paying Agent, the Note Registrar or any other agent of the Company or of the Trustee, in its individual or
any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company with the same rights it would have
if it were not the Trustee, Paying Agent, Note Registrar or such other agent; provided, however, that, if it acquires any conflicting
interest, it must eliminate such conflict within 90 days, apply to the SEC for permission to continue, or resign.

 

Section 606.           Money
Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing
with the Company.

 

Section 607.           Compensation
and Reimbursement. The Company agrees:

 

(1)            to
pay to the Trustee from time to time such compensation as shall be agreed in writing between the Company and the Trustee for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust);

 

(2)            except
as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable out-of-pocket expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation
and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as shall be determined
to have been caused by its own negligence, bad faith or willful misconduct; and

 

(3)            to
indemnify the Trustee and any predecessor Trustee and their respective agents for, and to hold each of them harmless against, any and
all losses, liabilities, claims, damages or reasonable out-of-pocket expenses, including taxes (other than the taxes based on the income
of the Trustee), incurred without negligence, bad faith or willful misconduct on its part as finally adjudicated by a court of competent
jurisdiction, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim regardless of whether the claim is asserted by the Company, a Holder or any other Person or liability
in connection with the exercise or performance of any of its powers or duties hereunder or in connection with enforcing the provisions
of this Section.

 

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The obligations of the Company
under this Section to compensate the Trustee, to pay or reimburse the Trustee for reasonable out-of-pocket expenses, disbursements
and advances and to indemnify and hold harmless the Trustee shall survive the satisfaction and discharge of this Indenture and resignation
or removal of the Trustee. As security for the performance of such obligations of the Company, the Trustee shall have a claim and lien
prior to the Notes upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of
principal of (and premium, if any) or interest on particular Notes.

 

When the Trustee incurs expenses
or renders services in connection with an Event of Default specified in Section 501(5) or (6), the expenses (including the
reasonable charges and expenses of its counsel) of and the compensation for such services are intended to constitute expenses of administration
under any applicable Insolvency Laws.

 

The provisions of this Section shall
survive the termination of this Indenture and resignation or removal of the Trustee.

 

Section 608.           Corporate
Trustee Required; Eligibility. There shall be at all times a Trustee hereunder which shall have a combined capital and surplus of
at least $50,000,000. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of
Federal, State, territorial or District of Columbia supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified in this Article Six.

 

Section 609.           Resignation
and Removal; Appointment of Successor.

 

(a)            No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article Six shall become effective
until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 610.

 

(b)            The
Trustee may resign at any time by giving written notice thereof within 30 days of such resignation to the Company. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor Trustee by written instrument executed by authority of the Board
of Directors, a copy of which shall be delivered to the resigning Trustee and a copy to the successor Trustee, if the instrument of acceptance
by a successor Trustee required by Section 610 shall not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition, at the expense of the Company, any court of competent jurisdiction for the
appointment of a successor Trustee.

 

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(c)            The
Trustee may be removed with 30 days’ notice at any time by Act of the Holders of a majority in aggregate principal amount of the
Outstanding Notes, delivered to the Trustee and to the Company. If the instrument of acceptance by a successor Trustee required by Section 610
shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may
petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee.

 

(d)            If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause,
the Company shall promptly appoint a successor Trustee. If, within one year after such resignation, removal or incapability, or the occurrence
of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in aggregate principal amount of the Outstanding
Notes delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee appointed by the Company. If no successor Trustee shall
have been so appointed by the Company or the Holders and accepted appointment in the manner hereinafter provided, any Holder of at least
10% in aggregate principal amount of the Notes who has been a bona fide Holder of a Note for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

(e)            The
Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee to the Holders
in the manner provided for in Section 107. Each notice shall include the name of the successor Trustee and the address of its Corporate
Trust Office.

 

Section 610.           Acceptance
of Appointment by Successor.

 

(a)            Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. Upon request of
any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts.

 

(b)            No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible
under this Article Six.

 

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Section 611.           Merger,
Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party,
or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder (provided that such corporation shall be otherwise qualified and eligible under this Article Six) without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Notes shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself authenticated
such Notes. In case at that time any of the Notes shall not have been authenticated, any successor Trustee may authenticate such Notes
either in the name of any predecessor hereunder or in the name of the successor Trustee. In all such cases such certificates shall have
the full force and effect which this Indenture provides for the certificate of authentication of the Trustee; provided, however, that
the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Notes in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

 

Section 612.           Appointment
of Co-Trustee.

 

(a)            Notwithstanding
any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any
part of the trust created under this Indenture may at the time be located, the Trustee shall have the power and may execute and deliver
all instruments necessary to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees,
of all or any part of such trust, and to vest in such Person or Persons, in such capacity and for the benefit of the Holders, such title
to the trust, or any part hereof, and subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts
as the Trustee may consider necessary or desirable. No co-trustee or separate Trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 608 and no notice to Holders of the appointment of any co-trustee or separate trustee
shall be required under Section 609 hereof.

 

(b)            Every
separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

 

(i)            all
rights, powers, duties and obligations conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed
by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized
to act separately without the Trustee joining in such act), except to the extent than under any law of any jurisdiction in which any particular
act or acts are to be performed the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights,
powers, duties and obligations (including the holding of title to the trust created by this Indenture or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

 

(ii)            no
trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; and

 

(iii)            the
Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

 

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(c)            Any
notice, request or other writing given to the Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture
and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested
with the estates or property specified in its instrument of appointment, either jointly with the Trustee or separately, as may be provided
therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection or rights (including the rights to compensation, reimbursement and indemnification
hereunder) to, the Trustee. Every such instrument shall be filed with the Trustee.

 

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

 

Section 613.           Appointment
of Authenticating Agent. At any time when any of the Notes remain Outstanding, the Trustee may appoint an authenticating agent or
agents with respect to the Notes which shall be authorized to act on behalf of the Trustee to authenticate Notes (an “Authenticating
Agent”) and the Trustee shall give written notice of such appointment to all Holders with respect to which such Authenticating
Agent shall serve, in the manner provided for in Section 107. Notes so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Any such appointment shall be evidenced
by an instrument in writing signed by a Responsible Officer of the Trustee, and a copy of such instrument shall be promptly furnished
to the Company. Wherever reference is made in this Indenture to the authentication and delivery of Notes by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall
be acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the United States,
any state thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination by Federal or state authority.

 

If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect specified in
this Section.

 

Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all or substantially
all the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent (provided
that such corporation shall be otherwise eligible under this Section) without the execution or filing of any paper or any further act
on the part of the Trustee or the Authenticating Agent.

 

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An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency
of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and
shall give written notice of such appointment to all Holders, in the manner provided for in Section 107. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

 

The Company agrees to pay
to each Authenticating Agent from time to time such compensation for its services under this Section as shall be agreed in writing
between the Company and such Authenticating Agent.

 

If an appointment is made
pursuant to this Section, the Notes may have endorsed thereupon, in addition to the Trustee’s certificate of authentication, an
alternate certificate of authentication in the following form:

 

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

 

	 	UMB Bank, N.A., as Trustee
	 	 
	 	By: [ ],
	 	as Authentication Agent
	 	 
	 	By:	 
	 	        	as Authorized Signatory

 

	 	Dated:	 

 

ARTICLE Seven

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 701.           Holder
Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names
and addresses of the Holders. If the Trustee is not the Note Registrar, the Company shall furnish to the Trustee at least two Business
Days before each Interest Payment Date and at such other times as the Trustee may request in writing, within 30 days after the receipt
by the Company of any such request, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses
of the Holders, upon which the Trustee may conclusively rely.

 

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Section 702.           Disclosure
of Names and Addresses of Holders. Every Holder, by receiving and holding Notes, agrees with the Company and the Trustee that none
of the Company or the Trustee or any agent of either of them shall be held accountable by reason of the disclosure of any such information
as to the names and addresses of the Holders, regardless of the source from which such information was derived.

 

ARTICLE Eight

MERGER, CONSOLIDATION OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS

 

Section 801.           The
Parent, the Company and the Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

 

(a)            The
Company shall not, in any transaction or series of related transactions, consolidate with or merge into any Person or sell, assign, transfer,
lease or otherwise convey all or substantially all its properties and assets to any Person, unless:

 

(i)            either
(A) the Company shall be the continuing Person (in the case of a merger), or (B) the successor Person formed by such consolidation
or into which the Company is merged or which acquires by sale, assignment, transfer, lease or other conveyance all or substantially all
the properties and assets of the Company shall be an entity organized and existing under the laws of the United States, any state thereof
or the District of Columbia and shall expressly assume the due and punctual payment of the principal of, any premium and interest on,
all the Outstanding Notes and the due and punctual performance and observance of every obligation in this Indenture and the Outstanding
Notes to be observed or performed by the Company;

 

(ii)            immediately
after giving effect to such transaction, no Event of Default and no event which, after notice or lapse of time or both, would become an
Event of Default shall have occurred and be continuing;

 

(iii)            each
Subsidiary Guarantor under any Note Guarantee that is outstanding at the time such transaction or each transaction in such a series of
transactions occurs reaffirms its obligations under such Note Guarantee in writing at such time; and

 

(iv)            the
Company (or the applicable obligor) shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, transfer, lease or other conveyance and, if a supplemental indenture is required
in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.

 

    45 

     

    

 

(b)            Neither
the Parent nor any Subsidiary Guarantor shall, in any transaction or series of related transactions, consolidate with or merge into any
Person or sell, assign, transfer, lease or otherwise convey all or substantially all its properties and assets to any Person, unless:

 

(a)            either
(A) the Parent or such Subsidiary Guarantor, as applicable, shall be the continuing Person (in the case of a merger), or (B) the
successor Person formed by such consolidation or into which the Parent or such Subsidiary Guarantor, as applicable, merged or which acquires
by sale, assignment, transfer, lease or other conveyance all or substantially all the properties and assets of the Parent or such Subsidiary
Guarantor, as applicable, shall be an entity organized and existing under the laws of the United States, any state thereof or the District
of Columbia and shall expressly assume the due and punctual performance and observance of every obligation in this Indenture and the Outstanding
Notes to be observed or performed by the Parent or such Subsidiary Guarantor, as applicable, or (C) solely in the case of a Subsidiary
Guarantor, such transaction or series of transactions results in the release and discharge of such Subsidiary Guarantor’s Note Guarantee;

 

(b)            immediately
after giving effect to such transaction, no Event of Default and no event which, after notice or lapse of time or both, would become an
Event of Default shall have occurred and be continuing;

 

(c)            the
Parent or such Subsidiary Guarantor, as applicable, shall have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease or other conveyance and, if a supplemental
indenture is required in connection with such transaction, such supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied with.

 

For purposes of this Section 801,
the sale, assignment, transfer, lease or conveyance of all or substantially all of the properties and assets of one or more Subsidiaries
of the Company or the Parent, which properties and assets, if held by the Company or the Parent, as applicable, instead of such Subsidiaries,
would constitute all or substantially all of the Company’s or the Parent’s, as applicable, properties and assets on a consolidated
basis, will be deemed to be the sale, assignment, transfer, lease or conveyance of all of substantially all of the Company’s or
the Parent’s, as applicable, properties and assets.

 

Section 802.           Successor
Substituted. Upon any consolidation by the Company or any Guarantor with, or merger of the Company or any Guarantor, into any other
Person or any sale, assignment, transfer, lease or other conveyance of all or substantially all of the properties and assets of the Company
or any Guarantor to any Person in accordance with Section 801, the successor Person formed by such consolidation or into which the
Company or such Guarantor is merged or to which such sale, assignment, transfer, lease or other conveyance is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company or such Guarantor, as applicable, under this Indenture
with the same effect as if such successor Person had been named as the Company or such Guarantor, as applicable, herein; and thereafter,
except in the case of a lease, the predecessor Person shall be released from all obligations and covenants under this Indenture and the
Notes.

 

    46 

     

    

 

 

ARTICLE Nine

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 901.            Amendments
or Supplements Without Consent of Holders. Notwithstanding Section 902 hereof, without notice to or the consent of any Holder,
the Parent, the Company, any Subsidiary Guarantor and the Trustee, at any time and from time to time, may enter into an indenture or indentures
supplemental hereto, for any of the following purposes:

 

(a)            to
evidence a successor to the applicable obligor and the assumption by that successor of such obligor’s obligations, as applicable,
under this Indenture and the Notes;

 

(b)            to
provide for the assumption of the Parent’s, the Company’s or any Subsidiary Guarantor’s obligations under this Indenture,
the Notes, any Note Guarantee, as applicable, by a successor Person in the case of a merger or consolidation of the Parent, the Company
or any Subsidiary Guarantor or the conveyance of all or substantially all of the assets of the Parent, the Company or any Subsidiary Guarantor,
as applicable;

 

(c)            to
add any additional Events of Default with respect to Notes for the benefit of the Holders;

 

(d)            to
add to the covenants of the Company for the benefit of the Holders;

 

(e)            to
cure any ambiguity or omission or to correct or supplement any provision herein which may be defective or which may be inconsistent with
any other provision herein, or to make any other provisions with respect to matters or questions arising under this indenture which shall
not materially adversely affect the interests of the Holders then Outstanding, as determined by the Company:

 

(f)            to
secure the Notes or to provide a guarantee of the Notes;

 

(g)            to
provide for a successor trustee or the appointment of more than one trustee;

 

(h)            to
conform the text of this Indenture or the Notes to any provisions of the “Description of Notes” section of the Offering Memorandum,
as supplemented by the related pricing term sheet;

 

(i)             to
provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture;

 

(j)             to
release any Subsidiary Guarantor in accordance with the terms of this Indenture; or

 

(k)            to
allow any Subsidiary Guarantor to execute a supplemental indenture and/or a Note Guarantee with respect to the Notes.

 

Upon the request of the Company
and receipt by the Trustee of the documents described in Section 903 hereof, the Trustee shall join with the Parent, the Company
and any Subsidiary Guarantor in the execution of any supplemental indenture authorized or permitted by the terms of this Indenture and
to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter
into such supplemental indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

 

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Section 902.            Amendments
or Supplements with Consent of Holders. With the consent of the Holders of a majority in aggregate principal amount of the Outstanding
Notes (including consents obtained in connection with a purchase of, or tender offer for, the Notes), by Act of said Holders delivered
to the Parent, the Company, any Subsidiary Guarantor and the Trustee, the Company, the Parent, any Subsidiary Guarantor and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture, the Notes or any Note Guarantee, as applicable, or of modifying in any manner the
rights of the Holders of such Notes under this Indenture; provided, that no such supplemental indenture, without the consent of the Holder
of each Outstanding Note affected thereby, shall:

 

(a)            change
the Stated Maturity of the Notes, or reduce the principal amount thereof or the rate (or modify the calculation of such rate) of interest
thereon or any premium payable upon the redemption or repurchase thereof or otherwise, or change the Place of Payment where or the currency
in which the principal of, any premium or interest on, any Note is payable, or impair the right to institute suit for the enforcement
of any payment on the Notes when due; or

 

(b)            modify
any of the provisions of this Section or Section 513, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby.

 

It shall not be necessary
for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

 

Section 903.            Execution
of Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to this Article Nine if the
supplemental indenture does not adversely affect the rights, duties, liabilities or immunities of the Trustee, and if such supplemental
indenture adversely affects such rights, duties, liabilities or immunities, the Trustee may but need not sign it. In executing any supplemental
indenture, the Trustee shall receive and (subject to Section 601 hereof) shall be fully protected in conclusively relying upon, in
addition to the documents required by Section 103 hereof, an Officer’s Certificate and an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture and that such supplemental indenture is the legal,
valid and binding obligation of the Company, enforceable against it in accordance with its terms, subject to customary exceptions, and
complies with the provisions hereof (including Section 905).

 

Section 904.            Effect
of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article Nine, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder
of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

 

Section 905.            Reference
in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental indenture pursuant
to this Article Nine may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture.
If the Company shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Notes.

 

    	 	48	 

     

    

 

ARTICLE Ten

COVENANTS

 

Section 1001.            Payment
of Principal, Premium, if Any, and Interest. The Company shall pay or cause to be paid the principal of, premium, if any, and interest
on the Notes on the dates and in the manner provided in Section 301 and the Notes. Principal, premium, if any, and interest shall
be considered paid on the date due if the Paying Agent, if other than the Company, holds as of 11:00 a.m. (Eastern Time) on the due
date money deposited by the Company in immediately available funds and designated for and sufficient to pay all principal, premium, if
any, and interest then due.

 

The Company shall pay interest
on overdue principal at the rate equal to the then applicable interest rate on the Notes, and it shall pay interest on overdue installments
of interest at the same rate, in any case to the extent lawful.

 

Section 1002.            Maintenance
of Office or Agency. The Company shall maintain an office or agency in the United States where Notes may be presented or surrendered
for payment, where Notes may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company
in respect of the Notes and this Indenture may be served. The Corporate Trust Office of the Trustee shall be the office or agency of the
Company where Notes may be presented or surrendered for payment or for registration of transfer or exchange, unless the Company shall
designate and maintain some other office or agency for one of more of such purposes. The office of the Company where notices and demands
to or upon the Company in respect of the Notes and this Indenture maybe served at the office of the Company designated in Section 106.
The Company shall give prompt written notice to the Trustee of any change in the location of any such office or agency.

 

The Company may also from
time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind any such designation. The Company shall give prompt written notice to the Trustee of any such designation
or rescission and any change in the location of any such other office or agency.

 

Section 1003.            Paying
Agent to Hold Money in Trust. If the Company shall at any time act as its own Paying Agent, it shall, on or before each due date of
the principal (or premium, if any) or interest on any of the Notes, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and shall promptly notify the Trustee of its action or failure so to act.

 

Whenever the Company shall
have one or more Paying Agents for the Notes, it shall, prior to 11:00 a.m. (Eastern Time) on each due date of the principal of (or
premium, if any) or interest on any Notes, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest,
and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee in writing of such action or any failure so
to act.

 

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The Company shall cause each
Paying Agent (other than the Trustee) to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with
the Trustee, subject to the provisions of this Section, that such Paying Agent shall:

 

(1)            hold
all sums held by it for the payment of the principal of (and premium, if any) or interest on Notes in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

(2)            give
the Trustee written notice of any Default by the Company (or any other obligor upon the Notes) in the making of any payment of principal
(and premium, if any) or interest; and

 

(3)            at
any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent.

 

The Company may at any time,
for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct
any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying
Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such sums.

 

Subject to applicable laws
relating to abandoned property, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (or premium, if any) or interest on any Note and remaining unclaimed for two years after such principal, premium
or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as Trustee
thereof, shall thereupon cease.

 

Section 1004.            Corporate
Existence. Subject to Article Eight, the Company shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence in accordance with the organizational documents (as the same may be amended from time to time)
of the Company; provided that the Company shall not be required to preserve any such existence if the Company in good faith shall
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken
as a whole.

 

Section 1005.            Payment
of Taxes and Other Claims. The Company shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent,
all material taxes, assessments and governmental charges levied or imposed upon the Company or upon the income, profits or property of
the Company; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment or charge whose amount, applicability or validity is being contested in good faith by appropriate proceedings or
negotiations or where the failure to effect such payment is not adverse in any material respect to the Holders. Notwithstanding anything
to the contrary contained in this Indenture, the Company may, to the extent required to do so by law, deduct or withhold income or other
similar taxes imposed by the United States from principal, premium or interest payments under this Indenture.

 

    	 	50	 

     

    

 

Section 1006.            Compliance
Certificates; SEC Reports.

 

(a)            The
Company shall deliver to the Trustee within 60 days after the end of each of the first three quarters of its fiscal year an Officer’s
Certificate stating that, to the signing Officer’s knowledge, the Company is in compliance with each of the covenants in Sections
1010, 1011, 1012 and 1013 as of the end of such quarter and, if a Default with respect to any such covenant had occurred as of the end
of such quarter, the certificate shall specify such Default and state whether or not it is then continuing.

 

(b)            The
Company shall deliver to the Trustee within 120 days after the end of each fiscal year (which as of the date hereof, ends on December 31),
an Officer’s Certificate from a Senior Financial Officer stating that, to the signing Officer’s knowledge, the Company during
such preceding fiscal year has performed, and is in compliance with, each and every covenant (including those in Sections 1010, 1011,
1012 and 1013) and condition contained in this Indenture and at the date of such certificate there is no Default or Event of Default that
has occurred and is continuing or, if such signer does know of such Default or Event of Default that is continuing, the certificate shall
specify such Default or Event of Default, as applicable.

 

(c)            So
long as any Notes remain Outstanding, if the Parent is subject to Section 13(a) or 15(d) of the Exchange Act or any successor
provision, the Parent shall deliver to the Trustee the annual reports, quarterly reports and other documents which the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, within 15 days after the date that the Company is
required to file the same with the SEC. Reports and other documents filed with the SEC via the EDGAR system will be deemed to be delivered
to the Trustee as of the time of such filing via EDGAR for purposes of this covenant; provided, however, that the Trustee shall have no
obligation whatsoever to determine whether or not such information, documents or reports have been filed via EDGAR.

 

Delivery of such reports, information and documents
to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of
any information contained therein or determinable from information contained therein, including the Company’s compliance with any
of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

(d)            When
any Default or Event of Default has occurred under this Indenture, the Company shall deliver to the Trustee an Officer’s Certificate
specifying such event, notice or other action, and any actions that have been taken to cure such Default, within thirty Business Days
of a Responsible Officer becoming aware of its occurrence. For the avoidance of doubt, the Company shall have no obligation under this
Section 1006(d) to give notice of any Default under any of the covenants in Sections 1010 through 1013 prior to the end of the
fiscal quarter to which such covenant relates.

 

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Section 1007.            Delivery
of Rule 144A Information. So long as any Notes remain Outstanding, if at any time the Parent is not subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, so long as the Notes constitute “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, the Parent will prepare and will furnish to the Trustee and,
upon written request, furnish to any Holder of Notes, any beneficial owner of an interest in a Global Note and any prospective purchaser
or other prospective transferee of Notes designated by a Holder of Notes or a beneficial owner of an interest in a Global Note, in each
case, at the expense of the Company, the financial statements and other information specified in Rule 144A(d)(4) (or any successor
provision thereto) under the Securities Act, in each case to the extent necessary to permit the resale or other transfer of Notes by such
Holder or beneficial owner to be made in compliance with Rule 144A under the Securities Act. The Company shall take such further
action as any Holder of Notes or beneficial owner of an interest in a Global Note may reasonably request to the extent from time to time
required to enable such Holder of Notes or beneficial owner to sell such Notes or shares of the Company’s common stock in accordance
with Rule 144A under the Securities Act, as such Rule may be amended from time to time.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

Section 1008.        Subsidiary
Guarantors.

 

(a)            The
Company will cause each of its Subsidiaries that guarantees or otherwise becomes liable at any time, whether as a borrower or an additional
or co-borrower or otherwise, for or in respect of any Material Debt to concurrently therewith, execute and deliver to the Trustee:

 

(i)            a
supplemental indenture to this Indenture providing for the guarantee by such Subsidiary, on a joint and several basis with all other such
Subsidiaries, of (x) the prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for
principal, interest, premium or otherwise) and this Indenture, including all indemnities, fees and expenses payable by the Company thereunder
and (y) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement,
undertaking and provision required pursuant to the Notes or this Indenture to be performed, observed or discharged by it; and

 

(ii)           an
Officer’s Certificate and an Opinion of Counsel, each certifying that such supplemental indenture has been duly authorized, executed
and delivered by such Subsidiary and constitutes a valid and legally binding and enforceable obligation of such Subsidiary, subject to
customary exceptions.

 

Any such supplemental indenture
may be in the form of such supplemental indenture attached as Appendix B hereto or such other form as agreed between the Company, the
applicable Subsidiary Guarantor and the Trustees.

 

    	 	52	 

     

    

 

(b)            At
the election of the Company and by written notice to each holder of Notes, any Subsidiary Guarantor that has provided a Note Guarantee
under subparagraph (a) of this Section 1008 may be discharged from all of its obligations and liabilities under its Note Guarantee
and shall be automatically released from its obligations thereunder without the need for the execution or delivery of any other document
by the Trustee, provided that (i) if such Subsidiary Guarantor is a guarantor or is otherwise liable for or in respect of
any Material Debt, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with
the release of such Subsidiary Guarantor under its Note Guarantee) under such Material Debt, (ii) at the time of, and after giving
effect to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable
under such Note Guarantee, and (iv) the Trustee shall have received a certificate of an Officer certifying as to the matters set
forth in clauses (i) through (iii).

 

Section 1009.            Change
of Control Offer. Upon the occurrence of a Change of Control Triggering Event, each Holder shall have the right to require the Company
to purchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof) of the Holder’s Notes at a purchase
price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, up to, but excluding, the Change
of Control Payment Date; provided, however, that if such date of purchase is after the taking of a record of the Holders on a record date
and on or prior to the related Interest Payment Date, the accrued and unpaid interest shall be payable to the Person in whose name the
repurchased Notes are registered on such record date. Notwithstanding the foregoing, the Company shall have no obligation to repurchase
any Notes pursuant to this Section 1009 to the extent that the Company shall have exercised its right to redeem the Notes pursuant
to Section 1101.

 

For purposes of this Section 1009,
the term “Change of Control” means the occurrence of any one of the following:

 

(a)            the
sale, assignment, lease, transfer or other conveyance (other than by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties and assets of the Parent and its Subsidiaries taken as a whole to any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) other than to the Parent or one or more of its Subsidiaries or
a combination thereof or a Person controlled by the Parent or one or more of its Subsidiaries or a combination thereof; or

 

(b)            the
consummation of any transaction (including any merger or consolidation) the result of which is that any “person” (as that
term is used in Section 13(d)(3) of the Exchange Act) (other than any Subsidiary of the Parent) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding
Voting Stock of the Parent, measured by voting power rather than number of shares or the like.

 

Notwithstanding the foregoing,
a transaction shall not be deemed to involve a “Change of Control” under clause (b) above if (i) the Parent becomes
a direct or indirect Wholly-Owned Subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock
of such holding company immediately following such transaction are substantially the same as the holders of the Voting Stock of the Parent
immediately prior to such transaction or (B) immediately following such transaction no “person” (as that term is used
in Section 13(d)(3) of the Exchange Act) (other than a holding company satisfying the requirements of this sentence) is the
 “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than
50% of the outstanding Voting Stock of such holding company, measured by voting power rather than number of shares or the like.

 

    	 	53	 

     

    

 

“Change of Control
Triggering Event” means the Notes fail to have at least a Triple-B Rating on any date during the period commencing on the date
of the first public announcement by the Parent of any Change of Control (or pending Change of Control) and ending 60 days following consummation
of such Change of Control (which 60-day period will be extended for so long as the rating of the Notes is under publicly announced consideration
for a possible downgrade as a result of the Change of Control by any Designated NRSRO). Notwithstanding the foregoing, no Change of Control
Triggering Event will be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control
has actually been consummated.

 

Within 10 Business Days following
the date upon which the Change of Control Triggering Event has occurred, or, at the Company’s option, prior to any Change of Control
but after the public announcement of the transaction that constitutes or may constitute the Change of Control, except to the extent that
the Company shall have exercised its right to redeem the Notes pursuant to Section 1101, the Company shall send a notice (a “Change
of Control Offer”) to each Holder with a copy to the Trustee, which notice will govern the terms of the Change of Control Offer,
stating:

 

(1)            that
a Change of Control Triggering Event has occurred (or may occur) and that such Holder has (or, if a Change of Control Triggering Event
has not been consummated, may have) the right to require the Company to purchase all or a portion of such Holder’s Notes at a purchase
price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, up to, but excluding, the date
of purchase (subject to the right of holders of record on the relevant record date to receive interest on the relevant Interest Payment
Date as provided in the first paragraph of this Section 1009);

 

(2)            the
circumstances regarding such Change of Control Triggering Event;

 

(3)            the
purchase date (which shall be (i) no earlier than 30 days nor later than 60 days from the date such notice is sent, if sent after
consummation of the Change of Control and (ii) on the date of the Change of Control, if such notice is sent prior to consummation
of the Change of Control, in each case, other than as may be required by law) (such date, the “Change of Control Payment Date”);
and

 

(4)            the
instructions that a Holder must follow in order to have its Notes purchased.

 

Holders electing to have Notes
purchased pursuant to a Change of Control Offer must surrender their Notes, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Note completed, to the Paying Agent at the address specified in the notice, or transfer their Notes to the Paying
Agent by book-entry transfer pursuant to the applicable procedures of the Paying Agent for the Change of Control Offer, prior to the close
of business on the third Business Day prior to the Change of Control Payment Date.

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On the Change of Control Payment
Date, all Notes purchased by the Company under this Section shall be delivered to the Trustee for cancellation, and the Company shall
pay the purchase price plus accrued and unpaid interest, if any, to the Holders entitled thereto.

 

The Company may make a Change
of Control Offer in advance of a Change of Control and the Change of Control Payment Date, and its Change of Control Offer may be conditioned
upon such Change of Control, if a definitive agreement is in place for the Change of Control at the time of making the Change of Control
Offer.

 

The Company shall have no
obligation to make a Change of Control Offer if a third party makes such an offer in the manner, at the times and otherwise in compliance
with the requirements of this Section 1009 for such an offer made by the Company, and such third party purchases all Notes properly
tendered and not withdrawn under its offer.

 

The Company, the Parent and
the Subsidiary Guarantors, if any, shall comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange
Act and any other securities laws or regulations in connection with the repurchase of Notes pursuant to a Change of Control Offer. To
the extent that the provisions of any securities laws or regulations conflict with this Section 1009, the Company, the Parent and
the Subsidiary Guarantors, if any, shall comply with the applicable securities laws and regulations and will not be deemed to have breached
its obligations by virtue thereof.

 

If Holders of not less than
90% in aggregate principal amount of the Outstanding Notes validly tender and do not withdraw their Notes in a Change of Control Offer
and the Company, or any third party making a Change of Control Offer in lieu of the Company, purchases all of the Notes validly tendered
and not withdrawn by such Holders, the Company shall have the right, upon not less than 15 nor more than 60 days’ prior notice,
given not more than 30 days following such purchase pursuant to such Change of Control Offer, to redeem all Notes that remain Outstanding
following such purchase at a Redemption Price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest,
if any, up to, but excluding, the Redemption Date (subject to the right of Holders on the relevant record date to receive interest on
the relevant Interest Payment Date).

 

Section 1010.            Maintenance
of Minimum Net Asset Value. The Parent will not permit the Net Asset Value as of the close of business on the last day of each of
the Parent’s fiscal quarters to be less than $350,000,000 plus the greater of (a) zero dollars and (b) 50% of Net Equity
Capital Activity.

 

Section 1011.            Maintenance
of Consolidated Unencumbered Assets. The Parent will not permit the ratio of (i) the Consolidated Unencumbered Assets as of the
close of business on the last day of each of the Parent’s fiscal quarters to (ii) the aggregate principal amount of unsecured
Debt of the Parent and its Subsidiaries as of such date to be less than 1.12 to 1.0.

 

    	 	55	 

     

    

 

Section 1012.            Limitation
on Debt.

 

(a)            The
Parent will not permit the Senior Debt Service Coverage Ratio as of the close of business on the last day of each of the Parent’s
fiscal quarters, calculated on a pro forma basis for the incurrence of any Debt by Parent or any of its Subsidiaries during the applicable
Testing Period, to be less than 1.2 to 1.0.

 

(b)            The
Parent will not permit the Debt to Equity Ratio on the last day of each of the Parent’s fiscal quarters to exceed 6.0 to 1.0.

 

(c)            In
giving pro forma effect to the incurrence of any Debt by the Parent or any of its Subsidiaries during the applicable Testing Period, with
respect to the Senior Debt Service Coverage Ratio, (i) the Parent’s Operating Cash Flow for the applicable Testing Period shall
be increased by an amount equal to the product of (x) the principal amount of such Debt and (y) the average yield on the earning
assets of Parent and its Subsidiaries during the applicable Testing Period and (ii) the Parent’s Senior Debt Service shall
be increased by the interest that would have been paid on such Debt had it been issued on the first day of the applicable Testing Period.

 

Section 1013.            Rating.
The Company will maintain a rating on the Notes from a Designated NRSRO at all times, and the Company will cause such rating to be updated
on an annual basis. The Company will provide the Trustee with a copy of any rating letter or notification from a Designated NRSRO following
receipt by the Company, in a form each Holder may share with their regulators, including the Securities Valuation Office of the National
Association of Insurance Commissioners. Such form of rating letter or notification will identify the Notes to which such rating is applicable
including the aggregate principal amount, initial interest rate, maturity date and CUSIP number, ISIN or “Common Code”
number assigned to the Notes.

 

Section 1014.            Conditional
Waiver by Holders of Securities. Anything in this Indenture to the contrary notwithstanding, the Company may fail or omit in any particular
instance to comply with a covenant or condition set forth herein with respect to the Notes (including the covenants set forth in Sections
1010, 1011, 1012 and 1013) if the Company shall have obtained and furnished to the Trustee, prior to the time of such failure or omission,
evidence of the consent of the Holders of a majority in aggregate principal amount of the Notes of such series at the time Outstanding
(except as to a covenant or condition which under Section 902 cannot be modified or amended without the consent of the Holder of
each Outstanding Note affected, in which case the consent of the Holder of each Outstanding Note shall be required), either waiving such
compliance in such instance or generally waiving compliance with such covenant or condition, but no such waiver shall extend to or affect
such covenant or condition except to the extent so expressly waived, or impair any right consequent thereon and, until such waiver shall
have become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall
remain in full force and effect.

 

    	 	56	 

     

    

 

ARTICLE Eleven

REDEMPTION OF NOTES

 

Section 1101.            Right
of Redemption.

 

(a)            At
any time prior to the Par Call Date, the Company may redeem the Notes, in whole or in part, at any time or from time to time, upon not
less than 10 nor more than 60 days’ prior notice to the Holders, at a Redemption Price equal to the greater of (i) 100% of
the aggregate principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments
of principal and interest on the Notes to be redeemed that would have been due if the Notes matured on the Par Call Date, discounted to
the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis
points, plus, in each case, accrued and unpaid interest, if any, to, but excluding, the Redemption Date. Notwithstanding the foregoing,
if the relevant Redemption Date occurs on or after a record date for an Interest Payment Date, interest on Notes that is due and payable
on such Interest Payment Date will be payable to the Holders of such Notes (or one or more Predecessor Notes) registered as such at the
close of business on the relevant record dates according to their terms and the provisions of this Indenture. Any such redemption shall
be effected in accordance with the terms and conditions set forth in this Indenture.

 

(b)            From
and after the Par Call Date, the Company may redeem the Notes, in whole or in part, at any time or from time to time, upon not less than
10 nor more than 60 days’ prior notice to the Holders, at a Redemption Price equal to 100% of the aggregate principal amount of
Notes to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date, subject to the rights
of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date.

 

(c)            The
Company may redeem all of the Notes at its election pursuant to the provisions of the final paragraph of Section 1009 and subject
to the conditions specified therein.

 

Section 1102.            Mandatory
Redemption; Open Market Purchases. The Company shall not be required to make any mandatory redemption or sinking fund payments with
respect to the Notes. The Company or its Affiliates may from time to time acquire Notes by means other than a redemption, whether by lender
offer, exchange offer, in open market purchases, through negotiated transactions or otherwise, in accordance with applicable securities
laws, upon such terms and at such prices as the Company or its Affiliates may determine, which may be more or less than the consideration
for which the Notes are being sold and may be less than the Redemption Price then in effect and could be for cash or other consideration.

 

Section 1103.            Applicability
of Article. Redemption of Notes at the election of the Company or otherwise, as permitted or required by any provision of this Indenture
or the Notes, shall be made in accordance with such provision and this Article Eleven.

 

Section 1104.            Election
to Redeem; Notice to Trustee. If the Company elects to redeem Notes pursuant to Section 1101 hereof, it shall furnish to the
Trustee, at least five Business Days before notice of redemption is required to be sent or mailed or caused to be sent or mailed to Holders
pursuant to Section 1106 hereof (unless a shorter notice shall be agreed to by the Trustee), an Officer’s Certificate setting
forth (i) the paragraph or subparagraph of such Note and/or Section of this Indenture pursuant to which the redemption shall
occur, (ii) the Redemption Date, (iii) the principal amount of the Notes to be redeemed and (iv) the Redemption Price.
Any notice to the Trustee delivered pursuant to this Section 1104 may be revoked by the Company prior to the delivery of any notice
of redemption sent to Holders.

 

    	 	57	 

     

    

 

Section 1105.        Selection
by Depository or the Trustee of Notes to Be Redeemed. If less than all of the Notes are to be redeemed, and the Notes are Global Notes,
the Notes to be redeemed will be selected by the Depository in accordance with the Depository’s standard procedures. If the Notes
to be redeemed are Certificated Notes, the particular Notes to be redeemed shall be selected not more than 60 days prior to the Redemption
Date by the Trustee from the Outstanding Notes not previously called for redemption, by lot or such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of portions of the principal amount of such Notes; provided, however,
that no such partial redemption shall reduce the portion of the principal amount of a Note not redeemed to less than the minimum denomination
for a Note established herein.

 

The Trustee shall promptly
notify the Company and the Note Registrar in writing of the Certificated Notes selected for redemption and, in the case of any Notes selected
for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture,
unless the context otherwise requires, all provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed
or to be redeemed only in part, to the portion of the principal of such Notes which has been or is to be redeemed.

 

Section 1106.        Notice
of Redemption. Notices of redemption shall be sent by first class mail, postage prepaid, or by email or other electronic means (or
in the case of Notes held in book-entry form, by electronic transmission, or as otherwise provided in accordance with the procedures of
the Depository), and sent at least 10 days but not more than 60 days before the Redemption Date to each Holder at such Holder’s
registered address, except that notices of redemption may be sent more than 60 days prior to a Redemption Date if the notice is issued
in connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture. In connection with any redemption of Notes,
any such redemption may, at the Company’s discretion, be subject to one or more conditions precedent. All notices of redemption
shall state:

 

(1)            the
Redemption Date;

 

(2)            the
Redemption Price and the amount of accrued interest to the Redemption Date payable as provided in Section 1108, if any;

 

(3)            if
less than all Outstanding Notes are to be redeemed, the identification (and, in the case of a partial redemption, the principal amounts)
of the particular Notes to be redeemed;

 

(4)            in
case any Note is to be redeemed in part only, the notice which relates to such Note shall state that on and after the Redemption Date,
upon surrender of such Note, the Holder shall receive, without charge, a new Note or Notes of authorized denominations for the principal
amount thereof remaining unredeemed;

 

(5)            that
on the Redemption Date the Redemption Price (and accrued and unpaid interest, if any, to, but excluding, the Redemption Date payable as
provided in Section 1108) shall become due and payable upon each such Note, or the portion thereof, to be redeemed, and that interest
thereon shall cease to accrue on and after said date, subject to any condition precedent in that notice;

 

    	 	58	 

     

    

 

(6)            the
place or places where such Notes are to be surrendered for payment of the Redemption Price and accrued interest, if any;

 

(7)            the
name and address of the Paying Agent;

 

(8)            that
Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price;

 

(9)            that,
unless the Company defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the
Redemption Date;

 

(10)          the
 “CUSIP” number, ISIN or “Common Code” number and that no representation is made as to the accuracy or correctness
of the “CUSIP” number, ISIN or “Common Code” number, if any, listed in such notice or printed on the Notes;

 

(11)          the
paragraph of the Notes or Section of this Indenture pursuant to which the Notes are to be redeemed; and

 

(12)          any
conditions precedent to which the redemption or notice is subject to and that, in the Company’s discretion, the Redemption Date
may be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not occur and such notice may
be rescinded in the event that any or all such conditions shall not have been satisfied by the Redemption Date, or by the Redemption Date
so delayed.

 

If the Company so requests
in the Officer’s Certificate delivered pursuant to Section 1104, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided that the Company shall have delivered to the Trustee, at least five Business Days before notice of redemption
is required to be sent to Holders pursuant to this Section 1106 (unless a shorter notice shall be agreed to by the Trustee), a form
of such notice setting forth the information specified in this Section 1106.

 

Section 1107.            Effect
of Notice of Redemption. Once notice of redemption is provided in accordance with Section 1106 hereof, Notes called for redemption
become irrevocably due and payable on the Redemption Date at the Redemption Price, subject to any condition precedent set forth in that
notice. The notice, if provided in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder
receives such notice. In any case, failure to give such notice or any defect in the notice to the Holder of any Note designated for redemption
in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. Subject to Section 1108
hereof, on and after the Redemption Date, interest shall cease to accrue on Notes or portions of Notes called for redemption.

 

    	 	59	 

     

    

 

Section 1108.            Deposit
of Redemption Price. Prior to 11:00 a.m. (Eastern Time) on any Redemption Date, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money sufficient to pay the Redemption Price of, and accrued and unpaid interest, if any, on, all the Notes that are to be
redeemed on that date. The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the Redemption Price of, and accrued and unpaid interest, if any,
on, all Notes to be redeemed or purchased. In addition, all money, if any, earned on funds held by the Trustee or the Paying Agent, if
in excess of the amounts necessary to pay the Redemption Price of, and accrued and unpaid interest, if any, on, all Notes to be redeemed
or purchased shall be remitted to the Company.

 

Section 1109.            Notes
Payable on Redemption Date.

 

(a)            Notice
of redemption having been given as aforesaid, the Notes so to be redeemed shall, on the Redemption Date and assuming the satisfaction
of any conditions precedent, become due and payable at the Redemption Price therein specified (together with accrued and unpaid interest
to, but excluding, the Redemption Date), and from and after such date (unless the Company shall default in the payment of the Redemption
Price and accrued interest) such Notes shall cease to bear interest. Upon surrender of any such Note for redemption in accordance with
said notice, such Note shall be paid by the Company at the Redemption Price, together with accrued and unpaid interest, if any, to, but
excluding, the Redemption Date, and such Notes shall be canceled by the Trustee; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Notes, or one or more Predecessor Notes,
registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions of Section 306.

 

(b)            If
any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate borne by the Notes.

 

Section 1110.            Notes
Redeemed in Part. Any Note which is to be redeemed only in part (pursuant to the provisions of this Article Eleven) shall be
surrendered at the office or agency of the Company maintained for such purpose pursuant to Section 1002 (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute, and upon receipt
of a Company Order the Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new Note or Notes,
of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Note so surrendered; provided that no Note of $1,000 or less in principal amount will be redeemed in part.

 

    	 	60	 

     

    

 

ARTICLE Twelve

Note GUARANTee

 

Section 1201.            Guarantee.

 

(a)            Subject
to the provisions of this Article Twelve, each of the Guarantors hereby jointly and severally, unconditionally guarantees to each
Holder of a Note (which Note has been authenticated and delivered by the Trustee), and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes, or the obligations of the Company hereunder or thereunder,
that: (i) the principal of, premium on, if any, and interest on the Notes will be promptly paid in full when due, whether at Stated
Maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium on, if any, and interest on, the
Notes, if lawful, and all other obligations of the Company to the Holders, or the Trustee hereunder or thereunder, will be promptly paid
in full or performed, all in accordance with the terms hereof and thereof; and (ii) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the
same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)            The
Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability
of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and covenants that this guarantee will not be discharged except
by complete performance of the obligations contained in the Notes and this Indenture.

 

(c)            If
any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator
or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.

 

(d)            Each
Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the
one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article Five hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration
of such obligations as provided in Article Five hereof, such obligations (whether or not due and payable) will forthwith become due
and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors will have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Note Guarantee.

 

    	 	61	 

     

    

 

Section 1202.            Limitation
on Guarantor Liability. Each Guarantor and, by its acceptance of Notes, each Holder thereof, hereby confirms that it is the intention
of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Insolvency
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal, state or similar foreign law to
the extent applicable to the Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such
maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect
to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article Twelve, result in the obligations of such other Guarantor under its Note Guarantee
not constituting a fraudulent transfer or conveyance under federal, state or similar foreign law.

 

Section 1203.            Issuance
and Delivery of Note Guarantee.

 

To evidence its Note Guarantee
set forth in Section 1201, each Guarantor hereby agrees that this Indenture (or, a supplemental indenture to this Indenture) shall
be executed on behalf of such Guarantor by an Officer of such Guarantor.

 

Each Guarantor hereby agrees
that its Note Guarantee set forth in Section 1201 shall remain in full force and effect notwithstanding the absence of the endorsement
of any notation of such Note Guarantee on the Notes.

 

If an Officer whose signature
is on this Indenture or on any supplemental indenture with respect to a Note Guarantee no longer holds that office at the time the Trustee
authenticates the Notes on which such Note Guarantee is endorsed, such Note Guarantee will be valid nevertheless.

 

The delivery of any Notes
by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Note Guarantee set forth in this Indenture
on behalf of the Guarantors. Upon execution of a supplemental indenture to this Indenture by any Guarantor in the form of Appendix B hereto,
the Note Guarantee set forth in this Indenture and such supplemental indenture shall be deemed duly delivered, without any further action
by any Person, on behalf of such Guarantor. All the Note Guarantees so issued will in all respects have the same legal rank and benefit
under this Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though
all of such Note Guarantees had been issued at the date of the execution hereof.

 

ARTICLE Thirteen

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 1301.            Company’s
Option to Effect Legal Defeasance or Covenant Defeasance. The Company may, at its option, and at any time, elect to have either Section 1302
or Section 1303 be applied to all Outstanding Notes upon compliance with the conditions set forth below in this Article Thirteen.

 

    	 	62	 

     

    

 

Section 1302.            Legal
Defeasance and Discharge. Upon the Company’s exercise of the above option applicable to this Section 1302, the Parent and
the Company shall be deemed to have been discharged from their obligations with respect to all Outstanding Notes on the date the conditions
set forth in Section 1304 are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance
means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by such Outstanding Notes, which
shall thereafter be deemed to be “Outstanding” only for the purposes of Section 1305 and the other Sections of this Indenture
referred to in clauses (i) through (iv) of this paragraph, and to have satisfied all of its other obligations under such Notes
and this Indenture insofar as such Notes are concerned (and the Trustee, at the expense of the Company, shall execute such instruments
reasonably requested by the Company acknowledging the same), except for the following which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of such Outstanding Notes to receive, solely from the trust fund described in Section 1304
and as more fully set forth in this Article Thirteen, payments in respect of the principal of (and premium, if any) and interest
on such Notes when such payments are due; (ii) the obligations of the Company and the Trustee with respect to such Notes under Sections
304, 305, 310, 1002 and 1003; (iii) the rights, powers, trusts and immunities of the Trustee hereunder; and (iv) this Article Thirteen.
The Company may exercise its option under this Section 1302 notwithstanding the prior exercise of its option under Section 1303
with respect to such Note.

 

Section 1303.            Covenant
Defeasance. Upon the Company’s exercise of the above option applicable to this Section 1303, the Company shall be released
from its obligations under Sections 1004 through 1006 and Sections 1008 through 1013 with respect to such Outstanding Notes on and after
the date the conditions set forth in Section 1304 are satisfied (hereinafter, “Covenant Defeasance”), and such
Notes shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with any such covenant, but shall continue to be deemed “Outstanding”
for all other purposes hereunder. For this purpose, such Covenant Defeasance means that, with respect to such Outstanding Notes, the Parent
and the Company may omit to comply with, and shall have no liability in respect of, any term, condition or limitation set forth in any
such Section, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or by reason of reference
in any such Section to any other provision herein or in any other document and such omission to comply shall not constitute a default
or an Event of Default under Section 501(3) or otherwise, as the case may be, but, except as specified above, the remainder
of this Indenture and such Notes shall be unaffected thereby.

 

Section 1304.         Conditions
to Legal Defeasance or Covenant Defeasance. The following shall be the conditions to application of either Section 1302 or Section 1303
to the Outstanding Notes:

 

(1)            The
Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another Trustee satisfying the requirements of
Section 608 who shall agree to comply with the provisions of this Article Thirteen applicable to it) as trust funds in trust
for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders
of such Notes, (1) an amount in U.S. Dollars, or (2) Government Obligations applicable to such Notes which through the scheduled
payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due
date of any payment of principal of (and premium, if any) and interest, if any, on such Notes, money in an amount, or (3) a combination
thereof, in any case, in an amount, sufficient, without consideration of any reinvestment of such principal and interest, in the opinion
of a nationally-recognized firm of independent public accountants, investment bank or appraisal firm expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay
and discharge, the principal of (and premium, if any) and interest on such Outstanding Notes on the Stated Maturity of such principal
(or premium, if any) or installment of interest or the applicable Redemption Date, as the case may be.

 

    	 	63	 

     

    

 

(2)            Such
Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture.

 

(3)            No
Event of Default or Default shall have occurred and be continuing on the date of such deposit, and, solely in the case of Legal Defeasance
under Section 1302, no Event of Default or Default under clause (5) or (6) of Section 501 shall have occurred and
be continuing at any time during the period ending on the 91st day after the date of such deposit (it being understood that this condition
to Legal Defeasance under Section 1302 shall not be deemed satisfied until the expiration of such period).

 

(4)            In
the case of Legal Defeasance pursuant to Section 1302, the Company shall have delivered to the Trustee an opinion of independent
counsel in the United States, appointed by the Company at its expense, stating that (x) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (y) since the date of this Indenture there has been a change in applicable
federal income tax law, in either ease to the effect that, and based thereon such opinion of independent counsel shall confirm that, the
beneficial owners of such Outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such
Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have
been the case if such Legal Defeasance had not occurred; or, in the case of Covenant Defeasance pursuant to Section 1303, the Company
shall have delivered to the Trustee an opinion of independent counsel in the United States to the effect that the beneficial owners of
such Outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if
such Covenant Defeasance had not occurred.

 

(5)            The
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the Legal Defeasance or Covenant Defeasance, as the case may be, under this Indenture have been complied with.

 

Section 1305.         Deposited
Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions. All cash and Government Obligations (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 1305, the
 “Qualifying Trustee”) pursuant to Section 1304 in respect of the Outstanding Notes shall be held in trust and
applied by the Qualifying Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying Agent) as the Qualifying Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, but such money or
Government Obligations need not be segregated from other funds except to the extent required by law.

 

    	 	64	 

     

    

 

The Company shall pay and
indemnify the Qualifying Trustee against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 1304 or the principal and interest received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the Outstanding Notes.

 

Anything in this Article Thirteen
to the contrary notwithstanding, the Qualifying Trustee shall deliver or pay to the Company from time to time upon Company Request any
money or Government Obligations held by it as provided in Section 1304 which, in the opinion of a nationally-recognized firm of independent
public accountants, expressed in a written certification thereof delivered to the Qualifying Trustee, are in excess of the amount thereof
which would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance, as applicable, in accordance
with this Article Thirteen.

 

Section 1306.            Reinstatement.
If the Trustee or any Paying Agent is unable to apply any money or Government Obligations in accordance with Section 1305 by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the Company’s obligations under this Indenture and the Outstanding Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 1302 or 1303, as the case may be, until such time as the Trustee or Paying Agent is permitted to apply
all such money or Government Obligations in accordance with Section 1305; provided, however, that (a) if the Company makes any
payment of principal of (or premium, if any) or interest on any Note following the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Obligations held by the
Trustee or Paying Agent and (b) unless otherwise required by any legal proceeding or any other order or judgment of any court or
governmental authority, the Trustee or Paying Agent (if other than the Company) shall return all such money and Government Obligations
to the Company promptly after receiving a written request therefor at any time, if such reinstatement of the Company’s obligations
has occurred and continues to be in effect.

 

Section 1307.            Repayment
to Company. Subject to any laws relating to abandoned property, any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for
two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Company on its request or
(if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease.

 

    	 	65	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	 	COMPANY:
	 	 	 
	 	ARBOR REALTY
    SR, INC.
	 	 	 
	 	By:	/s/ Paul Elenio
	 	Name: 	Paul Elenio
	 	Title: 	Chief Financial Officer
	 	 	 
	 	PARENT:
	 	 	 
	 	ARBOR REALTY
    TRUST, INC.
	 	 	 
	 	By:	/s/ Paul Elenio
	 	Name: 	Paul Elenio
	 	Title: 	Chief Financial Officer

 

[Signature Page to Indenture]

 

    	 	 	 

     

    

 

	 	TRUSTEE:
	 	 	 
	 	UMB BANK, N.A.
	 	 	 
	 	By: 	/s/ Shazia Flores
	 	Name: 	Shazia Flores
	 	Title: 	Vice President

 

[Signature Page to Indenture]

 

    	 	 	 

     

    

 

Appendix A

 

PROVISIONS RELATING TO INITIAL NOTES

 

1. Definitions.

 

1.1 Definitions.

 

For the purposes of this Appendix
the following terms shall have the meanings indicated below:

 

“Additional Notes”
has the meaning attributed thereto in the Indenture.

 

“Applicable Procedures”
means, with respect to any transfer or transaction involving a Global Note or beneficial interest therein, the rules and procedures
of the Depository for such Global Note, Euroclear or Clearstream, in each case to the extent applicable to such transaction and as in
effect from time to time.

 

“Certificated Note”
means any Note (other than a Global Note) bearing, if required, the appropriate legends set forth in Section 2.3(d) of this
Appendix.

 

“Clearstream”
means Clearstream Banking S.A. or any successor securities clearing agency.

 

“Depository” means
The Depository Trust Company, its nominees and their respective successors.

 

“Distribution Compliance
Period,” with respect to any Notes, means the period of 40 consecutive days beginning on and including the later of (i) the
day on which such Notes are first offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in
reliance on Regulation S and (ii) the original issue date with respect to such Notes.

 

“Euroclear” means
Euroclear Bank SA/NV, as operator of the Euroclear Systems Clearance System or any successor securities clearing agency.

 

“IAI” means an
institution that is an “accredited investor” as described in Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) (for
(13), only family clients that are institutions) under the Securities Act that has furnished to the Trustee a signed letter containing
certain representations and agreements and is not a QIB.

 

“Initial Notes”
means (1) $150,000,000 aggregate principal amount of 8.50% Senior Notes due 2027 issued on the Issue Date and (2) Additional
Notes, if any, issued in a transaction exempt from the registration requirements of the Securities Act.

 

“Initial Purchasers”
means (1) with respect to the Initial Notes issued on the Issue Date, Piper Sandler & Co. and (2) with respect to each
issuance of Additional Notes, Persons purchasing such Additional Notes under the related Purchase Agreement.

 

    	 	 	 

     

    

 

“Notes” means
the Initial Notes and any Additional Notes, treated as a single series.

 

“Notes Custodian”
means the custodian with respect to a Global Note (as appointed by the Depository), or any successor Person thereto, and shall initially
be the Trustee.

 

“Purchase Agreement”
means the Purchase Agreement, dated October 6, 2022, among the Parent, the Company and the Initial Purchaser.

 

“QIB” means a
 “qualified institutional buyer” as defined in Rule 144A.

 

“Rule 144A Notes”
means all Notes offered and sold to QIBs in reliance on Rule 144A.

 

“Transfer Restricted
Notes” means Notes that bear or are required to bear the Restricted Notes Legend.

 

“Unrestricted Global
Note” means any Note in global form that does not bear or is not required to bear the Restricted Notes Legend.

 

1.2 Other Definitions.

 

	Term	Defined in Section:
	“Agent Members”	2.1(b)
	“Certificated Notes Legend”	2.3(d)
	“Global Notes”	2.1(a)
	“Global Notes Legend”	2.3(d)
	“IAI Global Note”	2.1(a)
	“Indenture”	1.3
	“OID Legend”	2.3(d)
	“Regulation S”	2.1(a)
	“Regulation S Global Note”	2.1(a)
	“Restricted Notes Legend”	2.3(d)
	“Rule 144A”	2.1(a)
	“Rule 144A Global Note”	2.1(a)

 

1.3 Capitalized terms used
in this Appendix, but not defined in this Appendix, have the meanings ascribed to such terms in the Indenture to which this Appendix is
attached (the “Indenture”).

 

    	 	A-2	 

     

    

 

2. The Notes.

 

2.1 (a) Form and
Dating. The Initial Notes shall be offered and sold by the Company pursuant to a Purchase Agreement. The Initial Notes shall be resold
initially only to (i) QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”), (ii) IAIs
in reliance on an applicable exemption from the registration requirements of the Securities Act and (iii) Persons other than U.S.
Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act (“Regulation S”). Initial Notes
may thereafter be transferred to, among others, QIBs, IAIs and purchasers in reliance on Regulation S subject to the restrictions
on transfer set forth herein. Initial Notes initially resold pursuant to Rule 144A shall be issued initially in the form of one or
more permanent global notes in definitive, fully registered form (collectively, the “Rule 144A Global Note”); Initial
Notes initially resold to IAIs shall be issued initially in the form of one or more permanent global notes in definitive, fully registered
form (collectively, the “IAI Global Note”); and Initial Notes initially resold pursuant to Regulation S shall be issued initially
in the form of one or more permanent global notes in definitive, fully registered form (collectively, the “Regulation S Global Note”),
in each case without interest coupons and with the Global Notes Legend, the applicable Restricted Notes Legend and, if applicable, the
OID Legend set forth in Section 2.3(d) of this Appendix, which shall be deposited on behalf of the purchasers of the Initial
Notes represented thereby with the Notes Custodian and registered in the name of the Depository or a nominee of the Depository, duly executed
by the Company and upon receipt of a Company Order authenticated by the Trustee as provided in the Indenture.

 

The Rule 144A Global
Note, the IAI Global Note and the Regulation S Global Note are collectively referred to herein as “Global Notes.” The aggregate
principal amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee
and the Depository or its nominee as hereinafter provided.

 

(b) Book-Entry Provisions.
This Section 2.1(b) shall apply only to a Global Note deposited with or on behalf of the Depository.

 

The Company shall execute
and upon receipt of a Company Order the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially
one or more Global Notes that (a) shall be registered in the name of the Depository or the nominee of the Depository and (b) shall
be delivered by the Trustee to the Depository or pursuant to the Depository’s instructions or held by the Trustee as custodian for
the Depository.

 

Members of, or participants
in, the Depository (“Agent Members”) shall have no rights under the Indenture with respect to any Global Note held on their
behalf by the Depository or by the Trustee as the custodian of the Depository or under such Global Note, and the Company, the Trustee
and any agent of the Company or the Trustee shall be entitled to treat the Depository as the absolute owner of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company
or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depository or impair, as
between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights
of a Holder of a beneficial interest in any Global Note.

 

(c) Certificated Notes.
Except as provided in Section 2.3 or 2.4, owners of beneficial interests in Global Notes shall not be entitled to receive physical
delivery of Certificated Notes.

 

    	 	A-3	 

     

    

 

2.2 Authentication.
The Trustee shall upon receipt of a Company Order (as specified in Section 202 of the Indenture) promptly authenticate and deliver:
(1) on the Issue Date, 8.50% Senior Notes due 2027 in an aggregate principal amount of $150,000,000; and (2) any Additional
Notes for an original issue in an aggregate principal amount specified in such Company Order. Such Company Order shall specify the aggregate
principal amount of the Notes to be authenticated and the date on which the original issue of such Notes is to be authenticated.

 

2.3 Transfer and Exchange.

 

(a) Transfer and Exchange
of Certificated Notes. When Certificated Notes are presented to the Note Registrar with a request:

 

(x) to register
the transfer of such Certificated Notes; or

 

(y) to exchange
such Certificated Notes for an equal principal amount of Certificated Notes of other authorized denominations,

 

the Note Registrar shall register the transfer
or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Certificated
Notes surrendered for transfer or exchange:

 

(i) shall be
duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Note Registrar,
duly executed by the Holder thereof or its attorney duly authorized in writing; and

 

(ii) in the case
of Transfer Restricted Notes, are being transferred or exchanged pursuant to an effective registration statement under the Securities
Act or pursuant to Section 2.3(b) of this Appendix or otherwise in accordance with the Restricted Notes Legend, and are accompanied
by a certification from the transferor in the form in Exhibit 2 to Appendix A for exchange or registration of transfers and, as applicable,
delivery of such legal opinions, certifications and other information as may be requested pursuant thereto.

 

(b) Restrictions on
Transfer of a Certificated Note for a Beneficial Interest in a Global Note. A Certificated Note may not be exchanged for a beneficial
interest in a Global Note except upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Certificated
Note, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together with:

 

(i) a certification
from the transferor in the form in Exhibit 2 to Appendix A for exchange or registration of transfers and, as applicable, delivery
of such legal opinions, certifications and other information as may be requested pursuant thereto; and

 

(ii) written
instructions directing the Trustee to make, or to direct the Notes Custodian to make, an adjustment on its books and records with respect
to such Global Note to reflect an increase in the aggregate principal amount of the Notes represented by the Global Note, such instructions
to contain information regarding the Depository account to be credited with such increase,

 

then the Trustee shall cancel such Certificated
Note and cause, or direct the Notes Custodian to cause, in accordance with the standing instructions and procedures existing between the
Depository and the Notes Custodian, the aggregate principal amount of Notes represented by the Global Note to be increased by the aggregate
principal amount of the Certificated Note to be exchanged and shall credit or cause to be credited to the account of the Person specified
in such instructions a beneficial interest in the Global Note equal to the principal amount of the Certificated Note so canceled. If the
Global Note is not then Outstanding, the Company shall issue and the Trustee shall authenticate, upon receipt of a Company Order, a new
Global Note in the appropriate principal amount.

 

    	 	A-4	 

     

    

 

(c) Transfer
and Exchange of Global Notes.

 

(i) The transfer
and exchange of Global Notes or beneficial interests therein shall be effected through the Depository, in accordance with the Indenture
(including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depository therefor. A transferor of
a beneficial interest in a Global Note shall deliver to the Note Registrar a written order given in accordance with the Depository’s
procedures containing information regarding the participant account of the Depository to be credited with a beneficial interest in the
Global Note. The Note Registrar shall, in accordance with such instructions, instruct the Depository to credit to the account of the Person
specified in such instructions a beneficial interest in the Global Note and to debit the account of the Person making the transfer the
beneficial interest in the Global Note being transferred

 

(ii) If the proposed
transfer is a transfer of a beneficial interest in one Global Note to a beneficial interest in another Global Note, the Note Registrar
shall reflect on its books and records the date and an increase in the principal amount of the Global Note to which such interest is being
transferred in an amount equal to the principal amount of the interest to be so transferred, and the Note Registrar shall reflect on its
books and records the date and a corresponding decrease in the principal amount of the Global Note from which such interest is being transferred.

 

(iii) Notwithstanding
any other provisions of this Appendix, a Global Note may not be transferred as a whole except by the Depository to a nominee of the Depository
or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.

 

(iv) Transfers
by an owner of a beneficial interest in a Rule 144A Global Note or an IAI Global Note to a transferee who takes delivery of such
interest through another Transfer Restricted Note shall be made in accordance with the Applicable Procedures and the Restricted Notes
Legend and only upon receipt by the Trustee of a certification from the transferor in the form provided in Exhibit 2 to Appendix
A for exchange or registration of transfers and, as applicable, delivery of such legal opinions, certifications and other information
as may be requested pursuant thereto. In addition, in the case of a transfer of a beneficial interest in a Rule 144A Global Note
or a Regulation S Global Note to an interest in an IAI Global Note, the transferee must furnish a signed letter substantially in the form
of Exhibit 3 to Appendix A to the Trustee.

 

    	 	A-5	 

     

    

 

(v) During the
Distribution Compliance Period, beneficial ownership interests in the Regulation S Global Note may only be sold, pledged or transferred
through Euroclear or Clearstream in accordance with the Applicable Procedures, the Restricted Notes Legend on such Regulation S Global
Note and any applicable securities laws of any state of the United States. Prior to the expiration of the Distribution Compliance Period,
transfers by an owner of a beneficial interest in the Regulation S Global Note to a transferee who takes delivery of such interest through
a Rule 144A Global Note or an IAI Global Note shall be made only in accordance with the Applicable Procedures and the Restricted
Notes Legend and upon receipt by the Trustee of a written certification from the transferor of the beneficial interest in the form provided
in Exhibit 2 to Appendix A for exchange or registration of transfers. Such written certification shall no longer be required after
the expiration of the Distribution Compliance Period. Upon the expiration of the Distribution Compliance Period, beneficial interests
in the Regulation S Global Note shall be transferable in accordance with applicable law and the other terms of the Indenture.

 

(vi) Upon the
expiration of the Distribution Compliance Period, beneficial interests in the Regulation S Global Note may be exchanged for beneficial
interests in an Unrestricted Global Note upon certification in the form provided in Exhibit 2 to Appendix A for an exchange from
a Regulation S Global Note to an Unrestricted Global Note.

 

(vii)  Beneficial
interests in a Transfer Restricted Note that is a Rule 144A Global Note or an IAI Global Note may be exchanged for beneficial interests
in an Unrestricted Global Note if the Holder certifies in writing to the Note Registrar that its request for such exchange is in respect
of a transfer made in reliance on Rule 144 (such certification to be in the form set forth in Exhibit 2 to Appendix A) and/or
upon delivery of such legal opinions, certifications and other information as the Company may reasonably request.

 

(viii) If no
Unrestricted Global Note is Outstanding at the time of a transfer contemplated by the preceding clauses (vi) and (vii), the Company
shall issue and the Trustee shall authenticate, upon written order of the Company in the front of an Officer’s Certificate, a new
Unrestricted Global Note in the appropriate principal amount.

 

    	 	A-6	 

     

    

 

(d) Legends.

 

(i) Except as
permitted by the following paragraphs (ii), (iii) and (iv), each Note certificate evidencing the Global Notes (and all Notes issued
in exchange therefor or in substitution thereof) shall bear a legend in substantially the following form (the “Restricted Notes
Legend”):

 

THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT
FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES OR IAI NOTES: ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF,
THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY
WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY),][IN THE CASE OF REGULATION S NOTES: 40 DAYS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF, THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES AND THE DATE ON WHICH THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S) IN RELIANCE
ON REGULATION S,] ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN
THE MEANING OF RULE 501(a)(1), (2), (3), (7), (8), (9), (12) OR (13) (FOR (13), ONLY FAMILY CLIENTS THAT ARE INSTITUTIONS) UNDER THE SECURITIES
ACT THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER AND THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL
ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF SECURITIES OF $250,000 OR (F) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE. [IN THE CASE OF REGULATION S NOTES, BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON
NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION
S UNDER THE SECURITIES ACT.]

 

    	 	A-7	 

     

    

 

BY ITS ACQUISITION
OF THIS SECURITY, THE HOLDER HEREOF WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED
BY SUCH HOLDER TO ACQUIRE OR HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE U.S.
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF A PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER
ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY
WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, A GOVERNMENTAL PLAN
AS DEFINED IN SECTION 3(32) OF ERISA, A CHURCH PLAN AS DEFINED IN SECTION 3(33) OF ERISA THAT HAS NOT MADE AN ELECTION UNDER
SECTION 410(D) OF THE CODE, OR A NON-U.S. PLAN THAT IS SUBJECT TO PROVISIONS UNDER ANY OTHER FEDERAL, STATE, LOCAL, NON-U.S.
OR OTHER SIMILAR LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY
WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, OR (2) THE
ACQUISITION, HOLDING AND DISPOSITION OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

 

    	 	A-8	 

     

    

 

Each Certificated
Note shall also bear the following additional legend (the “Certificated Notes Legend”):

 

IN CONNECTION WITH
ANY TRANSFER, THE HOLDER WILL DELIVER TO THE NOTE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

Each Global Note shall
bear the following additional legend (the “Global Notes Legend”):

 

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS
GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

    	 	A-9	 

     

    

 

[[FOR REGULATION
S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN
THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

 

If applicable, each
Note shall also bear the following additional legend (the “OID Legend”):

 

THE FOLLOWING INFORMATION
IS SUPPLIED SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES. THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) WITHIN
THE MEANING OF SECTION 1273 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE’), AND THIS LEGEND IS REQUIRED
BY SECTION 1275(C) OF THE CODE. HOLDERS MAY OBTAIN INFORMATION REGARDING THE AMOUNT OF OID, THE ISSUE PRICE, THE ISSUE
DATE AND THE YIELD TO MATURITY RELATING TO THE SECURITIES BY CONTACTING THE COMPANY AT 333 Earle
Ovington Boulevard, Suite 900, Uniondale, New York.

 

(ii) Upon any
sale or transfer of a Transfer Restricted Note (including any Transfer Restricted Note represented by a Global Note) pursuant to Rule 144
under the Securities Act, the Note Registrar shall permit the transferee thereof to exchange such Transfer Restricted Note for a Certificated
Note that does not bear the Restricted Notes Legend and rescind any restriction on the transfer of such Transfer Restricted Note, if the
transferor thereof certifies in writing to the Note Registrar that such sale or transfer was made in reliance on Rule 144 (such certification
to be in the form set forth on the reverse of the Note).

 

(e) Cancellation or
Adjustment of Global Note. At such time as all beneficial interests in a Global Note have been exchanged for Certificated Notes, redeemed,
purchased or canceled, such Global Note shall be returned to the Depository for cancellation or retained and canceled by the Trustee.
At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for Certificated Notes, redeemed, purchased
or canceled, the principal amount of Notes represented by such Global Note shall be reduced and an adjustment shall be made on the books
and records of the Trustee (if it is then the Notes Custodian for such Global Note) with respect to such Global Note, by the Trustee or
the Notes Custodian, to reflect such reduction.

 

    	 	A-10	 

     

    

 

(f) No Obligation on
the Trustee.

 

(i) The Trustee
shall have no responsibility or obligation to any beneficial owner of a Global Note, a member of, or a participant in the Depository or
other Person with respect to the accuracy of the records of the Depository or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Notes or with respect to the delivery to any participant, member, beneficial owner or other Person
(other than the Depository) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to
such Notes. All notices and communications to be given to the Holders and all payments to be made to Holders under the Notes shall be
given or made only to or upon the order of the registered holders thereof (which shall be the Depository or its nominee in the case of
a Global Note). The rights of beneficial owners in any Global Note shall be exercised only through the Depository subject to the Applicable
Procedures. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to
its members, participants and any beneficial owners.

 

(ii) The Trustee
shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under the
Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Depository
participants, members or beneficial owners in any Global Note) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by, the terms of the Indenture, and to examine the
same to determine substantial compliance as to form with the express requirements hereof.

 

2.4 Certificated Notes.

 

(a) A Global Note deposited
with the Depository or with the Trustee as Notes Custodian for the Depository pursuant to Section 2.1 shall be transferred to the
beneficial owners thereof in the form of Certificated Notes in an aggregate principal amount equal to the principal amount of such Global
Note, in exchange for such Global Note, only if such transfer complies with Section 2.3 hereof and if: (i) the Depository notifies
the Company that it is unwilling or unable to continue as depositary for such Global Note and the Depository fails to appoint a successor
depositary within 90 days; (ii) the Depository ceases to be registered as a “clearing agency” under the Exchange Act,
and in the case of either clause (i) or clause (ii), a successor depositary is not appointed by the Company within 90 days; or (iii) the
Company, at its option, notifies the Trustee that it elects to cause the issuance of Certificated Notes and any Agent Member requests
a Certificated Note in accordance with the Depository’s procedures.

 

(b) Any Global Note that
is transferable to the beneficial owners thereof pursuant to this Section 2.4 shall be surrendered by the Depository to the Trustee
located at its principal Corporate Trust Office to be so transferred, in whole or from time to time in part, without charge, and the Trustee
shall authenticate and deliver, upon such transfer of each portion of such Global Note, an equal aggregate principal amount of Certificated
Notes of authorized denominations. Any portion of a Global Note transferred pursuant to this Section 2.4 shall be executed, authenticated
and delivered only in minimum denominations of $1,000 principal amount and any integral multiple of $1,000 in excess thereof and registered
in such names as the Depository shall direct. Any Certificated Note delivered in exchange for an interest in the Transfer Restricted Note
shall, except as otherwise provided by Section 2.3(e) hereof, bear the applicable Restricted Notes Legend, the Certificated
Notes Legend and, if applicable, the OID Legend.

 

    	 	A-11	 

     

    

 

(c) Subject to the provisions
of Section 2.4(b) hereof, the Holder of a Global Note shall be entitled to grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take
under the Indenture or the Notes.

 

(d) In the event of the
occurrence of one of the events specified in Section 2.4(a) hereof, the Company shall promptly make available to the Trustee
a reasonable supply of Certificated Notes in definitive, fully registered form without interest coupons. In the event that such Certificated
Notes are not issued, the Company expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to the Indenture,
including pursuant to Section 507, the right of any beneficial owner of Notes to pursue such remedy with respect to the portion of
the Global Note that represents such beneficial owner’s Notes as if such Certificated Notes had been issued.

 

    	 	A-12	 

     

    

 

EXHIBIT 1

to Appendix A

 

[FORM OF FACE OF INITIAL NOTE]

 

[Insert, as applicable, the Global Notes Legend,
Restricted Notes Legend, Certificated Notes Legend and OID Legend]

 

    	 	A-1-1	 

     

    

 

	No. [      ]	                                                    $[                 ]

 

8.50% Senior Notes due 2027

 

[QIB CUSIP No. 03881N
AC1

QIB ISIN No. US03881NAC11]

[IAI CUSIP No. 03881N AD9

IAI ISIN No. US03881NAD93]

[Reg S CUSIP No. U0409A AA9

Reg S ISIN No. USU0409AAA98]

 

Arbor Realty SR, Inc.,
a Maryland corporation, promises to pay to _______________, or its registered assigns, the principal sum of __________________ U.S. Dollars
on October 15, 2027 [or such greater or lesser amount as indicated in the attached Schedule of Increases or Decreases in Global Note]*.

 

Interest Payment Dates: April 15
and October 15.

 

Record Dates: April 1
and October 1.

 

Additional provisions of this
Note are set forth on the other side of this Note.

 

	 	ARBOR REALTY SR, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

UMB Bank, N.A., as Trustee

certifies that this is one of the Notes

referred to in the Indenture.

 

	By:	 	 
	 	Authorized Signatory	 

 

Dated:

 

* [To be added if the Note is to be
issued in global form.]

 

    	 	A-1-2	 

     

    

 

[FORM OF REVERSE SIDE OF INITIAL NOTE]

 

8.50% Senior Notes due 2027

 

Capitalized terms used herein
but not defined herein shall have the meanings given to such terms in the Indenture.

 

1. Principal and Interest

 

Arbor Realty SR, Inc.
(the “Company”) shall pay the principal of this Note on October 15, 2027.

 

The Company promises to pay
interest on the principal amount of this Note on each Interest Payment Date, as set forth below, at the rate set forth below.

 

Interest on the Notes shall
accrue at the rate of 8.50% per annum and be payable in cash. Such rate is subject to adjustment as of the first day of any Six-Month
Interest Period based on changes in the ratings of the Notes as provided in Section 301 of the Indenture.

 

Interest shall be payable
semi-annually in arrears (to the Holders at the close of business on April 1 or October 1 immediately preceding the Interest
Payment Date) on each Interest Payment Date, commencing April 15, 2023.

 

Interest on this Note shall
accrue from the most recent date to which interest has been paid or, if no interest has been paid, from October 11, 2022. Interest
shall be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

The Company shall pay interest
on overdue principal at the rate equal to the then applicable interest rate on the Notes, and it shall pay interest on overdue installments
of interest at the same rate, in any case to the extent lawful.

 

2. Method of Payment.

 

The Company shall pay interest
(except Defaulted Interest) on the principal amount of the Notes on each April 15 and October 15 to the Persons who are Holders
(as reflected in the Note Register at the close of business on April 1 and October 1 immediately preceding the Interest Payment
Date), in each case, even if the Note is transferred or exchanged after such Regular Record Date, except as provided in Section 306(b) of
the Indenture with respect to Defaulted Interest; provided that with respect to the payment of principal, the Company shall make payment
to the Holder that surrenders this Note to any Paying Agent on or after October 15, 2027.

 

The Company shall pay principal
(and premium, if any) and interest in money of the United States that at the time of payment is legal tender for payment of public and
private debts. However, the Company may pay principal (and premium, if any) and interest by its check payable in such money. The Company
may pay interest on the Notes by check sent to the Holders at their respective addresses set forth in the Note Register; provided that
all payments of principal (and premium, if any) and interest with respect to Notes represented by one or more Global Notes registered
in the name of or held by the Depository or its nominee shall be made by wire transfer of immediately available funds to the accounts
specified by the Holder or Holders thereof. If a payment date is a Legal Holiday, payment may be made on the next succeeding day that
is a Business Day as if made on the date that the payment was due, and no interest shall accrue for the intervening period.

 

    	 	A-1-3	 

     

    

 

3. Paying Agent and Note Registrar.

 

Initially, UMB Bank, N.A.
(the “Trustee”) shall act as Paying Agent and Note Registrar. The Company may change any Paying Agent or Note Registrar upon
written notice thereto and without notice to the Holders. The Company may act as Paying Agent, Note Registrar or co-registrar.

 

4. Indenture.

 

The Company issued the Notes
under an Indenture dated as of October 11, 2022 (the “Indenture”) between the Company and the Trustee. The Notes are
subject to all the terms stated in the Indenture, and Holders are referred to the Indenture for a statement of all such terms. To the
extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

 

The Notes are unsecured senior
obligations of the Company. The Indenture does not limit the aggregate principal amount of the Notes. Subject to the conditions set forth
in the Indenture, the Company may issue Additional Notes.

 

5. Mandatory Redemption.

 

The Company is not required
to make any mandatory redemption or sinking fund payments with respect to the Notes.

 

    	 	A-1-4	 

     

    

 

6. Optional Redemption; Change of Control Offer.

 

(1) At
any time prior to the Par Call Date, the Company may redeem the Notes, in whole or in part, at any time or from time to time, upon not
less than 10 nor more than 60 days’ prior notice to the Holders, at a Redemption Price equal to the greater of (i) 100% of
the aggregate principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments
of principal and interest on the Notes to be redeemed that would have been due if the Notes matured on the Par Call Date, discounted to
the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis
points, plus, in each case, accrued and unpaid interest, if any, to, but excluding, the Redemption Date. Notwithstanding the foregoing,
if the relevant Redemption Date occurs on or after a record date for an Interest Payment Date, interest on Notes that are due and payable
on such Interest Payment Date will be payable to the Holders of such Notes (or one or more Predecessor Notes) registered as such at the
close of business on the relevant record dates according to their terms and the provisions of the Indenture. Any such redemption shall
be effected in accordance with the terms and conditions set forth in the Indenture. From and after the Par Call Date, the Company may
redeem the Notes, in whole or in part, at any time or from time to time, upon not less than 10 nor more than 60 days’ prior notice
to the Holders, at a Redemption Price equal to 100% of the aggregate principal amount of Notes to be redeemed, plus accrued and unpaid
interest, if any, thereon to, but excluding, the Redemption Date, subject to the rights of Holders on the relevant record date to receive
interest due on the relevant Interest Payment Date.

 

(2) Upon the occurrence
of a Change of Control Triggering Event, the Holder shall have the right to require the Company to purchase all or any part (equal to
$1,000 or an integral multiple of $1,000 in excess thereof) of this Note, pursuant to a Change of Control Offer made in accordance with
Section 1009 of the Indenture, at a purchase price in cash equal to 101% of the principal amount hereof, plus accrued and unpaid
interest hereon, if any, up to, but excluding, the Change of Control Payment Date (subject to the right of the holder of record of this
Note on the relevant record date to receive interest on the relevant Interest Payment Date as provided in Section 1009 of the Indenture),
except to the extent that the Company shall have exercised its right to redeem this Note pursuant to the preceding paragraph (1).

 

(3) If Holders of not
less than 90% in aggregate principal amount of the Outstanding Notes validly tender and do not withdraw their Notes in a Change of Control
Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company, purchases all of the Notes validly
tendered and not withdrawn by such Holders, the Company shall have the right, upon not less than 15 nor more than 60 days’ prior
notice, given not more than 30 days following such purchase pursuant to such Change of Control Offer, to redeem this Note and all other
Notes that remain Outstanding following such purchase at a Redemption Price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, up to, but excluding, the Redemption Date (subject to the right of the holder of record of this Note
on the relevant record date to receive interest on the relevant Interest Payment Date as provided in Section 1009 of the Indenture).

 

7. Denominations; Transfer; Exchange.

 

The Notes are in registered
form without coupons in minimum denominations of $1,000 principal amount and integral multiples of $1,000 in excess thereof. A Holder
may transfer or exchange Notes in accordance with the Indenture. The Note Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any transfer tax or other
similar governmental charges payable in connection therewith. The Company shall not be required, and without the prior written consent
of the Company, the Note Registrar shall not be required, to register the transfer of or exchange of any Note (i) during a period
beginning at the opening of business 15 days before provision of a notice of redemption of Notes and ending at the close of business on
the day of such provision, (ii) selected for redemption in whole or in part and (iii) beginning at the opening of business on
any record date and ending on the close of business on the related Interest Payment Date.

 

8. Persons Deemed Owners.

 

A registered Holder shall
be treated as the owner of a Note for all purposes.

 

    	 	A-1-5	 

     

    

 

9. Unclaimed Money.

 

Subject to applicable laws
relating to abandoned property, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (or premium, if any) or interest on any Note and remaining unclaimed for two years after such principal, premium
or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease.

 

10. Defeasance Prior to Redemption or Maturity.

 

Subject to satisfaction of
conditions set forth in the Indenture, the Company at any time may terminate some or all of its obligations under the Notes and the Indenture
if the Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. Dollars, Government Obligations or a combination thereof, in such amounts as shall be sufficient without consideration
of any reinvestment of interest to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation for principal, premium, if any, and accrued interest to the date of maturity or redemption, as the case may be.

 

11. Amendment; Supplement; Waiver.

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company, the Parent,
any Subsidiary Guarantor, as applicable, and the rights of the Holders issued under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of the Notes at the time Outstanding affected thereby. The
Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Notes at the time Outstanding,
on behalf of the Holders of all Notes, to waive compliance by the Company, the Parent, or any Subsidiary Guarantor, as applicable, with
certain provisions of the Indenture and certain past defaults under the Indenture and its consequences. Any such consent or waiver shall
be binding upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the Company, the
Parent, any Subsidiary Guarantor, as applicable, and the Trustee, without notice to or consent of the Holders, to enter into one or more
indentures supplemental thereto for the purposes specified in the Indenture.

 

12. Restrictive Covenants.

 

The Indenture contains certain
covenants, including covenants with respect to the following matters: (i) the maintenance of certain financial ratios and the maintenance
of a rating; and (ii) merger, consolidation or conveyance of all or substantially all properties and assets. Within 120 days after
the end of each fiscal year, the Company must certify to the Trustee as to its compliance with such covenants.

 

    	 	A-1-6	 

     

    

 

13. Successor Persons.

 

When a successor Person or
other entity assumes all the obligations of its predecessor under the Notes and the Indenture, the predecessor Person shall be released
from those obligations, subject to certain exceptions and conditions.

 

14. Remedies for Events of Default.

 

If an Event of Default with
respect to the Notes in Section 501(5) or 501(6) of the Indenture has occurred, all Notes then Outstanding shall automatically
become due and payable. If any other Event of Default has occurred and is continuing, then either the Trustee or the Holders of at least
25% of the aggregate principal amount of the Outstanding Notes may declare the principal of all the Notes, premium, if any, and accrued
and unpaid interest, if any, thereon, to be due and payable immediately, as provided in Section 502 of the Indenture. At any time
after the Notes have been accelerated, but before a judgment or decree based on acceleration has been obtained, the Holders of a majority
of the aggregate principal amount of Outstanding Notes may, under certain circumstances provided in the Indenture, rescind and annul such
acceleration.

 

15. Trustee Dealings with Company.

 

The Trustee, in its individual
or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company with the same rights it would
have if it were not the Trustee; provided, however, that if it acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the SEC for permission to continue, or resign.

 

16. Authentication.

 

This Note shall not be valid
until an authorized signatory of the Trustee signs the certificate of authentication on the other side of this Note.

 

17. Abbreviations.

 

Customary abbreviations may
be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN
(= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

 

18. CUSIP and ISIN Numbers.

 

Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed
on the Notes and has directed the Trustee to use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

 

    	 	A-1-7	 

     

    

 

19. Governing Law.

 

THIS SECURITY SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

The Company shall furnish to any Holder upon written
request and without charge a copy of the Indenture. Requests may be made to Arbor Realty Trust, Inc., 333 Earle Ovington Boulevard,
Suite 900, Uniondale, New York; Attention Chief Financial Officer.

 

    	 	A-1-8	 

     

    

 

[TO BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global
Note have been made:

 

	Date of exchange	 	Amount of
 decrease in
 principal 
 amount of this 
 Global Note	 	Amount of
 increase in 
 principal
 amount of this 
 Global Note	 	Principal
 amount of this 
 Global Note 
 following such 
 decrease or 
 increase	 	Signature of 
 authorized 
 signatory of 
 Trustee or Notes 
 Custodian
	 	 	 	 	 	 	 	 	 

 

    	 	A-1-9	 

     

    

 

Option of Holder to Elect Purchase

 

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 1009 of the Indenture, check the box below:

 

 ̈

 

If you want to elect to have
only part of the Security purchased by the Company pursuant to Section 1009 of the Indenture, state the amount you elect to have
purchased:

 

$_______________

 

Date:

 

	 	 	 	Your Signature: 
	 	 	 	 
	 	 	 	 	(Sign exactly as your name appears on the face of this Security)
	 	 	 	 	 
	 	 	 	Tax Identification No.: 
	 	 	 	 
	 	 	 	 	 
	Signature Guarantee:**	 	 	 	 

 

** Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    	 	A-1-10	 

     

    

 

EXHIBIT 2

to Appendix A

 

ASSIGNMENT/TRANSFER FORM

 

To assign and transfer this Note, fill in the
form below:

 

Reference is hereby made to the Indenture, dated
as of October 11, 2022, by and among Arbor Realty SR, Inc., Arbor Realty Trust, Inc., the other Guarantors from time to
time party thereto, and UMB Bank, N.A. (the “Indenture”). Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

 

I or we assign and transfer this Note to

	 	 

 

	 	 

(Print or type assignee’s name, address and
zip code)

 

	 	 

(Insert assignee’s soc. sec. or tax I.D.
No.)

 

and irrevocably appoint __________agent to transfer
this Note on the books of the Company.

 

The agent may substitute another to act for him.

 

	Date:	 	 	Your Signature:	 

 

Sign exactly as your name appears on the other
side of this Note.

 

In connection with any transfer
of any of the Notes evidenced by this certificate occurring prior to the applicable Resale Restriction Termination Date, the undersigned
confirms that such Notes are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

(1)  ̈
to the Company or a Subsidiary thereof; or

 

(2)  ̈
to the Note Registrar for registration in the name of the Holder, without transfer; or

 

(3)  ̈
pursuant to an effective registration statement under the Securities Act; or

 

(4)  ̈
inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) that
purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being
made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act; or

 

    	 	A-2-1	 

     

    

 

(5)  ̈ outside the United
States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the
Securities Act; or

 

(6)  ̈ to an institutional
 “accredited investor” (as defined in Rule 501 (a)(l), (2), (3) (7), (8), (9), (12) or (13) (for (13), only family
clients that are institutions) under the Securities Act) that has furnished to the Trustee a signed letter containing certain representations
and agreements; or

 

(7)  ̈ pursuant to the
exemption from registration provided by Rule 144 under the Securities Act.

 

Unless one of the boxes is
checked, the Trustee shall refuse to register any of the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (6) is checked, the Trustee shall be entitled to require, prior to registering
any such transfer of the Notes, such legal opinions, certifications and other information as the Company has reasonably requested to confirm
that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act, such as the exemption provided by Rule 144 under such Act.

 

	Signature 	 	 

 

	Signature Guarantee :	 

 

	 	 

Signature must be guaranteed Signature

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.

 

TO BE COMPLETED BY PURCHASER IF BOX (4) ABOVE
IS CHECKED

 

The undersigned represents and warrants that it
is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, and is
aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding
the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it
is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration
provided by Rule 144A.

 

Date: _ _

 

Notice: To be executed by an executive
officer

 

    	 	A-2-2	 

     

    

 

EXHIBIT 3

to Appendix A

 

FORM OF

TRANSFEREE LETTER OF REPRESENTATION

 

Arbor Realty SR, Inc.

 

[Address]

Fax No.: (_____) ______________

Email: _____________@_____.com

Attention; [___________________]|

 

Ladies and Gentlemen:

 

Reference is hereby made to
the Indenture, dated as of October 11, 2022, by and among Arbor Realty SR, Inc., Arbor Realty Trust, Inc., the other Guarantors
from time to time party thereto, and UMB Bank, N.A. (the “Indenture”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

 

This certificate is delivered
to request a transfer of $[__________] principal amount of the 8.50% Senior Notes due 2027 (the “Notes”) of Arbor Realty SR, Inc.
(the “Company”).

 

Upon transfer, the Notes would
be registered in the name of the new beneficial owner as follows:

 

	Name: 	 

 

	Address: 	 

 

	Taxpayer ID Number: 	 

 

The undersigned represents
and warrants to you that:

 

1. We are an institutional
 “accredited investor” (as defined in Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) (for (13), only family clients
that are institutions) under the Securities Act of 1933, as amended (the “Securities Act”)), purchasing for our own account
or for the account of such an institutional “accredited investor” at least $250,000 principal amount of the Notes, and we
are acquiring the Notes for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation
of the Securities Act. We have such knowledge and experience in financial and business matters as to be capable of evaluating the merits
and risks of our investment in the Notes, and we invest in or purchase securities similar to the Notes in the normal course of our business.
We, and any accounts for which we are acting, are each able to bear the economic risk of our or its investment.

 

    	 	A-3-1	 

     

    

 

2. We understand that the
Notes have not been registered under the Securities Act and, unless so registered, may not be sold except as permitted in the following
sentence. We agree on our own behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or otherwise
transfer such Notes prior to the Resale Restriction Termination Date referred to on the Notes only in accordance with the Restricted Notes
Legend (as such term is defined in Appendix A to the Indenture) printed on the Notes and any applicable securities laws of any state of
the United States. The foregoing restrictions on resale will not apply subsequent to the Resale Restriction Termination Date. If we propose
to make any resale or other transfer of the Notes to another institutional “accredited investor” prior to the Resale Restriction
Termination Date, we shall deliver a letter from the transferee substantially in the form of this letter to the Company and the Trustee,
which shall provide, among other things, that the transferee is an institutional “accredited investor” within the meaning
of Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) (for (13), only family clients that are institutions) under the Securities
Act and that it is acquiring at least $250,000 principal amount of such Notes for investment purposes and not for distribution in violation
of the Securities Act.

 

3. We acknowledge that the
Company and the Trustee reserve the right with respect to any offer, sale or other transfer of the Notes described in the Restricted Notes
Legend prior to the Resale Restriction Termination Date to require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.

 

	                                                                                                                                    	TRANSFEREE:	                                 	 ,

 

	                                                                                                                                     	By:	                                                               

 

    	 	A-3-2	 

     

    

 

Appendix B

 

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT SUBSIDIARY GUARANTORS]

 

Supplemental
Indenture (this “Supplemental Indenture”), dated as of ________________, among __________________ (the “Guaranteeing
Entity”), a parent or subsidiary of Arbor Realty SR, Inc., a Maryland corporation (the “Company”), Arbor Realty
Trust, Inc., a Maryland corporation (the “Parent”), the other Guarantors (as defined in the Indenture referred to herein)
and UMB Bank, N.A., a national banking association organized under the laws of the United States, as trustee (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Company has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”), dated as of October 11, 2022 providing for the issuance of 8.50%
Senior Notes due 2027 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Entity shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing
Entity shall unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture on the terms and conditions
set forth herein (the “Note Guarantee”); and

 

WHEREAS, pursuant to Section 901 of the Indenture,
the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Entity and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders as follows:

 

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

 

2.            Agreement
to Guarantee. The Guaranteeing Entity hereby agrees to provide an unconditional Guarantee on the
terms and subject to the conditions set forth in the Note Guarantee and in the Indenture including but not limited to Article 12
thereof.

 

3.            No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Company
or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture,
the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

 

4.            Governing
Law; Jury Trial Waiver. This Supplemental Indenture shall be governed by and construed in accordance
with the laws of the State of New York.

 

    	 	B-1	 

     

    

 

EACH OF THE COMPANY, THE GUARANTORS,
THE HOLDERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

5.            Counterparts.
The parties may sign any number of copies of this Supplemental Indenture. Each signed copy (which may be provided via electronic transmission)
shall be an original, but all of them together represent the same agreement.

 

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

 

7.            The
Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity
or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely
by the Guaranteeing Entity and the Company.

 

[remainder of page intentionally left blank]

 

    	 	B-2	 

     

    

 

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

 

Dated: _______________, 20__

 

	 	[Guaranteeing Entity]
	 	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	Arbor Realty SR, Inc.
	 	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	Arbor Realty Trust, Inc.
	 	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	[Existing Guarantors]
	 	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	UMB BANK, N.A., as Trustee
	 	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 	B-3Document

Exhibit 10.1

LOAN AND SECURITY AGREEMENT
This LOAN AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) dated as of October 6, 2022 (the “Closing Date”) is entered into among CANADIAN IMPERIAL BANK OF COMMERCE (“Bank”), PROCEPT BIOROBOTICS CORPORATION, a Delaware corporation (“Borrower Representative”) and each Borrower and Guarantor from time to time party hereto as set forth on Schedule 1 hereto.
AGREEMENT
The parties hereby agree as follows:     
1.ACCOUNTING AND OTHER TERMS
Accounting terms not defined in this Agreement shall be construed in accordance with GAAP, and calculations and determinations shall be made following GAAP, consistently applied.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth on Exhibit A.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.  As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative.  Unless otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,” “subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement.  For purposes of the Loan Documents, whenever a representation or warranty is made to a Person’s knowledge or awareness, knowledge or awareness means the actual knowledge, after reasonable investigation, of any Responsible Officer of such Person.
2.LOAN AND TERMS OF PAYMENT
1.1Promise to Pay.  Each Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions, accrued and unpaid interest, fees and charges thereon and all other amounts owing hereunder as and when due in accordance with this Agreement.
1.2[Reserved].
1.3Term Loan.
(a)Availability.  Subject to the terms and conditions of this Agreement, Bank shall make an advance to Borrowers on the Closing Date in an aggregate principal amount equal to Fifty-Two Million Dollars ($52,000,000) (the “Term Loan”).  Bank’s obligation to lend hereunder shall terminate upon the making of the Term Loan on the Closing Date.  Borrowers shall use the proceeds of the Term Loan for working capital and general corporate purposes and to repay existing outstanding Indebtedness of Borrower Representative.  Once repaid, the Term Loan may not be reborrowed.
(b)Repayment.  Commencing on the Amortization Date, and continuing thereafter on the first day of each successive month through the Term Loan Maturity Date, Borrowers shall make consecutive monthly payments of (x) equal principal, in an amount equal to the quotient of (i) twenty percent (20%) of the outstanding principal amount of all Term Loans on the Amortization Date divided by (ii) twelve (12), plus (y)  accrued and unpaid interest.  For illustrative purposes, in the event that no portion of the Term Loans are prepaid prior to the Amortization Date and the aggregate outstanding principal of all Term Loans on the Amortization Date equals Fifty-Two Million Dollars ($52,000,000), the amount of monthly principal payments on and after the Amortization Date  will equal Eight Hundred Sixty-Six Thousand, Six Hundred Sixty Six Dollars and Sixty-Seven cents ($866,666.67). Any and all unpaid Obligations, including principal and any accrued and unpaid interest in respect of the Term Loan, other fees and other sums, if any, shall be due and payable in full on the Term Loan Maturity Date.  The Term Loan may only be prepaid in accordance with Sections 2.3(c) and 2.3(d).
(c)Mandatory Prepayment Upon an Acceleration.  If the Term Loan is accelerated following the occurrence and during the continuance of an Event of Default, Borrowers shall promptly, but in any event within two Business Days,  pay to Bank an amount equal to the sum of all outstanding principal plus any accrued and unpaid interest, plus all other sums, if any, that shall have become due and payable, including interest at the Default Rate or any late fee, if applicable.
(d)Permitted Prepayment of Term Loan.  Borrowers shall have the option to prepay  the Term Loan in increments of no less than $5,000,000, provided Borrowers provide written notice to Bank of its election to prepay the Term Loan at least 5 Business Days prior to such prepayment, and pay, on the date of such 
			
	274337441 v12

prepayment an amount equal to the sum of all outstanding principal plus any accrued and unpaid interest, plus all other sums, if any, that shall have become due and payable, including interest at the Default Rate or any late fee, if applicable.
1.4Bank Services.  At a Borrower’s request, Bank may make available certain Bank Services from time to time, including without limitation any commercial credit card program offered through US Bank National Association, Canada Branch (the “Credit Card Facility”), and all such Bank Services shall constitute Obligations secured by the Collateral.  The terms and conditions of the Credit Card Facility shall be set forth in Bank’s standard US Bank Canada Commercial Card Acknowledgement and Indemnity Agreement, which shall be entered into by the applicable Borrower as a condition to the Credit Card Facility.  Each Borrower party to the Credit Card Facility agrees to pay amounts due pursuant to the Credit Card Facility on demand by Bank, and acknowledges that the Credit Card Facility may be terminated at any time upon prior written notice by Bank.   
1.5Payment of Interest on the Credit Extensions.  
(e)Interest Rate.  The outstanding principal amount of the Term Loan shall accrue interest from and after the Closing Date, at a rate per annum equal to (i) the Term SOFR Rate plus (ii) the Applicable Margin.
(f)Default Rate.  Immediately, upon the occurrence and during the continuance of an Event of Default (unless otherwise directed by Bank in its sole discretion), the Obligations shall bear interest at the Default Rate. Fees and expenses which are required to be paid by Borrowers pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations.  Payment or acceptance of the increased interest rate provided in this Section 2.5(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
(g)Payment; Interest Computation.  Interest is payable monthly in arrears on the first day of each month and shall be computed on the basis of a 365 or 366-day year, as applicable, for the actual number of days elapsed.  In computing interest, (i) all payments received after 12:00 p.m. Eastern Time on any day shall be deemed received at the opening of business on the following Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded.  
(h)Maximum Interest.  Notwithstanding any provision in this Agreement or any other Loan Document, it is the parties’ intent not to contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction shall deem applicable hereto (the “Maximum Rate”).  If a court of competent jurisdiction shall finally determine that a Borrower has actually paid to Bank an amount of interest in excess of the amount that would have been payable if all of the Obligations had at all times borne interest at the Maximum Rate, then such excess interest actually paid by Borrowers shall be applied as follows:  first, to the payment of principal outstanding in respect of the Credit Extensions; second, after all principal is repaid, to the payment of Bank’s accrued interest, costs, expenses, professional fees and any other Obligations; and third, after all Obligations are repaid, the excess (if any) shall be refunded to Borrowers.
(i)Adjustment to Interest Rate.  The Term SOFR Rate shall be adjusted at the commencement of a new Interest Period.
1.6Fees and Charges.  Borrowers shall pay to Bank all Bank Expenses (including reasonable and documented attorneys’ fees and expenses for documentation and negotiation of this Agreement and the other Loan Documents) incurred through and after the Closing Date, when due (or, if no stated due date, within two Business Days after receipt of invoice by Bank). Borrower has paid to Bank a good faith deposit of $50,000 (the “Good Faith Deposit”) to initiate Bank’s due diligence review process. The Good Faith Deposit will be applied to Bank Expenses incurred through the Closing Date.
Unless otherwise provided in this Agreement or in a separate writing by Bank, the fees specified this Section 2.6 are fully-earned as of the Closing Date, and in no event shall any Borrower be entitled to any credit, rebate, refund, reduction, proration or repayment of any fees or charges earned by Bank pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder and notwithstanding the required payment date for such fees or charges.
1.7Payments; Credits; Application of Payments. 
(a)All payments to be made by Borrowers under any Loan Document, including payments of principal and interest and all fees, charges, expenses, indemnities and reimbursements, shall be made in immediately available funds in Dollars, without setoff, recoupment or counterclaim, before 12:00 p.m. Eastern Time on the date when due.  Payments of principal and/or interest received after 12:00 p.m. Eastern Time are considered 
2
			
	274337441 v12

received at the opening of business on the next Business Day.  When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid.  Unless otherwise notified by Bank in writing, Bank shall initiate debit entries to any Deposit Accounts as authorized on the Debit Authorization for principal and interest payments or any other amounts Borrowers owe Bank when due.  These debits shall not constitute a set-off.  If the Debit Authorization arrangement is terminated for any reason, Borrowers shall promptly deliver a new Debit Authorization with respect to another Deposit Account of a Borrower and until such new Debit Authorization is effective, shall make all payments due to Bank at Bank’s address specified in Section 10, or as otherwise notified by Bank in writing.  Except to the extent otherwise requested in writing by Borrower, including pursuant to any disbursement letter or other request for credit extensions, any amounts to be funded or otherwise paid by Bank to a Borrower may be credited in accordance with the Credit Authorization. 
(b)No Borrower shall have a right to specify the order or the loan accounts to which Bank shall allocate or apply any payments made by a Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not expressly specified elsewhere in this Agreement.
1.8Taxes.
(j)Except as required by applicable law, payments received by Bank from the Loan Parties under this Agreement will be made free and clear of and without deduction for any and all Taxes.  However, if at any time any Governmental Authority, applicable law, regulation or international agreement requires any Loan Party (as determined in the good faith discretion by any Loan Party) to make any withholding or deduction from any such payment or other sum payable hereunder to Bank, then (i) the applicable Loan Party shall withhold or make such deductions as such Loan Party determines to be required, (ii) the applicable Loan Party shall timely pay the full amount withheld or deducted to the relevant Governmental Authority, and (iii) to the extent that the withholding or deduction is made on account of Non-Excluded Taxes, the sum payable by the applicable Loan Party shall be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, Bank receives a net sum equal to the sum that Bank would have received had no withholding or deduction been required.  Borrower Representative shall, upon written request, furnish Bank with proof reasonably satisfactory to Bank indicating that the Loan Parties have made such withholding payment.  The agreements and obligations of the Loan Parties and Bank contained in this Section 2.8 shall survive the termination of this Agreement, and shall apply to any successor, assignee or participant (or other transferee) of Bank or any Loan Party as of the date such Person becomes party to, or otherwise obligated under, this Agreement, provided, however, that no participant shall be entitled to receive any greater payment under this Section 2.8(a) with respect to any participation than the participating Bank would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a change in law that occurs after the participant acquired the applicable participation.  For purposes of this Section 2.8, the term “applicable law” includes FATCA.
(k)To the extent Bank is entitled to an exemption from, or a reduction of, withholding Tax with respect to payments made under the Loan Documents, Bank shall, from time to time, as reasonably requested by Borrower Representative, provide such properly completed and executed documentation reasonably requested by Borrower Representative as will permit such payment to be made without withholding or at a reduced rate of withholding.  In addition, Bank shall, if reasonably requested by Borrower Representative, deliver such other documentation prescribed by applicable law or reasonably requested by Borrower Representative as will enable any Loan Party to determine whether or not Bank is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.8(c)(i), (c)(ii)(A), (c)(ii)(B), (c)(ii)(C), (c)(ii)(D), and 2.8(e) below) shall not be required if in Bank’s reasonable judgment such completion, execution or submission would subject Bank to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of Bank.  Each Person that becomes a successor, assignee or participant (or other transferee) of Bank pursuant to Section 12.2 shall, upon the effectiveness of the related transfer, be required to provide all the forms and statements required pursuant to Sections 2.8(b), 2.8(c), 2.8(d), and 2.8(e), as applicable, as if it were “Bank” (it being understood that in the case of a participation, the participant may deliver such forms and statements to Bank).
(l)Without limiting the foregoing, Bank shall deliver to Borrower Representative on the date of this Agreement (and thereafter as reasonably requested by Borrower Representative): 
(i)If Bank is a “United States person” as defined in Section 7701(a)(30) of the IRC (a “U.S. Person”), Bank shall deliver, on or prior to the date on which it becomes a party hereto (and from time to time thereafter upon reasonable request of Borrower Representative), executed copies of IRS Form W-9 certifying that it is exempt from U.S. federal backup withholding tax;
(ii)If Bank is not a U.S. Person, Bank shall, to the extent it is legally entitled to do so, deliver to Borrower Representative (in such number of copies as shall be requested by Borrower 
3
			
	274337441 v12

Representative) on or prior to the date on which it becomes a party hereto (and from time to time thereafter upon the reasonable request of Borrower Representative), whichever of the following is applicable to it:
(A)    in the case it claims the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN-E or W-8BEN, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E or W-8BEN, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
(B)    executed copies of IRS Form W-8ECI;
(C)    in the case it claims the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate, in form and substance reasonably satisfactory to Borrower Representative, to the effect that it is not a “bank” within the meaning of Section 881(c)(3)(A) of the IRC, a “10 percent shareholder” of any Borrower within the meaning of Section 881(c)(3)(B) of the IRC, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the IRC (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN-E or W-8BEN, as applicable; or 
(D)    to the extent it is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, IRS Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable;
(iii)Bank shall, to the extent it is legally entitled to do so, deliver to Borrower Representative (in such number of copies as shall be requested by Borrower Representative)  on or prior to the date on which it becomes a party hereto (and from time to time thereafter upon the reasonable request of Borrower Representative), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit a Borrower to determine the withholding or deduction required to be made.
(c)Bank agrees that if any form or certification it previously delivered under Section 2.8(c) and 2.8(e) expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Borrower Representative in writing of its legal inability to do so.
(d)If a payment made to Bank under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if Bank were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the IRC, as applicable), Bank shall deliver to Borrower Representative at the time or times prescribed by law and at such time or times reasonably requested by Borrower Representative such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the IRC) and such additional documentation reasonably requested by Borrower Representative as may be necessary for any Loan Party to comply with its obligations under FATCA and to determine that Bank has complied with Bank’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this subsection (e), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 
(e)Without duplication of the Loan Parties’ obligations under Section 2.8(a), each Loan Party shall, jointly and severally, indemnify Bank, within ten days after written demand therefor, for the full amount of any Non-Excluded Taxes paid or payable by or required to be withheld or deducted from a payment to Bank and any reasonable expenses arising therefrom or with respect thereto, whether or not such Non-Excluded Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to Borrower Representative by Bank shall be conclusive absent manifest error.  
(f)As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.8, Borrower Representative shall deliver to Bank the original or certified copy of a receipt issued by such Governmental Authority evidencing such payment (if any) or other evidence of such payment reasonably satisfactory to Bank.
(g)If Bank receives a refund of any Non-Excluded Taxes or amounts with respect to which a Borrower has paid additional amounts pursuant to this Section 2.8, it shall pay to Borrower Representative an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by a Borrower under this Section 2.8 with respect to the Non-Excluded Taxes giving rise to such refund), net of all out-of-pocket expenses of Bank, and without interest (other than any interest paid by the relevant Governmental 
4
			
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Authority with respect to such refund), provided that each Borrower, upon the request of Bank, agrees to repay the amount paid over to Borrowers pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to Bank in the event Bank is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to require Bank to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to Borrowers or any other Person.
1.9Continuation.  Any SOFR Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower Representative giving irrevocable notice in a Notice of Continuation to the Bank, in accordance with the applicable provisions of the term “Interest Period” set forth in Exhibit A, of the length of the next Interest Period to be applicable to such SOFR Loan; provided that no SOFR Loan may be continued as such when any Event of Default has occurred and is continuing; provided further that if the Borrower Representative shall fail to have timely delivered a Notice of Continuation, Borrower Representative shall be deemed to have elected to continue such SOFR Loan as a SOFR Loan having the same Interest Period effective on the last day of such Interest Period. 
1.10Inability to Determine Interest Rate; Benchmark Transition Event.  
(m)If prior to the first day of any Interest Period for any SOFR Loan, Bank shall have determined (which determination shall be conclusive and binding upon the Borrowers) in connection with any request for a SOFR Loan or a conversion to or a continuation thereof, for any reason that (a) SOFR or Term SOFR Rates have ceased or will cease to be available for the available Interest Period(s), permanently or indefinitely; or (b) for any reason that SOFR or Term SOFR Rates for all available Interest Periods are no longer, or as of a specified future date will no longer be, representative (or generally used or accepted as a benchmark rate for U.S. Dollar denominated syndicated or bilateral credit facilities) or do not, or as of a specified future date will not, comply with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks (each a “Benchmark Transition Event”), then Bank shall be entitled to give notice thereof (by telephone to be confirmed the same day in writing) or by electronic communication to the Borrowers. On the last day of the Interest Period for each outstanding SOFR Loan occurring on or after the effective date of such notice, the interest on such SOFR Loan shall cease to be calculated on the basis of a Term SOFR Rate and subject to Section 2.10(b), shall commence to be calculated at the option of Bank (exercised by further notice in writing to Borrower Representative) on the basis of the sum of: (A) the alternate benchmark rate that has been selected by Bank and the Borrowers giving due consideration to (1) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the relevant Governmental Authority or (2) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the Term SOFR Rate and (B) the related Benchmark Replacement Adjustment (the replacement benchmark rate chosen by Bank pursuant to the foregoing, the “Replacement Benchmark Rate”).  
If the Replacement Benchmark Rate would at any time be less than the Floor, the Replacement Benchmark Rate will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents. 
(n)In respect of any Benchmark Transition Event: 
(i)Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, and notice of the Replacement Benchmark Rate has been given to Borrower Representative and become effective, such Replacement Benchmark Rate will replace the applicable SOFR Benchmark Rate, for all purposes under this Agreement and every other Loan Document without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document except for the Benchmark Replacement Conforming Changes determined by Bank to be necessary or desirable and written notice of which have been given to the Borrower. 
(ii)In connection with the implementation of a Replacement Benchmark Rate, Bank 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 Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.
(iii)Any determination, decision or election that may be made by Bank under this Section 2.10 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 Bank’s sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.10.
(a)Notwithstanding anything to the contrary in this Agreement or any other Loan Document, at any time the Term SOFR Rate for any particular Interest Period (a) is not displayed on a screen or other information service that publishes such rate from time to time as selected by Bank in its reasonable discretion or (b) 
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the SOFR Administrator has provided a public statement or there has been publication of information announcing that such Interest Period is or will be no longer representative, then (i) Bank may provide written notice of such event to Borrower Representative and upon the effective date of such notice, the definition of Interest Period will be automatically amended to delete reference to such unavailable or un-representative Interest Period without the consent, approval or any other action by any of the parties to this Agreement or any of the other loan or security documents, and (ii) if such Interest Period subsequently becomes available or representative, then Bank may, in its reasonable discretion, reinstate such Interest Period under this Agreement by written notice to the Borrower Representative.
1.11[Reserved].
1.12Illegality; Requirements of Law. 
(o)Illegality. If Bank determines that any Requirement of Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for Bank to make, maintain or fund Credit Extensions with interest determined by reference to any applicable SOFR Benchmark Rate, or to determine or charge interest rates based upon any applicable SOFR Benchmark Rate, then, on notice thereof by Bank to the Borrower Representative, any obligation of Bank to make or continue the affected SOFR Loans shall be suspended until Bank notifies Borrower Representative that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the Borrowers shall, if necessary to avoid such illegality, upon demand from Bank, prepay all SOFR Loans on the last day of the Interest Period therefor, if Bank may lawfully continue to maintain such SOFR Loans to such day, or immediately, if Bank may not lawfully continue to maintain such SOFR Loans. Upon any such prepayment, the Borrowers shall also pay accrued interest on the amount so prepaid or converted. 
(p)Requirements of Law. If any Change in Law:
(i)shall subject Bank to any Taxes (other than (A) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (B) Connection Income Taxes) on the Term Loan, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
(ii)shall impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of or credit extended by Bank (except any reserve requirement reflected in SOFR or the Term SOFR Rate); or 
(iii)impose on Bank or the interbank eurodollar market any other condition, cost or expense (other than Taxes) affecting this Agreement or the Term Loan; and the result of any of the foregoing shall be to increase the cost to Bank of making, continuing or maintaining the Term Loan determined with reference to SOFR or the Term SOFR Rate, or to reduce the amount of any sum receivable or received by Bank or hereunder in respect thereof (whether of principal, interest or any other amount), then, in any such case of clauses (i) through (iii) above, upon the request of Bank, the Borrowers will promptly pay Bank, any additional amount or amounts necessary to compensate Bank for such additional costs incurred or reduction suffered. If Bank becomes entitled to claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower Representative of the event by reason of which it has become so entitled.
(h)If Bank reasonably determines that any Change in Law affecting, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on Bank’s capital as a consequence of this Agreement or the Term Loan to a level below that which Bank could have achieved but for such change in such Requirement of Law (taking into consideration Bank’s policies with respect to capital adequacy), then from time to time the Borrowers will pay to Bank such additional amount or amounts as will compensate Bank for any such reduction suffered.
(i)A certificate as to any additional amounts payable pursuant to paragraphs (b) or (c) of this Section submitted by Bank to Borrower Representative shall be conclusive in the absence of manifest error. Borrowers shall pay Bank the amount shown as due on any such certificate within 10 days after receipt thereof. Failure or delay on the part of Bank to demand compensation pursuant to this Section shall not constitute a waiver of Bank’s right to demand such compensation; provided that the Borrowers shall not be required to compensate Bank pursuant to Section 2.12(b) or Section 2.12(c) for any increased costs incurred or reductions suffered more than nine months prior to the date that Bank notifies Borrower Representative of the Change in Law giving rise to such increased costs or reductions, and of Bank’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).  The obligations of the Borrowers arising pursuant to this Section 2.12 shall survive the termination of this Agreement.
3.CONDITIONS OF LOANS
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1.1Conditions Precedent to Initial Credit Extension.  Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance reasonably satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation:  
(a)duly executed signatures to this Agreement;
(b)duly executed signatures to the IP Security Agreement;
(c)duly executed signatures to the Account Control Agreement(s) required under Section 6.6;
(d)[reserved];
(e)for each Loan Party, a certificate of such Loan Party, duly executed by a Responsible Officer of such Loan Party, certifying and attaching (i) the Operating Documents of such Loan Party, (ii) resolutions duly approved by the Board of such Loan Party, (iii) any resolutions, consent or waiver duly approved by the requisite holders of such Loan Party’s Equity Interests, if applicable (or certifying that no such resolutions, consent or waiver is required), and (iv) a schedule of incumbency;
(f)a payoff letter with respect to Indebtedness outstanding as of the Closing Date to Oxford Finance LLC, together with all documents reasonably required in connection with the payoff and release of security interests;
(g)the Perfection Certificate of Borrower Representative, together with the duly executed signature thereto;
(h)evidence satisfactory to Bank that the insurance policies and endorsements required by Section 6.5 are in full force and effect, and which certificates and endorsements shall be as set forth on Exhibit E; 
(i)original stock certificates representing the Shares, if any, together with a stock power or other appropriate instrument of transfer, with respect to each original stock certificate, if any, duly executed by the holder of record of such Shares and in blank; 
(j)a legal opinion of counsel to the Loan Parties; 
(k)a disbursement letter, duly executed by Borrower Representative; 
(l)financial statements of Borrower Representative and the most recent board-approved operating budget and financial projections for the fiscal year ending December 31, 2022; 
(m)a completed Debit Authorization and Credit Authorization, in each case, duly executed by a Borrower; 
(n)evidence satisfactory to Bank that Borrower Representative maintains no less than $200,000,000 in cash in Deposit Accounts which are demand deposit accounts held at CIBC (or evidence that such amount will be deposited in such accounts substantially concurrently with the satisfaction of the conditions listed in this Section 3.1);  and 
(o)payment of the fees and Bank Expenses then due as specified in Section 2.6.
1.1Conditions Precedent to all Credit Extensions.  Bank’s obligation to make each Credit Extension is subject to the following conditions precedent:
(p)the representations and warranties in this Agreement and the other Loan Documents shall be true, accurate, and complete in all material respects on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date;
(q)Bank’s satisfaction with the results of Bank’s due diligence investigation, including, without limitation, review of financial statements,  management and investor interviews, and customer verification; 
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(r)no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension; and
(s)there has not been any event or circumstance that has had or could reasonably be expected to have a Material Adverse Effect, as determined by Bank in Bank’s discretion.
1.2Covenant to Deliver.  
(t)Loan Parties agree to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition precedent to any Credit Extension.  Each Loan Party expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of any Loan Party’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 
(u)Each Loan Party agrees to deliver the items set forth on Schedule 2 hereto within the timeframe set forth therein (or by such other date as Bank may approve in writing), in each case, in form and substance reasonably acceptable to Bank.
4.CREATION OF SECURITY INTEREST 
1.1Grant of Security Interest.  Each Loan Party hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof.  
1.2Priority of Security Interest.  Each Loan Party represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens).  If a Loan Party shall acquire a commercial tort claim with a potential recovery in excess of $500,000, such Loan Party shall promptly notify Bank in writing and deliver such other information and documents as Bank may require to perfect Bank’s security interest in such commercial tort claim.  If a Loan Party shall acquire a certificate with respect to Shares or any instrument, such Loan Party shall promptly notify Bank and deliver the same together with a stock power or instrument of transfer and any necessary endorsement, all in form reasonably satisfactory to Bank. 
1.3Authorization to File Financing Statements.  Each Loan Party hereby authorizes Bank to file at any time financing statements, continuation statements and amendments thereto with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder.  Such financing statements may describe the Collateral as “all assets” of such Loan Party.
1.4Pledge of Collateral.  Each Loan Party hereby pledges, assigns and grants to Bank a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations.  On the Closing Date or as from time to time required pursuant to this Agreement, any certificates evidencing the Shares shall be delivered to Bank, accompanied by a stock power or other appropriate instrument of assignment duly executed in blank.  To the extent required by the terms and conditions governing the Shares, the applicable Loan Party shall cause the books of the issuer of such Shares and any transfer agent to reflect the pledge of the Shares.  Unless an Event of Default shall have occurred and be continuing, each Loan Party shall be entitled to exercise any voting rights with respect to the Equity Interests in which it has an interest and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of any of such terms.  All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and during the continuance of an Event of Default.
1.5Termination.  If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist or reimbursement obligations or other obligations which, by their terms, survive the termination of this Agreement) are repaid in full in cash.  Upon payment in full in cash of the Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist or reimbursement obligations or other obligations which, by their terms, survive the termination of this Agreement) and at such time as Bank’s obligation to make Term Loans has terminated, Bank shall, at Borrowers’ sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to Borrower. 
5.REPRESENTATIONS AND WARRANTIES
Each Loan Party represents and warrants as follows: 
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1.6Due Organization, Authorization; Power and Authority.
(a)Each Loan Party and each of its Subsidiaries is duly existing and in good standing as a Registered Organization in its respective jurisdictions of formation and is qualified and licensed to do business and are in good standing in any other jurisdiction in which the conduct of its respective business or ownership of property require that they be qualified except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.  Except to the extent Borrower Representative has provided notice of a legal name change to Bank in accordance with Section 7.2 or as may be updated from time to time pursuant to the terms of this Agreement, (i) each Loan Party’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (ii) each Loan Party is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (iii) the Perfection Certificate accurately sets forth each Loan Party’s organizational identification number or accurately states that such Loan Party has none; (iv) the Perfection Certificate accurately sets forth each Loan Party’s place of business, or, if more than one, its chief executive office as well as such Loan Party’s mailing address (if different than its chief executive office ); (v) except as set forth in the Perfection Certificate, each Loan Party (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (vi) all other information set forth on the Perfection Certificate pertaining to each Loan Party and each of its Subsidiaries is accurate and complete in all material respects (it being understood and agreed that such Loan Party may from time to time update certain information in the Perfection Certificate after the Closing Date to the extent permitted by one or more specific provisions in this Agreement and the Perfection Certificate shall be deemed updated to the extent such notice and is provided to Bank of such permitted update, together with a copy of such updated perfection certificate).  
(b)The execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with such Loan Party’s Operating Documents or other organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which such Loan Party or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect), or (v) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any agreement by which such Loan Party is bound, in each case except as could not reasonably be expected to result in a Material Adverse Effect.  No Loan Party is in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a Material Adverse Effect.  
1.7Collateral.
(a)Each Loan Party has good title to, rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens.  
(b)Except for the Collateral Accounts described in the Perfection Certificate or in a notice timely delivered pursuant to Section 6.6, no Loan Party has any Collateral Accounts at or with any bank, broker or other financial institution, and each Loan Party has taken such actions as are necessary to give Bank a perfected security interest therein as required pursuant to the terms of Section 6.6.  To the knowledge of the Borrowers, the Accounts are bona fide, existing obligations of the Account Debtors.
(c)The Collateral is located only at the locations identified in the Perfection Certificate and other locations which are either subject to a Collateral Access Agreement or constitute Excluded Locations.  The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as disclosed in writing pursuant to Section 6.12.  
(d)Each Loan Party is the sole owner of the material Intellectual Property which it owns or purports to own except for (i) licenses constituting “Permitted Transfers”, (ii) open-source software, (iii) over-the-counter software that is commercially available to the public, (iv) Intellectual Property licensed to such Loan Party and noted on the Perfection Certificate, as disclosed pursuant to Section 6.7(b) and (v) immaterial Intellectual Property licensed to such Loan Party.  Each Patent (other than patent applications) which it owns or purports to own and which is material to such Loan Party’s business is valid and enforceable, and no part of the Intellectual Property which a Loan Party owns or purports to own and which is material to the Loan Parties’ business has been judged invalid or unenforceable, in whole or in part.  To the best of each Loan Party’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a Material Adverse Effect.  Except as noted on the Perfection Certificate or as disclosed pursuant to Section 6.7(b), no Loan Party is a party to, nor is it bound by, any Restricted License.  No Subsidiary that is not a Loan Party owns any Intellectual Property that is material to the business of Loan Parties. 
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(e)As of the Closing Date, no Collateral consisting of promissory notes is evidenced by an original instrument, and except for the Shares of Subsidiaries, no Investments consisting of equity interests of a third person are evidenced by certificates.  All Collateral consisting of certificated securities or instruments has been delivered to Bank to be held as possessory collateral with such powers or allonges as Bank may require.
1.8Litigation and Proceedings.  Except as set forth in the Perfection Certificate or as otherwise required to be disclosed to Bank pursuant to Section 6.2(g), there are no actions, suits, litigations or proceedings, at law or in equity, pending, or, to the knowledge of any Responsible Officer, threatened in writing, by or against any Loan Party, any of its Subsidiaries or any officers or directors of the foregoing involving more than, individually or in the aggregate for all related proceedings, $500,000 or in which any adverse decision has had or could reasonably be expected to have a Material Adverse Effect.
1.9Financial Statements.  All consolidated and consolidating financial statements for the Loan Parties and their Subsidiaries delivered to Bank fairly present in all material respects the consolidated and consolidating financial condition and results of operations of the Loan Parties and their Subsidiaries as of the respective dates and for the respective periods then ended, and there are no material liabilities (including any contingent liabilities) which are not reflected in such financial statements.  
1.10Solvency.  The fair salable value of the assets (including goodwill minus disposition costs) of the Loan Parties and their Subsidiaries, on a consolidated basis, exceeds the fair value of liabilities of the Loan Parties’ and each of their Subsidiaries, on a consolidated basis; no Loan Party is left with unreasonably small capital after the transactions in this Agreement; and each Loan Party is able to pay its debts (including trade debts) as they mature.
1.11Consents; Approvals.  Each Loan Party has obtained all third party or governmental consents, licenses, approvals, waivers, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary (i) to enter into the Loan Documents and consummate the transactions contemplated thereby, and (ii) to continue their respective businesses as currently conducted, except (with respect to this clause (ii)) where failure to do so could not reasonably be expected to result in a Material Adverse Effect.
1.12Subsidiaries; Investments.  No Loan Party has any Subsidiaries, except as noted on the Perfection Certificate or as disclosed to Bank pursuant to Section 6.11 below.  No Loan Party owns any stock, partnership, or other ownership interest or other Equity Interests except for Permitted Investments.
1.13Tax Returns and Payments.  Each Loan Party and each of its Subsidiaries has timely filed all required tax returns and reports (or appropriate extensions therefor), and such Loan Party and Subsidiary has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by such Loan Party or such Subsidiary, as applicable, except (a) to the extent such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor, or (b) if such taxes, assessments, deposits and contributions  do not, individually or in the aggregate, exceed $50,000.  No Loan Party is aware of any claims or adjustments proposed for any prior tax years of any Loan Party or any of its Subsidiaries which could result in a material amount of additional taxes becoming due and payable by a Loan Party or any of its Subsidiaries.  
1.14Shares.  Each Loan Party has full power and authority to create a lien on the Shares and no restriction or contractual obligation exists that would prohibit such Loan Party from pledging the Shares pursuant to this Agreement or any applicable Loan Document.  There are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares.  The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable.  To the knowledge of such Loan Party, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and such Loan Party knows of no reasonable grounds for the institution of any such proceedings.
1.15Compliance with Laws.  
(a)No Loan Party or Subsidiary of a Loan Party is an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”, as such terms are defined in the Investment Company Act of 1940 as amended.  
(b)No Loan Party or Subsidiary of a Loan Party is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin security” as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect (such securities being referred to herein as “Margin Stock”).  None of the proceeds of the Credit Extensions or other extensions of credit under this Agreement have been (or will be) used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry any Margin Stock or for any other purpose which 
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might cause any of the Credit Extensions or other extensions of credit under this Agreement to be considered a “purpose credit” within the meaning of Regulation T, U or X of the Federal Reserve Board.  
(c)No Loan Party has taken or permitted to be taken any action which might cause any Loan Document to violate any regulation of the Federal Reserve Board.  Neither the making of the Credit Extensions by Bank hereunder nor any Borrower’s use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.  No Loan Party, nor any of its Subsidiaries, nor any Affiliate of any Loan Party or of any Subsidiary (i) is, or will become, a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control of the United States Department of Treasury (“OFAC”) or in Section 1 of the Anti-Terrorism Order, (ii) is, or will become, a citizen or resident of any country that is subject to embargo or trade sanctions enforced by OFAC, (iii) is, or will become, a Person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of the Anti-Terrorism Order or similar sanctions laws of any other Governmental Authority, or (iv) engages or will engage in any dealings or transactions, or is or will be otherwise associated, with any such Person.  
(d)Each Loan Party and each of its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act.  No part of the proceeds from the Credit Extensions made hereunder has been (or will be) used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, or other applicable Requirement of Law applicable to Loan Parties or their Subsidiaries from time to time concerning or relating to bribery or corruption (collectively “Anti-Corruption Laws”), and each Loan Party and each of its Subsidiaries, directors and officers and to the knowledge of Borrowers, any employees and agents of such Loan Party or Subsidiary are in compliance in all material respects, with Anti-Corruption Laws.
(e)No Reportable Event or Prohibited Transaction, as defined in ERISA has occurred or is reasonably expected to occur, and no Loan Party has failed to meet the minimum funding requirements of ERISA.  No Loan Party has violated any applicable environmental laws in any material respect, maintains any properties or assets which have been designated in any manner pursuant to any environmental protection statute as a hazardous materials disposal site, or has received any notice, summons, citation or directive from the Environmental Protection Agency or any other similar Governmental Authority, in each case to the extent such transaction or violation would result in a Material Adverse Effect.
1.16Products.  A complete and accurate list of the Products, is set forth on the Perfection Certificate, as updated from time to time pursuant to the Compliance Certificate.  The Loan Parties and their Subsidiaries hold all required Governmental Approvals, a list of which is set forth on the Perfection Certificate, and all such Governmental Approvals are in full force and effect, in each case, except where the failure to obtain such Governmental Approval could not reasonably be expected to have a Material Adverse Effect.  There are no proceedings in progress, pending or, to such Loan Party’s knowledge, threatened, that may result in revocation, cancellation, suspension, rescission or any adverse modification of any of any Governmental Approval that would be reasonably expected to result in a Material Adverse Effect nor, to the best of the knowledge, information and belief of such Loan Party, after due inquiry, are there any facts upon which proceedings could reasonably be based that would be reasonably expected to result in a Material Adverse Effect.  Without limitation of the foregoing: 
(f)With respect to any Product being tested or manufactured, each Loan Party and each of its Subsidiary has received, and such Product is the subject of, all Governmental Approvals needed in connection with the testing or manufacture of such Product as such testing is currently being conducted by or on behalf of a Loan Party or any of its Subsidiaries except where the failure to obtain such Governmental Approval could not reasonably be expected to have a Material Adverse Effect, and neither any Loan Party nor any of its Subsidiaries has received any written notice from any applicable Governmental Authority, that such Governmental Authority is conducting an investigation or review of (i) any Loan Party’s or any of its Subsidiary’s manufacturing facilities and processes for such Product which have disclosed any material deficiencies or violations of any Requirement of Law or the Governmental Approvals related to the manufacture of such Product, or (ii) any such Governmental Approval or that any such Governmental Approval has been revoked or withdrawn, nor has any such Governmental Authority issued any order or recommendation stating that the development, testing and/or manufacturing of such Product should cease, in each case, that would reasonably be expected to result in a Material Adverse Effect.
(g)With respect to any Product marketed or sold by a Loan Party or any of its Subsidiaries, such Loan Party or such Subsidiary, as applicable, has received, and such Product is the subject of, all Governmental Approvals needed in connection with the marketing and sales of such Product as currently being marketed or sold except where the failure to obtain such Governmental Approval could not reasonably be expected to have a Material Adverse Effect, and no Loan Party nor any of its Subsidiaries has received any written notice from any applicable Governmental Authority, that such Governmental Authority is conducting an investigation or review of any such Governmental Approval or approval or that any such Governmental Approval has been revoked or withdrawn 
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except where the failure to maintain such Governmental Approval could not reasonably be expected to have a Material Adverse Effect, nor has any such Governmental Authority issued any order or recommendation stating that such marketing or sales of such Product cease or that such Product be withdrawn from the marketplace, in each case, where such order or withdrawal would reasonably be expected to result in a Material Adverse Effect;
(h)There have been no adverse clinical test results in connection with a Product which have or could reasonably be expected to have a Material Adverse Effect, and 
(i)There have been no Product recalls or voluntary Product withdrawals from any market that would reasonably be expected to result in a Material Adverse Effect.
1.17[Reserved].
1.18Full Disclosure.  No written representation, warranty or other statement of a Loan Party or any of its Subsidiaries in any certificate or written statement given to Bank by or on behalf of a Loan Party or any of its Subsidiaries, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading in light of the circumstances under which they were made (it being recognized by Bank that the projections and forecasts provided by any Loan Party in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
6.AFFIRMATIVE COVENANTS  
1.19Government Compliance.  Each Loan Party shall maintain its legal existence and good standing in its jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect; comply with all laws, ordinances and regulations to which it is subject except where a failure to do so could not reasonably be expected to have a Material Adverse Effect; shall obtain all of the Governmental Approvals required in connection with its business and for the performance of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Bank in accordance therewith, and comply with all terms and conditions with respect to such Governmental Approvals; and shall cause each other Loan Party and each of its Subsidiaries to do all of the foregoing, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.  Each Borrower shall maintain and cause each other Loan Party and each of its Subsidiaries to maintain compliance with Sanctions and Anti-Corruption Laws, and shall implement and cause each other Loan Party and each of its Subsidiaries to implement appropriate policies and procedures to ensure compliance by their respective directors, officers, employees and agents with Sanctions and Anti-Corruption Laws, and shall not engage in transactions or dealings with a Sanctioned Person or Sanctioned Country.    
1.20Financial Statements, Reports, Certificates, Notices.  Borrower Representative shall provide Bank with the financial statements, reports, certificates and notices as and when set forth below:
(j)Quarterly Financial Statements.  Within 45 days after the last day of each quarter, a company prepared consolidated and consolidating balance sheet, income statement and statement of cash flows covering the consolidated and consolidating operations of Borrower Representative and each of its Subsidiaries for such quarter, in form reasonably acceptable to Bank, certified by a Responsible Officer as having been prepared in accordance with GAAP, consistently applied, except for the absence of footnotes, and subject to normal year-end adjustments.
(k)Quarterly Compliance Certificate.  Within 45 days after the last day of each quarter and together with the quarterly financial statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such quarter, Borrowers were in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank may reasonably request.
(l)Annual Operating Budget and Financial Projections.  Within 60 days after the end of each fiscal year of Borrower Representative (and promptly and within five Business Days of any material modification thereto), (i) operating budgets, on a consolidating basis (including income statements, balance sheets and cash flow statements for Borrower Representative) for the upcoming fiscal year of Borrower Representative, and (ii) annual financial projections for such fiscal year as approved by Borrower Representative’s Board.
(m)Annual Audited Financial Statements.  As soon as available, but no later than 120 days after the last day of Borrower Representative’s fiscal year, audited consolidated financial statements prepared in accordance with GAAP, consistently applied, together with an unqualified opinion (other than any qualification or 
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limitation as to “going concern”) on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank, together with any management letter with respect thereto.
(n)[Reserved]. 
(o)SEC Filings.  Within five days of filing, copies of all periodic reports, proxy statements and other materials filed by Borrower Representative with the Securities and Exchange Commission. 
(p)Legal Action Notice.  A prompt report of any legal actions pending or threatened in writing against any Loan Party or any of its Subsidiaries that could result in damages or costs to any Loan Party or any of its Subsidiaries of, individually or in the aggregate for all related proceedings, of $500,000 or more of any claim asserted in writing that a Loan Party or any of its products infringes on the Intellectual Property of another Person. 
(q)[Reserved].
(r)Intellectual Property Report.  Together with the Compliance Certificate delivered at the end of each calendar quarter, a report in form reasonably acceptable to Bank, listing any applications or registrations that any Loan Party or any of its Subsidiaries has made or filed in respect of any Patents, Copyrights or Trademarks and the status of any outstanding applications or registrations, as well as any material change in any Loan Party or any of its Subsidiaries’ Intellectual Property.
(s)Other Reports and Information.  Together with the quarterly financial reports, reports as to the following, in form reasonably acceptable to Bank: a schedule of each of the Deposit Accounts and cash balances of Borrower Representative and its Subsidiaries, and any other information related to the financial or business condition of any Loan Party as and when reasonably requested by Bank. 
(t)Operating Documents; Equity Financing Documents.  Together with the Compliance Certificate due after the closing of any equity financing or any other material amendment to the Operating Documents of any Loan Party after the Closing Date, a copy of the related equity financing documents, if applicable, or amendment to Operating Documents.
(u)Insurance Renewal.  At the request of Bank, annually upon renewal of insurance policies required pursuant to Section 6.5, Borrower Representative shall deliver such updated insurance certificates and endorsements to the policies as Bank may reasonably request to confirm requisite insurance coverage, such certificates and endorsements to be as set forth in and as set forth on Exhibit E. 
(v)Product Related.  Within three Business Days of receipt, copies of all material correspondence, reports, documents and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any Governmental Approvals required for the manufacturing, marketing, testing or sale of Products or which could have a Material Adverse Effect.
Additionally, documents required to be delivered pursuant to this Section 6.2 may be delivered electronically and if so, shall be deemed to have been delivered on the date on which the Borrower posts such documents, or provides a link thereto, on the Borrower’s investor relations or the SEC’s website.
1.21Inventory; Returns.  
(f)Borrowers shall keep all Inventory in good and marketable condition, free from material defects.  
(g)Returns and allowances between a Loan Party and its Account Debtors shall follow such Loan Party’s customary practices as they exist at the Closing Date.  Borrower Representative shall promptly notify Bank of all returns, recoveries, disputes and claims that involve more than $500,000, in each case, other than any such claims pursuant to a payment plan in Borrower’s ordinary course of business.
1.22Taxes; Pensions.  Each Loan Party shall timely file all required tax returns and reports and timely pay all foreign, federal, state and local taxes, assessments, deposits and contributions owed by such Loan Party, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, shall pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and shall cause each other Loan Party and each of its Subsidiaries to do all of the foregoing.
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1.23Insurance.  Each Loan Party shall keep its business and the Collateral insured for risks and in amounts standard for companies in its industry and location and as Bank may reasonably request, and shall cause each Loan Party and each of its Subsidiaries to do so.  All such insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of any Loan Party, and in amounts that are reasonably satisfactory to Bank.  Each Loan Party shall ensure that proceeds payable under any property policy maintained by any Loan Party with respect to Collateral are, at Bank’s option, payable to Bank on account of the Obligations.  To that end, all property policies shall have a lender’s loss payable endorsement showing Bank as lender loss payable, all liability policies shall show, or have endorsements showing, Bank as an additional insured, in each case, in form satisfactory to Bank and as set forth on Exhibit E (or with respect to such insurance maintained by carriers outside the United States, shall have taken such steps as is required pursuant to applicable Loan Documents or as Bank has reasonably requested).  Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, the Loan Parties shall have the option of applying the proceeds of any casualty policy up to $500,000 in the aggregate per fiscal year, toward the prompt replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral and (b) after the occurrence and during the continuance of an Event of Default, all such proceeds shall, at the option of Bank, be payable to Bank on account of the Obligations.  At Bank’s reasonable request, Borrower Representative shall deliver certified copies of insurance policies and evidence of all premium payments, together with such endorsements upon the policy or policies issued by it or by independent instruments furnished to Bank, that it will give Bank 30 days prior written notice before any such policy or policies shall be canceled (or ten days’ notice for cancellation for non-payment of premiums).  If any Loan Party fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Bank deems prudent.
1.24Deposit and Securities Accounts.
(w)Except as set forth below, within 90 days of the Closing Date, each Loan Party shall maintain each of its primary Collateral Accounts with CIBC.
(x)The Loan Parties shall maintain the lesser of (x) $150,000,000 in cash or (y) all cash of the Loan Parties (other than amounts held in the Permitted SVB Account) in Deposit Accounts that are demand deposit accounts or money market deposit accounts held at CIBC.
(y)Each Loan Party shall deliver written notice to Bank five days prior to any Loan Party establishes any Collateral Account at or with any bank, broker or other financial institution other than with Bank or Bank’s Affiliates.  For each Collateral Account that any Loan Party at any time maintains other than with Bank or Bank’s Affiliates (other than Excluded Accounts), Loan Parties shall cause the applicable bank, broker or financial institution at or with which any Collateral Account is maintained to execute and deliver an Account Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account.   
Notwithstanding the foregoing, Borrower Representative shall be permitted to maintain an amount not to exceed $12,500,000 in a Collateral Account held at Silicon Valley Bank that is subject to an Account Control Agreement in favor of Bank (the “Permitted SVB Account”).
1.25Intellectual Property.
(c)Each Borrower shall, and shall cause each other Loan Party and each of its Subsidiaries to, protect, defend and maintain the validity and enforceability of its Intellectual Property material to its business; promptly advise Bank in writing of material infringements or any other event that could reasonably be expected to materially and adversely affect the value of its Intellectual Property material to its business; not suffer any material claim of infringement that could reasonably be expected to have a Material Adverse Effect unless such claim is dismissed within 60 days from initiation thereof or Borrower Representative has demonstrated to Bank’s satisfaction that such proceedings are without merit and adequate reserves have been taken; and no Borrower shall allow, or shall suffer any other Loan Party or Subsidiary to allow, any Intellectual Property material to the Loan Parties’ business to be abandoned, forfeited or dedicated to the public without Bank’s written consent.  
(d)If any Loan Party (i) obtains any Patent, registered Trademark, registered Copyright, registered mask work, or any pending application for any of the foregoing, whether as owner or licensee, or (ii) applies for any Patent or the registration of any Trademark, then Borrower Representative shall provide written notice thereof to Bank along with the then-next Compliance Certificate and shall execute such intellectual property security agreements and other documents and take such other actions as Bank may reasonably request to perfect and maintain a first priority perfected security interest in favor of Bank in such property.  If a Loan Party decides to register any Copyrights or mask works in the United States Copyright Office, Borrower Representative shall: (x) provide Bank with at least 15 days prior written notice of such Loan Party’s intent to register such Copyrights or mask works together with a copy of the application it intends to file with the United States Copyright Office 
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(excluding exhibits thereto); (y) execute an intellectual property security agreement and such other documents and take such other actions as Bank may request to perfect and maintain a first priority perfected security interest in favor of Bank in the Copyrights or mask works intended to be registered with the United States Copyright Office; and (z) record such intellectual property security agreement with the United States Copyright Office contemporaneously with filing the Copyright or mask work application(s) with the United States Copyright Office. 
(e)Borrower Representative shall provide written notice to Bank (which may be delivered electronically within the later of (x) delivery of the then-next Compliance Certificate or (y) thirty days  of any Loan Party entering or becoming bound by any Restricted License. Borrower Representative shall use commercially reasonable efforts to obtain, or use commercially reasonable efforts to cause such Loan Party to obtain, the consent of, or waiver in form reasonably satisfactory to Bank from any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Restricted License together with other Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents.
1.26Litigation Cooperation.  From the Closing Date and continuing through the termination of this Agreement, each Loan Party shall make available, at reasonable times, to Bank, without expense to Bank, each Loan Party and its officers, employees and agents and each Loan Party’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to such Loan Party.
1.27Access to Collateral; Books and Records.  Each Borrower shall allow, and shall cause each other Loan Party to allow, at reasonable times, Bank, or its agents, to inspect the Collateral and audit and copy such Loan Party’s Books.  Such inspections or audits shall be conducted no more often than one time per fiscal year unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall determine is necessary.  The foregoing inspections and audits shall be at Borrowers’ expense.
1.28Financial Covenants. Borrowers shall comply with one of the following two financial covenants (other than during a Streamline Period):
(z)Minimum Unrestricted Cash. Borrower shall maintain, at all times, Unrestricted Cash in an amount not less than the greater of (i) $20,000,000, (ii) the absolute value of EBITDA losses (if any) for the most recent consecutive 4-month period then ended, and (iii) the aggregate outstanding principal amount of the Term Loan, in each case, determined by reference to financial reporting required to have been delivered pursuant; or
(aa)Minimum Revenue and Growth. Borrower shall maintain Revenue, determined as of the last day of each fiscal quarter, (i) of not less than $50,000,000 for the consecutive 12-month period ended as of the month ending immediately prior to each measurement date, and (ii) for the consecutive 12-month period ended as of the month ending immediately prior to each measurement date that is at least 115% of Revenue as of the last day of the consecutive 12-month period of the immediately preceding year.
1.29Subsidiary Matters.  
(h)If any Loan Party forms any direct or indirect Subsidiary, acquires any direct or indirect Subsidiary after the Closing Date, or is the subject of a Division, or at any time upon Bank’s request with respect to any Subsidiary: (i) promptly, and in any event within five days of such formation, acquisition or Division, provide written notice to Bank together with certified copies of the Operating Documents for such Subsidiary (or in case of a Division, the Person(s) resulting from such Division), and (ii) promptly, and in any event within 30 days of such formation or creation: (A) take all such action as may be reasonably required by Bank to cause such new Subsidiary (other than an Immaterial Foreign Subsidiary) (or Person(s) resulting from a Division) to either: (x) provide to Bank a joinder to this Agreement pursuant to which such Subsidiary (or other Person(s)) becomes a Loan Party hereunder, or (y) guarantee the Obligations of Borrowers under the Loan Documents, and (B) grant a security interest in and to the collateral (other than any Excluded Property) of any such Subsidiary (other than an Immaterial Foreign Subsidiary) (or Person(s) (substantially in accordance with this Agreement)), in each case together with such Account Control Agreements and other documents, instruments and agreements reasonably requested by Bank, all in form and substance satisfactory to Bank (including being sufficient to grant Bank a first priority Lien, subject to Permitted Liens) in and to the assets (other than any Excluded Property) of such newly formed or acquired Subsidiary (other than an Immaterial Foreign Subsidiary) (or Person(s) resulting from a Division) and (C) pledge all of the Shares in such new Subsidiary (or Person(s)) (other than any Excluded Property).
(i)Borrowers shall not permit Subsidiaries which are not Loan Parties, in the aggregate to own any Intellectual Property which is material to the business of Borrowers as a whole, without causing one or more of such Subsidiaries to enter into a joinder to this Agreement or a Guaranty as Bank may reasonably request within 30 days (or such other period as Bank may agree in writing), unless waived by Bank in writing.
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1.30Property Locations.  
(ab)Each Loan Party shall provide to Bank at least ten days’ prior written notice before adding any new offices or business or Collateral locations, including warehouses (unless such new offices or business or Collateral locations qualify as Excluded Locations).
(ac)With respect to any property or assets of a Loan Party located with a third party, including a bailee, datacenter or warehouse (other than Excluded Locations), Loan Parties shall cause such third party to execute and deliver a Collateral Access Agreement for such location, including an acknowledgment from each of the third parties that it is holding or will hold such property for Bank’s benefit.  Loan Parties shall deliver to Bank each warehouse receipt, where negotiable, covering any such property. 
(ad)With respect to any property or assets of a Loan Party located on leased premises (other than Excluded Locations), Loan Parties shall use commercially reasonable efforts to cause such third party to execute and deliver a Collateral Access Agreement for such location.
1.31Further Assurances.  Execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. 
7.NEGATIVE COVENANTS
No Loan Party shall, or shall cause or permit any Subsidiary to, do any of the following:  
1.32Dispositions.  Transfer all or any part of its business or property, except for Permitted Transfers.
1.33Changes in Business, Management, or Ownership.  (a) Engage in any business other than the businesses currently engaged in by such Person on the date hereof, as applicable, or reasonably related, complementary or incidental thereto; (b) cease doing business, or liquidate or dissolve; (c) permit or suffer a Change in Control; (d) without at least 20 days prior written notice to Bank (i) change its jurisdiction of organization, (ii) change its chief executive office, (iii) change its organizational structure or type, (iv) change its legal name, or (v) change its organizational number (if any) assigned by its jurisdiction of organization.  
1.34Mergers or Acquisitions.  Merge or consolidate with any other Person, or acquire all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary) or enter into any agreement to do any of the same, except for a merger or consolidation by a Subsidiary with or into another Subsidiary or a Loan Party, provided that in connection with any merger or consolidation involving Borrower Representative or a Loan Party, Borrower Representative or such Loan Party, as applicable, shall be the surviving Person.
1.35Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, other than Permitted Indebtedness.
1.36Encumbrance.  Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted herein, except in connection with Permitted Liens permitted to have priority over Bank’s Lien pursuant hereto.
1.37Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section 6.6.
1.38Distributions; Investments.  (a) Pay any dividends or make any distribution or payment in respect of, or redeem, retire or purchase any Equity Interests provided that (i) Borrower Representative may convert any of its convertible Equity Interests (including warrants) into other Equity Interests issued by Borrower Representative pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower Representative may convert Subordinated Debt issued by Borrower Representative into Equity Interests issued by Borrower Representative pursuant to the terms of such Subordinated Debt and to the extent permitted under the terms of the applicable subordination or intercreditor agreement with Bank, (iii) Borrower Representative may pay dividends solely in Equity Interests of Borrower Representative, (iv) Borrower Representative may make cash payments in lieu of fractional shares, (v) any Subsidiary may pay dividends or make any other distribution to a Loan Party or Subsidiary thereof, and (vi) Borrower Representative may repurchase the Equity Interests issued by Borrower Representative pursuant to stock repurchase agreements approved by Borrower Representative’s Board, provided that (A) no Event of Default exists at the time of such repurchase and no Event of Default would result therefrom (B) the aggregate amount of all such repurchases does not exceed $500,000 per fiscal year, and (C) such payment or distribution is permitted under and is made in compliance with all applicable laws; or (b) directly or indirectly make any Investment other than Permitted Investments.  
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1.39Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of a Loan Party, except for (a) transactions that are in the Ordinary Course of Business and on fair and reasonable terms that are no less favorable to such Person than would be obtained in an arm’s length transaction with a non-affiliated Person, (b) bona fide rounds of Subordinated Debt or equity financing by investors in Borrower Representative for capital raising purposes, (c) reasonable and customary director, officer and employee compensation and other customary benefits including retirement, health, stock option and other benefit plans and indemnification arrangements approved by Borrower Representative’s Board, (d) payments by the Loan Parties and their Subsidiaries pursuant to transfer pricing arrangements or cost plus arrangements that are approved by Borrower’s Board, in each case, solely as between or among the Loan Parties and one or more of their Subsidiaries and (e) transactions permitted pursuant to Sections 7.1, 7.2, 7.4 and 7.7.
1.40Subordinated Debt.  (a) Make or permit any payment on any Subordinated Debt, except as permitted pursuant to the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Bank.
1.41Compliance.  (a) Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; (b)(i) fail to meet the minimum funding requirements of ERISA, (ii) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; (iii) fail to comply with the applicable provisions of the Federal Fair Labor Standards Act or (iv) violate any other law or regulation, if the foregoing subclauses (i) through (iv) individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of a Loan Party or any of its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.
8.EVENTS OF DEFAULT
Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:
1.42Payment Default.  Any Loan Party fails to (a) pay any principal or interest on any Credit Extension when due, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Term Loan Maturity Date).  During the cure period, the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period);.
1.43Covenant Default.  
(j)A Borrower fails or neglects to perform any obligation in Section 4.2, Section 6.2, 6.4, 6.5, 6.6, 6.7, 6.9, 6.10, 6.11, or 6.13, or violates any covenant in Section 7; or
(k)A Loan Party fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period).
1.44Material Adverse Effect.  An event or circumstance has occurred which could reasonably be expected to have a Material Adverse Effect.
1.45Attachment; Levy; Restraint on Business.  
(a)(i) The service of process seeking to attach, by trustee or similar process, any funds of a Loan Party or of any of its Subsidiaries, or (ii) a notice of Lien or levy is filed against the assets of any Loan Party or any of its Subsidiaries by any Governmental Authority, and the same under clauses (i) and (ii) hereof are not, within 
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ten days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten day cure period; or 
(b)(i) any material portion of the assets of a Loan Party or any of its Subsidiaries is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents a Loan Party or any of its Subsidiaries from conducting all or any material part of its business. 
1.46Insolvency.  (a) Loan Parties and their Subsidiaries, as a whole, are unable to pay its debts (including trade debts) as they become due, the realizable value of the Loan Parties’ consolidated assets, as a whole, is less than the aggregate sum of their liabilities, or the Loan Parties otherwise become insolvent; (b) a Loan Party or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against a Loan Party or any of its Subsidiaries and is not dismissed or stayed within 60 days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed).
1.47Other Agreements.  There is, under any agreement to which a Loan Party or any of its Subsidiaries is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness (including, for the avoidance of doubt, Indebtedness incurred pursuant to credit cards) in an amount individually or in the aggregate in excess of $500,000 (except if such third party is restricted from accelerating the maturity of such Indebtedness, including pursuant to the terms of a subordination or similar agreement in favor of Bank); or (b) any breach or default by a Loan Party, the result of which could have a Material Adverse Effect.  
1.48Judgments; Penalties.  One or more fines, penalties or final judgments, orders or decrees for the payment of money in an amount, individually or in the aggregate, of at least $500,000 shall be rendered against a Loan Party by any Governmental Authority, and the same are not, within ten days after the entry, assessment or issuance thereof, discharged, satisfied, or paid, or after execution thereof, stayed or bonded pending appeal, or such judgments are not discharged prior to the satisfaction, payment, expiration of any such stay (provided that no Credit Extensions will be made prior to the discharge, stay, or bonding of such fine, penalty, judgment, order or decree).
1.49Misrepresentations.  Any Loan Party or any Person acting for such Loan Party makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made (it being agreed and acknowledged by Bank that the projections and forecasts provided by Borrower or any of its Subsidiaries in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).
1.50Subordinated Debt.  Any Subordination Agreement governing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect (other than in accordance with its terms), any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further obligation thereunder, or the Obligations shall for any reason not have the priority contemplated by this Agreement.
1.51Guaranty.  (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations and such breach is not cured within any applicable cure period specified therein; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.6, 8.7, or 8.8 of this Agreement occurs with respect to any Guarantor, (d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral.
1.52Governmental Approval.  Any Governmental Approval shall have been revoked, rescinded, suspended, modified in an adverse manner or not renewed for a full term, and such revocation, rescission, suspension, modification or non-renewal has, or could have, a Material Adverse Effect.
9.BANK’S RIGHTS AND REMEDIES
1.53Rights and Remedies.  Upon the occurrence and during the continuance of an Event of Default, Bank may, without notice or demand, do any or all of the following:
(c)declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank);
(d)stop advancing money or extending credit for any Borrower’s benefit under this Agreement or under any other agreement between any Loan Party and Bank;
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(e)(i) demand that Borrowers deposit cash with Bank as collateral security for the repayment of any future drawings under any Letters of Credit and pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letter of Credit, (ii) terminate any other bank services provided by Bank for any Loan Party or Subsidiary thereof;
(f)verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, and notify any Person owing a Loan Party money of Bank’s security interest in such funds;
(g)make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Loan Parties shall assemble the Collateral if Bank requests and make it available as Bank designates.  Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred.  Each Loan Party grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;
(h)apply to the Obligations any (i) balances and deposits of any Loan Party it holds, or (ii) amount held by Bank owing to or for the credit or the account of such Loan Party;
(i)ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral.  Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, a Loan Party’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section, a Loan Party’s rights under all licenses and all franchise agreements inure to Bank’s benefit;
(j)place a “hold” on any account maintained with Bank or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Account Control Agreement or similar agreements providing control of any Collateral;
(k)demand and receive possession of any Loan Party’s Books; and
(l)exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof).
1.54Power of Attorney.  Each Loan Party hereby irrevocably appoints Bank (and any of Bank’s partners, managers, officers, agents or employees) as its lawful attorney-in-fact, with full power of substitution, exercisable solely upon the occurrence and during the continuance of an Event of Default, to:  (a) send requests for verification of Accounts or notify Account Debtors of Bank’s security interest and Liens in the Collateral; (b) endorse such Loan Party’s name on any checks or other forms of payment or security; (c) sign such Loan Party’s name on any invoice or bill of lading for any Account or drafts against Account Debtors schedules and assignments of Accounts, verifications of Accounts, and notices to Account Debtors; (d) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (e) make, settle, and adjust all claims under such Loan Party’s insurance policies; (f) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; (g) transfer the Collateral into the name of Bank or a third party as the Code permits; and (h) dispose of the Collateral.  Each Loan Party further hereby appoints Bank (and any of Bank’s partners, managers, officers, agents or employees) as its lawful attorney-in-fact, with full power of substitution, regardless of whether or not an Event of Default has occurred or is continuing to: (i) sign such Loan Party’s name on any documents and other Security Instruments necessary to perfect or continue the perfection of, or maintain the priority of, Bank’s security interest in the Collateral until all Obligations (other than contingent indemnity or reimbursement obligations or other obligations which, by their terms, survive termination of this Agreement) have been satisfied in full and the Bank’s obligation to provide Credit Extensions has terminated, (ii) execute and do all such assurances, acts and things which such Loan Party is required, but fails to do under the covenants and provisions of the Loan Documents; (iii) take any and all such actions as Bank may reasonably determine to be necessary or advisable for the purpose of maintaining, preserving or protecting the Collateral or any of the rights, remedies, powers or privileges of Bank under this Agreement or the other Loan Documents.  Bank’s foregoing appointment as each Loan Party’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist, reimbursement obligations or other obligations which, by their terms, survive termination of the Agreement) have been fully repaid, in cash, and otherwise fully performed and Bank is under no further obligation to make Credit Extensions hereunder.  
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1.55Protective Payments.  If a Loan Party fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which such Loan Party is obligated to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the Default Rate.  Bank will make reasonable efforts to provide Borrower Representative with notice of Bank obtaining such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter.  No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default.
1.56Application of Payments and Proceeds Upon Default.  If an Event of Default has occurred and is continuing, Bank shall have the right to apply in any order any funds in its possession, whether payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations.  Bank shall pay any surplus to Loan Parties by credit to the Deposit Account designated by Loan Parties or to other Persons legally entitled thereto.  Loan Parties shall remain liable to Bank for any deficiency.  If Bank, directly or indirectly, enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor.
1.57Bank’s Liability for Collateral.  So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person.  Loan Parties bear all risk of loss, damage or destruction of the Collateral.
1.58No Waiver; Remedies Cumulative.  Bank’s failure, at any time or times, to require strict performance by each Loan Party of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith.  No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given.  Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative.  Bank has all rights and remedies provided under the Code, by law, or in equity.  Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing waiver.  Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.  
1.59Demand Waiver.  Each Loan Party waives presentment, demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments or chattel paper.
1.60Shares.  Each Loan Party recognizes that Bank may be unable to effect a public sale of any or all the Shares, by reason of certain prohibitions contained in federal securities laws and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Each Loan Party acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  Bank shall be under no obligation to delay a sale of any of the Shares for the period of time necessary to permit the issuer thereof to register such securities for public sale under federal securities laws or under applicable state securities laws, even if such issuer would agree to do so.  Upon the occurrence and during the continuation of an Event of Default, (i) Bank may, at its option, and with two Business Days prior notice to any Loan Party (unless such Event of Default is an Event of Default specified in Section 8.4 or 8.5, in which case no such notice need be given), and in addition to all rights and remedies available to Bank under any other agreement, at law, in equity, or otherwise, exercise all voting rights, or any other ownership or consensual rights (including any dividend or distribution rights) in respect of the Shares owned by such Loan Party, but under no circumstances is Bank obligated by the terms of this Agreement to exercise such rights, and (ii) if Bank duly exercises its right to vote any of such Shares, each Loan Party hereby appoints Bank, such Bank’s true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Shares in any manner Bank deems advisable for or against all matters submitted or which may be submitted to a vote of shareholders, partners or members, as the case may be.  The power-of-attorney and proxy granted hereby is coupled with an interest and shall be irrevocable.
10.NOTICES
All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document shall be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three Business Days after deposit in the U.S. mail, first class, 
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registered or certified mail return receipt requested, with proper postage prepaid; (b) upon confirmation of receipt, when sent by electronic mail transmission; (c) one Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, or email address indicated below.  Bank and Loan Parties may change their respective mailing or electronic mail addresses by giving the other party written notice thereof in accordance with the terms of this Section 10. 
						
	If to Loan Parties:	PROCEPT BioRobotics Corporation 
900 Island Drive 
Redwood City, California 94065
Attention: Chief Legal Officer
Email: Legal@procept-biorobotics.com

	If to Bank:	
	for any borrowing request:	Canadian Imperial Bank of Commerce
Credit Processing Services
595 Bay Street, 5th floor
Toronto, Ontario
M5G 2C2
Attention: Derek Rosin; Aakash Maniar 
Email: Derek.Rosin@cibc.com; Aakash.Maniar@cibc.com; mailbox.innovation@cibc.com 

	for all other notices:	Canadian Imperial Bank of Commerce
81 Bay Street, 10th Floor, 
Toronto, Ontario  M5J 0E7
Attention: Jeff Chapman
Email: jeff.chapman@cibc.com

	With a copy, not constituting notice, to:	Cooley LLP
3175 Hanover Street
Palo Alto, CA 94304
Attn: John Hale
e-mail: jhale@cooley.com 

 
11.CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER
Except as otherwise expressly provided in any of the Loan Documents, this Agreement and the other Loan Documents shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of law.  Each Loan Party hereby submits to the exclusive jurisdiction of the State and Federal courts in New York County, City of New York, New York; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank.  Each Loan Party expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and each Loan Party hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Each Loan Party hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to such Loan Party at the address set forth in, or subsequently provided by such Loan Party in accordance with, Section 10 and that service so made shall be deemed completed upon the earlier to occur of Loan Parties’ actual receipt thereof or three days after deposit in the U.S. mails, proper postage prepaid.  Each Loan Party hereby expressly waives any claim to assert that the laws of any other jurisdiction govern this Agreement.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH LOAN PARTY AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT.  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, EACH LOAN PARTY AGREES THAT IT SHALL NOT 
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SEEK FROM BANK UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.
This Section 11 shall survive the termination of this Agreement.
12.GENERAL PROVISIONS
1.61Termination Prior to Maturity; Survival.  All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist, any reimbursement obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied in full, in cash and Bank no longer has any obligation to extend credit to a Borrower.  So long as Borrowers have satisfied the Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist, any reimbursement obligations and any other obligations which, by their terms, are to survive the termination of this Agreement), and all Bank Services which are to survive the termination of this Agreement have been cash collateralized, as required by Bank, this Agreement may be terminated prior to the maturity of all Credit Extensions outstanding by Borrowers, effective three Business Days after written notice of termination is given to Bank.  Those obligations that are expressly specified in this Agreement as surviving this Agreement’s termination shall continue to survive notwithstanding this Agreement’s termination. 
1.62Successors and Assigns.  This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  No Loan Party may assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion).  Bank has the right, without the consent of or notice to any Loan Party, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents. Notwithstanding the foregoing, prior to the occurrence of an Event of Default, Bank shall not assign any interest in the Loan Documents to any Person who is in the reasonable discretion of Bank is (a) a direct competitor of Borrower or (b) a vulture or distressed debt fund.  Bank, acting solely for this purpose as a non-fiduciary agent of the Borrowers, shall maintain at one of its offices in the United States a copy of each assignment delivered to it and a register for the recordation of the names and addresses of the applicable lender, and the applicable commitments of, and principal amounts (and stated interest) of the Term Loans or other Obligations owing to, each lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and Bank, the Borrowers and the applicable lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrowers and any lender, at any reasonable time and from time to time upon reasonable prior notice.  Each lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Term Loans or other Obligations under the Loan Documents (the “Participant Register”); provided that no lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant’s interest in any commitments, Term Loans or its other Obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, Term Loan or other Obligation is in registered form under Section 5f.103-1(c) and proposed Section 1.163-5(b) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and Bank and such lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  
1.63Indemnification.  Each Loan Party agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against:  (i) all obligations, demands, claims, and liabilities (including such claims, costs, expenses, damages and liabilities based on liability in tort, including strict liability in tort) (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (ii) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified Person as a result of, following from, consequential to, or arising from transactions among Bank and Loan Parties (including reasonable attorneys’ fees and expenses), except for Claims and/or losses to the extent directly caused by such Indemnified Person’s gross negligence or willful misconduct.  This Section 12.3 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.  Each Loan Party agrees to pay, and to save Bank harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all excise, sales or other similar taxes (excluding taxes imposed on or measured by the net income of Bank) that may be payable or determined to be payable with respect to any of the Collateral or this Agreement. This Section 12.3 shall survive until all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have run.
1.64Borrower Liability.  If any Person is joined to this Agreement as a Borrower, the following provisions shall apply: Each Borrower may, acting singly, request Credit Extensions hereunder.  Each Borrower 
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hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder.  Each Borrower hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless of which such Borrower actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions.  Each Borrower waives (a) any suretyship defenses available to it under the Code or any other applicable law, and (b) any right to require Bank to: (i) proceed against any Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy.  Bank may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting any Borrower’s liability.  Notwithstanding any other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law subrogating such Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by a Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by a Borrower with respect to the Obligations in connection with this Agreement or otherwise.  Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section shall be null and void.  If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether matured or unmatured. 
1.65Time of Essence.  Time is of the essence for the performance of all Obligations in this Agreement.
1.66Severability of Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.
1.67Correction of Loan Documents.  Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties.
1.68Amendments in Writing; Waiver; Integration.  No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought.  Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document.  Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver.  The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations among the parties about the subject matter of the Loan Documents merge into the Loan Documents.
1.69Counterparts; Electronic Execution of Documents.  This Agreement and each other Loan Document (except as expressly otherwise specified therein) may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one agreement.  The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures (including in “.pdf” format) or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act.
1.70Confidentiality.  In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively, “Bank Entities”); (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order and in connection with reporting obligations applicable to Bank, including pursuant to the Securities Exchange Act of 1934, as amended; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein.  Confidential information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain (other than as a result of its disclosure by Bank in violation of this Agreement) after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information.  Bank Entities may use a Borrower’s name and logo, and include a brief description of the relationship among Borrowers and Bank, in Bank’s marketing materials.  Bank may use confidential information for the development of databases, reporting purposes, and market 
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analysis so long as such confidential information is aggregated and anonymized prior to distribution, and Bank has ownership of the information and analysis so developed.  The provisions of this paragraph shall survive the termination of this Agreement.
1.71Attorneys’ Fees, Costs and Expenses.  In any action or proceeding among Loan Parties and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled.
1.72Borrower Representative.  Each Borrower hereby appoints Borrower Representative to act as its exclusive agent for all purposes under the Loan Documents (including, without limitation, with respect to all matters related to the borrowing and repayment of any Credit Extension).  Each Borrower acknowledges and agrees that (a) Borrower Representative may execute such documents on behalf of any Borrower as Borrower Representative deems appropriate in its sole discretion and each Borrower shall be bound by and obligated by all of the terms of any such document executed by Borrower Representative on its behalf, (b) any notice or other communication delivered by Bank hereunder to Borrower Representative shall be deemed to have been delivered to each Borrower and (c) the Bank shall accept (and shall be permitted to rely on) any document or agreement executed by Borrower Representative on behalf of Borrowers (or any of them).  Each Borrower shall act through the Borrower Representative for all purposes under this Agreement and the other Loan Documents.  Notwithstanding anything contained herein to the contrary, to the extent any provision in this Agreement requires any Borrower to interact in any manner with Bank, such Borrower shall do so through Borrower Representative.
1.73Captions.  The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.
1.74Construction of Agreement.  The parties mutually acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement.  In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist.
1.75Publicity; Press Releases.  Bank may issue a press release announcing the financing pursuant to this Agreement with the prior written consent of Borrower and such press release may display any of Borrower’s logos. Bank may display any of Borrower’s logos and name on its website and other marketing materials consistent with Bank’s practices with respect to its loan portfolio.  
1.76Relationship.  The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.  The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract.
1.77Third Parties.  Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.
13.GUARANTY
1.78Guaranty.  Each Guarantor who has executed this Agreement as of the date hereof, together with each Loan Party who accedes to this Agreement as a Guarantor after the date hereof pursuant to Section 6.11 hereby, jointly and severally, unconditionally and irrevocably, guarantees to Bank the prompt and complete payment and performance by Borrowers and the other Loan Parties when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations (provided, however, that “Obligations” of a particular Guarantor shall not include any Excluded Swap Obligation of such Guarantor).  In furtherance of the foregoing, and without limiting the generality thereof, each Guarantor agrees as follows:
(a)each Guarantor’s liability hereunder shall be the immediate, direct, and primary obligation of such Guarantor and shall not be contingent upon Bank’s exercise or enforcement of any remedy it or they may have against a Borrower, or any other Guarantor or other Person liable in respect of the Obligations, or all or any portion of the Collateral; and
(b)Bank may enforce this guaranty notwithstanding the existence of any dispute between Bank and a Borrower or any other Guarantor with respect to the existence of any Event of Default.
1.79Maximum Liability.  Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Guarantor shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 13.5).  
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1.80Termination.  The guaranty pursuant to this Section 13 shall remain in full force and effect until the Termination Date.
1.81Unconditional Nature of Guaranty.  No payment made by a Borrower, Guarantor, any other guarantor or any other Person or received or collected by Bank from a Borrower, Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected from such Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor hereunder until the Termination Date.
1.82Right of Contribution.  If in connection with any payment made by any Guarantor hereunder any rights of contribution arise in favor of such Guarantor against one or more other Guarantors, such rights of contribution shall be subject to the terms and conditions of Section 13.6.  The provisions of this Section 13.5 shall in no respect limit the obligations and liabilities of any Guarantor to Bank, and each Guarantor shall remain liable to Bank for the full amount guaranteed by such Guarantor hereunder.
1.83No Subrogation.  Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by Bank, no Guarantor shall be entitled to be subrogated to any of the rights of Bank against a Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by Bank for the payment of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from a Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, in each case, until the Termination Date.  If any amount shall be paid to any Guarantor on account of such subrogation rights at any time prior to the Termination Date, such amount shall be held by such Guarantor in trust for Bank, shall be segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to Bank in the exact form received by such Guarantor (duly indorsed by such Guarantor to Bank, if required), to be applied to the Obligations, irrespective of the occurrence or the continuance of any Event of Default.
1.84Amendments, etc. with respect to the Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Obligations made by Bank may be rescinded by Bank and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by Bank, and this Agreement, the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, in accordance with their respective terms, and any collateral security, guarantee or right of offset at any time held by Bank for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  Bank shall have no obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee pursuant to this Section 13 or any property subject thereto.
1.85Guarantee Absolute and Unconditional; Guarantor Waivers; Guarantor Consent.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by Bank upon the guaranty contained in this Section 13 or acceptance of this guaranty.  The Obligations shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this guaranty.  All dealings between Borrowers, Guarantors and Bank shall be conclusively presumed to have been had or consummated in reliance upon this guaranty.  Each Guarantor further waives:
(a)diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon any Borrower or any of the other Guarantors with respect to the Obligations; 
(b)any right to require Bank to marshal assets in favor of any Borrower, such Guarantor, any other Guarantor or any other Person, to proceed against any Borrower, any other Guarantor or any other Person, to proceed against or exhaust any of the Collateral, to give notice of the terms, time and place of any public or private sale of personal property security constituting the Collateral or other collateral for the Obligations or to comply with any other provisions of Section 9-611 of the Code (or any equivalent provision of any other applicable law) or to pursue any other right, remedy, power or privilege of Bank whatsoever;
(c)the defense of the statute of limitations in any action hereunder or for the collection or performance of the Obligations; 
(d)any defense arising by reason of any lack of corporate or other authority or any other defense of any Borrower, such Guarantor or any other Person; 
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(e)any defense based upon Bank’s errors or omissions in the administration of the Obligations;
(f)any rights to set-offs and counterclaims;
(g)any defense based upon an election of remedies (including, if available, an election to proceed by nonjudicial foreclosure) which destroys or impairs the subrogation rights of such Guarantor or the right of such Guarantor to proceed against any Borrower or any other obligor of the Obligations for reimbursement; and
(h)without limiting the generality of the foregoing, to the fullest extent permitted by law, any defenses or benefits that may be derived from or afforded by applicable law that limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Agreement.  
Each Guarantor understands and agrees that the guarantee contained in this Section 13 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (i) the validity or enforceability of this Agreement or any other Loan Document, any of the Obligations or any other collateral security therefor or guaranty or right of offset with respect thereto at any time or from time to time held by Bank, (ii) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by any Borrower or any other Person against Bank, or (iii) any other circumstance whatsoever (with or without notice to or knowledge of any Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any Borrower for the Obligations, or of such Guarantor under this guaranty, in bankruptcy or in any other instance, (iv) any Insolvency Proceeding with respect to any Borrower, any Guarantor or any other Person, (v) any merger, acquisition, consolidation or change in structure of any Borrower, any Guarantor or any other Person, or any sale, lease, transfer or other disposition of any or all of the assets or Equity Interests of any Borrower, any Guarantor or any other Person, (vi) any assignment or other transfer, in whole or in part, of Bank’s interests in and rights under this Agreement or the other Loan Documents, including Bank’s right to receive payment of the Obligations, or any assignment or other transfer, in whole or in part, of Bank’s interests in and to any of the Collateral, (vii) Bank’s vote, claim, distribution, election, acceptance, action or inaction in any Insolvency Proceeding related to any of the Obligations, and (viii) any other guaranty, whether by such Guarantor or any other Person, of all or any part of the Obligations or any other indebtedness, obligations or liabilities of any Guarantor to Bank.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, Bank may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against any Borrower, any other Guarantor or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto.  Any failure by Bank to make any such demand, to pursue such other rights or remedies or to collect any payments from any Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Bank against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
Each Guarantor further unconditionally consents and agrees that, without notice to or further assent from any Guarantor:  (a) the principal amount of the Obligations may be increased or decreased and additional indebtedness or obligations of a Borrower or any other Persons under the Loan Documents may be incurred, by one or more amendments, modifications, renewals or extensions of any Loan Document or otherwise; (b) the time, manner, place or terms of any payment under any Loan Document may be extended or changed, including by an increase or decrease in the interest rate on any Obligation or any fee or other amount payable under such Loan Document, by an amendment, modification or renewal of any Loan Document or otherwise; (c) the time for a Borrower’s (or any other Loan Party’s) performance of or compliance with any term, covenant or agreement on its part to be performed or observed under any Loan Document may be extended, or such performance or compliance waived, or failure in or departure from such performance or compliance consented to, all in such manner and upon such terms as Bank may deem proper; (d) in addition to the Collateral, Bank may take and hold other security (legal or equitable) of any kind, at any time, as collateral for the Obligations, and may, from time to time, in whole or in part, exchange, sell, surrender, release, subordinate, modify, waive, rescind, compromise or extend such security and may permit or consent to any such action or the result of any such action, and may apply such security and direct the order or manner of sale thereof; (e) Bank may discharge or release, in whole or in part, any other Guarantor or any other Loan Party or other Person liable for the payment and performance of all or any part of the Obligations, and may permit or consent to any such action or any result of such action, and shall not be obligated to demand or enforce payment upon any of the Collateral, nor shall Bank be liable to any Guarantor for any failure to collect or enforce payment or performance of the Obligations from any Person or to realize upon the Collateral, and (f) Bank may request and accept other guaranties of the Obligations and any other indebtedness, obligations or liabilities of a Loan Party to Bank and may, from time to time, in whole or in part, surrender, release, subordinate, modify, waive, rescind, compromise or extend any such guaranty and may permit or consent to any such action or the result of any such action; in each case (a) through (f), as Bank may deem advisable, and without impairing, abridging, releasing or affecting this Agreement. 
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1.86Reinstatement.  The guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by Bank upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of a Loan Party, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, a Loan Party or any substantial part of its property, or otherwise, all as though such payments had not been made.
1.87No Waiver by Course of Conduct; Cumulative Remedies.  Bank shall not by any act (except in writing in accordance with Section 12.8), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default, as applicable.  No failure to exercise, nor any delay in exercising, on the part of Bank, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by Bank of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Bank would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.
1.88Enforcement Expenses; Indemnification.  Each Guarantor agrees to pay or reimburse Bank for all its costs and expenses incurred in collecting against such Guarantor under this guaranty or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents to which such Guarantor is a party, including, without limitation, the reasonable fees and disbursements of counsel.  
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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[SIGNATURE PAGE TO LOAN AND SECURITY AGREEMENT]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Closing Date.
BORROWER:
PROCEPT BIOROBOTICS CORPORATION
By: /s/ Kevin Waters    
Name: Kevin Waters    
Title: EVP, Chief Financial Officer    
BANK: 
CANADIAN IMPERIAL BANK OF COMMERCE
By: /s/ Jeff Chapman    
Name: Jeff Chapman    
Title: Assistant General Manager, Authorized 
Signatory, CIBC Innovation Banking    

By: /s/ Corey Perlmutter    
Name: Corey Perlmutter    
Title: Assistant General Manager, Authorized 
Signatory, CIBC Innovation Banking    
			
	274337441 v12

EXHIBIT A
DEFINITIONS
As used in this Agreement, the following capitalized terms have the following meanings:
“Account” means any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to a Loan Party.
“Account Control Agreement” means any control agreement entered into among the depository institution at which a Loan Party maintains a Deposit Account or the securities intermediary or commodity intermediary at which a Loan Party maintains a Securities Account or a Commodity Account, a Loan Party, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account.
“Account Debtor” means any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.
“Affiliate” means, with respect to any Person, each other Person that owns or controls, directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.
“Agreement” has the meaning set forth in the preamble of this Agreement.
“Amortization Date” means the 36th Payment Date following the Closing Date, provided that if (i) no Event of Default has occurred and is continuing, and (ii) Borrower Representative has provided evidence reasonably satisfactory to Bank that it has achieved the Performance Milestone, the Amortization Date shall be automatically extended 48th Payment Date following the Closing Date.
“Anti-Terrorism Order” means Executive Order No. 13,224 as of September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49,079 (2001), as amended. 
“Applicable Margin” means, with respect to SOFR Loans, 2.25% per annum 
“AquaBeam License Agreement” is that certain Amended and Restated Exclusive License Agreement between Borrower Representative and AquaBeam LLC, a California limited liability company, effective as of September 13, 2019, and without any other amendments or changes thereto (other than amendments or other changes that are neither adverse to the interests of Bank (including, without limitation, to Bank’s security interest in the Collateral)  or the Loan Parties nor constitute in the aggregate such transactions that would require Bank’s consent under Section 7 of this Agreement). Borrower Representative shall provide a five (5) Business Days’ prior notice to Bank (along with the then current draft of) each amendment to the AquaBeam License Agreement and no amendments shall be made to the AquaBeam License Agreement when an Event of Default has occurred and is continuing.  
“Bank” has the meaning set forth in the preamble hereof.
“Bank Entities” has the meaning set forth in Section 12.10.
“Bank Expenses” means all reasonable and documented out-of-pocket audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Bank in connection with the Loan Documents.
“Bank Services” means any products, credit services, and/or financial accommodations provided to a Loan Party or any of its Subsidiaries by CIBC, including, without limitation, any Letters of Credit, cash management services  (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in CIBC’s various agreements related thereto, and shall include, without limitation, any of the foregoing made available from time to time.
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“Benchmark Replacement Adjustment” means with respect to any replacement of any SOFR Benchmark Rate with a Replacement Benchmark Rate, 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 Bank (and, if applicable, the Borrower) giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of any SOFR Benchmark Rate with the applicable Replacement Benchmark Rate by the SOFR Administrator or other relevant Governmental Authority or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of any SOFR Benchmark Rate with the applicable Replacement Benchmark Rate for U.S. Dollar bilateral or syndicated business loans. 

“Benchmark Replacement Conforming Changes” means with respect to any replacement of any SOFR Benchmark Rate with a Replacement Benchmark Rate, 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 Bank (and, if applicable, the Borrower) giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of any SOFR Benchmark Rate with the applicable Replacement Benchmark Rate by the SOFR Administrator or other relevant Governmental Authority or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of any SOFR Benchmark Rate with the applicable Replacement Benchmark Rate for U.S. Dollar bilateral or syndicated business loans.
“Board” means, with respect to any Person, the board of directors, board of managers, managers or other similar bodies or authorities performing similar governing functions for such Person. 
“Borrowers” means, collectively, Borrower Representative and each of the borrowers party hereto from time to time, set forth on Schedule 1 hereto. 
“Borrower Representative” has the meaning set forth in the preamble hereof.
“Borrowers’ Books” means all of each Borrower’s books and records including ledgers, federal and state tax returns, records regarding such Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.
“Business Day” means any day that is not a Saturday, Sunday or a day on which commercial banks in the State of New York are required or permitted to be closed.
“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) certificates of deposit issued by any bank with assets of at least $500,000,000 maturing no more than one year from the date of investment therein; (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition and (e) any money market or similar funds under Borrower’s investment policy, as approved by Bank in writing. 
“Change in Control” means (a) at any time, any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means or warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of more than 35% of the ordinary voting power for the election of the members of the board of directors or other equivalent governing body of Borrower Representative (determined on a fully diluted basis) (other than by the sale of Borrower’s equity securities in a public offering or a private placement of public equity); (b) occupation at any time of a majority of the seats (other than vacant seats) on the board of directors of Borrower Representative by Persons who were not (i) directors of Borrower Representative on the date of this Agreement or nominated, or appointed by the board of directors of Borrower Representative or (ii) appointed by directors so nominated, or appointed; or (c) at any time, Borrower Representative shall cease to own and control, of record and beneficially, directly or indirectly, 100% of each class of outstanding Equity Interests of each of its Subsidiaries (other than as a result of a transaction permitted under Section 7.3), free and clear of all Liens (other than Liens permitted under this Agreement).
“Change in Law” means the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any 
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Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 
“CIBC” means Bank, CIBC Bank USA or any other Affiliate of Bank from time to time designated by Bank.
“Claims” has the meaning set forth in Section 12.3.
“Closing Date” has the meaning set forth in the preamble hereof.
“Code” means the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of New York; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.
“Collateral” means any and all properties, rights and assets of Loan Parties described on Exhibit B, and any collateral securing the Obligations pursuant to any other Loan Document.
“Collateral Access Agreement” means an agreement with respect to a Loan Party’s leased location or bailee location, in each case in form and substance reasonably satisfactory to Bank.
“Collateral Account” means any Deposit Account, Securities Account, or Commodity Account of a Loan Party.
“Commodity Account” means any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute. 
“Compliance Certificate” means that certain certificate in the form attached hereto as Exhibit C.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes. 

“Contingent Obligation” means, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

“Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections of a Person in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.
“Credit Authorization” means the authorization to credit a Borrower’s Deposit Account in substantially the form attached as Exhibit F-2.
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“Credit Extension” means the Term Loan or any other extension of credit by Bank for a Borrower’s benefit.
“Currency” means coined money and such other banknotes or other paper money as are authorized by law and circulate as a medium of exchange.
“Debit Authorization” means the authorization to debit a Borrower’s Deposit Account in substantially the form attached as Exhibit F-1.
“Default” means any circumstance, event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.
“Default Rate” means with respect to the Term Loan, an annual rate of interest of 3.0% above the otherwise applicable rate.
“Deposit Account” means any “deposit account” as defined in the Code with such additions to such term as may hereafter be made, and includes any checking account, savings account or certificate of deposit.
“Disqualified Equity Interests” means any Equity Interests of a Loan Party that, by their terms (or by the terms of any security or other Equity Interest into which they are convertible or for which they are exchangeable) or upon the happening of any event or condition: (a)  mature or are mandatorily redeemable or redeemable at the option of the holder thereof, pursuant to a sinking fund obligation or otherwise (except as a result of a change of control, fundamental change, or asset sale); (b) require any scheduled payment of dividends in cash; or (c) are or become convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the Term Loan Maturity Date; provided that if such Equity Interests are issued pursuant to a plan for the benefit of a Borrower or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.
“Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity. 
“Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.  As appropriate, amounts specified herein as amounts in dollars shall refer to a Dollar Equivalent amount.
“Dollars,” “dollars” or use of the sign “$”, except where expressly indicated otherwise means US Dollars.
“Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia.
“EBITDA” means, with respect to any period, (a) Net Income for such period, plus (b)(i) Interest Expense for such period, (ii) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense for such period, (iii) income tax expense for such period, and (iv) any non-cash stock based compensation expenses, minus (c)(i) interest income for such period, (ii) income tax credits for such period, (iii) any research and development costs or software development costs capitalized during such period, and (iv) capitalized lease payments that would constitute operating costs but for ASC 842 during such period.
“Equipment” means all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.
“Equity Interests” means, with respect to any Person, any of the shares of capital stock of (or other ownership, membership or profit interests in) such Person, any of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership, membership or profit interests in) such Person, any of the securities convertible into or exchangeable for shares of capital stock of (or 
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other ownership, membership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and any of the other ownership, membership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
“ERISA” means the Employee Retirement Income Security Act of 1974, and its regulations.
“Event of Default” has the meaning set forth in Section 8.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Excluded Accounts” means (i) Permitted Foreign Accounts, (ii) deposit accounts exclusively used for payroll, payroll taxes, and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower, (iii) zero balance accounts, and (iv) cash collateral accounts for letters of credit or credit cards solely to the extent permitted in each case under Sections 7.4 and 7.5 of this Agreement. 
“Excluded Locations” means the following locations where Collateral may be located from time to time: (a) locations where mobile office equipment (e.g. laptops, mobile phones and the like) may be located with employees in the Ordinary Course of Business, and (b) other locations where, in the aggregate for all such locations, less than $500,000 provided that in no event shall a Loan Party’s chief executive office constitute an “Excluded Location”.
“Excluded Swap Obligation” means, with respect to any Guarantor, any guarantee of any Swap Obligations under a Swap Agreement if, and only to the extent that and for so long as, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation under a Swap Agreement (or any guarantee thereof) is or becomes illegal or unlawful under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at the time the guarantee of such Guarantor or the grant of such security interest would otherwise have become effective with respect to such Swap Obligation under a Swap Agreement but for such Guarantor’s failure to constitute an “eligible contract participant” at such time.
“Excluded Taxes” means, any of the following Taxes imposed on or with respect to Bank or its successor, transferee, participant or assignee under Section 12.2 or required to be withheld or deducted from a payment to Bank or its successor, transferee, participant or assignee under Section 12.2, (a) Taxes imposed on or measured by net income (however denominated), franchise or capital Taxes, and branch profits Taxes, in each case, (i) imposed as a result of Bank or its successor, transferee, participant or assignee under Section 12.2 being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) withholding Taxes imposed on amounts payable to or for the account of Bank or its successor, transferee, participant or assignee under Section 12.2 with respect to an applicable interest in a Credit Extension pursuant to a law in effect on the date on which (A) Bank or its successor, transferee, participant or assignee under Section 12.2 acquires such interest in a Credit Extension or (B) Bank changes its lending office, except in each case to the extent that, pursuant to Section 2.8, amounts with respect to such Taxes were payable either to the Bank’s assignor immediately before Bank became a party hereto or to Bank immediately before it changed its lending office, (c) any withholding Taxes imposed under FATCA, (d) Taxes attributable to the failure of Bank or its successor, transferee, participant or assignee under Section 12.2 to comply with Section 2.8(b), Section 2.8(c) , Section 2.8(d) or Section 2.8(e).
“FATCA” means Sections 1471 through 1474 of the IRC as in effect on the date hereof or any amended or successor version thereof that is substantively comparable and not materially more onerous to comply with (and, in each case, any regulations promulgated thereunder or official interpretations thereof), any applicable agreements entered into pursuant to Section 1471(b)(1) of the IRC, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities with respect to the implementation of the foregoing Sections of the IRC.
“Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any successor thereto. 
“Floor” shall mean, with respect to SOFR Loans, a rate of interest equal to 1.50% per annum.
“Foreign Currency” means lawful money of a country other than the United States.
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“Foreign Subsidiary” means any (i) Subsidiary which is not a Domestic Subsidiary.
“Funding Date” means any date on which a Credit Extension is made to or for the account of a Borrower which shall be a Business Day.
“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination, provided, however, that if there occurs after the Closing Date any change in GAAP that affects in any respect the calculation of any covenant or threshold in this Agreement, Bank and Borrowers shall negotiate in good faith amendments to the provisions of this Agreement that relate to the calculation of such covenant or threshold with the intent of having the respective positions of Bank and Borrowers after such change in GAAP conform as nearly as possible to their respective positions as of the Closing Date, and, until any such amendments have been agreed upon, such covenants and thresholds shall be calculated as if no such change in GAAP has occurred.
“General Intangibles” means all “general intangibles” as defined in the Code in effect on the Closing Date with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.
“Governmental Approval” means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority including for the testing, manufacturing, marketing and sales of its Product.
“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.
“Guarantee Obligation” means as to any Person (the “guaranteeing person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing person that guarantees or in effect guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof. 
“Guarantors” means, collectively, each of the Persons providing a guaranty in favor of Bank with respect or providing collateral, security or other credit support for all or any portion of the Obligations, including the guarantors party hereto, set forth on Schedule 1 hereto.
“Guaranty” means any guarantee of all or any part of the Obligations, in form and substance satisfactory to Bank, as the same may from time to time be amended, restated, modified or otherwise supplemented.
“HydroCision License Agreement” is that certain Confidential Exclusive Patent License and Covenant Not to Sue between Borrower Representative and HydroCision, Inc., a Delaware corporation, dated as of March 14, 2019, and without any other amendments or changes thereto (other than amendments or other changes that are neither adverse to the interests of Bank (including, without limitation, to Bank’s security interest in the Collateral) or the Loan Parties nor constitute in the aggregate such transactions that would require Bank’s consent under Section 7 of this Agreement). Borrower Representative shall provide a five (5) Business Days’ prior notice to Bank (along with the then current draft of) each amendment to the HydroCision License Agreement and no amendments shall be made to the HydroCision License Agreement when an Event of Default has occurred and is continuing. 
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“Immaterial Foreign Subsidiary” means any Foreign Subsidiary that as of the last day of the fiscal quarter of Borrower most recently ended, (i) had gross Revenue for such quarter of less than 5.00% (individually or in the aggregate) of the consolidated gross Revenue of Borrower, (ii) owned total assets for such quarter of less than 5.00% (individually or in the aggregate) of the consolidated total assets of Borrower, and (iii) owned no Intellectual Property other than immaterial Intellectual Property used in the ordinary course of business licensed to such Foreign Subsidiary.
“Indebtedness” of any Person at any time, means (a) indebtedness for borrowed money or the deferred price of property or services, (b) any reimbursement and other obligations for surety bonds and letters of credit, (c) obligations evidenced by notes, bonds, debentures or similar instruments, (d) capital lease obligations, (e) obligations in respect of Disqualified Equity Interests, and (f) Contingent Obligations, (g) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (f) above, (h) all obligations of the kind referred to in clauses (a) through (g) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation and (i) the net obligations of such Person in respect of Swap Agreements. 
“Indemnified Person” has the meaning set forth in Section 12.3.
“Insolvency Proceeding” means any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.
“Intellectual Property” means, with respect to any Loan Party (or, as applicable, any of its Subsidiaries), all of such Loan Party’s or Subsidiary’s right, title, and interest in and to the following:
(a)its Copyrights, Trademarks and Patents; 
(b)any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals;
(c)any and all source code;
(d)any and all design rights which may be available to such Person; 
(e)any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and
(f)all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.
“Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) of Borrower Representative and its Subsidiaries, determined on a consolidated basis and in accordance with GAAP for such period, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower Representative and any of its Subsidiary, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types).
“Interest Period” means, as to any SOFR Loan, (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such SOFR Loan and ending one (1), three (3) or six (6) months thereafter, as selected by the Borrower in its Notice of Continuation, as the case may be, given with respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such SOFR Loan and ending one (1), three (3) or six (6) months thereafter, as selected by the Borrower by irrevocable notice to Bank in a Notice of Continuation not later than 12:00 P.M. on the date that is three (3) Business Days prior to the last day of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the following: (i) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day; (ii) the Borrower may not select an Interest Period 
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under a that would extend beyond the Term Loan Maturity Date; (iii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; and (iv) the Borrower shall select Interest Periods so as not to require a payment or prepayment of any SOFR Loan during an Interest Period for such SOFR Loan.
“Inventory” means all “inventory” as defined in the Code in effect on the Closing Date with such additions to such term as may hereafter be made.
“Investment” means any beneficial ownership interest in any Person (including stock, partnership interest or other securities or Equity Interests), and any loan, advance or capital contribution to any Person, or the acquisition of all or substantially all of the assets or properties of another Person.
“IP Security Agreement” means that certain intellectual property security agreement entered into by each Loan Party which is the owner of Intellectual Property registered with the United States Patent and Trademark Office or United States Copyright Office and Bank as of the Closing Date as may be amended, restated, supplemented or otherwise modified, from time to time.
“IRC” means the U.S. Internal Revenue Code of 1986, as amended.
“IRS” means the U.S. Internal Revenue Service.
“Letter of Credit” means a standby or commercial letter of credit issued by CIBC upon request of a Borrower based upon an application, guarantee, indemnity, or similar agreement.
“Lien” means a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property.
“Loan Documents” means, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement, the IP Security Agreement,  any Guaranty, any Account Control Agreement, any Collateral Access Agreement, any other Security Instruments, any Subordination Agreement, any note, or notes executed by a Loan Party, and any other present or future agreement entered into by a Loan Party with or for the benefit of Bank in connection with this Agreement, all as amended, modified, supplemented, extended or restated from time to time.
“Loan Party” or “Loan Parties” means, each Borrower and each Guarantor, from time to time.
“Margin Stock” has the meaning set forth in Section 5.10(b). 
“Material Adverse Effect” means (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of the Collateral; or (b) a material adverse effect upon: (i) the business, operations, properties, assets or condition (financial or otherwise) of a Loan Party; (ii) the prospect of repayment of any part of the Obligations; or (iii) the ability of Bank to enforce any of its rights or remedies with respect to any Obligations.
“Maximum Rate” has the meaning set forth in Section 2.5(d) hereof.  
“Net Income” means, for any fiscal period, the net profit (or loss), after provision for taxes, of Borrower Representative and its Subsidiaries, on a consolidated basis, for such period.
“New Corporate Headquarters” means the anticipated chief executive office of Borrower Representative, located at 150-180 Baytech Drive, San Jose, CA 95134.
“Non-Excluded Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrowers under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.
“Non-US” means, with respect to any Person, a Person that is organized under the laws of a jurisdiction other than the United States or any state or territory thereof.
“Notice of Continuation” shall mean a notice in the form attached hereto as Exhibit G.  
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Obligations” means all of Borrowers’ and each other Loan Party’s obligations to pay the Credit Extensions when due any debts, principal, interest, fees, Bank Expenses and other amounts any Borrower or such Loan Party owes to Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise (other than any warrant or other equity instrument), including, without limitation, interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of any Borrower or Loan Party assigned to Bank, to perform such Borrower’s or Loan Party’s duties under the Loan Documents, and all obligations pursuant to Bank Services, provided that, in no event shall the Obligations include the Excluded Swap Obligations (other than any warrant or other equity instrument).
“OFAC” has the meaning set forth in Section 5.10(c). 
“Operating Documents” means, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of formation, organization or incorporation on a date that is no earlier than 30 days prior to the Closing Date and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement or operating agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments, restatements and modifications thereto.
“Ordinary Course of Business” means, in respect of any transaction involving any Person, the ordinary course of such Person’s business as conducted by any such Person in accordance with (a) the usual and customary customs and practices in the kind of business in which such Person is engaged, and (b) the past practice and operations of such Person, and in each case, undertaken by such Person in good faith and not for purposes of evading any covenant or restriction in any Loan Document.
“Other Connection Taxes” means Taxes imposed as a result of a present or former connection between Bank and the jurisdiction imposing such Tax (other than connections arising from Bank having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Credit Extension made by Bank pursuant to this Agreement or any Loan Document).
“Other Taxes” means any and all present or future stamp, court or documentary, intangible, recording, or filing Taxes or any other similar Taxes arising from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are (i) Other Connection Taxes imposed with respect to an assignment or (ii) imposed with respect to any assignment or transfer by Bank under Section 12.2 of this Agreement.
“Patents” means all patents, patent applications and like protections of a Person including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same and all rights therein provided by international treaties or conventions.
“Payment Date” is the first calendar day of each calendar month, commencing on November 1, 2022.
“Perfection Certificate” means a perfection certificate, delivered as of the date of this Agreement, as updated from time to time in accordance with this Agreement or as approved by Bank.
“Performance Milestone” means that Borrower Representative shall have provided evidence reasonably satisfactory to Bank that the Loan Parties have achieved either (i) Revenue for the 12-month period then ended equal to or greater than $200,000,000 or (ii) EBITDA for the 6-month period then ended is greater than or equal to $0.
“Permitted Foreign Accounts” means each Collateral Account owned by a Loan Party and maintained at a bank located outside of the United States and Canada, provided that the aggregate held amount in all such accounts shall not exceed (x) $1,000,000 at any time prior to the Revenue Milestone and (y) $1,500,000 at any time from and after the Revenue Milestone. 
“Permitted Indebtedness” means: 
(a)each Loan Party’s Indebtedness to Bank under this Agreement and the other Loan Documents;
(b)Indebtedness existing on the Closing Date and shown on the Perfection Certificate, provided that (i) to the extent the amount of such type of Indebtedness is limited pursuant to a clause of this 
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defined term, amounts existing on the Closing Date or any permitted refinancing thereof shall count towards such limit, (ii) to the extent such Indebtedness is required to be repaid on the Closing Date, in accordance with a payoff letter delivered as a condition to closing, such Indebtedness shall not constitute Permitted Indebtedness after such repayment, and (iii) to the extent any such Indebtedness is required to be made subject to the terms of a Subordination Agreement as of the Closing Date or thereafter, pursuant to the terms of this Agreement, such Indebtedness shall be permitted only to the extent the applicable Subordination Agreement is in effect;
(c)Indebtedness secured by Liens permitted under clause (c) of the defined term “Permitted Liens” hereunder; 
(d)Subordinated Debt;
(e)unsecured Indebtedness to trade creditors incurred in the Ordinary Course of Business;
(f)Indebtedness incurred as a result of endorsing negotiable instruments received in the Ordinary Course of Business; 
(g)Indebtedness constituting a Permitted Investment;
(h)Contingent Obligations of any Subsidiary with respect to obligations of a Loan Party or Subsidiary (provided that the primary obligations are not prohibited hereby); 
(i) any obligations with respect to corporate credit cards or merchant services for the account of Borrower or any Subsidiary in an aggregate amount outstanding at any time not to exceed $1,000,000;
(j)all obligations arising under Swap Agreements, designated to protect Borrowers or a Subsidiary against fluctuation in interest rates, currency exchange rates or commodity prices; provided the aggregate amount of Indebtedness under this clause (i) may not exceed $500,000;
(k)Indebtedness in respect of letters of credit, bank guarantees and similar instruments issued for the account of the Borrower or any Subsidiary in the ordinary course of business supporting obligations under (A) workers’ compensation, unemployment insurance and other social security laws and (B) bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and obligations of a like nature; provided the aggregate amount of Indebtedness under this clause (i) may not exceed $4,000,000 at any given time;
(l)other Indebtedness not otherwise permitted by Section 7.4, not to exceed $500,000 in the aggregate amount outstanding at any time; 
(m)Indebtedness in respect of netting services, overdraft protections and otherwise in connection with deposit accounts; 
(n)unsecured Indebtedness consisting of financing of insurance premiums in the ordinary course of business; and 
(o)extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness described in clauses (a) through (n) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon the applicable Loan Party or any of its Subsidiaries, as the case may be.
“Permitted Investments” means: 
(a)Investments (including, without limitation, Subsidiaries) existing on the Closing Date and shown on the Perfection Certificate, provided that, to the extent any such Investment is of a type described in any other clause of this defined term, any such Investment set forth on the Perfection Certificate shall count against any applicable limit;
(b)(i) Investments consisting of Deposit Accounts maintained in accordance with this Agreement, (ii) Cash Equivalents, and (iii) any Investments permitted by Borrower Representative’s 
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investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Bank;
(c)Investments consisting of repurchases of Borrower Representative’s Equity Interests to the extent permitted under Section 7.7, 
(d)Investments (i) among the Loan Parties, and (ii) in Subsidiaries which are not Loan Parties in an aggregate amount not to exceed 5% of Borrower’s and its Subsidiaries’ consolidated operating expenses per fiscal year (determined on an annual basis as set forth in the financial projections delivered pursuant to Section 6.2(c));
(e)Investments not to exceed $500,000 outstanding in the aggregate at any time consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the Ordinary Course of Business, and (ii) loans not involving the net transfer of cash proceeds to employees, officers or directors relating to the purchase of Equity Interests of Borrower Representative pursuant to employee stock purchase plans or other similar agreements approved by Borrower Representative’s Board;
(f)Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the Ordinary Course of Business; 
(g)Investments consisting of accounts receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the Ordinary Course of Business; provided that this clause (g) shall not apply to Investments of a Loan Party in any Subsidiary; 
(h)joint ventures or strategic alliances in the ordinary course of the applicable Borrower’s business consisting of the non-exclusive licensing of technology (or if exclusive constitutes a Permitted License), the development of technology or the providing of technical support, provided that any cash investments by such Borrower do not exceed $500,000 in the aggregate in any fiscal year; 
(i)Investments constituting Swap Agreements designated to protect Borrower or a Subsidiary against fluctuation in interest rates, currency exchange rates or commodity prices; provided, that the aggregate amount of Investments allowed under this clause (i) shall not exceed $500,000 in any given fiscal year;
(j)Investments consisting of Deposit accounts maintained in accordance with Section 6.6; 
(k)Investments in connection with Dispositions permitted by Section 7.1;
(l)Investments consisting of the creation of a Subsidiary for the purpose of consummating a merger transaction permitted by Section 7.3 of this Agreement, which is otherwise a Permitted Investment and
(m)other Investments not otherwise permitted by Section 7.7 not to exceed $500,000 in any given fiscal year. 
“Permitted Licenses” are (A) licenses of over-the-counter software that is commercially available to the public; (B) non-exclusive and exclusive licenses for the use of the Intellectual Property of a Loan Party or any of its Subsidiaries entered into in the ordinary course of business, provided, that, with respect to each such license described in clause (B), (i) no Event of Default has occurred or is continuing at the time of such license; (ii) the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of any Intellectual Property and do not restrict the ability of the Loan Parties or any of their Subsidiaries, as applicable, to pledge, grant a security interest in or lien on, or assign or otherwise Transfer any Intellectual Property; (iii) in the case of any exclusive license, (x) Borrower Representative delivers written notice to Bank on the then-next compliance certificate of any such license and a brief summary of the terms of any such license that is material to the business of Borrowers when taken as a whole and delivers to Bank copies of the final executed licensing documents in connection with such exclusive license together with such written notice, and (y) any such license could not result in a legal transfer of title of the licensed property but may be exclusive in respects other than territory and may be exclusive as to territory only as to discrete geographical areas outside of the United States; and (iv) all upfront payments, royalties, milestone payments or other proceeds arising from the licensing agreement that are payable to Borrower or any of its Subsidiaries are paid to a Collateral Account held at CIBC; (C) the licenses 
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granted by Borrower under the AquaBeam License Agreement; and (D) licenses granted by Borrower under the HydroCision License Agreement.
“Permitted Liens” means:  
(a)Liens arising under this Agreement and the other Loan Documents;
(b)Liens existing on the Closing Date and shown on the Perfection Certificate;
(c)purchase money Liens (i) on Equipment acquired or held by a Loan Party or Subsidiary thereof incurred for financing the acquisition of the Equipment, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment, provided that the aggregate amount of Indebtedness secured by such Liens, plus the aggregate amount outstanding pursuant to operating leases with respect to Equipment of Loan Parties and their Subsidiaries, at any time shall not exceed $1,000,000 at any time;
(d)Liens for Taxes, fees, assessments or other government charges or levies, either (i) not yet delinquent or (ii) being contested in good faith and for which such Loan Party or Subsidiary maintains adequate reserves on its books;
(e)leases or subleases of real property granted in the Ordinary Course of Business of such Person, and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the Ordinary Course of Business of such Person;
(f)Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the Ordinary Course of Business so long as such Liens attach only to Inventory, which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto;
(g)Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the Ordinary Course of Business (other than Liens imposed by ERISA);
(h)Liens, deposits or pledges of cash to secure bids, tenders, contracts (other than contracts for the payment of money), surety and appeal bonds and other obligations of a like nature arising in the Ordinary Course of Business, not exceeding $8,000,000 in the aggregate at any time; provided that, upon the later to occur of (x) the date on which Borrower has completed its relocation to, and build out of, the New Corporate Headquarters or (y) December 31, 2023, Bank may, in its reasonable discretion, reduce the amount of Indebtedness permitted to be secured by such Liens; provided that Bank shall not reduce such permitted amount below $1,000,000 outstanding at any time;
(i)Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default; 
(j)Liens in favor of other financial institutions arising in connection with a Deposit Account or Securities Account of a Loan Party or Subsidiary thereof held at such institutions, securing customary fees and charges associated with the maintenance of such Collateral Account;
(k)easements, reservations, rights-of-way, restrictions, minor defects or irregularities in title and other similar Liens affecting real property not interfering in any material respect with the ordinary course of the business of Borrower;
(l)Liens or deposits to secure the performance of leases incurred in the ordinary course of business and not representing an obligation for borrowed money and Liens to secure tenant improvements, provided the lessor thereof has executed a landlord consent in favor of, and in form and content reasonably acceptable to, Bank; provided, however, the sum of the aggregate amount of the Indebtedness secured by such Liens and the aggregate amount of such deposits at any given time may not exceed $8,000,000; provided that, on the later to occur of (x) the date on which Borrower has completed its relocation to, and build out of, the New Corporate Headquarters or (y) December 31, 2023, Bank may, in its reasonable discretion, reduce the amount of Indebtedness permitted to be secured by such Liens; provided that Bank shall not reduce such permitted amount below $1,000,000 outstanding at any time.
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(m)Liens consisting of Permitted Licenses; 
(n)Liens in favor of customs and revenue authorities arising as a matter of law, in the ordinary course of Borrower’s business, to secure payment of customs duties in connection with the importation of goods;
(o)other Liens not otherwise permitted hereunder securing indebtedness not to exceed $500,000 as long as such Liens secure only specific assets and not “all assets”; 
(p)customary Liens of any bank in connection with statutory, common law and contractual rights of setoff and recoupment with respect to any deposit account or securities account of Borrower, provided that (i) Bank has a first priority perfected security interest in such account and (ii) such account is permitted to be maintained pursuant to Section 6.6 of this Agreement; 
(q)Liens arising from the filing of any precautionary financing statement on operating leases covering the leased property, to the extent such operating leases are permitted under this Agreement; and 
(r)Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in clauses (a) through (q), but any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.
“Permitted Transfers” means:
(a)sales, consignments and other Transfers of Inventory by a Loan Party or any of its Subsidiaries in the Ordinary Course of Business;
(b)Permitted Licenses;
(c)dispositions of worn-out, obsolete or surplus Equipment in the Ordinary Course of Business that is, in the reasonable judgment of such Loan Party or Subsidiary, no longer economically practicable to maintain or useful;
(d)Transfers consisting of the granting of Permitted Liens and the making of Permitted Investments;
(e)the use or transfer of money or Cash Equivalents in the Ordinary Course of Business for the payment of ordinary course business expenses in a manner that is not prohibited by the Loan Documents; and 
(f)other Transfers of assets having a fair market value of not more than $500,000 per fiscal year of Borrower Representative.
“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.
“Products” means any material products manufactured, sold, developed, tested or marketed by a Loan Party or any of its Subsidiaries.
“Registered Organization” means any “registered organization” as defined in the Code with such additions to such term as may hereafter be made.
“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto. 
“Requirement of Law” means as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
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“Responsible Officer” means with respect to any Person, any of the Chief Executive Officer, President or Chief Financial Officer of such Person.  Unless the context otherwise requires, each reference to a Responsible Officer herein shall be a reference to a Responsible Officer of Borrower Representative.
“Restricted License” means any material license or other material agreement (other than ordinary course customer contracts, research and development contracts, consulting agreements, off the shelf software licenses, licenses that are commercially available to the public, open source licenses, application programming interfaces (APIs) and/or other trademarks, copyrights or patents of others that are commercially available to the public under shrinkwrap licenses, clickwrap licenses, online terms of service or other terms of use or similar agreements) with respect to which a Loan Party or any of its Subsidiaries is the licensee (a) that prohibits or otherwise restricts such Loan Party or Subsidiary from granting a security interest in such Loan Party’s or Subsidiary’s interest in such license or agreement or any other property, or (b) for which a default under, or termination of which, could reasonably be expected to interfere with the Bank’s right to sell any Collateral, in each case other than as a result of customary anti-assignment provisions.
“Revenue” means revenue, in accordance with GAAP, of Borrower Representative and each of its Subsidiaries, on a consolidated basis. 
“Revenue Milestone” means, as determined on the last day of any fiscal month, Borrower shall have achieved Revenue equal to or greater than $200,000,000 for the consecutive 12-month period ended as of the month ending immediately prior to the measurement date.
“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria).
“Sanctioned Person” means a Person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of the Anti-Terrorism Order or other Sanctions.
“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by OFAC or other relevant sanctions authority.
“Sanctions and Anti-Corruptions Laws” means applicable Sanctions, the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other applicable anti-corruption legislation in other jurisdictions, in each case, as in effect from time to time. 
“SEC” means the United States Securities and Exchange Commission.
“Securities Account” means any “securities account” as defined in the Code with such additions to such term as may hereafter be made.
“Security Instrument” means any security agreement, assignment, pledge agreement, financing or other similar statement or notice, continuation statement, other agreement or instrument, or any amendment or supplement to any thereof, creating, governing or providing for, evidencing or perfecting any security interest or Lien.
“Shares” means 100% of the issued and outstanding Equity Interests owned or held of record by a Loan Party in each of its Subsidiaries; provided that, in the case of a Foreign Subsidiary directly owned by a Loan Party, “Shares” shall mean sixty-five percent (65%) of the issued and outstanding Equity Interests directly owned by such Loan Party in such Foreign Subsidiary.
“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator. 
“SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). 
“SOFR Benchmark Rate” means the Term SOFR Rate. 
“SOFR Loan” means a Term Loan that bears interest at a rate based on the Term SOFR Rate.
“Streamline Period” means on and after the Closing Date, provided no Event of Default has occurred and is continuing, the period (a) commencing on the first day of the month following the day that Borrower provides to 
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Bank a written report that Borrower has, at all times during the immediately preceding calendar month, maintained Unrestricted Cash, as determined by Bank in its reasonable discretion, of at least One Hundred Million ($100,000,000) (the “Threshold Amount”); and (b) terminating on the earlier to occur of (i) the occurrence of an Event of Default, or (ii) the first day thereafter in which Borrower fails to maintain the Threshold Amount, as determined by Bank in its reasonable discretion. Borrower shall give Bank prior written notice of Borrower’s election to enter into any such Streamline Period, and each such Streamline Period shall commence on the first day of the monthly period following the date Bank determines, in its reasonable discretion, that the Threshold Amount has been achieved.
“Subordinated Debt” means unsecured Indebtedness incurred by a Loan Party on terms acceptable to Bank and that is subject to a Subordination Agreement.
“Subordination Agreement” means any subordination agreement entered into from time to time in favor of Bank, in form and substance satisfactory to Bank, in Bank’s discretion.
“Subsidiary” means, with respect to any Person’s, any corporation’s, partnership’s, limited liability company’s Equity Interest of which by the terms thereof, such Person has the ordinary voting power to elect the Board of that Person, at the time as of which any determination is being made, is owned or controlled by such Person, either directly or through an Affiliate.  Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of a Loan Party.
“Swap Agreement” means any agreement with respect to any swap, hedge, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Loan Party and its Subsidiaries shall be a “Swap Agreement”.
“Swap Obligation” means with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.
“Tax” and “Taxes” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction or withholding (including backup withholding), imposed by any Governmental Authority, including any interest, additions to tax and penalties applicable thereto.
“Termination Date” means the date (i) the Obligations (other than contingent indemnification obligations as to which no claim has been asserted or is known to exist and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full in cash, (ii) all commitments to extend credit pursuant to this Agreement have been terminated, and (iii) all Bank Services which are to survive the termination of this Agreement have been secured by cash collateral in an amount and on terms required by Bank.
“Term Loan” has the meaning set forth in Section 2.3 hereof.
“Term Loan Maturity Date” means the 60th Payment Date following the Closing Date.
“Term SOFR Rate” means, for any calculation with respect to a SOFR Loan, the rate per annum equal to the greater of (a) the sum of (i) the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “TS Determination Day”) that is two (2) Business Days prior to the first day of such Interest Period, in the case of Interest Periods of one (1), three (3) or six (6) months or such other tenors as may be published from time to time, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any TS Determination Day, a Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, then the Term SOFR Rate will be the Term SOFR Reference Rate for the applicable tenor as published by the Term SOFR Administrator on the first Business Day preceding the TS Determination Day for which a Term SOFR Reference Rate was published by the Term SOFR Administrator for the applicable tenor so long as such first preceding Business Day is not more than three (3) Business Days prior to such TS Determination Day plus (ii) the Term SOFR Adjustment and (b) the Floor.
“Term SOFR Adjustment” shall mean a percentage per annum equal to (a) with respect to an Interest Period of one (1) month, 0.10%, (b) with respect to an Interest Period of three (3) months, 0.15%, and (c) with respect to an Interest Period of six (6) months, 0.25%.
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“Term SOFR Administrator” means the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of forward-looking term rates based on SOFR selected by Bank in its reasonable discretion). 
“Term SOFR Reference Rate” means, the forward-looking term rate based on SOFR for such tenor.
“Trademarks” means any trademark and servicemark rights of a Person, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business connected with and symbolized by such trademarks.
“Transfer” means to convey, sell, lease, transfer, assign, or otherwise dispose of. 
“Unrestricted Cash” means the result of (i) aggregate amount of unrestricted and unencumbered cash of the Loan Parties maintained with CIBC minus (ii) all outstanding checks written by Borrowers that have not been cashed or otherwise processed.
“US Dollars” means lawful money of the United States of America. 
“Voting Stock” means, with respect to any Person, all classes of Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors or managers (or Persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.
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EXHIBIT B
COLLATERAL DESCRIPTION
The Collateral consists of all of each Loan Party’s right, title and interest in and to the following personal property wherever located, whether now owned or existing or hereafter acquired, created or arising:
All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all such Loan Party’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds (both cash and non-cash) and insurance proceeds of any or all of the foregoing.
Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and no Borrower shall be deemed to have granted a security interest in, any of such Borrower’s right, title or interest in any of the following property (collectively, the “Excluded Property”): (i) Equity Interests, in excess of 65%, in Foreign Subsidiaries that are directly owned by a Loan Party, (ii) any assets (including Subsidiaries) of any Immaterial Foreign Subsidiary, (iii) any interest of Borrower as a lessee or sublessee under a real property lease, (iv) any other lease, license, contract, or agreement, as such, or the assets subject thereto, if under the terms of such lease, license, contract, or agreement, or applicable law with respect thereto, the valid grant of a security interest or lien therein or in such assets to the Bank is prohibited and such prohibition has not been or is not waived or the consent of the other party to such lease, license, contract, or agreement has not been or is not otherwise obtained or under applicable law such prohibition cannot be waived, (v) Excluded Accounts and (vi) any intent-to-use trademarks.
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